Whether you’re new to crypto and still understanding your way around, or you’re a seasoned trader looking to increase your online personal security, how to protect yourself on crypto exchanges is an important element. Cryptocurrencies can oftentimes get a bad name for not being “secure”, but the reality is that the industry is as secure, if not more than, most financial institutions. Let’s dive into understanding what crypto exchanges do, and several measures you can take to ensure that your online information is as safe as possible.
How Do Crypto Exchanges Work?
There are several different ways that you can buy (and sell) cryptocurrencies, through an exchange is one of the most common options. There are several different types of exchanges out there, but generally they are either a website or an app that will facilitate the purchase. Below are a few of the most common types of crypto exchanges:
- Trading Platforms: users can purchase cryptocurrencies directly with a credit card or bank transfer.
- P2P trading platforms: users can trade with other users on the network and set their own prices.
- Crypto brokers: outside of an exchange, these brokers will sell cryptocurrency for fiat currency, usually from a reputable company.
- Hybrid platforms: offer several ways to obtain crypto, like Oobit.
Platforms like Oobit cater to a number of crypto users through their P2P network as well as credit and debit card facilities. Users can instantly purchase cryptocurrencies and have them sent directly to another wallet, or a secure wallet provided by the platform (more on this later).
How do crypto exchanges work? They facilitate users in acquiring, as well as selling, cryptocurrencies of the users’ choosing. Purchases are either done directly, through card or bank payments, or the platform might require you to deposit funds into an account and then purchase the crypto. Exchanges differ from one to the next, so finding a reputable and reliable option is key.
What To Look For In A Crypto Exchange
When wanting to know what to look for in a crypto exchange, here are a few key principles you’ll likely want to see:
Payment Method Options
Do some research on what payment options the exchange offers. Some might only work with cryptocurrency (not ideal when you’re looking to buy crypto for the first time), while others might offer limited payment options. Determine how you would like to pay for your crypto and find a platform that facilitates that.
Before depositing your funds anywhere, establish a clear sense of their reputation online. Check reviews, forums, and community posts that talk about the crypto exchange to make sure that you’re putting your money through a reliable entity.
Most platforms charge a fee to use their services, so ensure that you know what you’re getting into before diving into the deep end. Most platforms are transparent about their fee structure, and often present this information in the payment process. Look out for the fees a platform charges, if it’s too good to be true, it usually is.
All reputable platforms will ask you to complete a KYC process. If the crypto exchange that you’re looking into does not have this option, you’ll want to seek alternative options. Also look out for additional security measures that they offer, like two-factor authentication (2FA).
When shopping around for a crypto exchange, compare exchange rates to find a good deal. If an exchange rate is much higher on a platform, try to find out why. It might be due to higher security measures, or it might be fee related. Also look out for exchanges offering too-good-to-be-true offers, they generally are.
5 Ways To Protect Yourself On Crypto Exchanges
Now that you’ve found a stellar option that you’re comfortable with, you’ll also want to ensure you’re taking the necessary precautions to protect yourself on crypto exchanges. Here are 5 points to cover to ensure that not only your personal information remains secure, but your cryptocurrencies too:
- Use A Strong Password
Make sure the password you’re using is different to your other (social media, etc) logins and use a variety of characters and symbols in your password.
- Keep Your Username and Password Secure
As mentioned, don’t use the same username and password for all your accounts, and make sure that you never give these to anyone, online or otherwise.
- Use Secure, Encrypted Connections
Use private WiFi connections to access your crypto accounts. Don’t sit in a coffee shop using their network to buy, sell, or manage your crypto.
- Make Use Of 2FA
Two-factor authentication is an added layer of security that requires you to enter a code when buying, selling, or transacting your crypto.
- Choose The Right Wallet For You
Make sure that you find a suitable wallet for your needs, for instance if you’re long-term holding your crypto assets you might like to use a paper wallet, while if you’re day trading you’ll want to use a more accessible online wallet.
Oobit has integrated a top of the range military-grade wallet into their services, available for users to use for free. This revolutionary wallet is designed by cybersecurity experts and involves an air-gapped vault that remains offline while still being able to facilitate blockchain transactions.
Your Crypto Is As Secure As You Let It Be
Bitcoin has never been hacked, but much Bitcoin has been stolen from exchanges. Make sure you find reliable platforms to conduct your crypto business on, and remember these key ways on how to protect yourself on crypto exchanges. By using the right platforms and taking the right measures, you and your crypto will be safe and secure.