Many crypto exchanges lack Hardware security models (HSM/HSP) where the crypto needs more than one signature to move. HSM aims at managing cryptographic keys and offers accelerated cryptographic operations using such keys. KYC is just for namesake, the KYC is not actually done or verified. The must be a reporting system to a regulator. Many Exchanges don't have 2 FA and IP locking mechanism which is vulnerable. Many other things such as PGP etc also are not available in most exchanges.
When users engage in cryptocurrency trade, they know that exchanges hold their funds on their behalf. Therefore, it is crucial to offer a security system that is designed to keep users’ data and digital assets safe.
Clearly, we have seen huge security threats to crypto exchanges and users. Cryptocurrency thefts have crossed $4 billion in 2019, a serious jump from $1.7 billion for the entire 2018. Blockchain industry’s core issues largely revolve around poor user account safety, leading to hacks which are followed by fragile asset retrieval processes. Most crypto exchanges lack a holistic security ecosystem; poor account safety and fund recovery systems, slow blockchain speed that leads to frustrating waiting time for transactions.
However, advanced technologies in public blockchain have the power to push the limits of blockchain technology to achieve security, scalability, and sustainability.
GateChain, an upcoming blockchain dedicated to funding safety and decentralization is maybe a practical solution to most problems around fund safety. Its innovative public blockchain comes with several unique features such as on-chain-safety- account and customizable-time –delay-recovery feature to guarantee asset safety even after the leakage or destruction of the private keys.
In 2019, $4 billion are gone in cryptocurrency thefts. Cryptocurrency exchanges lack a holistic security ecosystem for user security and fund safety and need to look into various dimensions of user security to radically increase user trust and prevent crypto hacks.
Many cryptocurrency exchanges right now are difficult to use for someone who is not tech-savvy. It’s obvious that basic knowledge of computer isn’t enough for an intending crypto trader. Crypto exchanges have a lot of terminologies that may be difficult for users to understand. Therefore, intending traders need time to study this before becoming a trader.
GOOD CUSTOMER SUPPORT
Corporate structure and customer service are another two things which are crucial for new upcoming exchanges to look at. Many exchanges both old and newly launched lack good customer support.
Source: Sidharth Sogani, Marie Tatibouet .
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