Peace of Mind: Which crypto exchange has the best security in Australia?

Peace of Mind: Which crypto exchange has the best security in Australia?

Robert McDougall 

May 24, 2024

Cryptocurrency

While it’s extremely difficult to hack major cryptocurrencies’ blockchain algorithms, crypto exchanges present lower hanging fruit. The exchanges handle user finances and confidential personal information and security policies and enforcement vary widely between platforms. Choosing a secure crypto platform is therefore one of the most important investment decisions you should make. CoinSpot is a leader in this regard, and is widely regarded as the most secure crypto exchange in Australia, with ISO27001 certification and the majority of crypto assets held in cold storage.

The Importance of Security in Crypto Exchanges

As custodians of digital currency, crypto exchanges will always be a target for bad actors. Some of the most significant security concerns associated with exchanges include:

  • Hacks – Criminals are always on the lookout for opportunities to hack crypto exchanges and steal cryptocurrency.
  • Fraud – Users may unknowingly be roped into fake transactions that culminate in them transferring their crypto to bad actors. Unlike banking systems, blockchain transactions are irreversible. Losing control of one’s crypto funds is an expensive error with no option for reversal or dispute.
  • Malware – Viruses and other malicious software that compromise the security of users’ login credentials and crypto holdings. Cybercriminals stole 7,000 BTC from Binance in 2019 by deploying malware (among other techniques) to obtain API keys and 2FA codes.
  • Phishing and other social engineering attacks – Fake emails or bogus websites posing as legitimate exchanges designed to trick users into disclosing their login credentials, private keys or other confidential information.

Overall, the potential security threats to a crypto exchange are vast. But there is a core set of criteria that shows whether a platform has its security under control: 

  • Multi-factor authentication (MFA)
  • Withdrawal restrictions and/or whitelists
  • Regular updates to software and (for cold wallets) firmware
  • User education
  • Security audits
  • Continuous monitoring

Overview of CoinSpot

CoinSpot was founded in 2013 which makes it one of the oldest crypto exchanges in the world. Such longevity as a leading exchange is noteworthy given the turbulence the industry has experienced over the last decade. CoinSpot is certified by Blockchain Australia as a Digital Currency Exchange provider confirming its adherence to the Australian Digital Currency Industry Code of Conduct. 

It’s the preferred crypto exchange for 2.5 million Australians in large part due to its market-leading position, ease-of-use, diversity of cryptocurrencies, and importantly, its reputation for best practice security controls.

CoinSpot’s Security Features

CoinSpot’s principal security features include:

  • Two-factor Authentication (2FA) – 2FA is a form of MFA. It provides an additional layer of protection in case your password falls into the wrong hands. 2FA requires the input of a one-time password sent to a registered mobile device.
  • Biometric login – Available on the CoinSpot mobile app, users can access their account using fingerprint or facial recognition.
  • Session timeout – User is required to login afresh after a predefined session duration.
  • Geo-lock logins – Users can only login from within Australia. Logins blocked for attempts outside the country.
  • Custom withdrawal restriction – Users can manually disable all withdrawals.

ISO Certification

A number of exchanges subscribe to the Cryptocurrency Security Standards developed by C4. However, these standards apply to the secure management of crypto wallets only. The ISO/IEC 27001 is a much broader world-class security standard that covers every facet of the operational environment. Crypto exchanges that receive an ISO/IEC 27001 certification have demonstrated end-to-end compliance with security best practices. 

To earn the certification, CoinSpot was subjected to an external audit. The audit entailed an in-depth assessment and investigation of the organisation’s information security management policies, procedures, processes and practice. This encompassed everything from products, intellectual property and digital storage, to employees, contractors and clients. 

The ISO certification confirms that the company’s cybersecurity policies follow best practices in mitigating against unauthorised data access, use, modification or destruction.

Additional Security Measures at CoinSpot

CoinSpot’s security features follow a defence-in-depth strategy. That is, multiple controls working in concert so the failure of one does not automatically lead to a data breach. In addition to the primary security controls, the platform also has:

  • Offline Storage – The company keeps the majority of digital assets in offline storage. This provides an important physical barrier to hacking and unauthorised access.
  • Regular security audits – CoinSpot runs regular audits to check that its systems and controls are up-to-date and secure. The audits are conducted by third party security experts and detail any vulnerabilities as well as recommend potential solutions.
  • Security Bounty – CoinSpot participates in the HackerOne Bug Bounty Program. Anyone can report a bug they discover and get a reward for it once verified.

User Responsibility in Maintaining Account Security

While CoinSpot and other best-in-class platforms may offer robust controls, that will not matter much if you do not take the basic steps required to keep your confidential cryptocurrency data secure. Among the responsibilities that fall within your domain include:

  • Strong password – Often, the best exchanges will have minimum requirements for an acceptable password. Either way, good password practice entails having a minimum of 8 characters combining letters (upper and lower case), numbers and special characters. The password should not include a dictionary word.
  • Avoiding phishing attempts – Phishing attacks range from fake exchanges to deceptive email. Beware of unsolicited email asking for confidential information or urging you to click to a link. Always check the website’s URL and email sender domain to confirm you are engaging with the official website.
  • Regularly updating firmware and software – Keep any crypto exchange mobile app, wallet applications and other associated software up to date. Promptly install new patches as soon as they become available.
  • Safe browsing practices – Adhere to general rules of internet safety. Do not:
  • Access your account on public Wi-Fi.
  • Download unknown files.
  • Click on suspicious or untrusted links.
  • Monitor your account – Keep close tabs on your account activity. Set up notifications for noteworthy account activity such as withdrawals, transfers, logins and any changes to security settings.

Conclusion

Just like your choice of bank, security should be a major consideration when picking a cryptocurrency exchange. Everything else around using a crypto exchange revolves around the confidence that you can access your holdings as and when you need to. CoinSpot has proved to be one of Australia’s safest crypto exchanges. ISO 27001 certification confirms the platform’s elaborate security measures including 2FA, geo-locked login, biometric authentication, session timeouts and manual withdrawal restrictions.


Tags


You may also like

Best crypto app for Australians

Best crypto app for Australians
>