Why Privacy And Security Should Be a Major Concern When Using Online Cryptocurrency Trading Platforms | TechBullion

With the rise of online crypto trading platforms, the world saw a boom when it came to capital investments. Private players, big corporations as well as small retail investors could use these platforms easily. This made investing easy, widespread and digitally enabling. 

However, with the rise of online crypto trading platforms, the security threats associated with the same was not paid due attention. Even though the websites and apps of trading platforms dealt with heavy volume trades, the necessary security protocols were not adhered to. 

In this article, we will look at why data security and privacy is critical to online trading. We also discuss what you need to look for when using these platforms as a consumer. 

Why Online Crypto Trading Platforms should have stringent privacy and security protocols?

According to many digital experts, the digital is a double-edged sword. While it makes possible borderless earnings, investing and trading, it also removes controls and security. 

This means that crypto trading platforms, which deal with billions of dollars, need to have fortification. The rate of increase in cyber-crimes is increasing in double digits, year-on-year. Many of the targets of cyber-attacks is the trading and financial sector. 

In spite of being aware of the nature of the threats, there are very few crypto trading platforms, which even have the basic security protocols in place. This includes having end-to-end encryption, session timeouts, and logging out features. These security features are basic to say the least. 

This problem is not common to only the small ones, but also found glaringly in some of the biggest trading platforms. While many of these companies have taken cognizance of these factors, their eagerness and promptness towards the same has been found wanting. 

Why should Users pay attention to Data Security and Privacy on Online Trading Platforms?

According to security expert, Alejandro Hernandez, private data of individuals is sold on the dark net for as less as $0.20. Many of us are not even aware if we have been subjected to data breaches. If you multiply this with millions of users, you will see that the cyber-crime industry is very lucrative. 

Users should realise the fact that they are saving and uploading sensitive information and data on these platforms. In addition to your name, email id, address and phone numbers, you are also saving your-

  • Bank account details
  • Credit/Debit card details
  • Amount of gains you have made in the account

Any consumer would never want his or her data to get into the wrong hands at any point of time. This is why security and data privacy should be your top priority when choosing an online trading platform. If you are using a cryptocurrency trading platform, you should go for the most secure and credible one, which is the bitcoin storm

How can Online Crypto Trading Platforms improve Security from cyber threats?

Crypto trading platforms are huge corporations, which deal with major volumes of financial assets. This means that in order to ensure their own as well as their security of their users; they should adhere to the GPDR. They can also ensure that their hosting provider ensures complete security and data back-up facilities. 

Some of the basics of privacy and protection can be the following-

  1. Having very short session timeouts on the platform
  2. Requesting Log-ins on apps and desktop usage when accessing the platform
  3. Twin Authentication for every login
  4. Education and Learning material regarding security for consumers
  5. Monthly security and threat assessments with the internal data security team
  6. Avoiding storing too sensitive information of the consumers

A crypto platform, which tries to do all the above, is one which a user would want to work with. If you have not yet been the target of a cyber-attack, you should feel lucky. However, the important thing to note is that the next attack can only be a few seconds away.