Assalam-U- Alaikum

How are you all steemians? I hope you all steemians will be safe and sound by the grace of Allah Almighty and I'm fine too Alhamdulillah. Today I am here to share my thoughts about the cryptocurrency exchange risks and security.

Cryptocurrency exchange risks and security.

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• Introduction

These are the online platforms that make the users able to sell , buy and also enable the users to trade the cryptocurrencies like Bitcoin and Ethereum.as day by day the popularity of the cryptocurrencies is increasing and the cryptocurrency exchanges have become an integral part of this ecosystem.But they also experience some significant types of risk factors.

• Security risks

It is very important to understand that what threats and risks that the exchanges experience. The hacking is one of the important risks which is associated with the cryptocurrency exchanges. The target of the cybercriminals is to steal the information of the users.

One of the main incidents that in the year of 2014 Mt Gox hack almost 860,000 Bitcoins.This happened due to the improper protocols of the security systems.

• Phishing attack

The phishing attack is also considered as an important aspect.In the case, the attackers imitate legalised exchanges to trick users revealing into their private keys. This can be happened through email, website which can be fake and. It is very important to understand the importance of the correct and authentic websites.

• Insider threats

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Insider threats can also cause risk to the exchanges of cryptocurrencies. This can be stealing of the funds or leakage of the personal data. The cryptocurrency exchanges must apply strict control to access the funds or exchanges of the cryptocurrencies.

• Malware threats

If someone use such which are easily accessible and guessable and the accounts with such passwords are easily hacked.Sometimes users accidentally click on the suspicious links in the personal emails or on the social media platforms and such performance can lead to the leaking of data.

If the exchanges that don't apply the strong protocols of the security are more easily vulnerable to risks and attacks.These are significant concerns because of the potential financial loss.The lack of the VPN can cause the risks to the data leacking.

• Security measures

It is very important to combat these security risks by adopting robust security measures.One oge the main security measures is that to use the cold storage of the cryptocurrencies. The meaning of the cold storage is that keep the funds offline and it will be helpful to keep the funds away from the threats. It will become impossible for the hackers to access the funds.

• Multi factor authentication

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Another important security's measures is the Multi factor authentication for the accounts of teg users. This security measure apply an extra level of the security because it provides the users two factor verification. This security level occurs before accessing the accounts.The two factor verification can be a password or code which is sent to the user's Email. In this way the risks can be reduced significantly.

• Encryption

The encryption is also very important element in the security of the cryptocurrencies exchange. All the datas of the accounts of the users are saved and secure.

• Regularity Compliance

The regulatory cryptocurrency operations are important to protect the users. The regulations such as the guide line of the anti money laundering law can protect the illegal activities and it can also improve the security of the cryptocurrency exchanges.

• Network security

The network security also plays important roles in the security measures of the cryptocurrency exchanges.The protection of data is very important in the cryptocurrencies exchange because it has the sensitive information of the users such as the financial transactions. The network security prevent the data of the users from the illegal and unauthorised access.

The use of the security protocols of the communication the data can be encrypted that is transmitted between the users and the exchange.

_{BEST REGARDS}

_@jannat12

Thank you all for reading my post.