How bitcoin exchanges are hacked?

Find out how bitcoin exchanges are getting hacked, and how we can prevent the occurrences of hacking in this article

Posted November 11,2018 in Science and Technology.

stacey roberts
52 Followers 40 Views

The reason behind bitcoin exchanges hacks and data security breaches

First of all, it is important to understand bitcoin transactions are done in virtual form and all the digital assets are stored in a cloud storage. So it is common, that cloud storage often get hacked.

How Hacking Happens?

The main target of Hackers is Bitcoin Exchange Online cloud storage services which stores the private keys of large number of users. The hacking is made of sending phishing emails, malicious files, Injecting malware in to the exchange code and etc.

The another way of hacking is, hackers keep tracking the social medias for cryptocurrency conversations and collect the investors phone number also emails if they investors dropped it in anywhere. And then they take control over the phone number by posing as victim to the customer service providers.

After getting control over the phone number, they hack the victims exchange account by resetting the password along with the phone number. This is calledPhone Porting attack.

HOW TO PREVENT HACKING ATTACKS IN CRYPTOCURRENCY EXCHANGES ?

From traders end:

A cryptocurrency expert Amir bandaeli, who lost 18% of his cryptocurrency investment in Bifinex attack, inspired him to build decentralized exchanges. And he believes this will be the future of cryptocurrency industry.

Jonathan, CO- Founder of Chainalysis advised cryptocurrency traders to keep separate email for cryptocurrency trading, and never reveal it to anyone. Also he advised set a really hard and longer password.

Dan Romeo, Vice president of Operation at coinbase.

Turn off SMS based two factor authentication, to avoid phone porting attack.

Sean Everett, VP of product management, shared his opinion on coinbase phone porting attack

1. Dont share any thoughts, converstatoin on social medias about your cryptocurrency activities

2. By contacting your phone services provider, enable muti level security establishments that you can do.

Adam Dachis, Digital consultantadvised that dont keep all your investments in one place. Better diversify it among several exchanges, so that you can prevent your loss of ratio.

Sanjay Beri, CEO of Netskope

Better start using cold wallet which is entirely offline, so that we can safeguard of private keys. But be aware whether your pocket has holes.

From exchanges end:

We cant entirely prevent hacking but we can reduce the amount of occurrences. There is only one solution to prevent all these hackings.

We can prevent all these unexpected hacks by Making the exchanges Decentralized.

What are decentralized exchanges?

Difference between centralized Exchanges and Decenralized Exchanges

Better make the exchange website with fully developed Decentralized Exchange Script and ensure the following things are added with your website.

Tricks to build secured bitcoin exchange:

1. Ensure your website is made up of bug less, and solid secured bitcoin exchange source code

2. Integrate DDOS Attack prevention

3. Integrate Cross site scripting protection

4. Anti CSRF Protection

5. Prevent Click Jacking Attacks

And lot more.. security features

Wrapping up..

Hacks in cryptocurrency network are common, but with proper security features we could reduce the occurrences. By deploying full featured bitcoin exchange and by integrating decentralization concept we could achieve it. We at bitdeal help you to develop solid secure bitcoin exchange website, by providing secured bitcoin exchange script, and decentralized exchange script. You can ask free demo at bitdeal anytime!

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