Most Crypto Exchange Platforms Prone to Vulnerabilities
There are many weaknesses in security attached to digital trading platforms that make them liable to major losses and hacking. Already major hacks have taken place, with the latest one affecting Zaif, the trading platform from Japan.
Furthermore, today a hack that affects just one exchange will not spread any more to the rest of the market, but major losses can still affect some users. The number of digital exchanges available today has exceeded two hundred with that number continuously growing. So, if one exchange falls victim to hacking, a market drop will not follow which could have been the result before. Many countries are starting to see the importance of regulatory structures for cryptocurrency platforms and have already put them in place, but no one is totally immune from facing loss of their digital funds.
There are various types of exchange vulnerabilities such as console errors, security of the registrar and domain, and also the security of web protocols and smart contracts, which are especially crucial for DEX platforms, but could affect tokens too and hurt any exchange no matter its type.
Research found that as little as 14.5% use a registrar lock as a form of security. Many others use role accounts, domain expiration, registry lock, or domain name systems security extensions. Most exchange platforms have small or insignificant defects that can be taken advantage of.
Increasing Security for Exchanges
Experts within the industry urge crypto platforms to always keep looking for and removing any vulnerabilities attached to their exchanges. This move will help protect any weak point of entrance for a hacker and prevent the spread of any compromise if it happens from affecting the whole platform. Using programs such as HacherOne and the like can encourage users to report any weaknesses in the system rather than take advantage of the breach.
The most important thing is to establish a sense of huge dedication to security measures within the firm so as to prevent any attacks as soon as possible, particularly phishing cyber attacks and hacks in social engineering.
This year has marked the most notable in terms of hacks on exchange platforms, with far more attacks that took place when compared to the previous year, and the total amounts stolen. These attacks include hacking coins and smart contracts.