MEXC is an exchange that is very careful about security. This exchange is one of the safest exchanges because assets are managed with anti-phishing codes, two-factor authentication, and cold wallets. I am writing an article about safety in connection with past virtual currency hacking incidents.
Difference between hot wallet and cold wallet
Do you know the difference between hot wallet and cold wallet? Virtual currency is stored as data in software, and security measures are taken by setting two-step authentication and passwords, and it is stored safely. The virtual currency wallet used at that time is like a wallet. Hot wallets and cold wallets are ways to manage this. Simply put, a hot wallet is one that is connected to the internet, and a cold wallet is one that is not.
What is a hot wallet?
A hot wallet is a wallet that manages virtual currency on the Internet. Because it is always connected to the Internet, it is possible to easily trade virtual currency at any time, and many people who want to manage virtual currency in real time, such as exchanges, payment, and remittance applications, use hot wallets. .
As mentioned above, hot wallets are managed online, so the speed is very fast. This management method is suitable for people who frequently buy, sell, and transfer funds.
As mentioned above, hot wallets are managed online, so the disadvantage is that there is always the risk of unauthorized access such as hacking and virus infection.
What is Cold Wallet?
A cold wallet is a wallet that stores virtual currency in an environment that is not connected to the Internet. Since it is not connected to the Internet, the risk of hacking is low, and it is said to be the most secure environment among virtual currency storage methods, so you can store your assets with peace of mind.
There is an advantage that it protects you from the disadvantages of hot wallets. It’s hard to hack. It is said to be the most secure environment among cryptocurrency storage methods.
Since cold wallets are not connected to the internet, the risk is that the transaction speed will slow down. There are many users who have stress in trading.
Virtual currency hacking incident
There have been many major hacking incidents in cryptocurrencies in the past. What can be said in common is that hot wallets are easy to target.
Coincheck lost almost all of its NEM in 2018. NEM was exploited because it was managed by a hot wallet and its security system was lax. After the incident, Coincheck compensated all holders in Japanese Yen.
In 2018, BTC, MONA, and BCH were hacked, and the total damage amounted to 6.7 billion yen. All of them were managed by hot wallets, and the cause was unauthorized access from outside. The damaged virtual currency was compensated in Japanese yen and virtual currency.
In 2021, the hot wallet used to manage the entry and exit of Liquid was hacked. BTC, XRP, ETH and more were leaked. The total damage amounted to about 6.9 billion yen, making it a major incident.
MEXC money management
MEXC manages customer assets in a cold wallet that is isolated from the network. Multisig is introduced, requiring signatures from multiple staff members when transferring funds. Since it is a cold wallet, it cannot be said to be absolutely safe, but it can be said that it is an exchange where things like the above hacking incident do not occur easily. In addition, since MEXC has an anti-phishing code and two-step authentication function, it is essential for users to take solid security measures.
MEXC features and recommended functions
MEXC has the following functions: It has the same features as bybit and binance.
The maker commission rate for perpetual futures trading is 0.000%, and the taker commission rate is 0.010%. The spot transaction fees are 0.2% for Maker fees and 0.2% for Taker fees.
Crypto asset orders include limit orders, market orders, and trigger orders. It supports staking, spot trading, and futures trading, and there are various types of currencies that can be invested in, such as BTC, XRP, and USDT. You can easily place your order with just a few clicks.
Deposits can also be made by credit card, P2P, virtual currency remittance, or bank transfer. Withdrawals are easy and there are no restrictions as long as KYC is completed.