The crypto exchange must be secure and this is quite obvious. However, the criteria that directly or indirectly indicate the degree of site safety are not very well known to novice users. Finding a site where you can profitably buy LOOM is relatively easy, but how trustworthy is it?
Exchange safety factors
The security of the exchange is characterized by many criteria. This is the availability of a license, account security, a way to store assets. Let’s take a look at some of the most important ones.
- Licenses.Having a license from the country in which the exchange operates is a significant plus in its favor. If there is no license and the site exists quite recently, it is better to bypass it.
- Public company.If the exchange is a public company, it means that it has passed the audit and other regulatory checks.
- Availability of insurance policies.Insurance against hacking, even if nothing like this has ever happened in the history of the exchange, is a good indicator. This means that you are guaranteed protection even if vulnerabilities are discovered in the security system.
- Two-factor authentication (2FA), IP snooping and whitelisting.All these functions are aimed at preventing the use of the user’s account by third parties. Enforcing 2FA increases account security.
- Support.Support service is needed not only formally. How can you contact her, how quickly and efficiently does she work? Poor customer support or the complete absence of this service is a strong argument in favor of looking for another site.
- Organization of storage of assets. This is a very important point. If the exchange keeps at least 90% of the funds in cold storage, it will not be possible to steal them.
- Rewards for mistakes.Some exchanges offer users rewards for finding software bugs. This means that the team is confident in the safety of the site and is ready to improve it. The same is true for penetration tests.
Binance leads the way in many market metrics. At the same time, there is no information about the availability of any licenses from the site. To protect against hacks, two-factor authentication is provided, an anti-phishing code is added to each letter from the support service. To withdraw funds, the user forms his own white list of addresses. Each login is recorded and the user is notified of all account transactions.
Coinbase is one of the most secure cryptocurrency exchanges in existence today. Nearly 99% of user assets are stored in cold storage. 2FA account is required. The platform supports over 200 crypto assets.
In the event of account deletion, the client may request that personal information be removed from the servers.
It is one of the few platforms that has not yet been hacked since its launch in 2014. The exchange is registered in the UK and is controlled by EU authorities. Account verification after registration is required. Among the shortcomings of the exchange is a poor choice of ways to earn money. It supports spot, margin and OTC trading.
For the security of personal data and assets, users are advised to enable Google 2FA, create a list of trusted IPs and control sessions.
The exchange is licensed by Japan and Hong Kong. The platform supports more than 600 digital and about 50 fiat currencies. A fairly large selection of trading pairs with fiat currencies is available here. If you plan to fund your account with fiat money, you will need to verify your account. Although if you fund your account with cryptocurrency, exchange BTS to USD to buy other tokens, this is not necessary. Available spot, margin trading, OTS, as well as numerous additional ways to earn.
By cooperating with centralized exchanges, you risk your funds and your personal information. From this point of view, the LetsExchange instant cryptocurrency exchange service is much more reliable. Account registration, and even more verification is not required. Using the features of the service, you do not disclose any personal data. Theft of coins is also excluded, your funds leave the wallet only for the duration of the transaction and are not stored on the platform.