Trading is risky. That is the rule no. 1 for any trader and investor. Traditional stock markets have been governed by strict regulations for decades. Crypto? FUD comes to mind.
Do you believe in cryptocurrency exchanges and their safety? Do you want to find the one you could trust? Let’s discuss.
Cryptocurrency exchange: fighting fear with facts
A newer barometer of exchange safety can be found in the latest ICORating Exchange Security Report, which ranks 130 of the world’s most popular cryptocurrency exchanges by safety.
Over the years, hackers have stolen millions of US dollars’ worth of cryptocurrency from different exchanges. No wonder that potential investors consider investing in crypto to be hazardous and vulnerable.
Today, there’s a huge number of cryptocurrency exchanges to choose from – 200 platforms currently offer their related services, and the number is constantly growing.
Although many countries have started to introduce strict regulatory requirements pertaining to the operation of crypto exchanges, investors and traders are still not completely protected from the loss of their assets.
The top 3 simplest tips to protect yourself are the following:
- Invest in reliable assets. Keep track of the performance of the crypto you want to trade
- Diversify your portfolio. Being extremely volatile, a single cryptocurrency can’t serve as a safe and sound investment tool. To mitigate the risk, you should think carefully about a number of markets that can bring you profit and serve as hedging tools.
- Choose reliable crypto exchange. The 4 major parameters you should consider include user security, domain security, web security, and DoS Protection.
What to look at before choosing an exchange
Take a closer look at the following parameters when choosing your cryptocurrency exchange to be on the safe side:
|Search for reviews from individual investors and trusted industry resources. Use forums like Reddit and BitcoinTalk.
|Find out all the details and fee-related information on the crypto exchange’s official website. Make sure you understand the rules.
|Make sure the exchange supports the payment method suitable for you: wire transfer, debit/credit cards, PayPal, etc.
|Though user verification may seem long and painful for users, this step protects the exchange against any fraudulent actions.
|Sometimes exchanges offer some functions, which are only available within a certain jurisdiction. Ensure you can get full access from the place you live in.
|All cryptocurrency exchanges have different rates. Take your time to shop around to find the best options.
Can crypto trading be safe?
For sure. Authorized and fully regulated by the world’s financial regulators, cryptocurrency exchanges can offer safe and sound services to satisfy the needs of aspiring crypto investors.
Just note that a hit or miss strategy will doubtfully work out here. Instead, try to conduct a careful and thorough analysis of your options. It will definitely help.