cryptocurrency

Which Bitcoin Cryptocurrency Exchange Offers the Highest Level of User Security


How-to-choose-a-safe-crypto-exchange

How To Choose a Safe Crypto Exchange?

If you are new to the world of crypto trading, one of the first things that you need to do is to choose which coin to trade. However, after making this choice, there is an equally complex issue of picking the right exchange to trade on.

While many exchanges will seem pretty credible, and will certainly claim that they are the best ones out there, it is still very important to do a very thorough research. At first, this might seem like an unnecessary measure. However, if that thought has crossed your mind, just remember that around 31 exchange has fallen victim to a hacking attack in the last eight years, since crypto trading started to pick up.

As a result, over $1.3 billion was stolen, and numerous investors were affected. This did not only happen to small exchanges with underdeveloped security either. Some of the largest ones suffered serious attacks too. Still, to this day, even exchanges as large as Binance tend to score surprisingly low when ranked on various requirements that include user protection and coding robustness. This also includes things like allowing weak, short passwords that are often easily breached.

How to Choose a Good Exchange According to Experts?

One of the first things that new investors need to learn is to never store their coins in the storages offered by exchanges. Always transfer your funds back to your wallet after you are done trading. Even so, the type of storage that exchanges use remains a very important aspect.

The best exchanges are the ones that use cold storages. These are storages that are not connected to the internet. As a result, they cannot be hacked from the other side of the world, which makes them a much safer option.

While this may seem paranoid at first, just remember Mt. Gox. This was an exchange that got hacked twice due to a bad computer system. It is much better to be overly cautious than to lose your funds to an enthusiastic hacker.

What Can You Do to Protect Your Funds?

Obviously, protecting your funds starts from protecting your accounts. The first and most important step is to create a long, complex password that cannot be easily cracked after only a few attempts. In addition, you should make sure that no transaction can be completed without going through multiple steps.

Things like time delay and requests for manual reviews are good features in an exchange, as they can prevent hackers from quickly getting away with your funds. While this might slightly inconvenience you as well, since you will have to go through all of these steps each time when you try to make a transaction, experts agree that it is better to withstand this, than to lose everything you have quickly.

The layers of security are being added all the time, and they should be embraced. The sole fact that they are constantly being improved and re-created is proof that they are truly necessary in order to trade cryptocurrencies in a safe way.

How Are the Exchanges Improving Their Security?

Apart from the security measures mentioned so far, most security-oriented platforms aim to confirm that all of your transactions are truly made by you. This can include several things, such as verifying the IP address that is used for completing a transaction, verifying payments via email confirmation, or even by using a crypto debit card.

While not all exchanges are using this method, it still has a lot of advantages, since users usually carry such cards with them.

Some exchanges are even employing AI technology. The AI monitors the network at all times, searching for any signs of suspicious activities. While this technology is still new, and there is a lot of room for improvement, there is no doubt that it is one of the best methods of keeping the users safe.

Is Crypto Not Entering the Mainstream Due to Security Issues?

The answer to this is not a simple yes or no. While this is one of the reasons why cryptocurrencies have yet to enter mainstream usage, there are numerous others that are keeping the institutions away. Cryptos still struggle with issues such as scalability, volatility, the lack of regulations, accusations of being a bubble or a scam, and alike.

If security was the only issue, it would likely be fixed much sooner, as everyone around the world would be concentrating on finding appropriate solutions. With the things being as they are now, efforts to improve security are only a fraction of an entire battle for cryptos that is going these days.

How Can You Ensure that The Exchange is Not Lying to You?

When it comes to this, everyone can say whatever they want, and sometimes, things sound too good to be true. However, rather than listening what they are saying, it is far better to check out what they are doing. If an exchange has done real work to protect its platform and customers from hacking attacks, that is a much better proof that it is reliable than any amount of promises.

The world of cryptocurrencies has danger on every step. This does not only include losing your money due to bad investments. Apart from that, there are numerous attempts to scam people, hack them, or steal from them in some other way. Because of that, it is important to search for platforms that submit themselves to security audits, that are transparent, and willing to disclose newly-found vulnerabilities.

There is no such thing as a perfect system, and the exchange that is never finding flaws is likely not even searching for them. If the exchange announces that they are starting a bug bounty program, this doesn’t mean that you should stay away as there is a suspicion that the exchange has flaws. Rather, keep an eye on things, as there is an obvious effort to clear out those flaws, and strengthen the system.





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