Bitcoin is a digital currency that has grown in popularity over the past several years. Most readers will be aware of Bitcoin, and may even have a few saved up. Trading with Bitcoin, however, can be daunting and difficult for most people who are not tech-savvy or who don’t use online wallets. Trading with cryptocurrency can be risky, especially if you’re not careful. If you lose your money, it could be gone forever—or at least until someone finds your private key to your wallet. That makes it critical to secure your trading account as much as possible. Here are some security features you should look for in a reliable Bitcoin trading exchange:
- Anonymous trading platform.
The security of a Bitcoin trading platform can be greatly improved by using an anonymous one. The anonymity allows you to keep your trading activity private from prying eyes, which improves security. With a trading platform like Bitcoin Prime that is fully anonymous, no one can find out what you’re trading, who you’re trading with, or how much you have or have not made. This is a great way of keeping your funds safe from scammers.
- Withdrawal Limit.
A Bitcoin trading exchange’s withdrawal limit determines how much money you can withdraw from your trading account each week. Some Bitcoin exchanges will allow you to withdraw as much money as you want, and keep in mind that you are responsible for all related taxes. Others may have a withdrawal limit that is set to help protect the platform and its users. With a withdrawal limit, you can’t withdraw all your money at once. The amount you can withdraw each week depends on the weekly limit. If the exchange goes under or gets hacked, you don’t want to lose all your money. Something to keep in mind is that while some Bitcoin exchanges have a weekly withdrawal limit of $1,000, most have a lower withdrawal limit. It’s best to check the weekly withdrawal limit before depositing any funds.
- 2-Factor Authentication.
A reliable Bitcoin trading exchange should offer 2-Factor Authentication (2FA) for all of your account activities. This includes logging into the trading platform itself and logging into your trading account from another device or computer. It’s important to protect your trading account with 2FA because hackers often target ordinary users who make simple mistakes, like leaving their password open on their computer or logging into their account from a new device. It’s best to look for an exchange that offers 2FA so you can protect your money.
- Trading API Isolation.
Platforms that offer 2FA often offer API isolation, which helps protect your trading account by blocking the exchange’s API from accessing your account. In a successful hacking attempt, the malicious hacker would have to somehow gain access to the trading platform’s server and alter your account information. But if they did that, they also have to find a way to also access your account information on another server. The chances of that happening are slim to none, and any decent-sized trading platform can successfully isolate your API. API isolation means that the trading platform can’t access your account information, even if the platform is hacked. API isolation is a great security feature that can protect your trading account.
- Escrow Service.
A trustworthy platform should be reliable, have a good reputation, and have a solid track record for providing quality service. You can check these things by looking at the exchange’s reviews and its trading volumes.
But there’s another thing you can check that gives you peace of mind and a higher level of trust: escrow. With escrow, the exchange holds your funds in an escrow account monitored by a third-party escrow service. Escrow protects you by making the platform responsible for delivering the bitcoins you purchased. If the exchange goes under or gets hacked, your funds are safe and will be returned to your account. This way, you don’t need to trust the platform. All you need to do is to choose an exchange with an escrow service.
Bitcoin trading is an exciting and lucrative investment, but it can be a bit daunting for beginners. That’s why you should make sure to choose a reliable Bitcoin trading platform. These features will make your trading experience much safer and more convenient.