Can you guess how much money was stolen from cryptocurrency exchanges in 2018? Approximately $730 million. Coincheck, a Japan-based exchange lost a whopping $500 million whereas Coinrail, an exchange based on South Korea lost $40 million. Do you think the only less popular or small crypto exchanges are hacked? Absolutely, not. In June 2018, Bithumb (listed on the World’s 10 biggest crypto exchanges) lost $30 million to the hackers. It is found the number of cryptocurrency exchanges that were hacked in 2018 and the net worth of stolen coins/tokens is more when compared with the year 2017.
How do the hackers are able to steal money from crypto exchanges easily? Why do the exchanges are not able to prevent this kind of hacks? Because most of the exchanges store the user’s assets on their web-based wallets (also called hot wallets). And, if a hacker is able to break the security firewall and get access to the servers, then they can easily steal the cryptocurrencies. Also, this kind of hot wallets is not covered by any kind of insurance. So, the users will not be able to recover even a cent, if the exchange was attacked by fraudsters.
Another major concern about the cryptocurrency exchanges is its KYC policy. Can you open a bank account without submitting proof of ID/address documents? No, it is impossible. However, many crypto exchanges will allow you to create an account on their platform without any documentation. Even, you can buy a limited quantity of crypto assets. You need to submit your identity only if you want to raise your buying/withdrawal limits. Don’t you feel that it is important to verify the identity of the users before they make any kind of transaction?
To overcome the above issues, a highly secured and most advanced cryptocurrency exchange named Crypto Circle X is under development. How is it different from the existing cryptocurrency exchanges? The significant features of the Crypto Circle X are given below:
- Cold storage wallets: Your digital assets will be stored offline in cold storage wallets to prevent the attack by hackers.
- Secure transactions: By default, CloudFlare protection is enabled for all your transactions to prevent DDoS (Denial of Service) attacks.
- Two-factor authentication: You can enable 2FA authentication using Google Authenticator for your account so that every transaction will be processed only after you enter the security code.
- GDPR: The Crypto Circle X exchange is fully compliant with the GDPR (Global Data Protection Rights) act to protect the privacy of your data.
- Encryption: The exchange doesn’t store your passwords on their servers. Instead, it stores only the hashes. Also, any kind of personal or sensitive data of the users is stored only after encryption.
Would you like to know more information about the Crypto Circle X exchange? Kindly check the official whitepaper https://cryptocirclex.com/whitepaper.pdf.
To access the Crypto Circle X exchange, you need to hold their proprietary Ethereum based ERC20 tokens named CCX. CCX coins will be sold during the ICO token sale event. Read, https://cryptocirclex.com/default.aspx to learn more information about CCX.