Common Security Vulnerabilities of Bitcoin Exchanges

As Bitcoin becomes more mainstream, an increasing number of people are interested in this digital currency. As the price of Bitcoin is increasing, a lot of people have decided to invest in it. Many people use the services of a reputable Bitcoin exchange like Paychain to get returns for their investment. If you are planning to invest in Bitcoin, you will want to know about the available Bitcoin exchanges out there and the fees they charge. But, it is also worth knowing about the common issues that involve Bitcoin exchanges so that you can avoid them. Cybersecurity is a given concern in terms of Bitcoin. Thus, before you engage in Bitcoin exchange, make sure to consider their vulnerabilities such as the following:

Personal Identity Information Leakage

Bitcoin exchange can experience a leak of personal information when the site is hacked. Some exchange websites require their users to share their personal identity information to sign up through a Two Factor Authentication. This requirement lifts the limit to the daily amount users can exchange. But, the confirmation process requires the use of a mobile phone that carries the SIM card risk. By signing up, users take the risk of giving their identity information to exchange websites without any regulation.

Phishing Attacks

Phishing allows hackers to steal personal information and money of users by having the same domains with official exchange websites. But, there are many dependable services to detect them. Reputable exchanges need to go through continuous vulnerability management and risk score tests regularly to improve their security. That is why users need to following their exchange’s average point of security.

Website Mismanagement

Bitcoin exchange websites should suspend illegal accounts. But, while exchanges are big money targets for attacks, they reserve the right to cancel a user’s account at any time for any reasons and seize the funds in the account. Although this does not mean arbitrarily stealing the user’s money, this is a possibility when dealing with a less popular exchange.Mismanagement of their websites can leave their users suffering from the losses. Reputable websites today invest in a time-lock system to give customers the ability to back up their transactions within 24 hours when hacking takes place.

Today, the common consensus on the internet is to store small amounts of Bitcoin on reputable exchanges. But, those who have bigger amounts that need maximum security for their funds can opt for cold storage where they store their bitcoin keys on a device that is not connected to the internet. If you want to buy bitcoin with itunes gift card, check this link.

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