The growing interest in cryptocurrencies has led to the emergence of a wide selection of both digital money and the sites where you can exchange one cryptocurrency for another.
Some of these sites are peer-to-peer exchangers – users exchange directly with each other on terms that are discussed individually in each case. Such a system may be convenient for one-time operations, but entirely unsuitable for regular trading.
Therefore, as the market develops, more and more transactions begin to be conducted through cryptocurrency exchanges. The daily trading volume of one of the largest cryptocurrency exchanges, Binance , is about $1.5 billion, and it’s competitors don’t lag.
The main risks for an investor using the services of cryptocurrency exchanges are their possible bankruptcy, commonplace fraud on the part of the exchange itself, and hacker attacks. It is possible to predict the unfair behavior of the exchange owners; however, you never know which cryptocurrency exchange is hacked next.
It’s impossible to enumerate all the cryptocurrency exchanges that were hacked. Some breached platforms don’t announce being hacked (looking at you, KipCoin); some even don’t know that they were breached and hackers continue to suck out money as happened with Mt.Gox. You can find a complete list of cryptocurrency thefts here that is created from all announced or discussed security breaches.
The focus of the audit was on such aspects as the responsibilities of security and management employees, password management systems, deposit and withdrawal systems, and wallet monitoring systems for unusual or suspicious transactions .
ICORating rated 135 crypto exchanges, whose daily trading volume exceeds $100.000, based on four security categories: user account security, domain security, web security, and protection against DDoS attacks .