It’s no secret that trading cryptocurrency can be dangerous. Without regulatory authority, skilled criminals and sleuths have been successful at shutting down servers and stealing millions of dollars worth of altcoins. I say altcoins because Bitcoin is not always stolen, in fact, it is almost never the coin victim to robbery.
A large majority of crypto trading around the world takes place on centralized exchanges like Coinbase, Binance, and Huobi, among others. They are vulnerable to hacking because they represent the biggest targets on the internet as they hold millions of in cryptocurrency for users of wallets. Let’s learn how to make the best choices when trading cryptocurrency.
Choosing The Safest Exchange
Unfortunately, no exchange is perfect and you can narrow down this issue to two nuances. You can have a great online brokerage or exchange with optimal trading tools, high liquidity, but lacks security and collects fees.
On the other side of the spectrum you have a decentralized exchange that provides the ideal security in the absence of trading fees, but lacks liquidity and trading tools. All in all, it will take time for sentiment to shift from centralized exchanges because decentralized exchanges continue to create inefficient markets with low liquidity and great latency. As the technology for developing optimal decentralized exchanges progresses, we will have to deal with their centralized counterparts.
Make sure your connection to the network is secured and that you are using “https” protocol while accessing your preferred, centralized exchange. Moreover, make sure you have not gotten redirected to a site with a corrupt address. Most friendly exchanges will remind you to check the site address before logging into your account.
While crawling thousands of pages around the web, it may be helpful to view sites that conduct reviews of these exchanges to ensure credibility. Obviously, you can’t believe everything you read on the internet. Read to see if the reporting agency has personally reviewed the exchange to further determine a review’s credibility.
Stay Protected While Trading
Sadly, the average trader still needs to be cautious while they’re actually trading. Once you have accessed your secured exchange it can never be harmful to be aware of who is around you. Also, know what network you’re on and be aware whether its public or private. Do not trade on a public network. I know it may seem far-fetched, but people only need a small amount of information to declare you a worthy target. If you’re truly nervous about who is around you, I would suggest using a Virtual Private Network (VPN) to ensure that no one on the outside can monitor your traffic.
Stow Away Your Cryptocurrency Safely In Your Wallet
Becoming a worthy target means that trading is going well for you. If this is the case, do not store a large amount of cryptocurrency in an online wallet. Online server wallets, especially large exchanges, can be sifted through and targeted based on account balances.
According to Reuters, approximately $1.2 billion of cryptocurrency was stolen in 2017, and $1.1 billion has been stolen in the first half of 2018. Watch out. Criminals are already on track to steal twice as much as they did last year.