Considering the recent rise in the price value of cryptocurrency, it’s no surprise that the rate of crypto-maniacs yearning to cut their own piece of cake via trading has also increased.
While this idea of ‘crypto trading’ looks lucrative and profitable, keep in mind that there are dozens of scammers masquerading their identity as “trusted crypto trading platforms.”
The “real” question is this: can you confidently identify the right trading platform to invest in? If you’re not completely certain, don’t panic.
Here are 8 signs that show that a crypto platform is safe to trade on.
Having top-notch security simply shows that the exchange has its clients’ and customers’ interest and safety in mind. In other words, the exchange interested in making sure that their customers’ money isn’t easily accessible to hackers.
If you’re a newbie or an expert in crypto trading, I’d advise you don’t skimp on this part. The safety of your entire investment on a crypto platform depends on its security.
Do you know that just a little weakness in security can lead to some serious hacks?
To mention a few, back in 2014, Mt. Gox lost about 850,000 BTC to hackers. However, it was later reported that the majority of them were later retrieved.
In 2016, Bitfinex lost $75 million in funds when hackers got their hands on users’ segregated wallets. Thankfully, Bitfinex has now reinforced its security. In fact, it is rated as one of the biggest exchanges in terms of volume today.
There are many more incidents like these, which is why you have to be very smart in making your choice of platform to trade on.
Meanwhile, here are important security elements a safe trading platform must have:
- It must offer two-factor authentication.