Securing Cryptocurrency Exchange Platforms | The Most Effective Practices

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Security is one of the critical aspects of any type of cryptocurrency exchange platforms. However, in the recent decade, cryptocurrencies worth over a billion dollars were hacked from about 31 major crypto exchange platform. These exchange platforms also store Personally Identifiable Information (PII) of users apart from currency deposits. Exchanges that are vulnerable to hacks make users lose their money worth of millions. Not only this, but it also exposes their sensitive information like personal addresses, identification details, and banking details to malefic agents. It leads to consequences like privacy infringement of users and manipulation of personal data.

For that, crypto exchange software development must implement top-grade security measurements to secure the platform, and users’ currency and privacy.

Protection against Denial of Service attacks is a sweeping challenge for crypto-exchanges. Developers implement various security practices to secure user data and currency deposits. Among them, DDoS Protection and X-Frame-Options are the most common security practices. According to research, more than 80% of crypto-exchanges implement DDoS Protection, and more than 65% of exchanges use X Frame Options as security measurements. Other security measurements to develop a secure cryptocurrency exchange platform are Strict Transport Security, X Content-Type, and X XSS Protection.

Most effective practices of security implementations to secure a cryptocurrency exchange

DDoS Prevention

Distributed Denial of Service disrupts the network connectivity of a system and cause a denial of service for users. It is caused by three methods:

  • Overloading the system with false request generated by SSDP and NTP amplification
  • Attacking the application layer
  • Damaging the connection table that verifies the network connections

A DDoS attack is often a combination of all these methods to disrupt the system completely. There are several measures to tackle the attack including preparation of a response plan beforehand and improving the network security. However, there is a need to prevent such attacks rather than preparing the response.

DDoS prevention requires preliminary precaution like defining the traffic pattern. It allows the detection of abnormal traffic that is generated by bots. Filtering follows detection in the prevention process. It is done through techniques like deep packet inspection, connection tracking, and IP reputation lists. Scrubbing is an effective filtering technique.

To prevent SSDP and NTP amplification attacks, techniques like rate limiting, regular expression filter, and port blocking are effective. Noisy sources of traffic are restricted by dropping the UDP fragmented packets from such sources. Any deviation from the normal flow of traffic can be identified using traffic signature filters. Also, the unnecessary parts of a crypto exchange should be blocked. This includes DNS’s TCP and UDP port 53, which are the common targets of attackers.

X-Frame-Options

Clickjacking is a common attack that targets the user interface of exchange platforms. Hackers mask the interface of the exchange with a transparent layer of clickable buttons. Users clicking such buttons redirect to other fake websites where they disclose their private keys. Users believe that they are typing on the exchange page, but they type the keys on the hacker-controlled interface.

X-Frame-Options control the browser to display a page. It creates a response header as a part of the HTTP response of a webpage using specific tags like <Header set X-Frame-Options “deny”>and <Header set X-Frame-Options “allow-from https://example.com/”>. X-Frame-Options can restrict any domain to display in the frame and allow only specific pages on the website of the exchange.

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Strict Transport Security

Enabling Strict Transport Security header the exchange can force the browser to load its site only with HTTPS. The technique converts an attempt to access the site without HTTP to HTTPS requests. It eradicates the chance of any man-in-the-middle attack by redirecting the request to the secured version of the crypto-exchange site.

More cryptocurrency exchange platform security aspects

  • Two-Factor Authentication (2FA): Itadds an extra layer of protection and ensures the security of online accounts beyond just a username and password.
  • Database Encryption: It requires the use of strong cryptography practices to secure financial transactions, control the creation of additional units, and verification of assets transfer.
  • Anti-Phishing Software: It Identities phishing content in websites, e-mail, or other forms used to access data. Protect exchanges from phishing attacks.
  • Multisignature Vaults: They enhances the security with an easy-to-use multisig vault solution. Provide users with sovereignty to secure, maintain and control their private keys and digital assets
  • Cold Wallet Security: These wallets don’t require an internet connection to store users keys andprotect from unauthorized access, cyber hacks, and other vulnerabilities.
  • Log Tracking: Log trackingtools are used for log management, monitoring, and analytics. They enhance security-related concerns by pinpointing the root cause of the application functionality error, within a single query.

Oodles Cryptocurrency exchange development services ensure optimal security of the exchange. Our security measurement implementation like DDoS prevention, X-Frame Options, and strict transport security secure exchanges efficiently. Our exchange development process with a focus on security ensure top-grade protection from data loss and leakage. Overall, we develop exchanges that ensure the protection of cryptocurrency assets and user information to help build strong market credibility for better business. 

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