As cryptocurrency exchanges normally centralized, they’re often attacked by hackers. As per an Exchange Security Report by ICORating, “over way back when 8 years about 31 crypto exchanges have been completely hacked and most 1 billion dollars [sic] stolen.” Making matters worse, you cannot find any refund process if cryptocurrencies are stolen. Some exchanges have insurance-backed funds, however it is not many.
There now are over 200 exchanges you can get, and the number is quickly growing. But, during this time, you will never guarantee the protection of assets on centralized platforms.
In spite in this lack of absolute security, some exchanges handle their assets far better than others. To calculate the right ones, ICORating judged exchanges while using following metrics:
- Console errors: coding mistakes that may lead to vulnerability.
- User account security: passwords, 2FA, and e-mail verification.
- Registrar and domain security: weaknesses through the registrar and domain segments of your platform.
- Web protocols security: protection against various attacks.
Also, the bunch only examined exchanges by using a daily trade value over one million USD. Thus, there are 100 exchanges within the report, sorted by the combined rating with the stats above mentioned.
Coinbase Pro Comes in at Number 1
Based on these statistics, Coinbase Pro scored very high with an 89/100 overall. The U.S.-based exchange hit perfect scores in three of your four domains, falling simply to a 3.5/5 in Registrar and Domain Security. Favorite exchanges like Kraken and Bittrex started in at 2nd and 13th, with countless 80 and 66, respectively. Interestingly, Binance, the worlds fastest-growing exchange, is 17th, with only a 63 rating.
A Shocking Deficiency of Security
As the numbers move downwards, it’s shocking to see so many platforms which have been found short on security for assets. Some exchanges, for instance Bibox or Poloniex, scored a 60 minute or two outside of five regarding web security. In actual fact, twenty-nine percent in the exchanges had very little to show for everybody categories.
Of course, the cryptocurrency companies are still in its bristling infancy. However, this sort of lack of reliability is often a obstacle standing in the way of digital assets breaking into the mainstream. Hopefully, a number of these platforms will invest in better precautionary features soon.