Security is always a major concern when buying cryptocurrencies. Cryptocurrency exchanges are a prime target for hackers and other criminals because they are the main places where money is converted into digital assets including crypto.
Which factors are most important when choosing the safest cryptocurrency exchange?
You should select a safe and secure crypto exchange based on how you intend to store your cryptocurrency. Choosing a partner you can rely on to protect your cash and data according to the most recent security standards is therefore crucial:
Security of funds
The cryptocurrency markets are teeming with bad actors and cybercriminals looking for chances to steal money from your exchanges. So it makes sense to use an exchange with reliable insurance or a fund recovery plan.
Personal information protection
Your personal information will be required during the registration procedure, which you must first complete after selecting the trading platform. Be sure the platform you choose to process your personal data on complies with data protection laws.
List of the safest crypto exchanges
Phemex is a well-known cryptocurrency exchange that mainly focuses on spot and futures trading. Along with 300+ spot trading pairs, this trading platform provides 140+ USDT-margined contract trading pairs as well as Hedge Mode support. It has never been hacked in its history, which even the most powerful exchanges cannot claim.
Phemex should be regarded as one of the safest cryptocurrency exchanges due to its dependable security system and completely transparent operation process. It should be noted that Phemex published Proof-of-Reserve and Proof-of-Solvency quickly after the FTX crash. Phemex takes one step farther than the majority of trustworthy cryptocurrency exchanges by keeping ALL deposits in cold storage via offline signature. Each user receives a special cold wallet deposit address thanks to the system’s hierarchical deterministic architecture. All user assets are completely funded because 100% of user cash is kept in reserve. This popular trading platform also uses a double-entry accounting system and a two-factor authentication technique to secure customer data.
In addition, Phemex provides its customers with a smooth recovery mechanism that delivers 99.99% high availability. By such a mechanism, every engine is running simultaneously with several backups. Most users won’t even be aware of system updates or maintenance. For 24-hour exchanges, this kind of swift and faultless recuperation is necessary.
Crypto.com, like Phemex, saves all customer monies offline, and the hardware storage is protected by physical theft and damage insurance. Multi-factor verification and withdrawal protection are always in place to protect user funds.
Both account management and transactions on this trading platform require two-factor authentication. Customers that use the address allowlisting feature can restrict asset transfers to addresses that have been granted for go. The exchange keeps all private keys off-site in high-security data centers and involves additional signatures to move funds out of the Cold Storage System.
The crypto platform and multi-asset trading company eToro is well recognized for its copy and social trading capabilities. Its multi-tiered technique for securing digital assets includes both physical and internet storage.
As a user, we strongly recommend you keep the above considerations in mind to prevent any security breaches because, as we all know, there is not a lot of regulation in the cryptocurrency exchange industry. Prepare yourself as an investor by arming yourself with a wealth of reliable knowledge. Notably, no cryptocurrency exchange can ensure complete security. Before making any financial decisions, you should always conduct your own research to thwart any potential criminal attempts.