Cryptocurrency exchanges are the platforms you use to buy, hold and trade virtual coins on, and without them, trading is impossible. Not every cryptocurrency exchange fits your needs – there are approximately 500 ones, but no one can guarantee the safety of your crypto and data on every crypto trading platform. Suppose you ask any seasoned crypto OG to tell you about their first Bitcoin purchase. In that case, they’ll likely narrate how they invested money in sophisticated, expensive, and complex crypto exchanges until they’ve found their favourite one.
Nevertheless, this shouldn’t be your story. The most important aspects you should pay attention to when you pick a trading app must be:
- User experience.
An easy way to verify these features is to read expert reviews. But if you don’t have the time for in-depth research, we’ve synthesised some of the essential aspects you need to check before you invest money in a platform.
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It’s best to choose the safest exchange available
Traditional fiat money is prone to risks since its processes of storage and exchange involve third parties like banks and governments, which can be corrupted. Many people invest in crypto without the worry that their assets are susceptible to data breaches or hacks. Virtual coins are encrypted, and ownership information and transactions are secured and recorded in a blockchain. This type of storage makes hacking nearly impossible. Still, it doesn’t mean you should invest your money on any random exchange someone recommended.
Never underestimate how imperative it is that the exchange you choose to trade your virtual coins on ensures security. Most cryptocurrency exchanges enable basic protection features, like two-factor Authentication, usually through apps like Authy or Google Authenticator. These build a line of defence against crypto theft like phishing scams. Still, it would help if you looked for the largest platform available in your country, because they have sufficient capital to invest in the best data security tools and anti-hacking programs. The same advice crypto experts and investors give to persons who want to invest but don’t know what virtual coin to choose – going with the most popular and traded one enhances safety.
There are things you can do to secure your virtual money
We’ve picked an exchange as an example to clarify the safety measures you should look for in a crypto exchange and what stands in your power regarding the security of your digital coins.
Binance, the largest cryptocurrency exchange globally and with the highest trading volume, was developed in 2017 and gained so much ground because its creators made its users’ security their top priority. This is one of the main reasons why investors choose this platform, since hundreds of other exchanges exist. Its security features are crucial, which is why we’ve simplified some security traits this app enables and requires you to do.
- Two-Factor Authentication (2FA). It’s the first step to securing your funds on the Binance platform; using Google Authenticator is best because SMS leaves room for attacks.
- Remove access to your exchange account from out-of-use devices. Like your Facebook, Yahoo and the like accounts you remove from a smartphone you no longer use, you should do with your exchange account.
- Don’t allow withdrawals to untrustworthy addresses. Some platforms have features that limit the addresses to which you can withdraw funds.
- Choose a safe crypto-storing method. Binance, for example, offers an official Trust Wallet app where you can safely put most major crypto. Still, it would be best if you were careful not to provide anyone with your generated private key or recovery phrase.
- Use unique emails for your accounts. This prevents unintended sharing of your data from a website to another and decreases the chances of your information being stolen.
- Strengthen your password. Create passwords you don’t use for other websites, and ensure you change them frequently.
- Prevent malware. You can stay away from phishing, but it requires you to pay attention to the web pages you log in to, the emails in your inbox and the fake websites, emails and other replicas.
An crucial starting point to pick an exchange to trade on is to check if it’s available in your country. Then, you find out it’s a crypto trading fee. .
Technology helps apps develop
Technology is the motor of development; without it, we would’ve hunted in the forest. Crypto is based on an underlying technology – a distributed ledger, or blockchain, which enables its existence, among other things. A well-developed blockchain secures your virtual coins, making it important you’re aware of the level of technology the exchange you choose uses.
There are so many technologies that it’s hard to grasp each and every one of them. Luckily, tech and AI experts have done the hard work, while some of the best exchanges worldwide have made the technologies they use public. Some of them help developers create charts, others help with analytics, and many focus on the structure and design of the apps.
The crypto trading platform you choose must be user-friendly
The user interface of exchange establishes the user experience. This feature impacts how interactions between humans and machines occur. The proper exchange should be user-friendly and organised. Besides the best technology and security tools, it should deliver more to have its customers stick with its app, such as:
- Wide selection of transaction types
- Easy to use platform
The latter is one of the best features of blockchain. Transparency increases the traceability and maintenance of your information, thus improving security and allowing users to trade crypto safely. Private and public keys allow you to protect your data and eliminate the need for any third-party intermediary involvement.
If going through this article has made you reconsider the exchange you trade your crypto on, then look for another one. Keep in mind the recommendations above, and never underestimate the significance of your virtual security.