Research conducted by Crystal Blockchain and Cointelegraph reveals a startling revelation: nearly $15.6 billion was stolen from cryptocurrency exchanges between 2011 and 2020. Over 25% of all documented cryptocurrency hacks exclusively targeted sales.
Forbes announces that cybercriminals exploited the weak security measures of hot exchange wallets as their primary modus operandi, while platform owners occasionally orchestrated exit scams, further victimizing unsuspecting consumers. These findings shed light on the significant risks and vulnerabilities present within the crypto exchange ecosystem.
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How hackers target cryptocurrency exchange
According to Traders Union, hackers continuously look for openings in cryptocurrency exchanges to allow them unauthorized entry. There are five main techniques used.
Using cross-site scripting
The majority of internet trading systems are exposed to Cross-Site Scripting (XSS) assaults, according to Traders Union. Such attacks, which frequently try to steal passwords or alter clipboard material, entail injecting malicious code into websites, diverting users to dangerous third-party websites, or infecting devices with malware.
Misconfiguration
According to Traders Union, web terminals frequently lack crucial HTTP headers, strengthening resistance against hacker attempts. These include Strict-Transport-Security, which requires secure HTTPS connections; the X-Frame-Options, which fights to clickjack; and the Content-Security-Policy, which prevents content injection like XSS.
Exchange of coding weaknesses
According to Coverity Scan, there are around 0.3 security-related errors for every 1000 lines of code. While exchanges may maintain error-free code, Traders Union emphasizes that third-party software vulnerabilities, such as those in operating systems or payment gateways, might be exploited for phishing or malware attacks.
Smart contract weaknesses
Traders Union warns that hackers may take advantage of bugs in the smart contract code of a wallet to seize control of funds. If numerous wallets have the same vulnerability, such exploits could execute bulk assaults or target specific wallets.
Using social engineering
As Traders Union cautions, con artists impersonating exchange representatives may frequently access employee computers using spear phishing to obtain secret keys after months of work. False mobile apps can make it easier to break into specific user accounts.
Security measures of crypto exchanges
TU researchers underline the use of different security measures by Bitcoin platforms to thwart hacking efforts. Here are some essential techniques:
- The most popular security technique, multi-factor authentication, requires users to submit a one-time password, often sent through phone or email, to authenticate each transaction. Applications like Google Authenticator may be used for advanced multi-factor authentication.
- Access to Bitcoin wallets requires numerous keys owned by various people. This approach is only successful if all signatories are distinct from one another.
- Transferring money between a hot and cold wallet improves security. Cold wallets should retain the majority of cash due to physical security measures and probable multi-signature systems. Only for transactions are crypto keys uploaded to the internet.
- With the addition of a waiting period before complete control, this protocol secures currencies using a two-stage security mechanism with two different keys.
Best 5 secured crypto exchanges
Traders Union picks the following Bitcoin exchanges:
- Bybit: Bybit continues to hold the top rank and is renowned for its proficiency in trading bitcoin derivatives, particularly futures and perpetual contracts.
- OKEx: Offers trading services such as spot, futures, and options trading.
- Binance: A well-known exchange that trades cryptocurrencies, Binance keeps its position as the top exchange by providing spot, futures, and token trading services.
- Huobi Global: Offers various services, including trading in cryptocurrencies, futures, options, and foreign currency.
- KuCoin: KuCoin, renowned for its broad selection of services, offers assistance with trading cryptocurrencies, futures, and foreign currency.
Traders Union has carefully selected HitBTC and other well-known exchanges for their specific offerings. Bybit leads in bitcoin derivatives, OKEx provides diverse services including futures, options, and spot trading. Binance dominates with extensive spot, futures, and token trading. Huobi Global covers cryptocurrency, futures, options, and forex. KuCoin offers varied trading services.
Conclusion
The trade of cryptocurrencies is still developing and offers both benefits and difficulties. Trading success depends on keeping up with the latest trends, security precautions, and platforms with the best performance. The Traders Union website has additional in-depth research, reviews, and current information; visit for more info.