Cryptocurrencies are becoming an increasing threat to investors and users due to the growing number of fraud and hacking incidents. Many of the thousands of cryptocurrency transactions we see daily take place on cryptocurrency exchanges and these exchanges are the prime spots for hack attempts. With hundreds of these crypto exchanges to choose from, you need to know how to select the safest, most reliable for purchasing your crypto.
Adherence to Regulations
Always check if a crypto exchange platform is regulated or not. Most regulation limits the services of traders, which can affect your trading experience. However, regulated exchanges are usually safer, with improved safety and transparency.
This comes as a no-brainer to most, but we can’t help but stress the importance of the reliability of an exchange. Ask yourself questions like, “Will the exchange operate smoothly if prices plummet?” or “Does the exchange have a proven track record of refunding clients in case it gets hacked?”
One of the most significant problems with cryptocurrency exchanges is the lack of customer support. You just can’t get help easily. As of now, even the best exchange platforms have huge issues responding to customer support requests.
Another important consideration to make is the fees. Make sure that they are fair. They shouldn’t be too high and should be clearly indicated on the site. A good crypto exchange is one which doesn’t hide any miscellaneous fees. A site that has a list of services with corresponding fees is a good sign of a proper exchange platform.
Is the exchange reliable under load? Have they been scaling out their infrastructure to keep in line with demand? An exchange that doesn’t upgrade when the time comes, is an unreliable exchange.
Security is a big issue in the crypto community. Many hackers are more than willing to take your money. After all, the risk of getting caught is minimal. Most crypto platforms are aware of this and strengthen their security measures to avoid such incidents.
A lot has also been learned from the previous big-time hacks, like the notorious Mt. Gox hack. Though there’s no assurance that you’ll be 100% safe from hackers, you can take certain precautionary measures like ensuring that the crypto exchange has a two-step authentication process.
It’s also recommended to choose a platform that uses a cold storage system, offline. And when possible, remove your crypto from the exchange and store it locally.
Finding the right crypto exchange platform might be tricky, but with the help of this article, we hope that you’ll have an easier time choosing one. Remember that the crypto world hasn’t yet fully matured, leaving many loopholes exposed to opportunists.
See to it that you devote lots of time and effort in choosing one. Know the purpose of why you’re trading, assess your situation, and think of ways on how you can deal with problems if worse comes to worst. And remember, secure your crypto and make sure your OPSEC is up to scratch.