There is growing awareness about increasing fraudulent activities taking place in online businesses and, unfortunately, the cryptosphere is no exception. When it comes to security of digital assets, crypto exchanges must find the best solution to safeguard both their clients ‘funds and trust’.
There are a wealth of options for storing cryptocurrency, however, the most used method by cryptocurrency exchanges are either hot wallets, which are connected to the internet, cold wallets, being offline hardware devices; or a mix of both.
A higher level of security is attributed to the cold wallet solution given that hackers require physical access to external devices in order to access funds. However, this comes at a cost. The tradeoff is speed, as cold wallets add barriers to accessing funds. Hot wallets, on the other hand, are connected to the internet, allowing users to have instant access to funds although at a higher risk of being hacked, due to continuous internet connection.
Yet, when it comes to wallet preferences it is not a matter of choosing one or the other as it depends on business needs; hence the majority of crypto exchanges combine both solutions in order to safeguard funds whilst offering efficient transactions to their users.
Being a platform where users are able to buy and sell cryptocurrencies, BitKings Exchange not only has to secure its product software by performing regular audits and implementing continuous testing procedures; but also has to ensure all funds are protected by a secure and comprehensive wallet solution.
To do so, BitKings Exchange relies on Ledger Vault, a well-known crypto security provider and the market reference when it comes to wallet solution processes. The Ledger Vault protects users’ funds which remain stored until withdrawn, but also allows for the accessibility and flexibility required by institutional-scale crypto users.
The Vault team has been working hand-in-hand with the BitKings team since our early development stages and have assisted in providing security best practices that enable an efficient flow transaction within BitKings Exchange while maintaining institutional-grade security standards.
The BitKings team accesses the Vault platform to manage its assets and administer permissions and access to business operations; features unique to the Vault platform.
In addition, Ledger has obtained a pooled customized insurance coverage for the Vault platform which insures digital assets for up to $150 million by Arch UK Lloyds of London syndicate.
The decision to choose Ledger Vault over other market competitors was due to their understanding of the crypto exchange business and their ability to tailor a solution that smoothed the execution of critical operations while granting compliant daily activities. Furthermore, Ledger’s constant development of integrations and capabilities will only enhance BitKings Exchange performance in the market.
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