Guide to Finding A Safe and Secure Cryptocurrency Exchange

Guide to Finding A Safe and Secure Cryptocurrency Exchange

Bitcoin and cryptocurrency as a whole has been thrust into the spotlight amid COVID-19 and the resulting economic crisis.

Bitcoin and its crypto counterparts are poised to give the world what it sorely needs- a digital asset that can be transported or exchanged in the blink of an eye.

People are now investing in the crypto industry, but beginners will find there’s more than meets the eye when it comes to buying them.

Read up on our guide to finding a reputable and safe cryptocurrency exchange.

Diligence and Research

Investing in crypto is a serious endeavor, and it should be said that you must exercise caution and diligence on every turn.

Compared to traditional stock markets and Forex, crypto exchanges are relatively new and may not have the regulation and monitoring as its counterparts.

Since the boom of Bitcoin and other tokens such as Ethereum, Litecoin and others there have been notable data breaches and hack involving cryptocurrency. 2009 alone experienced seven major exchange hacks which brought about millions of lost and stolen funds.

Here’s a fair warning- before signing up at an exchange, do some research using Google. Read up on the first few topics to see if the reviews say they’re reputable or not. Furthermore, you’ll be able to see if it has been the target of a hack or security breach.

You will want to register on cryptocurrency exchange platforms such as Kriptomat, who are regulated, licensed and have the Information Security Accreditation ISO so you can focus on your investment and its future.

Check for Support, Security and Anonymity

Security should be an immovable factor when choosing the right cryptocurrency exchange.

Then, focus on whether the platform has adequate support and measures to promote anonymity. A standard of anonymity is when you sign up for an account without having to enter too much personal information, while security is usually measured with the protocols installed.

2FA, or 2-factor authentication has become a standard protocol for online security. You can see this not just on a safe cryptocurrency exchange but also on email, financial and even gaming platforms. This ensures no one will be able to get in easily even when they have the victim’s username and password.

KYC, or Know Your Customer Verification was introduced in 2019 specifically for centralized exchanges. Upon sign up users are required to submit photos or documentation for verification purposes.

However, there are exchanges that allow crypto withdrawals without having to verify the user. However, the amount you can take out is very limited.

Large User Base

Having a large user base is a double edged sword in that it’s likely to be targeted, but fosters trust as there’s a large number of people involved.

Also, an established platform will likely to have excellent security measures in place compared to smaller or independent ones.

There are some ways you can mitigate the risks. For instance, invest in a hardware wallet and don’t let your investment stay too long in the exchange platform. Also, change your account password to a combination of numbers, letters and special characters and often.

Cristina Macias
Cristina Macias is a 25-year-old writer who enjoys reading, writing, Rubix cube, and listening to the radio. She is inspiring and smart, but can also be a bit lazy.