Crypto Exchange: Necessity for Security Testing

With the new platform emerging each day Crypto world is developing and changing constantly. Most of us have a question: why is testing important for cryptocurrency exchanges? The answer is testing is considered important when the choices are unlimited and the sensitive data has to be prevented from getting to hackers via loopholes. Therefore to make you aware of the growing trend of Crypto security testing we are here with all the necessary information related to the same. To learn without casualties the best way to learn is from others’ setbacks for example in 2018 bitgrail an Italian Cryptocurrency Exchange was trapped in a loss of around $170 million in the Nano XRB token. This happened due to vulnerabilities of the Cryptocurrency Exchange security.

Cryptocurrency Exchange security testing is required if:- 

1. If you have created a brand new platform.
2. You have introduced a major update.
3. You have collaborated on a new cryptocurrency as a trading duo.
4. You have outsourced your Cryptocurrency Exchange development.
5. You have employed a questionably cheap development staff.
6. You are doubtful about your security system.

Major classifications of Cryptocurrency Exchanges →

Based on the governance Cryptocurrency Exchanges are majorly bifurcated into two categories:

• Centralised exchanges - this refers to a platform where all the transactions are operated and monitored by the exchange owner itself. Users in this case do not have access to the private keys of their exchange wallets.
  
  
• Decentralized exchanges - this form of Cryptocurrency Exchange is based on distributed ledger technology and does not possess any access to clients’ funds or wallets.

Common features of a Cryptocurrency Exchange →
Cryptocurrency Exchanges come up with numerous common features

1. To start with, we first have authentication under which sign up and password recovery options are contained.
2. The next part of the project contains verification which is based on the most crucial i.e. legal part of the project. As this step involves KYC, it includes document upload and pass verification module.
3. The next major feature is “account” which covers everything related to user accounts such as registration, password change, information editing, account deletion. Etc.
4. Now to ensure that our clients feel safe we provide a security setting module. You can implement 2 Factor authentication or multi Factor authentication for security. You can also include your fund withdrawal policy.
5. Next in the list comes “wallet” where we include features like depositing, withdrawals, and assets transfer.
6. At the end is the trading module that includes features like order placing order Calculation and Analytics.

Common testing checkpoints →

after feature integration comes the testing stage for which we are here to discuss some common testing checkpoints which are as follows:-

• Authentication
  This includes checkpoints like:-
  a) Registration
  b) Login
  c) Password recovery
  d) Session management
  

• User authorisation
  it is aimed to ensure that users have access to only specific actions and includes the following checkpoints:
  a) Upload documents
  b) Pass verification
  c) Access the main part of the application
  

• Editing user profile
  this point is checked to ensure secure editing of user data and includes following checkpoints
  a) Login
  b) Edit profile
  c) Change password
  d) Delete profile
  e) Safety of private keys and mnemonics.
  

• Security Session testing is focused mostly on checking the traffic and data transfer security.
• Transaction And User Wallet is one of the most basic checks that includes checking of the following
  a) Deposit
  b) Withdraw
  c) Transfer or Exchanges

Useful tools for testing → 

There are various useful tools for testing your crypto-exchange such as Cypress, JMeter, and Burp Suite. 

These three tools have their own unique features to ensure the security of your exchange Such as:- 

Cypress
a) Time Travel
b) Command Log
c) Debuggability
d) Automatic Waiting
e) Spies
f) Stubs
g) Clocks

and more interesting tools like Network Traffic Control, Consistent Results, screenshots, and Videos.

JMeter
a) Test IDE,
b) Command-line mode,
c) Dynamic reports,
d) Data extraction

BurpSuite

1. Web vulnerability scanner
2.  Scheduled and repeat scans
3. Unlimited scalability
4. CI integration
5. Advanced manual tools
6. Essential manual tools

We hope this article of ours has helped you whether you are a developer or the owner of an exchange. Serving as an all in one crypto services company, you can contact our team for a professional security assessment. Being a leading Cryptocurrency Exchange Development Company, our team of experts at W3villa will help you to get the most efficient performance. Our experts work round the to ensure smooth development of your Cryptocurrency exchange platform.