Bitcoin has built a solid foundation in the cryptocurrency world, since 2010. Within the last 12 years, hundreds of cryptocurrencies have popped up. Scammers and hackers have managed to steal a significant amount of cryptos from exchanges. The crypto landscape is flourishing and a large volume of crypto needs reliable accountability and a stronger security system.

Crypto acceptance is progressing slowly but will stall if security is not improved. Nevertheless, there are private digital asset exchanges like Suissebase allowing banks to transfer crypto in FIAT fees safely and securely. Do note that cryptocurrency is still unregulated. Banks and brokerage firms have insurance for the security of their funds but it is impossible with digital currency exchanges.

Strategies cryptocurrency exchanges employ

2-factor authentification

Passwords stay intact until cracked. Users may not be able to come up with a strong word or may be using the same word across multiple accounts. This can cause a password breach via keylogging and the hacker will steal the crypto as soon as they can. 2-FA allows adding an extra protection layer beyond the password. It can be an e-mail or text message.

Cold wallet storage

Suissebase uses a hybrid cold and hot wallet. 95% of their customer’s digital assets are stored in an offline cold wallet. As a cold wallet is not linked directly to the internet, the risk of it getting stolen is negligible. The hot wallet plays the role of a liquid deposit allowing users to make withdrawals.

Message alerts

Notifies account holders about payments debits and credits from their accounts. The account holder gets cautious before something disastrous occurs. Some exchanges send withdrawal email notices with the option of clicking an active button. You can annul the transaction or seal your account if you detect suspicious activity on your account.

Insurance

In banks, your money is insured against bank failure or theft. Crypto exchanges carry no insurance as they are not government-regulated. However, with the increase in demand for crypto exchanges, there is a need for taking responsibility for the cryptos getting stolen from their exchange.

Security audits

Periodic security audits may detect susceptibilities in a white-label exchange but even increase crypto investors’ trust and brand credibility. Many countries depend on audits to guarantee regulatory framework compliance. Fraud and money laundering must be restricted to gain great confidence.

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Anti-fraud program

Large crypto exchanges handle cryptos in billions, so they are at the highest risk of cyber-attacks. The exchange personnel needs to be skilled in detecting and preventing fraud before it happens. Some exchanges conduct bug bounty programs, where people report security weaknesses instead of stealing. Rewards are offered to encourage independent ethical hackers [security experts].

Fraudsters and hackers are always ahead, so choose a cryptocurrency exchange with a solid security policy. Without a robust cybersecurity protocol, the exchange is at risk of unexpected events sooner or later.

Suissebase offers digital assets that are most promising. It is also integrated with the digital bank and offers bank-grade security practices.