One major factor which has been seen the bliss in the crypto market cut short is cryptocurrency exchanges. Cryptocurrencies have been an integral member of the cryptocurrency journey till now. They are the means to which cryptocurrencies get traded, and it’s somewhat the gateway into the crypto world for new investors.
Recent woes in the crypto market, however, is partly linked to the series of hacks that have plagued cryptocurrency exchanges for years now. The hacking problem has deteriorated this year as hacking incidents have been happening on a daily basis and to large crypto firms which logically one will think have better security measures in place because of their status.
The recent of these hacks happened 2 weeks ago when hackers stole about $59 million from Zaif, a crypto exchange base in Japan. Reports suggest that the hack occurred in the second week of September and the company lost about 5,965 BTC, with a value of over $6,000 each. The exchange also lost some undisclosed amount of Bitcoin Cash and Monacoin.
You may think these recent events would push Crypto exchanges to step up their security game, but that seems not to be the case. The last thing on the ‘to-do’ list of crypto investors would be to lose all their investment in this wild market, not due to volatility but rather a carelessness of behalf of crypto exchanges which also owns most of the online crypto wallets.
A recent study has found out that, crypto exchanges haven’t aren’t doing much in keeping their customers safe. The crypto trend is changing every day but one thing that stills remain constant is hacking and should be treated as the significant problem it is.
A survey examining over 100 exchanges with substantial daily volumes exceeding $1m, has revealed that those exchanges still have big loopholes which hackers can easily exploit.
The loopholes included exchanges allowing new users to create accounts with a traceable email address, no email verification is accounts creation, allowing passwords with fewer than 8 words, lack of 2 Factor Authentication, and allowing digits only or letters only passwords. Just 4% of the 100 crypto exchanges came out perfect for Domain Security, an alarming figure, given the recent rate at which hacking incidents are occurring.
The results were surprising as some huge names failed to live up to their status. Binance, for instance, is the largest exchange by volume but came 17th of the list of most secured crypto exchanges. So far as the crypto market continues to thrive, hackers will be around to take advantage of any little form of a slip-up, and it’s about time crypto exchanges take them seriously.