Since cybercriminals target cryptocurrency exchange platforms, cybersecurity is a top priority for bitcoin exchange. Given the semi-anonymous status of bitcoin and other cryptocurrencies, hackers can steal funds and quietly exchange them for cryptocurrency. It has prompted many reputable crypto coin trading platform to invest in new and advanced security measures to better protect their users’ funds.
If you want to invest in an exchange and wonder how to start your bitcoin exchange, check out the following tips for creating a secure exchange.
Two-factor authentication
To improve the security of individual business accounts, most exchanges use two-factor authentication when their users log into their business accounts. Two-factor authentication requires users to provide their username and password, as well as a confirmation code will be sent via automatic voice call. Even if someone steals the login credentials, they will not access the user account as a verification code is required to log in.
Time locks
An innovative solution to secure bitcoin transactions, especially during withdrawal, is to use temporary locks that require two keys and a certain period to complete a bitcoin transaction. For example, one key is needed to start a trade, and a second key is required to complete the transaction. If the second key is not used to confirm the transaction, it is canceled, making it nearly impossible for hackers to withdraw funds.
Multi-signature
Multisig, short for multi-signature, requires more than one private key to authorize a Bitcoin transaction. Many major exchanges use this technology to protect their users’ wallets and provide an additional layer of security.
Cold storage
It is helpful for those who trade expensive bitcoins. Since coins are not stored on the Internet, it is nearly impossible for hackers to access users’ funds.
Insurance policies
Another way to increase the exchange’s security is to purchase an insurance policy that covers cyberattacks and any losses due to technical failures. You can buy special Bitcoin exchange insurance covering losses due to operational problems, cyber theft, and employee theft.
With the increased bitcoin trading and the increase in daily transactions on exchanges, cybersecurity has become a must. Many major exchanges adopt advanced technologies to enhance their security and provide their users with a platform that enables safe, fast, and smooth trading.
Summary
When looking for tips on creating your bitcoin exchange, be sure to focus on these tips for building a highly reliable exchange platform. It will help generate interest from potential investors in your exchange. Also, emphasize making your platform user-friendly so that it is easy for your target audience to understand.