NewsBTC
No Result
View All Result
  • Cryptocurrency News
    • Bitcoin News (BTC)
    • Ethereum News (ETH)
    • Ripple News (XRP)
    • Shiba Inu News (SHIB)
    • Cardano News (ADA)
    • Dogecoin News (DOGE)
    • Solana News (SOL)
    • Litecoin News (LTC)
    • Avalanche News (AVAX)
    • Polygon News (MATIC)
  • Crypto Prices
    • Binance Coin (BNB) Price
    • Bitcoin (BTC) Price
    • Cardano (ADA) Price
    • Chainlink (LINK) Price
    • Dogecoin (DOGE) Price
    • Ethereum (ETH) Price
    • Litecoin (LTC) Price
    • Polkadot (DOT) Price
  • Crypto Resources & Directory
  • All Crypto
  • Play GamesTry
  • CasinosTry
Breaking News: Coinbase Confirms DOJ Investigation Following Major Security Incident
  • Cryptocurrency News
    • Bitcoin News (BTC)
    • Ethereum News (ETH)
    • Ripple News (XRP)
    • Shiba Inu News (SHIB)
    • Cardano News (ADA)
    • Dogecoin News (DOGE)
    • Solana News (SOL)
    • Litecoin News (LTC)
    • Avalanche News (AVAX)
    • Polygon News (MATIC)
  • Crypto Prices
    • Binance Coin (BNB) Price
    • Bitcoin (BTC) Price
    • Cardano (ADA) Price
    • Chainlink (LINK) Price
    • Dogecoin (DOGE) Price
    • Ethereum (ETH) Price
    • Litecoin (LTC) Price
    • Polkadot (DOT) Price
  • Crypto Resources & Directory
  • All Crypto
  • Play GamesTry
  • CasinosTry
Bitcoin News
No Result
View All Result
Breaking News: Coinbase Confirms DOJ Investigation Following Major Security Incident

First Global CEO Gavin Smith Call Better Bitcoin Security Trader

Gautham
Gautham
4 years ago
2 mins read
NewsBTC_Security Microsoft Authenticator

Reason to trust

Strict editorial policy that focuses on accuracy, relevance, and impartiality
Created by industry experts and meticulously reviewed
The highest standards in reporting and publishing
How Our News is Made

Strict editorial policy that focuses on accuracy, relevance, and impartiality

Ad discliamer

Morbi pretium leo et nisl aliquam mollis. Quisque arcu lorem, ultricies quis pellentesque nec, ullamcorper eu odio.

The cyber security threats against cryptocurrency exchanges are currently at an all-time high. As platforms continue to come under attack, the CEO of First Global Credit, Gavin Smith, has advised traders and exchange platforms to minimize risk by following better standards.

Smith asked the companies to reconsider their existing business strategies to ensure that their risks don’t outweigh potential benefits. He was speaking at the Blockchain Money Conference in London last week where he shared the stage with some of the other prominent names in the cryptocurrency industry. First Global Credit, in its press release, quotes its CEO, saying:

“In the conventional capital markets, we have many metrics used to measure risk. They are not great; they are not foolproof, but they are a decent framework that measures where the risk comes from. In the cryptocurrency world, we don’t have it yet.”

His statement was soon followed by an example of how First Global Credit is currently reducing the counterparty risk by using Bitcoin as a collateral margin to trade against fiat currencies, stocks, precious metals and ETFs. In order to minimize the risk exposure, the platform rates global Bitcoin exchanges based on various criteria, including their location, transparency, management structure and the track record. After due diligence, First Global spreads the assets across multiple exchanges that meets its criteria.  Also, it ensures that the exposure to a single platform never exceeds 15 percent of total holdings.

The features mentioned by Smith can be considered as a good practice as the chances of these reputed exchanges collapsing is very less, and owing to their reputation, these platforms tend to have sufficient liquidity as well. On the other hand, by reducing the exposure to 15 percent, even in the worst case scenario –like a replay of Bitfinex hacking incident — the losses are minimised, and can be easily recovered or compensated without any service disruption.

Exchanges are Centralizing Bitcoin

Smith also acknowledged increasing centralization of exchange services as another major risk factor. The majority of the exchanges currently holds its customers’ funds on its platform for a longer duration. This practice increases the platform’s liability in case of a security breach while painting itself as an attractive target for the hackers. By practicing completely decentralized model where the buy and sell orders are matched real time, they can reduce the portion of funds handled by the platform at any given time.

Few other best practices include maintenance of bare minimum liquidity in the hot wallets while storing rest of the cryptocurrencies in secure, cold storage and vaults. Other advanced failsafe and validation procedures can also be introduced to prevent unauthorized access and transfers from cold wallet to hot wallets or other addresses.

