Blockchain applications are booming – but what about security?

More and more Businesses are opening up to the possibilities of blockchain applications. Here, of course, cryptocurrencies play a major role. There are vast opportunities to invest in this market. Investor funds for this area are increasing every day.

In order for institutional investors to put their trust in this market, the infrastructure and the respective security measures must be expanded.

Lack of secure infrastructure

The results from the industry analysts “CryptoCompare” are alarming when it comes to security standards. The survey of 160 trading venues showed that investors are anything but well protected. Only a negligible proportion of 4% of those questioned said they had an officially approved cybersecurity certification.
One out of ten trading platforms has received a poor SSL rating, indicating critical errors in browser security logs.

Only 8% use external support to secure customer funds. Past experience shows that these security gaps have actually had a negative impact on investor funds.

Criteria of trust – what you need to consider as an investor

Investing is a matter of trust. When investors decide which trading platform to use to invest their funds, it is not enough to just rely on the trading volume. There a few more factors, such as size of fees, regulation or time on the market. This can easily be manipulated upwards. If you would like to know what factors are important for investors to consider, when choosing your potential provider, read more in this article here