There are significant vulnerabilities in most crypto exchange designs, and the CEO of Bybit is not at all surprised by the fact. Hacking crypto exchanges is not something astonishing anymore. The security of cryptocurrency is on the news once again after KuCoin got exposure to hackers. However, the CEO of Bybit Ben Zhou says that this is nothing surprising anymore.

What’s the Main Issue?

Ben Zhou said that exchanges behave as a “single point of failure”. Crypto exchanges are vulnerable to similar security problems, just like every other platform as a centralized web app. Exchange security turns to be holding more importance as traders and inverters are positively taking exchanges to task for protecting funds.

A maximum number of crypto exchange storage networks and servers use hot wallets to store digital currencies, says Ben Zhou. He also added that hot wallets should be protected appropriately to keep them safe from the hands of scammers and hackers.

He also thinks that a cold wallet facility is thus way safer than hot wallets as the latter is connected with the Internet making it more exposed to frauds. On the other hand, cold wallets aren’t connected to any network. The only drawback it comes with is that you will not be able to withdraw a large amount from an exchange immediately.

Security Should be the First Priority

On the basis of the Bybit CEO, for an exchange platform investing for its security should be the biggest and the essential task. It becomes even more important if the platform is working online, which is actually the fact for numerous crypto exchange platforms. In order to make the platform more guarded from possible hacking, crypto exchange platforms should improve address vulnerable points and for penetration testing, apply several security layers.

Zhou’s Suggestion on Exchange Platform Security

It is mandatory for any security system to protect data across each and every point of interaction. This signifies securing user info from account registration, trading, login, and any data exchange with the exchange platform.

Ben Zhou again added that this could be only fulfilled with the application of best practices for “application lifecycle management”, engaging well known and knowledgeable security consultants for carrying out bounty programs and penetration testing within the “white hat community” to recognize any possible vulnerabilities.

Bybit’s Intelligent Security

He also suggests crypto exchanges to collaborate with well-known security companies to perform security audits, apply strict management procedures, and spend in zero-trust architecture. What zero-trust architecture needs are the verification for anyone acquiring any service to prevent any possible internal as well as external hacking.

Zhou revealed that Bybit actually invested in strengthening its security protocols and using cold wallets to store digital currencies as it is safer.

Exchange Vulnerabilities Should Stop

What’s important is making the security stronger to prevent any sort of security breaches. KuCoin becoming a victim to hackers is another example of how vulnerable these platforms have become.

Famous day trader and founder of Barstool Sports Dave Portnoy has disclosed that in an interview with crypto-podcaster Anthony Pompliano. He purchased Bitcoin worth $1.25 million, while his just one major Ponzi scheme. The view of Portnoy on the crypto trade was summarised as:

You get in and be the one who leads and not the one who holds the bag.

Among the celebrity of pop-culture and sport, the day-trading exploits of whom have become highly popular in the field of the crypt in the coronavirus pandemic. After a meeting with Winklevoss’ billionaire twins in August, he entered the Bitcoin market (BTC).

In 15 minutes, Portnoy said, he understood that he wanted to get into crypt because “these are sort of like my friends” in his Twitter posts about Bitcoin.

Portnoy said, at some point, that he owned BTC for $1.25 million. Just eight days after the experience of cryptography, his investment on Chainlink took a sharp hit, and Portnoy declared, ‘I’m out of cryptography because coins don’t always come up.’

Portnoy seems to have been retiring after his departure, saying that his “heart is the crypt,” and he’s moving back.

However, the experience tends to shake Portnoy. The volatility of his $1 million crypto portfolio is too irrational, and he thinks it’s too much money to manage because he doesn’t know what’s happening. “Nothing takes it up, I don’t know whether it’s up or down,” he explained,

Even though he has dropped out, he also plans to return ultimately to Bitcoin. “I’m trying to get in Bitcoin again. “I don’t even need a lot of liquid — it’s all invested,” he said.

Pompliano recommended Portnoy to keep Bitcoin until the end of next year instead of trading:

If it looks like a bubble and has no real efficiency seen structurally, people call stuff Ponzis, said Bitcoin and cryptocurrency analyst Willy Woo. Early start-ups fell into this camp of ever-growing valuations. It sounds like a Ponzi before the modern standard and shifts the world taking over.

Portnoy has found tremendous success in purchasing discount shares, which have flourished in US unparalleled market activities at the post-coronavirus crash stock rally this year. Federal Reserve follows an army of the highest number of day traders: stocks are still increasing.

Portnoy leaped throughout the summer throughout the realm of Blockchain and Blockchain, bowing to his fans’ demands to retire from capital and equity. Portnoy’s cryptocurrencies’ vortex buys around $1.25,000,000 Bitcoin and Chainlink until a slump forced Portnoy to sell his assets.

In August, Portnoy asked the owners of cryptocurrency exchange Cameron and Tyler Winklevoss to demonstrate to him, following a Twitter announcement that it wished to “buy all bitcoins” – which they had effectively achieved later in the month.

You can consider it a gamble when one reaches the extreme; it comes back with a steep fall. You need to understand the fall and rise process, and then only you can earn a big amount. It needs patience, and it is also not possible that every time the coin you invested in will give you the expected results.