The crypto world has a hacking problem.
Specifically, cryptocurrency exchanges have a hacking problem. In 2018 alone, we’ve seen at least four major exchange hacks with more than $750 million stolen (not to mention a few smaller exchange hacks).
Security and protection from hackers have become paramount when using a crypto exchange, but how do you assess the security threat?
Luckily, a prominent cybersecurity firm, Group-IB, has done it for us. In a new report, published in partnership with CryptoIns, every major crypto exchange is ranked based on a variety of security features.
The Four-Tier Ranking
Group-IB divides the major cryptocurrency exchanges into four groups based on their security features. Below are the results:
Group A – Kraken.
Group B – Bittrex, Coinbase Pro
Group D – OKEx, Huobi Pro, Coincheck, Bitstamp, Bit-Z, Zaif
How Were the Crypto Exchanges Ranked?
Group-IB compiled the rankings based on a number of security features including:
- Technical security levels.
- The reliability of private key storage.
- Password requirements and 2FA options.
- Protection of customer data.
- Risk management.
- Know your customer (KYC) and anti-money laundering (AML) procedures.
The exchanges were also submitted to penetration testing and finally ranked according to the relative cost of insuring them.
The exact scores in each of the categories were not released publicly for confidentiality reasons.