Amidst the growing popularity of crypto, the security of users’ data has become increasingly important in recent times. Globally, crypto exchanges are trying to address this challenge of cyber-attacks and investing in security solutions that guarantee the protection of user funds.
For, India’s first crypto unicorn and the safest exchange, security of their user’s digital assets and private information is of paramount importance. Built with industry-leading security features, the platform is tested at regular intervals to detect any security protocol violations.
In addition, the security team at CoinDCX audits the existing protocols and updates them regularly to ensure that the platform’s security is not breached.
These cutting-edge protocols also safeguard digital coins and the private keys of their users from malicious attacks and other kinds of hacks.
How it works
One of the most important features introduced by CoinDCX to protect user funds are geographically distributed cold wallets, which ensures that no single person has access to multiple wallets at the same time. This feature also ensures that no single CoinDCX employee can remove funds from any wallet, which leads to an added layer of security to the wallet.
In addition, all crypto withdrawals are initially verified through 2 layers of verification before they are processed. In case of large withdrawals, all transactions are manually vetted by CoinDCX’s security team, so that there is no scope for any cyber-attack.
“CoinDCX also conducts regular stress testing, scenario, and penetration tests to minimise the effect of attack vectors on its platforms. If any such vectors are detected, our team of experts works towards solving the issue promptly, while also working towards testing the systems’ abilities to withstand load and detect intrusion” reveals Divakar P, SVP & Head of Information Security at CoinDCX.
“The ‘two-factor authentication’ on the platform allows users to add an extra layer of protection to their account through OTPs received on their mobile devices or through Google Authenticator. To add another layer of security, CoinDCX keeps only 5 percent of all funds in hot wallets and the rest of the 95 percent in multi-sig cold wallets. The platform also keeps full reserves to facilitate immediate withdrawals.” he further explains.
Ensuring maximum security
CoinDCX has introduced a new feature that keeps a history of all the addresses that users have interacted with in the past to keep track of their contacts and avoid getting embroiled in phishing scams. The platform also suggests users do not trust all wallets they have interacted with in the past since some withdrawals are never repeated.
It allows users to mark certain wallet addresses belonging to their friends and family to help them define the wallet addresses they want to trust. Another feature introduced by the platform allows users to enable ‘Only-Trusted’ withdrawals to ensure that no one can send cryptos to another wallet address in case their accounts get hacked.
Guidelines to follow
While Crypto exchanges take all measures to ensure the safety of users’ data and funds, it is also the traders’ responsibility to follow certain measures. There are guidelines that users must always keep in mind to ensure that their accounts are well-protected.
- Ensure that the exchange website is legitimate
- Do not share sensitive info with anyone
- Always double-check recipient address
- Be wary of hackers posing as trustworthy entities
- Periodically update your exchange passwords, ensure your password is unique and not been used before
In order to add another layer of security to their accounts, users must always take some steps themselves to ensure the safety of their assets. Here are some steps that they can take:
- Avoid using public Wi-Fi networks
- Ensure that devices are secure by updating security measures
- Do not divulge the details of holdings at any time
To sum up, as technology advances and becomes more sophisticated, cyber criminals too work hard to invade space. The onus is on the exchanges as well as the users to keep up with the technology, be alert at all times and take all security measures to avoid any sort of infringement.