The exchange market is a very attractive one. Now, that this market has opened up for cryptocurrencies, it is even more appealing, especially due to the lack of government regulation or intervention in it. However, is it really safe? What are the guarantees that the money invested in these exchanges is secure?
Basically, none. The curious case of hacking that occurred at Coinbase and resulted in the loss of around $500 million, is a prominent example here. Most exchange platforms will ensure you that they are highly secure, but their security measures are hard to find out.
Cryptocurrency exchange though is not a lost cause. A lot of measures can be taken in order to protect oneself. You can learn about them at www.smartoptions.io.
In addition, here are a few intelligent tips to help you.
1- Look for reputed and bigger exchanges. Even though not all big exchanges are totally secure, at least, if they have been around for long, they have some security others couldn’t get through.
2- Look for exchanges based in West. While this may sound biased, western countries, in general, have stricter controls and consumer protection laws. So, you can expect some level of security.
3- Look to see if they are insured. Accidents can happen to anyone and why not your exchange? Check if the crypto exchange you are looking for is insured or not. With insurance, you can be assured of your money.
4- Keep your tabs separate. Make it a rule to store all your money and revenues in a separate place. Don’t use the exchange to store your money. Immediately transfer your earnings to another account.
5- Look at the security history. Never invest or consider trade in an exchange that has displayed a history of being hacked and resulted in a loss to customers. Unless and until the website shows its security upgrades clearly, stay away from doubtful sites.
It is a good idea to keep checking for cryptocurrency trade news on websites like www.smartoptions.io. These websites can provide news about exchanges as well as trading tips to enjoy a good cryptocurrency trading experience.