In today’s crypto world, crypto asset security is of paramount importance.
While the HOLDERS can keep their coins in hardware wallets, active traders have no option but to keep their coins on an exchange, hoping that to Mt. Gox doesn’t happen to the exchange they’ve stored their digital currency on.
And mind you, Mt. Gox was not just one-off incident. Even after that humungous hack, there have still been incidents of hacks across a gamut of crypto exchanges.
Now, if you’re one of those who trade crypto actively and stores it in the exchange’s wallet, there’ some good news for you.
One of the leading cybersecurity firms, Group-IB has graded the security of top crypto exchanges, as per the Nov. 6 report of U.S.-based tech news media the Next Web.
In the race of security, Kraken has come out to be the leader according to research the Moscow-based firm conducted in partnership with crypto insurance platform CryptoIns. The report also points out that OKEx, which is the second biggest crypto exchange in terms of daily trade volume, & Coincheck Huobi Pro
In contrast, OKEx — the now-second crypto exchange by daily trade volume — as well as Huobi Pro and CoinCheck are the riskiest crypto trading spots, the report says.
As per the report of Next Web, Group-Ib came to the findings with a newly developed system that considers insurance premiums to cover cryptocurrencies held by major exchanges
CrptoIns is offering its insurance services to dozens of major crypto exchanges with the help of support by Swiss insurance broker ASPIS S.
The insurance policy supposedly covers losses made from “cyber-attacks on exchange software, theft, fraud and illegal actions of crypto exchange personnel.”
When assessing the risk of these crypto exchanges, factors such as technical security levels, the reliability of basic storage, passwords, as well as clients’ personal data are taken into consideration. Know Your Customer (KYC) and Anti-Money Laundering (AML) policies are also considered under the risk management system.
It is worth noting that Group-IB and CryptoIns have not released the precise metrics used for determining security, in order to maintain confidentiality.
In recent time, the issue of security has become increasingly important.
As per reports by Cointelegraph, around 31 exchanges have been privy to hacks and an estimated $1.3 billion dollars have been stolen so far.
If you’re keeping your crypto assets in any of the exchanges the report says are unsafe, it would be wise to transfer them to a hardware wallet or to a safer exchange
In the meanwhile, as far as the crypto market is concerned total market capitalization is at 216 billion. Bitcoin is trading at $6,476.72 & Ethereum at $213.98, with both falling by -0.87% & -2.62% in a period of 24 hours.