Innovation, passion, determination and innovation are what fueled the history of cryptocurrency. It was a turning point in the history of the global economy when Bitcoin was launched in 2009. This story began with disappointment, and one of its most significant thefts.
A group of hackers broke into the crypto-exchange Mt. Bitcoin in 2014 to steal over $400million or 700,000. BTC. Goxx caused bankruptcy to the platform. Most users suffered the worst, and many are still waiting for compensation.
There have been hundreds of similar hacks in the crypto market to Mt. Goxx has been the victim of numerous hacks similar to Mt. Recent hacking of crypto exchange AscendEX was responsible for the loss of over $70million from its users.
Per the company’s report, bad actors transferred the funds from the exchange’s hot wallet which contained funds on Ethereum, Polygon, and Binance Smart Chain. Some of the major institutions are among its clients.
This is why choosing an exchange that can be trusted remains one of the key points for cryptocurrency adopters. This indicator has seen a steady rise in recent years and is expected to continue rising.
Phemex is a leader among crypto exchanges due to its security system. The platform has never been hacked and has been able to keep its users’ funds safe with an innovative security system.
Phemex: Why it is superior to the rest
Phemex employs a Hierarchical Deterministic cold wallet system. Each user can have their own cold wallet address, which is separate from all the others on the exchange. Additionally, all deposit information is collected by the platform. Funds are then sent to a cold wallet with multi-signature protection.
An experienced team from Wall Street founded the exchange. They have created a system to protect users, reviewing and scrutinizing every transaction that is made on the exchange. Withdrawal requests are processed three times each day and both founders and operators must approve them, according to Phemex’s official website.
Any threat or malign actor will be immediately dealt with. Even after a withdrawal request was approved, the funds will be sent via offline signature from the exchange’s cold wallet. Other exchanges could have a security system in place but lack Phemex’s guarantees and its team experience.
The most common single point of failure within a crypto-exchange is hot wallets. Phemex claims that all transactions within the system have been conducted offline and has therefore removed hot wallets from its platform.
In combination with Phemex’s Trading Engine Safety, which protects users’ funds in any market condition, and the User Account Safety, which includes a two-factor authentication mechanism and a high-end bookkeeping system, this platform meets the crypto and could meet any industry’s standards in consumer protection and security.
Bitcoin and Ethereum alone will have more than one million users within the next five-years, with Ethereum even greater due to the many use cases. There are also other blockchains that could see more or less of these numbers. Cryptocurrency and the underlying technology it uses continue to be relevant as tools for improving financial systems or disrupting industries that are worth billions.
As more people get into crypto, the importance of crypto exchanges with strong security standards like Phemex will increase. Phemex could have one of the most robust security systems in the crypto industry, one required to onboard the crypto users of today and tomorrow and protect them from all the bad actors looking to prey on any platform’s weakness.