With so many new users flocking to cryptocurrency exchanges over the past year, it is evident that security practices need to be taken into account. Unfortunately, the vast majority of cryptocurrency exchange users still fail to generate proper passwords. This is mainly due to the exchanges themselves implementing poor password policies in general. Something will need to change in this regard, as the current situation is not viable in the long run.
Cryptocurrency Exchanges and Password Policies
Anyone who has ever used a cryptocurrency exchange will know that some platforms require strong passwords, whereas others do not. A recent study published by Dashlane shows how the exchanges stack up in terms of their password policies. Considering that a lot of platforms have been around for many years now, it is evident that some of them are in better shape than others. Even so, there is still a lot of room left for improvement in this regard.
Every single exchange underwent a rigorous testing procedure. Five critical password and account setting criteria were introduced for every platform, which allowed Dashlane to score these exchanges in a competitive manner. Any score below the maximum was considered a failure. While that may seem harsh, exchanges are designed to protect customer accounts first and foremost. It seems the majority of trading platforms have failed this test in spectacular fashion.
Indeed, the companies which check all of the right boxes are few in number. Coinbase, Gemini, BitMEX, Cobinhood, Cryptopia, and Paxful are some of the companies which successfully implemented all necessary precautions. It is still up to individual users to make the most of these particular features, though. Unfortunately, this means just ten cryptocurrency exchanges in the world are in the clear right now. That’s a very sobering number, to say the least.
As one would expect, there were companies which failed to reach even half of the required score. That list included Exmo, Poloniex, OKEx, Changelly, CoinExchange, and Simex. The worst platform of all was CoinsBank, as it only scored one out of five. Given that this company also recently lost access to debit card services, it is evident that this report may very well force its customers to look for alternative solutions very soon.
Most of the exchanges failing to score top marks suffer from dangerous password requirements. Any password that is seven characters in length or less is absolutely unacceptable. Unfortunately, 43% of exchanges allow them, although it is unclear why that is the case. A lack of password strength assessment tools is also something to be extremely concerned about.
The bottom line of this Dashlane survey is that over 70% of all cryptocurrency exchanges fail to meet adequate security standards right now. That is something everyone needs to take into account at all times, although it remains to be seen whether or not most exchange users will do so. The vast majority of trading platforms are on track to reach perfect scores, but those at 2/5 and below should be avoided at all costs until things improve.