Gavin Smith’s advice for the cryptocurrency exchanges and traders have to be taken seriously and it is time for the cryptocurrency platforms to ensure that their customers’ funds are safe as long as it is in their possession. Even if it takes one or two more additional steps, people may not mind.

Ref: First Global Credit | Image:  Shutterstock
Tweet123Share196ShareSend
Gautham
Gautham

Gautham

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Disclaimer: The information found on NewsBTC is for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.

Related News

Ethereum

Ethereum Breaks Higher With Conviction: No Signs Of A Breakdown Yet

Bankr, in a recent update, pointed out that Ethereum is maintaining its upward momentum, backed by solid volume and a...

Godspower Owie 8 hours ago

$400M Crypto Seizure by Secret Service Highlights Why Cold Storage and Best Wallet Are Essential

The U.S. Secret Service has now seized over $400M in digital assets, all of which are stored in a single...

Aaron Walker 9 hours ago
비트코인, 도지코인 및 밈코인 일제히 상승세... 토큰6900도 따를까?

비트코인, 도지코인 및 밈코인 일제히 상승세… 토큰6900도 따를까?

비트코인이 10만 9천 달러를 돌파하면서, 암호화폐 시장 전반에 강력한 상승 신호를 던지고 있다. 이더리움(Ethereum, $ETH) – up 4.65% 리플(XRP, $XRP)...

Soyeon Lee 9 hours ago
Load More

Reason to trust

Strict editorial policy that focuses on accuracy, relevance, and impartiality
Created by industry experts and meticulously reviewed
The highest standards in reporting and publishing
How Our News is Made

Strict editorial policy that focuses on accuracy, relevance, and impartiality

Ad discliamer

Morbi pretium leo et nisl aliquam mollis. Quisque arcu lorem, ultricies quis pellentesque nec, ullamcorper eu odio.

Related News

Ethereum Range Tightens – Liquidity Looms At $2,800 And $2,350

Ethereum Range Tightens – Liquidity Looms At $2,800 And $2,350

Sebastian Villafuerte 5 hours ago

FUNToken’s P2E Model Isn’t Just a Game: It’s a Scalable Digital Economy

NewsBTC 5 hours ago
Bitcoin

Bitcoin To Repeat Parabolic Phase From 2017 And 2021? Here’s The Target

Scott Matherson 7 hours ago

Premium Sponsors

Press Releases

  • 3 altcoinuri de urmărit în prima săptămână a lunii iulie 2025

    3 hours ago
  • XRP versus Shiba Inu: Care criptomonedă are șanse mai mari să creeze milionari?

    XRP versus Shiba Inu: Care criptomonedă are șanse mai...

    3 hours ago
  • XRP, SOL, LTC holders turn to OPTO Miner to earn $5,777 in...

    6 hours ago
  • More and more XRP and ETH holders are turning to APT Mienr...

    7 hours ago
  • XRP versus Shiba Inu: Care criptomonedă are șanse mai mari să creeze milionari?

    ...

    8 hours ago

Newsletter

Be the first to get the latest important crypto news & events to your inbox.

  • This field is for validation purposes and should be left unchanged.

About Us

NewsBTC is a cryptocurrency news service that covers bitcoin news today, technical analysis & forecasts for bitcoin price and other altcoins. Here at NewsBTC, we are dedicated to enlightening everyone about bitcoin and other cryptocurrencies.

We cover BTC news related to bitcoin exchanges, bitcoin mining and price forecasts for various cryptocurrencies.

Disclaimer: The information found on NewsBTC is for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.

Company

  • About Us
  • Advertising
  • Contact Us
  • Privacy Center

Social

© 2025 NewsBTC. All Rights Reserved.

  • Cryptocurrency News
    • Bitcoin News (BTC)
    • Ethereum News (ETH)
    • Ripple News (XRP)
    • Shiba Inu News (SHIB)
    • Cardano News (ADA)
    • Dogecoin News (DOGE)
    • Solana News (SOL)
    • Litecoin News (LTC)
    • Avalanche News (AVAX)
    • Polygon News (MATIC)
  • Crypto Prices
    • Binance Coin (BNB) Price
    • Bitcoin (BTC) Price
    • Cardano (ADA) Price
    • Chainlink (LINK) Price
    • Dogecoin (DOGE) Price
    • Ethereum (ETH) Price
    • Litecoin (LTC) Price
    • Polkadot (DOT) Price
  • Crypto Resources & Directory
  • All Crypto
  • Play Games
  • Casinos
Advertise

© 2025 NewsBTC. All Rights Reserved.

This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy Center or Cookie Policy.