Cryptocurrency Exchange Security Measures Check list : Test Exchange

Cryptocurrency exchange website testing

What is cryptocurrency exchange platform?

A cryptocurrency exchange is basically a type of website that allows users to exchange, buy and sell cryptocurrencies with other forms of digital currencies or traditional currencies like Euro and US dollars. If you are looking to carry out online trading then at some point of time you will need digital currencies that will help you to get cryptocurrencies for your specific needs. In order to obtain cryptocurrencies, you will have to make use of a cryptocurrency exchange website where you will have to create an account for regular usage. However, if you are only looking to do some occasional trading then you can also choose platforms that allow you to exchange, buy or sell cryptocurrencies without opening an account.

Blockchain Development

CryptoCurrency Exchange

Cryptocurrency exchange website Security Testing

Since Cryptocurrency websites are used by people all over the world for carrying out digital currency transactions, it is extremely important that a Cryptocurrency exchange website makes use of the most advanced and cutting edge security tests to ensure that such sites are completely protected from hackers and trespassers. Here are some of the steps that should be followed by the development team when it comes to ensuring the security of a cryptocurrency exchange website.

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It is necessary to use HTTPS protocol everywhere to make sure that all types of information that are transferred between the server pages and the clients system are carried over secure lines.

The passwords that are used with the cryptocurrency exchange website should be encrypted in order to provide with maximum security. All the passwords that are stored within the cryptocurrency exchange must be hashed with the help of an irreversible hashing technique. BitExchange Cryptocurrency exchange software makes use of highly advanced Bcrypt hash for storing sensitive information. The use of hashed algorithm provides with advanced security against unlawful trespassing.

The session identifier should be destroyed after each logout. Unless this is done, it can be used by hackers to initiate a security threat.

It is also necessary to regulate the time needed for entire session management with every transaction. Monitoring the in-activity sessions and timeouts as and when required. All active sessions should be destroyed if several sessions are detected. A detailed list of all resource pages should be created for Bitcoin Exchange software such as like trade, transaction history, withdrawal / deposits etc. The logged in user should be the owner of the resource and should be in control of the session id.  

There should be no open redirects performed within a system after the user is able log in successfully. The login and the signup inputs should be parsed properly and sanitize for data://, javascript://, CRLF characters.

When you are working on Bitcoin Exchange Script, it is important that you use State parameter in the OAuth2 efficiently. Typically, the developers are going to put the redirection URL in Redirect_URI parameter. However, it can lead to a major security vulnerability which can make it easier for a hacker to promptly insert arbitrary strings for bypassing the pattern so as to disable fragment processing in browser. A hacker can then intercept the responses and make use of unwanted commands in the exchange site for executing them.   

Cookies management and cookies processing is vital when it comes to a Cryptocurrency Exchange website or software. Make sure that the developer always sets secure and http cookies only.

Use JSON web tokens for representing the claims between the 2 involved parties.

Make use of OTP or 2FA technology to initiate security during transactions.  

Another common loophole in exchange website security is predictability in the usual pattern of the reset password token. When password resets are requested in cryptocurrency exchange software systems or websites, the passwords that are chosen should be random so that there are no patterns between one password and another. The timeframe for which the tokens are valid should also be monitored rather strictly.

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It is better not to use resource id series and produce authorisation token on one’s own.

Editing of the personal contact information of users such as email, mobile number and address must be carried out through SMS verification. Unless this is done so, hackers can make use of social engineering hacking methods for getting past the security checks.

While carrying out KYC document uploads, it is important to consider the methods that you put in place for uploading such files. The files and file types should be passed through a mime check for patterns. It is better to keep the files temporarily within an external platform instead of inside the server as this can prevent hackers from getting inside the Cryptocurrency Exchange server.  

Header & Related Content or Configuration

Make use of Content Security Policy headers for preventing data injection attacks and cross site scripting.

Implementing CSFR headers can help in preventing cross site forgery attacks.

Making use of http Strict Transport Security practice through the exchange can help to prevent strip attacks.

By using X Frame as well as X-XSS securing, you can protect your site from cross attacks.

Hackers typically make use of different phising methods to trick the users from original site. Therefore you need to keep the Domain Name System records updated in order to add a Sender Policy Framework.

Here are some things that should be taken care of in the Exchange Front End

Multi Signature for Security Practice is an effective method to secure the transactions. By using more than a single private key for validate the transactions in a cryptocurrency exchange, you can enhance the security for all transactions.

Time Lock Transactions help to prevent hackers from drawing altcoins in a serial fashion from numerous user accounts. When implemented correctly, it can make it impossible for hackers to steal bitcoins.  

Maintaining a balance between Cold Wallet and Warm Wallet can offer your exchange the enhanced security it needs. A Cold Wallet is typically unplugged from the servers either through an impenetrable firewall or physically. By making use of intelligent algorithms, it is possible to transact bitcoins easily back and forth to the Cold wallet and the warm wallet to meet the liquidity requirements of the hour.  

2 Factor Authentication can help to add basic level security for preventing hacking attempts.  

You should secure your cryptocurrency exchange and API from all possibilities of online cyber attacks such as DDOS by making use of Cloud Flare.

Using Hardware Security Modules or HSM is always a good idea for protecting server blades. In many cases they can also remove all security keys to prevent breeches that have already happened.

Performance Testing:

This will ensure your site works under all loads. Testing activities will include but not limited to –

Cryptocurrency exchange website Performance Testing

With any Cryptocurrency exchange website, it is extremely necessary to carry out performance tests to make sure that the site always offers seamless performance, especially during online transactions. Here are some of the tests that can be done to make sure that the Cryptocurrency exchange website is performing to its highest abilities.    

  • Response times of the website application at various connection speeds
  • Stress testing of the website for determining its eventual break point when it is pushed to extremes during the peak hours.
  • Load testing for the Cryptocurrency exchange web application for determining behavior under both normal as well as peak loads.
  • Checking to see if optimization techniques such as GZIP compression, server and browser side cache can help in reducing load times.
  • Tests for seeing if crashes are caused by peak loads and determining ways by which the site can get back to its normal performance after such events.
  • The cryptocurrency exchange website should also be tested for compatibility against multiple browsers and platforms so as to make sure that it runs in a perfectly normal manner.  

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