Nowadays, there are a plethora of cryptocurrency exchanges and Bitcoin trading platforms to choose from. So much so, it can be overwhelming if you are new to the digital-asset scene. Yet there is one crucial element that cannot be understated or overlooked as the first priority when deciding which will be your trading platform of choice ...is it safe?
What Makes a Safe Bitcoin Trading Platform?
Extensive cyber-security framework is a must. Here is a handful of the key security mechanisms, policies, and procedures that any reputable exchange should feature (at the minimum):
- Solid Bitcoin wallet security and offline asset storage, i.e. cold wallets with multi-signature technology.
- Two-Factor-Authentication (2FA) - to prevent unauthorized access to user accounts.
- Cryptographically hashed passwords and all sensitive data encrypted.
- Registrar and domain security, eg. Cloudfare, to mitigate DDoS attacks.
- Encrypted SSL (https) to cipher and secure the website’s traffic.
- Regular audits/testing/assessments to keep up to date with new potential threats and vulnerabilities.
There are many additional security practices that a Bitcoin exchange will implement, yet they vary from one provider to the next. However, it is worth looking into, as well as their history to see whether they have been hacked before, and if so, how they handled it.
Should you choose a Bitcoin Trading Platform with KYC or no KYC?
Despite what you may have heard, KYC is not essential for a crypto exchange to be safe. On the contrary, submitting your most sensitive personal data via KYC actually increases the risk of identity theft and fraud which can lead to far more serious consequences. So long as the trading platform's security practices are of the highest standard, KYC will not prevent a hack from occurring in the first place.
Which are the Safest Bitcoin Trading Platforms of 2019?
Binance, Coinbase, Kraken, KuCoin, and OkEX stand out as some of the most well-known and reputable crypto exchanges with the strictest security practices and multi-level systems. However, it’s 2019’s fastest-growing trading platform, PrimeXBT, that’s setting the new high bar, with the most advanced and robust technological infrastructure available date across the entire online-trading industry.
Final Thought
Even when using the best and safest Bitcoin trading platforms, it is still critical to be prudent with passwords, private keys, and sensitive personal data, and to ensure that you only access your trading account and/or Bitcoin wallet on computers/devices that are protected with antivirus software.