A new study conducted by Dashlane a digital security company just unveiled a startling revelation. It stated that about 70% of the cryptocurrency exchanges do permit the users to create the account with extremely weak passwords. This is why these accounts are quite vulnerable to the account thefts.
However, the positive side of the picture is that most of the trading platforms to provide the trader’s access to tools that allow the traders to assess the strength of their passwords. Some exchanges allow the traders to create passwords that are shorter than 8 characters.
To top it all, there are also exchanges out there that allow the creation of passwords that have no alphanumeric characters and this eventually makes the password quite weak. All these observations should not go unnoticed because Dashlane presented this report after studying the passwords of about 35 trading platforms.
The study was conducted by judging the exchanges on five crucial security parameters. The good news is that there are about 10 digital currency exchanges that have met all the five criteria. The names include Coinbase, Paxful, Cobinhood, BTCC, Huobi, Gemini, itBit, and Cryptopia. This is why as a trader you can trust these exchanges without the fear of any financial losses.
In some cases, the accounts are vulnerable because some exchanges are compromising on password strength assessment tools. The CEO of Dashlane Emmanuel Schalit also has an important message for the crypto users.
He mentioned the fact that a digital currency account holds the same significance as that of a bank account. The reason is that the digital assets are stored on the exchange. This is why the user needs to be vigilant about the security of his account.
After this study, Dashlane and different financial experts have advised the users to ensure the fact that they create unique passwords. The best approach is to create passwords that make use of special symbols, numbers and case-sensitive letters. The experts have also emphasized the need to follow the two-factor authentication as it helps to secure the account.
This study is surely a wakeup call for all the traders out there who do not understand the importance of account security. At the same time, the crypto exchanges should also review their account security practices and intimate users who have weak passwords so that they can create strong passwords. This is the best approach to discourage the hackers.