Cryptocurrencies and crypto exchanges are the recent trends in this digital era. The cryptocurrency tradings are totally carried to all parts of the world through different exchange platforms. Naturally, when the number of crypto users increases, crypto trading platforms will also increase.
Starting your own cryptocurrency exchange is one of the best blockchain business ideas in 2020-2021. There are two ways to start a secured cryptocurrency exchange. First, You can develop it from scratch. Else, you can buy software from the top-rated cryptocurrency exchange development company. But it completely depends upon your budget. Because developing an exchange from scratch is cost-effective.
Considering all the constraints, the one best solution for starting a customizable cryptocurrency exchange is by using premier white label cryptocurrency exchange software. So rather than developing your crypto exchange from scratch. We will recommend you go with feature-rich white-label crypto exchange software. But for launching a secured crypto exchange. You need to integrate some powerful security features to eliminate cyber-attacks and other fraudulent activities.
Before seeing the essential security features of white label crypto exchange software. First, let us see…
What is a White Label Cryptocurrency Exchange Software?
White label crypto exchange software is a ready-made software that holds all the basic features of the crypto exchange. So it is a licensed pre-fabricated cryptocurrency exchange software. This software helps you to launch your cryptocurrency exchange with some essential parameters. Such as desired name, logo, themes, and other customized features as per your business needs.
This software allows your crypto exchange to deploy as fast as possible. When compared to other ways of starting an exchange. The performance of the white label crypto exchange is very high. This software also supports all the major digital currencies. Such as bitcoin, dash, EOS, bitcoin cash, ethereum, ripple, and more. This software has enough potential to handle more users during peak hours of crypto trading. By using white label crypto exchange software, startups can easily get into the market. Also, they can boost the visibility of their brand.
white label exchange software will help you to save money and time. This software is completely designed, developed, tested, and now it is ready for deployment. Also, it is very handy to customize your exchange as per your taste. So there is no need for help from the technical expertise for handling the exchange. Also, this software is 100% reliable. Because the software providers will receive instant feedback and reviews about the software. This made many startups and business magnets choose white label crypto exchange software from a reputed cryptocurrency exchange development company to start a crypto exchange.
Now, let us look at…
Essential Security Features of Whitelabel Crypto Exchange software
Normally, in the crypto trading platform, many people will invest their money in cryptos. So a vast amount of money will be available on the exchange platform. From recent surveys, we can see that 54% of exchange platforms have security holes. Also, more than $1.7 billion worth of cryptocurrencies were stolen by hackers. If you are planning to start an exchange by using white label crypto exchange software. Then only by the implementation of powerful security features in the software can avoid hacking and scams. There are some crucial security features which are essential for a secured white label crypto exchange software.
Two-factor Authentication is a well-known security feature and is mostly used in all kinds of digital platforms. This feature acts as a secondary security layer in all edge-cutting crypto exchanges. Even all the trending social media apps and websites use this feature for high-end protection. Like Gmail, Twitter, Facebook, and more social media platforms. In crypto exchanges, it has multiple security functionality. So only after entering two verification passwords, users can perform the crypto transaction.
This feature includes a pin code, mobile number, OTP, Gmail verification code, or fingerprint for verification. The main advantage is you can customize your own password in the white-label crypto exchange software. So this feature provides additional security for users’ exchange accounts in the crypto exchange. So by integrating this security feature into your white label crypto exchange software. You can avoid cyber-attacks and intervention of third parties.
Registry Lock is mostly used as an additional security layer to the crypto trading platform. This feature helps to lock the domain name. Also, it allows the domain name owner to lock the domain information. Registry lock blocks the name of different operations. Such as content modification, DNS modification, domain transfer, and domain name deletion. This feature protects your software or exchange by blocking unauthorized changes or deleting the paramount elements of your domain. Also, it does not allow any persons to modify the registration details.
A recent survey explores that only 2.0% of crypto exchanges are using registry lock as a security feature. If you integrate the registry lock in your white label crypto exchange software. Then you can not alter the domain name. If you want to alter or modify, then it asks for a three-way passphrase check. This kind of check is completely performed between three. Such as the domain registrant (you), the registrar (your service provider), and the registry. So by using registry lock, you can get high-end security to your white label crypto exchange software.
Biometric authentication is the most common feature used in many platforms. Currently, many smartphones have this feature as security. Even people prefer this biometric authentication rather than typing a password or pin code. Biometric authentication is commonly used in all platforms like mobile applications, bank payments, and more. It is completely based on single biological characteristics for verification.
In the white label crypto exchange software, you can keep a fingerprint or a palm print for a secure transaction. So anonymous hackers can not heist crypto from the wallet. This provides additional security to your white label software. Also, it will restrict unnecessary logins. As for now, biometric authentication has advanced eye recognition.
Data in the blockchain network is entirely encrypted using a separate algorithm. So it will be a difficult task for attackers for decrypting the data from a blockchain. During the transaction, the data are stored in three forms. Such as Private key, Public key, and digital signature. These parameters are used during the cryptocurrency transaction. Also, no name or other details are used. And they are completely stored in the distributive ledger. Here the transactions are totally done between a peer-to-peer using advanced blockchain technologies.
This security feature comes under the HTTP protocol. It is one of the basic and simple authentications that is in all parts of the world for providing higher-end security. Here the ID name of the user and the password is requested from the client. Also, the authentication information is in the form of base-64 encoding. In HTTPS, the ‘S’ stands for Secure. It means that the connection between the user and the crypto exchange will be completely encrypted.
Cross-Site Request Forgery prevention
Cross-site Request Forgery is a kind of fraudulent activity. It is done by sending malicious requests or unwanted links by anonymous attackers through the web browser to a user. Users might respond to malicious requests which they were not aware of. So those attackers will attack through the user’s web browser. This will lead to data piracy. Users may lose their valuable credentials and money. As a crypto exchange owner, you can prevent these attacks and forgery by integrating the CSRF prevention in your white label crypto exchange software.
DNSSE stands for Domain Name System Security Extension. It is mostly used to authenticate all the DNS(Domain Name System) queries. DNSSE is the combination of both public keys and digital signature to validate the data. This feature can restrict unauthorized Domain Name System Entries. It avoids restricted websites and malicious activities. Such as cache poisoning and pharming. As for now, less than 10% of crypto exchange platforms use this security system. But the major disadvantage is DNSSE can not protect your white label crypto exchange software from DDoS attacks.
Hardware Security Modules
Hardware Security Module is shortly known as HSM. It is a physical device in the form of a plug-in or an external device that can be completely connected with the network. HSM is one of the trustworthy networks which performs the difficult task of cryptography. It consists of cryptoprocessor chips that reduce anonymous attacks and bus probing. Hardware Security Modules are trusted because it is built on specialized hardware. It has a security-focused Operating System. HSM is entirely governed by internal rules and regulations. It works best to give high-end protection for cryptographic information. So you conjoin HSM in your white label crypto exchange software.
These are the essential and powerful security features that you must integrate into your White label software. Additionally, you can integrate cold wallets, multi-signature vaults, web security protocols, and Anti-DDoS modules. If you are planning to start a crypto exchange by using premier white label crypto exchange software. Then you can enable these security features to eliminate cyber attacks, scams, and other fraudulent activities in your crypto exchange.
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