SubSilver

[Softean]

When launching a crypto exchange, security must be built into every layer, not added later. The most critical measures include:

1. Wallet Security (Highest Priority)

Cold storage for the majority of funds (offline, air-gapped systems)

Limited hot wallet exposure for daily liquidity only

Multi-signature wallets to eliminate single-point failure

Strong private key management, rotation, and access policies

2. Infrastructure & Application Security

Isolated services (matching engine, wallets, APIs, admin panel)

DDoS protection, firewalls, and API rate limiting

Secure coding practices and dependency audits

Regular penetration testing and vulnerability scanning

3. User Account Protection

Mandatory 2FA (TOTP or hardware keys)

Withdrawal confirmations and withdrawal whitelisting

Device/IP monitoring and login anomaly detection

Time-locked withdrawals for high-risk actions

4. Trading Engine & Market Integrity

Safeguards against front-running, wash trading, and bot abuse

Real-time monitoring of order books and trade execution

Circuit breakers during extreme volatility

5. Compliance & Internal Controls

Strong KYC/AML aligned with regional regulations

Role-based access control (RBAC) for staff and admins

Detailed audit logs for all financial and system actions

6. Operational & Incident Security

Segregation of duties (no single admin controls everything)

Incident response and disaster recovery plans

Encrypted backups stored securely in multiple locations

Regular third-party audits and code reviews

7. Transparency & Ongoing Trust

Clear communication of security practices

Proof-of-reserves or regular financial attestations

Bug bounty programs for responsible disclosure

Final Note

Many exchange breaches happen because security is constrained by off-the-shelf platforms or rushed implementations. Custom crypto exchange development allows tighter control over architecture, wallet logic, access policies, and compliance workflows, making it easier to design security as a core foundation rather than a workaround.