5 major factors to mind while looking for a safe crypto exchangeJuly 2, 2019
Crypto exchanges are one of the most sought-after preys for modern hackers. Just 2 months back, there was a whooping $40 million hack from an esteemed crypto exchange. However, you can’t let the fear of unethical hackers stop you from trading crypto which is supposedly one of the most high yielding vehicles of investment today. Your job is to mindful about your selection of a “secured” crypto exchange that can guarantee a reliable trading environment. The post below offers a brief on the major factors you should check while looking for a “safe” crypto exchange.
Regulation & license
It’s shocking that out of 210+ crypto exchanges today only 14 are actually regulated. An unregulated exchange is often the hub of hackers. A properly licensed and regulated exchange has to follow certain set standards and norms. These regulations are strategically devised to ensure efficiency and credibility on part of the exchange. A lot of exchanges have not received license yet as they fail to meet the set standards and hence can’t be trusted.
Cold wallet storage
This is one of the most vital points to consider while looking for a “secured” crypto exchange. Go for an exchange which promises to store the majority of funds in cold wallet, i.e. offline storage. As cold wallets are not online, they are beyond the reach of hackers. Rising crypto exchange Decoin stores 97% funds in cold wallet. The other 3% is kept in hot wallet for easy liquidity but that too is protected by insurance.
Two-Factor Authentication helps to add an added layer of security to your virtual account. Make sure your chosen exchange should assure 2FA for all sensitive operations. For example, Decoin implements 2FA on log in data, generation of API keys as well as withdrawal details.
Your chosen crypto exchange should guarantee constant monitoring of all withdrawals every day. It will enable the exchange to spot uncommon or unusual user behavior before it’s too late. It would be better if the exchange allows coin holders to specify the list of addresses for fund transfer. This way, the moment funds are sent to an unspecified address, the exchange will be alerted.
It’s extremely crucial for a crypto exchange to have a dedicated security team who will continuously monitor as well as update the platform. Constant monitoring helps to identify any attempt of malicious attack immediately so that the unwanted intrusions can be stopped on time.
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