The best crypto exchange that keeps your bitcoins super safe
All cryptocurrency exchanges say their security is top-notch, but don’t just take their word for it. Read on to find out what more security measures to look for.
When you buy crypto, it’s important to do it safely. Because it is still a new and relatively unregulated industry. While almost all bank or brokerage accounts have insurance and other safeguards to keep your money safe, the same cannot be said for digital currency exchanges.
Some high-profile exchange hacks have shown how easy it is to lose your money. An example is Mount Gox. In 2014, around 850,000 bitcoins were stolen, worth around $450 million at the time. Less than a third of them have been recovered.
This is one of the main reasons why security is often a big concern when buying digital currency. If you plan to invest in cryptocurrency, it’s a good idea to make sure you’re using an exchange that goes out of its way to protect your investment.
What makes an exchange extra safe?
Most major cryptocurrency exchanges have good security programs. User-level security such as two-factor authentication (2FA) is pretty standard. When you enable 2FA, you’ll need to provide additional information every time you log in, such as a code you receive via email and also through Google authenticator. Some exchanges also send codes through SMS for enhanced security. Users can either enable one option or all to secure their accounts. In case, access to the email, google authenticator, or phone is lost, they must inform the exchange admin urgently.
Users should look for an exchange that will go the extra mile to keep their Bitcoins and other currencies safe. Here are 3 additional security measures to look for:
Best pick for the best online stock brokers
Find the best stock broker for you in these top picks. Whether you’re looking for a special sign-up offer, outstanding customer support, $0 commissions, intuitive mobile apps, or more, you’ll find a stock broker to meet your trading needs.
See the selection
Insurance: When you put money in a bank account, it’s usually insured by the FDIC, protecting it against theft or bank failure. Crypto exchanges are not FDIC insured. But exchanges that take security seriously offer additional insurance for your crypto. Thus, if it is stolen from the exchange, you may be compensated.
Cold Storage: Exchanges must keep some currency in what is called “hot storage,” meaning it is online and accessible. In terms of security, you want an exchange that keeps most assets in cold storage. This means it is offline, often air-gapped, and difficult to physically access.
Bug Bounty Program: The idea behind bug bounties is to encourage independent security experts — also called ethical hackers — to find system vulnerabilities. Exchanges offer rewards so people will report security vulnerabilities instead of exploiting them to steal your crypto.
For added security, use an encrypted cryptocurrency wallet
Remember that even if you use a super-secure exchange for extra protection, you should look into crypto wallets.
If your cryptocurrency private key is stolen, it will be almost impossible to get your money back. The safest way to protect your cryptocurrency is to use a cold wallet. It’s hardware that you buy and keep offline so it’s almost impossible to hack.
Since cold wallets are not connected to the internet, you cannot easily access your crypto. On the other hand, a hot wallet is a web-based, mobile, or desktop wallet. This is a good option for a currency that you want to access more easily. It’s not as secure as a cold wallet, so you only want to store a small amount that you plan to use regularly.
There are many risks involved in buying Bitcoin or any other digital currency. So it’s a good idea to protect yourself and look for an exchange with insurance, cold storage, and bug bounty programs. If you do, you can be pretty confident that you’re doing everything you can to protect your assets.
All the mentioned benefits are available on our Byte Power X. You can safely use the exchange and know more about our security by visiting our website.