Which cryptocurrencies are the most secure?

Crypto Security

Security is a hot topic in the crypto industry because important protocols have been hacked and the Terra Luna catastrophe was a “black swan” event.

Investing in cryptocurrencies has some extra risks compared to investing in other types of assets. As crypto investors, one thing we should pay attention to is how safe tokens are.

Users of CoinGecko can now look at ratings about security, auditing, bug bounties, and insurance. When they are available, security reports come from CER, Certik, and other places. It’s interesting that neither Bitcoin nor Ethereum have any information about them.

But if you look at the list of the top 10 cryptocurrencies by market cap, the first one that stands out is Binance Coin, which has a score of 95/100 from Certik but only 55/100 from CER.

Discrepancies in reporting methodologies

The big difference between these two scores shows that third-party bodies don’t always do a good job of rating. Certik’s page for BNB says it is the highest-rated crypto project, but CER puts it at number 95.

Shiba Inu is another example. It has three scores: 36/100 from Defi Safety, 94/100 from Certik, and 46/100 from CER. The average score is 58 out of 100, which is 42% lower than Certik’s score of 94.

Best and worst of the top 100

Even the top 100 crypto projects get different amounts of coverage, which could make people who are new to crypto suspicious. If Bitcoin, Ethereum, Tether, or USDC don’t have a security rating that can be seen on CoinGecko, people who aren’t familiar with the space might get a wrong idea of what the projects are about. The CER security ratings for some of the best projects are shown below:

  • Solana – 81/100
  • Cardano – 80/100
  • Dogecoin – 17/100
  • Polkadot – 40/100
  • TRON – 89/100
  • Shiba Inu – 46/100
  • Avalanche – 55/100

Worrying facts about the top 1,500

A report from CER that looked at the overall level of security of the top 1,500 cryptocurrencies showed some troubling facts.

  • Only 1.2% meet all the security standards.
  • Less than 10% meet the four basic security requirements set by CER.
  • 20 percent haven’t fixed bugs that security audits have found.
  • 32% of the code is different from what was submitted and audited.
  • Only 43% of DeFi projects have had their tokens checked.
  • Only 4% of smart contracts have a token audit that covers most of them.

Tools and platforms for security are valuable resources that can be used as part of a bigger plan for research. But investors should be aware of their confirmation bias when looking at so many different kinds of data.

Also, it’s important to look at why a platform gave a certain project the score it did. Each security platform has its own way of figuring out how risky something is. People who use their services should figure out if that way of figuring out risk meets their needs before investing in a project.

Disclaimer: The above information comes from a variety of sources.