Zach Anderson
March 20, 2025 05:32
Bitfinex highlights the importance of robust security measures to help cryptocurrency traders protect their assets from cyber threats and phishing attacks.
To enhance the safety of Cryptocurrency Trading, Bitfinex has released a comprehensive security checklist aimed at protecting traders’ assets. According to blog.bitfinex.com, the platform, known for its robust trading capabilities, highlights the need for security measures to protect against cyber threats and phishing attacks.
Managing cold and hot wallets
Bitfinex employs a double layer wallet system to minimize risk. The majority of user funds (approximately 99.5%) are stored in offline multi-signature cold wallets. This strategy significantly reduces exposure to online threats. A small amount of 0.5% is maintained in a hot wallet, encouraging daily work. Multi-signature security prevents unauthorized access by transactions from cold wallets, requiring three authorizations from five globally distributed security managers.
Protection against cyber threats
The platform integrates advanced security features such as distributed denial of service (DDOS) protection and AI-driven fraud monitoring. These systems are designed to detect and block abnormal activity, ensuring uninterrupted service even during high-risk periods. Regular external audits are conducted to preemptively identify and mitigate potential vulnerabilities.
Security Upgrades and Best Practices
Bitfinex continuously updates your systems with the latest Linux technologies to maintain optimal security. The platform is under constant surveillance to adapt to emerging cyber threats, ensuring a secure trading environment for users.
User Security Protocol
Traders are encouraged to enhance account security through two-factor authentication (2FA), account verification, and withdrawal protection measures. Bitfinex supports both hardware and software-based 2FA, adding an additional layer of security to login, API key creation, and drawers. Verified accounts benefit from a quick recovery process and reduced withdrawal restrictions, providing additional protection against unauthorized access.
Retreat and Account Access Monitoring
Users can implement whitelist withdrawal addresses and monitor account activity to prevent unauthorized transactions. Account Access anomalies trigger manual reviews to ensure security. Additionally, users are encouraged to use a strong, unique password in their email account and enable 2FA to further protect their login credentials.
Advanced API Key Permissions
For users who leverage the API, Bitfinex offers customizable key permissions and IP whitelists to enhance the security of automated trading and integrations. The platform supports secure communications through REST and WebSockets APIs, allowing users to manage orders and view balances securely.
Bitfinex’s commitment to security reflects a proactive approach when educating traders on protecting digital assets. For a detailed guide to Bitfinex security, please see the official documentation.
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