Cryptocurrency is one of the most popular investment assets. Even considering the volatility and some other disadvantages of digital money, it offers nice opportunities. Anyone can become an investor and gain significant profit just by buying the right digital token at the right time.
For example, you can convert litecoin to bitcoin, or dollars/euros to Solana and gain amazing profit if the coin you bought increases in price. But how to convert cryptocurrency? Just like you would convert fiat money! The only exception is that instead of standard exchanges, you should use crypto exchange platforms. Check out the article to learn how to choose the best cryptocurrency exchange.
How to Choose a Crypto Exchange Platform?
You probably have heard about various incidents of exchanges getting hacked. The main reason hackers attack exchanges is that these platforms are attractive targets with millions of dollars worth of prizes. This doesn’t mean though that everyone should right away stop using all exchanges – how else would we gain crypto money within a short period?
But when choosing a cryptocurrency exchange, it’s wise to pay attention to important factors that make the platform protected and reliable.
Here are a few things to consider:
- HTTPS connection. Make sure to check the bar with the link to see whether the exchange you are using has an HTTPS certificate. It will show a locked sign that indicates that the website is protected. Every quality website should have this certificate, not just exchanges as the certificate make sure your data isn’t collected, sold to third parties, or altered.
- The platform offers a two-factor authentication process. You can come up with the most difficult password, but you still won’t protect your account enough without two-factor authentication. If the website you plan on using offers two-factor authentication, then it’s safer than platforms without it.
- Cold storage options. The exchanges that offer storing funds offline are much safer than those that host money in hot wallets. It’s much more difficult for hackers to steal money from cold storage.
- Whitelisting withdrawal address. Adding your funds’ withdrawal address will disable any attempts to send your funds elsewhere.
If you found a perfect exchange platform with all safety precautions, it should be safer to use it to trade. But don’t forget about some safety tips!
Using a reliable exchange platform is a great idea, but you should also take safety matters into your hands. Check out the following tips to keep your funds safe:
- Use a secure password, preferably, you shouldn’t use it for other websites.
- Do not ignore the two-factor authentication procedure.
- Try to store your funds in a secure wallet. Even if you choose the safest exchange, experts still recommend withdrawing your funds and holding money in protected wallets.
Choosing a reliable platform is something you should do to nearly eliminate the risk of getting your funds stolen. But try to avoid risks completely by following simple safety tips.