Digital assets, or cryptocurrencies, are rapidly becoming the new normal in the United States as well as in other parts of the globe. So it is only natural for black hat hackers to evolve with this trend. These malignant beings will take advantage of any vulnerability in technology and hack it for their own benefit. Some cryptocurrency exchanges such as Gemini, Coinbase, Kraken, Ethereum (ETH), and Bitcoin exchange have taken various measures to fight these cyber threats to make it safer for traders. From adding two-factor authentication login on their mobile app to insuring digital assets, cryptocurrency brands are reinventing security.
Many people look to compare Gemini vs Coinbase for security measures since they are deemed two of the most trusted names for crypto security. People worldwide entrust them with their digital currency. The safety precautions taken by these two cryptocurrency top dogs can be deemed as secured by the New York State Department of Financial Services (NYSDF). Let’s take a look at what these secured companies are doing right to address cyber concerns.
1. Insurance Coverage
Cryptocurrency exchanges are opting for insurance coverages for their users to protect their assets against theft, damages, and even physical destruction. Crypto insurance shields hot wallets (i.e., online storage) from malicious activity when trading cryptocurrency, or storing it. Traders can be attacked by hackers through phishing, hacked registration forms, malware, and even while completing a wire transfer. Opting for a crypto platform that offers insurance such as FDIC insurance on your crypto-assets can be the first step towards protecting what is yours.
2. Bounty Hunters
Ethical hackers have the opportunity to protect the rest of the crypto community through what is commonly known as bug bounty programs. These initiatives serve as reward programs for white hat hackers that find vulnerabilities in or security threats to the crypto company and its users. Companies like Gemini, Coinbase, Kraken, Ethereum, and Bitcoin have implemented these systems as another layer to their security protocols.
This process has been optimized for automation and is implemented using tools like LifeRaft’s Navigator software. Navigator will scout social media websites—like a chan board (e.g., 4chan, 8chan)—and dark web sources for threats. Security breaches can be prevented when tools like Navigator are implemented as they eliminate the need for human interaction manually searching through feeds for threats.
3. Cold Storage
Most cryptocurrency brands store their currency in hot storage methods like an online crypto wallet. However, other, safer, crypto exchanges are placed in cold storage, meaning that the digital currency will be physically stored in an undisclosed location, isolated from the Internet ecosystem, impossible to access. Crypto brands like Coinbase split and store sensitive data in vaults around the world on encrypted drives and paper copies for redundancy. Likewise, Gemini prevents theft and hacking with air-gapped cold storage security.
4. Crypto Wallets
Like cold storage, crypto wallets work offline. However, these wallets can be taken anywhere you go. They look and offer ease of use like external hard drives, and can even be waterproof. The best cold wallets will be encrypted and protected from malware and keyloggers looking to record your sensitive data. It’s like having your bank account in your pocket. Some famous crypto brands for cold wallets include Ledger, Trezor, and KeepKey, and are promoted by crypto eminences such as Bitcoin (BTC).
This being said, crypto brands know it is not enough to secure your digital assets on an online server. Security breaches can happen to even the safest companies out there. However, some companies are being more intelligent than others in placing more obstacles for the bad guys to trip over, thus giving us time to salvage our currency.