These days every crypto exchange claim that they have high-end security measures, don’t take their word for it. Always do your research before choosing a crypto exchange for trading crypto. Buying, selling, and trading crypto is a risky endeavor, you must be extra cautious while doing so. The reason for implementing a cautious approach is that crypto market is highly volatile. As other financial or trading platforms like banks have insurance and other security protocols, the same can’t be said for all crypto exchanges.
Lately cyber thefts have become a real problem in the digital environment. You can lose your fortune on the hands of hackers and scammers if you neglect the security detail of your chosen exchange. Hence, you must choose safest crypto exchange that goes to extreme lengths to protect your financial assets.
What Makes a Crypto Exchange Secure?
The best exchange for crypto trading always has a good security program that safeguard user funds and transactions against any kind of digital thefts and attacks. The standard security protocol on a credible crypto exchange includes user-level protection or two-factor authentication (2FA). After activating 2FA, a security code is sent to your phone through SMS after every login.
Apart from two-factor authentication you should look for an exchange that has other advanced security protocols. These are three additional security measures to look for when choosing the safest crypto exchange.
- Insurance: In banks the deposited money is usually FDIC insured which means that it is protected against any kinds of theft or bank failure. Not every crypto exchange has FDIC insurance. But credible trading platforms do provide additional insurance for your digital assets so in case of theft or exchange failure, the user is compensated.
- Cold storage: Exchanges keep assets in two kinds of storage/wallets namely, hot storage, which is online and accessible whereas, cold storage is offline, it is not accessible. Therefore, consider an exchange the store your assets in a cold wallet.
- Bug bounty program: The concept of bug bounty initiative is to inspire security experts, also knowns as the ethical hackers, to identify any kind of system vulnerabilities. Best crypto exchanges offer rewards to these experts for reporting security weaknesses instead of exploit them.
Here is a rundown of best-performing crypto exchanges with advanced security features and impressive trading options.
Safest Crypto Exchange – Gemini
Gemini is one of the largest crypto exchanges that is privately-owned and allows users to buy, sell, trade more than 40 crypto assets safely. Gemini was first introduced to the market in 2015 by Cameron and Tyler Winklevoss.
Gemini is a one-stop trading platform with separate fee structure and user interfaces for casual and advanced traders. Moreover, it has an interactive and easy to use mobile and payment app, and its own currency knowns as the “Gemini dollar”. Unlike other exchanges its native currency, the Gemini dollar is a “stable coin” that is US dollar based.
According to the exchange financial experts, it has $200 million in crypto asset insurance coverage. Moreover, this is one of the only exchanges that insure the crypto assets stored in cold wallet and allow its users to buy other crypto insurance.
Additionally, Gemini also has a bug bounty program, that offers compelling rewards to ethical hackers to report any kind of bugs in the exchange and implement needed transitions effective and immediately.
Coinbase has made a prominent position among hundreds of crypto exchanges that fill a gap left by the mainstream. For years it has provided traders a safe and all-in platform to sell, buy, and trade Bitcoin and other crypto assets.
Coinbase implements industry-leading security protocols to safeguard user deposits. That being said, there are always some unseen factors associated when trading crypto assts, so it is important to follow best practices for keeping your account digital assets safe.
According to platform professionals, 98% of user assets are stored in cold wallet, supported by both paper and digital backups. Moreover, the platform utilizes bank-standard encryption and security for its global website. Additionally, all user accounts must activate two-factor authentication, to prevent hackers and scammers from logging into their accounts.
Crypto.com is one of the biggest crypto exchanges that supports investing, trading, staking, digital wallets, NFTs, and a lot more. This exchange is famous for offering over 150 different crypto assets, competitive fees, and compelling discounts for people who stake Crypto.com native coin known as (CRO).
Crypto.com is a best suited option for traders thinking to go long in crypto trading. According to the platform professionals “it has secured a total of $360 million in cold storage insurance against physical damage or destruction and third-party theft”.
There is a lot of risk involved when it comes to buying, selling, and trading crypto assets. Therefore, to stay on a safe side always look for an exchange with advanced security protocols including cold storage, insurance, and bug bounty programs. If you do so, you can say that you are doing everything to keep your digital assets safe.