Crypto Currency
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Hardik Patel is a Digital Marketing Consultant and professional Blogger. He has 7+ years experience in SEO, SMO, SEM, Online reputation management, Affiliated Marketing and Content Marketing.

Cryptocurrency has, without doubt, swept the global space and opened many avenues to trade and make a fortune while at it. These days most online stores have an option that allows you to make payments using Bitcoin, Ethereum, Litecoin, or any other emerging crypto coin.

Developed nations like the UAE have taken the game further, and now even some real estate developers can allow you to buy a house using Bitcoin. It is thus evident that this crypto wave can only spread also as we swim into the future.

When we talk of a cryptocurrency exchange, also known as (DCE) digital currency exchange. It refers to a website or a business that allows customers to buy, sell, or exchange their cryptocurrencies for other assets such as traditional Fiat money like Euros or dollars or other forms of digital currencies.

There are three types of cryptocurrency exchanges, namely Brokerages, Peer to Peer (P2P) platforms, and Full Trading platforms. A brokerage is just like a foreign exchange dealer where you can buy or sell directly from the website at a specific price set by the broker.

A peer to peer (P2P) platform allows the buyer and seller to trade directly at a mutually agreed price and payment method, making it an ideal choice for those that value privacy. A full trading platform, on the other hand, operates like a stock market bringing a large pool of buyers and sellers together and allowing them to trade within themselves.

Whichever cryptocurrency exchange type you decide to settle for, you should proceed with extra caution because when resources come into play, you can quickly become prey. Hackers are working round the clock to sweep clean your cryptocurrency wallet. This article looks at the top factors to make your cryptocurrency exchange secure.

What to Look for in a Reliable Exchange?

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Below are a few considerations for choosing a reliable exchange.

Where the Exchange is Based

Location matters a lot when choosing the cryptocurrency exchange to go with. Some countries, for instance, can reject wire transfers to and from specific regions, and you should ensure that the trade you choose is open and flexible to almost all nationalities. It is also essential to ensure that the governments in those areas offer protection for customers and regulations that will ensure that you do not lose your hard-earned money.

Volume and Liquidity

To get success in trading cryptocurrency, join a successful cryptocurrency exchange company. The trading volume and liquidity of trade indicate how many active buyers and sellers are conducting successful trades per given time. This list by CoinMarketCap lists the top 100 cryptocurrency exchanges by trading volume. You can compare the different exchanges and see what works for you.

Legal Approval

You will need to run a proper background research on an exchange before deciding to trade your valuable cryptocurrency on it. Different countries have different regulating bodies, and it’s good to establish if the transfer that you are interested in is duly registered and monitored by the proper regulatory authority. In the U.S. for instance, the SEC (U.S. Securities and Exchange Commission) takes care of this, making sure that every exchange meets the regulatory standards necessary for it to be registered and allowed to operate.

Security and Support

Financial institutions and regulated companies should always employ some heightened level of security. This should be evident from the minute that you access the company website of the cryptocurrency exchange of your choice.

From the steps they require you to take before joining or logging in, you can easily decipher how active their security protocol is. They also need to have an efficient and reliable support team that can handle customer problems in real-time.

KYC and AML Procedures

Know Your Customer (KYC), and Anti-Money Laundering (AML) procedures are a must-have for any reliable exchange. With governments all around the world stepping up the fight against terrorism and money laundering activities, regulated companies and financial institutions are required to know as much necessary information of their customers as possible.

A secure cryptocurrency exchange should ideally follow these AML & KYC guidelines and ask you for such details as your driving license or passport information. If a transaction does not ask for such information, consider that a red flag.

Top Factors to Consider for a Secure Cryptocurrency Exchange:

Cryptocurrency

Registered and Regulated exchange

You will need to run a proper background research on an exchange before deciding to trade your valuable cryptocurrency on it. Different countries have different regulating bodies, and it’s good to establish if the transaction that you are interested in is duly registered and monitored by the proper regulatory authority.

In the U.S., for instance, the SEC (U.S. Securities and Exchange Commission) takes care of this, making sure that every exchange meets the regulatory standards necessary for it to be registered and allowed to operate.

Valid SSL certificate

By just looking at the URL of the website that you are interested in, you will immediately decode the kind of security levels they have in place. A site with a valid SSL certificate usually has HTTPS instead of just plain HTTP and has a green padlock at the far customers.

If you go for the highest authenticity and green bar for supreme assurance, then EV SSL right of the URL bar. This indicates that the data that you provide on the site will be encrypted and therefore have a limited chance of falling on the laps of fraudsters.

It does establish trust as well as security for a Certificate will be an ideal choice. For cost-efficient EV SSL, you should consider one of the SSL providers named CheapSSLCouponCode. An EV SSL certificate from CheapSSLCouponCode will bestow you all benefits that you will have received from the direct certificate authority.

Trading Volume

If you want to succeed in trading cryptocurrency, join an already successful cryptocurrency exchange development company. The trading volume of a transaction can indicate how many successful trades are taking place on the platform and guide you accordingly. You can compare the different exchanges and see what works for you.

Multi-Factor Authentication

It is essential to join a platform that allows for 2-factor authentications. These are your resources that you are protecting here, and so a single mere password is not enough. You should have a setting where a onetime pin is generated to your smartphone on top of your password to allow you to sign in. If anyone managed to get hold of your password, they would additionally need to have access to your smartphone to be able to sign in.

Reputation

When you type the name of the cryptocurrency exchange that you are interested in on Google, a lot of results should appear for a reputable company. Take your time to go through the customer feedback on platforms like Reddit and BitcoinTalk to see the experiences that people have had over time in the exchange that you’re interested in. Where there is smoke, there is fire, and so if you see more negative user reviews than positive ones, you might want to think twice too about that cryptocurrency exchange.

Anti-Money Laundering (AML) & Know Your Customer (KYC) Procedures

With governments stepping up the fight against terrorism and money laundering activities, regulated companies and financial institutions are required to know as much necessary information of their customers as possible. A secure cryptocurrency exchange should ideally follow these AML & KYC guidelines and ask you for such details as your driving license or passport information. If a transaction does not ask for such information, consider that a red flag.

The geographic location of your cryptocurrency exchange

Location matters a lot when choosing the cryptocurrency exchange to go with. Some countries, for instance, can reject wire transfers to and from specific regions, and you should ensure that the trade you choose is open and flexible to almost all nationalities. It is also essential to ensure that the governments in those areas offer protection for customers and regulations that will ensure that you do not lose your hard-earned money.

Cold Wallet Storage

You shouldn’t leave any funds that you do not intend to trade on a hot exchange wallet that can be more susceptible to security breaches. Instead, invest in safe cold wallet storage that will hold your funds offline until the time that you wish to trade them. A Tresor wallet or a Ledger are reputable hardware wallets that you can invest in.

Cyber Attacks History

With an estimated USD 1 Billion lost to cyberattacks on cryptocurrency exchanges in 2018 alone, it is essential to establish the history your exchange of choice has had with this menace. It doesn’t necessarily mean that a cryptocurrency exchange has never been a hack. The cyberattack history educates about security breaches that have happened before and protective measures that have been put in place.

Real-time encrypted email alerts

Your cryptocurrency exchange of choice must have real-time encrypted email alerts of anything taking place in your account. You should be notified of any successful and successful login attempts with respective IP addresses as well as any ongoing transactions. Therefore, if there was to be a breach, you will know in real-time and take quick action like changing your password or contacting account support.

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