While dealing with the highly volatile crypto market, you have to prepare yourself for the upcoming risks. If you have been following the news, you’ve likely heard about massive heists robbing exchanges of millions and sometimes hundreds of millions of dollars. Crypto exchanges are common platforms for crypto investors, the main question that arises is, how safe is your exchange?
Points of Vulnerability
There are several potential security risks when using a crypto exchange.
Fraud and user exploitation:
In some cases, a crypto exchange might be fake or fraudulent, though this is rare. In these cases, the crypto exchange facade is a ruse, intended to swindle consumers out of traditional currency in exchange for nothing.
Forceful cyberattacks:
Crypto exchanges are becoming popular targets for hackers due to the enormous potential payout and the anonymity provided by cryptocurrency, with new attack methods like attempting to exploit exchanges specifically. These attacks intentionally try to get past crypto exchange security measures in an effort to steal cryptocurrency.
In-exchange security holes:
Exchanges may also fall victim to exploitation or theft if an internal error which makes them vulnerable. For example, an employee who accidentally makes their password public might have their account compromised, leading to a vulnerability throughout the exchange.
Device and network attacks:
The devices and networks you’re using to access the crypto exchange are also vulnerable to attacks. Smart devices are notoriously easy to spy on and hack. And if you’re using a public network or an otherwise unsecured one, it becomes easy for cybercriminals to gain access to your account.
User errors:
Your crypto exchange account can also be compromised if you make a mistake with your own security measures. For example, if your password is easy to guess, or if you stay logged in on a public computer, a cybercriminal or opportunist could easily exploit your account for the money.
What to Look for in an Exchange Platform
Some exchanges are going to protect you better than others. So what should you look for in the “ideal” crypto exchange?
1. Integrate yourself into the crypto community.
Always keep yourself updated with what is going around in the crypto town.
2.Fee transparency.
Don’t let high fee eat into your profits.
3. What kind of fees does the exchange charge you?
Check the maker/taker or any hidden fee before signing up.
4.Available payment methods.
Look out for the types of payment methods the site is accepting. Most crypto exchanges will take PayPal, credit cards, and most conventional forms of payment. If the exchange in question demands wire transfers only or is suspiciously picky about how you can send payments, it’s a sign to stay away.
5.Authentication and verification standards.
Look for an exchange with high standards for authentication and verification. A rigorous onboarding process that requires you to verify your identity multiple times is a sign of an exchange with good security. Similarly, high-security measures like two-factor authentication can reduce your risk.
6.Exchange rates.
Shop around and look at the exchange rates offered by different exchange platforms. While most of the major players will offer similar rates, you may find a better deal somewhere else or you might find an exchange rate that’s suspiciously lower than market value.
7.Commitment to security.
Finally, research about how committed your exchange is about maintaining high levels of security. Does the exchange clearly explain what measures they take to keep their platform secure? Are there new updates on an ongoing basis? Is there a refund policy for users whose crypto funds are stolen?
Other Measures to Protect Yourself
Beyond that, you’ll want to take the following personal security measures to protect yourself (and your account):
- Choose a strong password.
- Strong passwords are much harder to guess and will make your accounts more secure.
- Change that password regularly.
- Avoid going all-in
- Never give your personal information away.
A safe platform to make your trading smooth
Panaesha Capital offers a high calibre platform for trading your crypto assets. Built by experts, our exchange keeps your security as a priority. PCEX charges no additional maker, taker, deposit or withdrawal or hidden fee. The interface is user-friendly with round the clock user support. PCEX charges a single transaction fee of 0.05% on any trade in their intraday and derivative markets and 0.5% in the cash or delivery market. The crypto-exchange is designed to prevent users from visiting numerous platforms to convert their fiat money to digital currency or vice-versa. With a superior order-matching engine, and with strategic partnerships and a huge user-base, PCEX provides high-liquidity.
Start trading cryptos safely and securely with us on PCEX.
