Why Phemex Is One of The Most Secure Exchanges in The Crypto Space
21 Dezember 2021 - 6:53AM
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The history of cryptocurrencies started with innovation, passion,
and determination. The launch of Bitcoin in 2009 marked a pivotal
point for the world economy. However, this story also began with
disappointment and one of the most important theft in its early
tale. In 2014, when Bitcoin had just surpassed the $1 price, a
group of hackers stole over $400 million or 700,000 BTC from crypto
exchange Mt. Goxx and caused the platform to file for bankruptcy.
Users were the most affected, most still waiting to receive
compensation from the failed platform. The crypto industry has seen
hundreds of hacks similar to Mt. Goxx, such as the Plus Token Scam
which took millions in Bitcoin, Ethereum, and other tokens from
their crypto wallets. Most recently, crypto exchange AscendEX,
formerly known as BitMax, was hacked and lost over $70 million from
its users. Per the company’s report, bad actors transferred the
funds from the exchange’s hot wallet which contained funds on
Ethereum, Polygon, and Binance Smart Chain. The exchange has around
one million clients, some of which are major institutions. Thus,
choosing a trustworthy exchange remains one of the most important
points for crypto adopters. This metric has been on a constant rise
and seems poised to only continue to increase. Amongst crypto
exchanges in the industry, Phemex has a leading spot due to its
security mechanism. The platform has never been hacked and has been
able to keep its users’ funds safe with an innovative security
system. Why Phemex Is Better Than The Competition Phemex uses a
Hierarchical Deterministic Cold Wallet System. This allows each
user to have their own cold wallet deposit addresses separated from
the rest of the people on the exchange. In addition, the platform
collects all deposits recorded, and via offline signature, the
funds are sent to a cold wallet protected with multi-signature. The
exchange was founded by a team with experience on Wall Street.
Thus, they have set up a system that protects the users by
scrutinizing and reviewing every transaction on the platform.
Withdrawal requests are processed three times each day and both
founders and operators must approve them, according to Phemex’s
official website. In that way, any malicious actor or threat is
immediately neutralized. Even after a withdrawal request was
approved, the funds will be sent via offline signature from the
exchange’s cold wallet. Other exchanges could have a security
system in place but lack Phemex’s guarantees and its team
experience. Hot wallets have been one of the most vulnerable single
points of failure in a crypto exchange. Thus, Phemex has eliminated
its use on the platform and claims all operations that take place
within its system are conducted offline. In combination with
Phemex’s Trading Engine Safety, which protects users’ funds in any
market condition, and the User Account Safety, which includes a
two-factor authentication mechanism and a high-end bookkeeping
system, this platform meets the crypto and could meet any
industry’s standards in consumer protection and security. Bitcoin
alone could have over one billion users in the next five years,
Ethereum many more due to the variety of use cases, and other
blockchains similar or bigger numbers. Crypto and its underlying
technology continue to gain relevance as potential tools to improve
the current financial system or disrupt industries worth billions.
Therefore, crypto exchange platforms with high-security standards,
such as Phemex, will only grow in relevance as more people jump
into the crypto space. Phemex could have one of the most robust
security systems in the crypto industry, one required to onboard
the crypto users of today and tomorrow and protect them from all
the bad actors looking to prey on any platform’s weakness.
Image: Pixabay
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