Coinbase, Kraken and BitMEX Lead Exchange Security Rating In New Study
Recent research conducted by cryptocurrency research company ICO Ratings has revealed nearly 50 percent of the leading cryptocurrency exchanges have failed to sufficiently harden the security of their platforms. Coinbase, Kraken, and BitMEX topped the exchange security rating list.
Recent research conducted by cryptocurrency research company ICORating has revealed nearly 50 percent of the leading cryptocurrency exchanges have failed to sufficiently harden the security of their platforms. Coinbase, Kraken, and BitMEX topped the exchange security rating list.
Security challenges still exist for most exchanges
In their “Exchange Security Report”, ICORating revealed that some leading cryptocurrency exchanges like Binance didn’t score high when it came to security protocols.
The research firm looked into the security practices of the leading 100 crypto exchanges, who have trading volumes above $1 million.
The result of the research shows that investor funds could be at risk due to the low-security practices of most exchanges.
According to the report, 31 cryptocurrency exchanges were hacked over the past eight years, with $1.3 billion stolen by the hackers during that timeframe.
ICORating stated that while some of the crypto exchanges learned from their mistakes and managed to recover, others went bankrupt. Some exchanges, like Mt.Gox, Bitcoinica, PicoStocks, and Bitcurex, have been attacked even multiple times.
The report added that 32 percent of top crypto exchanges have code errors which hackers can exploit and cause defects in some of their operations. Even though some of the code errors are not critical, ICORating warns that data could be lost if they are not patched.
Amongst the leading cryptocurrency exchanges, only 41 percent allows their customers to create passwords with less than 8 symbols and 37 percent of them allow users to set a password with either digits or letters alone, without combining the two.
3 percent of the exchanges do not have two-factor authentication (2FA) available to its users while 5 percent don’t require email verification during registration.
In terms of domain and registrar security, ICORating stated that just 2 percent of the exchanges use registry locks, which makes it possible for anyone to make changes to the domain properties of these unsecured services.
Only 10 percent of the exchanges makes use of DNSSEC, which is a security measure that removes the threat of DNS cache poisoning.
A look at web protocols shows that 29% of exchanges don’t have any protection against five mentioned headers, with only 10% of the exchanges having protection against all of them.
Coinbase Pro and Kraken lead in terms of security
Even though no cryptocurrency exchange recorded a perfect score of 100 in terms of security, Coinbase Pro and Kraken were the best performers. Coinbase Pro scored 89 on the ratings while Kraken recorded a score of 80. BitMEX and GOPAX both recorded 78 on the security chart.
Binance, which is the world’s leading cryptocurrency exchange, was worryingly far down the list, scoring just 63 out of a possible 100 in terms of security.
OKCoin.cn, Allcoin, and Tidex were the exchanges with the lowest scores amongst the researched platforms.