Use Strong Authentication Systems
Remember, weak or reused passwords make it easier for cybercriminals to gain unauthorized access to your cryptocurrencies. So you must have strong authentication methods. It will help you to protect both the platform and user accounts. 

Ask all individuals to create and use a set of complex and unpredictable login credentials. They also need to keep changing their login details from time to time. So, cybercriminals will face a tough time while breaking into the crypto wallet. 

Nevertheless, one layer of protection is not sufficient. Professional cybercriminals can gain access to your crypto wallet through sophisticated online attacks. 

So, implement two-factor authentication (2FA). Once activated, users have to prove their identity using a one-time code sent via SMS or email. 

For even stronger security, activate biometric logins. In such a situation, individuals have to use fingerprint scans or facial recognition to log into their crypto wallets. All these will increase the overall security level of your cryptocurrency platform. 

Use Cold Wallets
Remember, crypto platforms keep funds in two different digital wallets. They are hot wallets (connected to the internet) & cold wallets (offline- no internet connection). Don’t keep all your funds in the hot wallets. Store 90–95% of all digital assets in cold wallets. Use hot wallets only when you need to make daily transactions. 

Due to the absence of an internet connection, cybercriminals cannot access cold wallets remotely. As a result, they can not steal a large amount of money. 

Encrypt All Data
Approximately, there are 560 million cryptocurrency users all over the globe. And, their numbers are increasing by leaps and bounds with each passing year. Professional cybercriminals always try to steal information and commit financial crimes. 

You should encrypt all data on your cryptocurrency platform. In such a situation, hackers will not be able to steal data even if they breach the system successfully. It protects user credentials, transaction details, and communication. It will also help to strengthen overall platform security and prevent cybercrimes. 

Data encryption methods-

• Use end-to-end encryption to protect user data and messages.
• Attach SSL/TLS certificates to encrypt data flow between users and your platform.

Protect Your APIs
Remember, APIs (Application Programming Interfaces) connect your platform with wallets, apps, and third-party services. If they are not protected, cybercriminals can exploit vulnerabilities. They can bypass authentication, steal user data or private keys, make unauthorized transactions, and launch cyberattacks. So, you should-

• Use API keys and authentication tokens to validate users and transactions.
• Set rate limits to stop cyberattacks and prevent the abuse of crypto wallets. 
• Use gateway security and firewalls to analyze and filter traffic.

All these steps will prevent unauthorized access and decrease the chances of cyber crimes. 

Conduct Security Audits
Even the best-protected cryptocurrency platforms may have security loopholes. So you should check your platform regularly. Conduct security audits and get help from Crystal Recoup at least once in 30-90 days. 

We will uncover all possible vulnerabilities and fix them immediately. So, hackers will not be able to attack and penetrate your cryptocurrency platform. 

Use Real-Time Monitoring 
An overwhelming number of individuals and business entities engage in online trading on different cryptocurrency platforms. Cybercriminals often send automated and spam traffic to cryptocurrency exchanges to disrupt their operations and steal digital assets. 

So, use AI-powered tools to monitor traffic and know what’s happening on your platform at all times. They automatically analyze large volumes of data and alert you to strange behavior. Fix the problem immediately to avoid potential damage. 

Implement KYC and AML Regulations
To prevent cybercriminals from using your cryptocurrency platform, implement know your customer (KYC) and anti-money laundering (AML) rules. Ask everyone to verify their identity with a government-issued ID. 

Keep a close eye on all transactions and double-check them before giving clearance. Don’t hesitate to report suspicious behavior or transactions to law enforcement agencies. This will make your platform legally compliant and keep scammers away. 

Use A Secure & Scalable Cloud Technology
When your cryptocurrency platform grows, it needs to remain stable and secure even under high traffic. Think of using cloud technology to operate your business smoothly. The service provider will automatically take care of most cybersecurity challenges. 

It will enable you to pay more attention to your cryptocurrency platform and grow it much faster. If possible, break your system into microservices. In such a situation, a single failure will not affect the entire platform. Apart from security, cloud service providers give you enough resources to handle a huge traffic spike. It facilitates crypto exchange scalability with minimal or no additional costs. 

Create A Team & Educate Users
You must have a team of highly experienced and professional security experts. This will help you to easily handle the cases of cyberattacks and data breaches. It is essential for customer satisfaction and maintaining a huge database of active cryptocurrency investors. 

Educate your platform users about the safe practices of online investment. Publish high-quality blogs on your website and inform individuals about the latest cryptocurrency scam activities and steps to avoid them. Everyone will be able to easily understand and identify security threats and use the platform safely. 

Be Ready For Emergencies
Always keep in mind that no system is 100% perfect. In case of cyber attacks, you need to act fast and address the problem quickly. Therefore, you must have a well-defined incident response plan. Backup your everyday data and secure it in two different places. It will help to limit the damages caused by cyberattacks, recover quickly, and maintain user trust.