It is always said that choosing a digital currency exchange is one of the most important steps you should take into account to start trading.
When you want to start trading in the crypto world, choosing which reputable exchange to buy and sell your currencies on, should be done carefully. Due to the multitude of exchanges, your hand is open to choose these days, although this variety can make it difficult to choose.
One of the most important things is the “security” of the exchange. In the rest of this article, we will discuss ways to ensure the security of the exchange including:
- Why is digital currency exchange security so important for users?
- Factors providing exchange security
- Legal licenses for exchange activity
- Security desk
- Cold storage
- IP address tracking
- Alert via message
- Authentication
- Two-step verification
Why is digital currency exchange security so important for users?
First of all, you should understand the reasons for the importance of exchange security so that you don’t go through it easily.
The first important point in this regard is that digital currencies themselves are trying to create secure transactions and ease the mind of traders regarding the security of transactions. However, due to the virtual nature of all the details of this area and the lack of access to a physical reference, the risk of security breach is high.
Also, considering that the world of crypto is a completely emerging field that many people are not yet familiar with and the judicial authorities have not established laws about them, the pursuit of complaints will not lead anywhere. In addition, their lack of focus has caused that there is no main reference for reference and follow-up.
All of these cases make each of the activists in this field to be fully responsible for their property. To protect your assets, you must use the right wallet, choose a safe cryptocurrency exchange and protect your personal information. Since the digital currency exchange is a virtual platform that can be attacked by hackers, it is very important to choose exchanges that provide high security for their users. For this purpose, there are some points that you should keep in mind.
Factors providing exchange security
The following are the factors that ensure the security of the digital currency online exchange. Check each item to make sure the exchange is secure. If it was properly applied in the exchange, you can be sure that you have visited a valid exchange. Note that the more of these features an exchange has, the safer it is to buy digital currency and start trading.
Legal licenses for exchange activity
One of the first things you should pay attention to when choosing a digital currency exchange is the exchange’s licenses. In fact, first of all, you should make sure that the exchange itself has no intention of fraud and operates completely legally. This also applies to brokers. After you pass this step, you can go to the security methods of the exchange to deal with the attack of hackers.
Security desk
Information audit or security audit actually means the analysis of security mechanisms in sensitive databases. In this way, it is possible to understand how successful the system is in providing security to users and can protect their information. If there is a bug or security flaw, an information audit will reveal it. Information audit is actually a type of security assessment for exchanges.
Cold storage
One of the things you should consider to ensure the security of the digital currency exchange is the possibility of connecting a cold wallet to it. As you know, the security of software wallets or online wallets is not guaranteed. Therefore, it is always recommended to use cold wallets.
On the other hand, it is said that it is better not to keep your assets in the exchange wallet. However, to the extent that an exchange can provide more security for your storage wallet, it is a better choice.
IP address tracking
There are exchanges that track the IP address of users and if there is any suspicious activity in a user account, they notify it in some way to ensure the satisfaction of the account owner. This method can also be used to provide security.
Alert via message
Many exchanges use message alerts to increase security. In this case, any transaction will be notified through a notification message so that the account owner is informed about it. In this way, if the account is hacked, it can be prevented.
Authentication
Identity authentication is one of those issues that sometimes face with problems, that’s why we often look for exchanges where identity authentication is not mandatory. But in fact, authentication is a security method for digital currency exchange.
With this method, the online digital currency exchange checks the identity of its users and does not allow anyone to enter. Exchanges that accept you without authentication have definitely accepted many other people with unknown identities easily, and this is a kind of security breach.
Two-step verification
To buy and sell digital currency, visit a digital currency exchange with two-step verification. These days, most exchanges have made it possible for their platform to enhance security. In this case, to perform any type of transaction and action in the user account, you must use two different passwords. Some exchanges even use fingerprint or facial recognition.
Finally, an important point that we should mention is that the credibility of the digital currency exchange can largely indicate how it works. Exchanges that have had the largest number of users for years are definitely guaranteed security and you can trust them. However, if you visit an unfamiliar exchange, be sure to check the mentioned items in them.