Safest Cryptocurrency Exchanges • Benzinga Crypto – Benzinga

It’s difficult to believe that the 13th anniversary of the birth of Bitcoin is only about 2 months from now. The amount of growth that has occurred in those 13 years is astounding. Over the past few years, it appears that the entire crypto market has been expanding at an exponential rate.

This expansion brings with it both opportunities and challenges. Regrettably, as the market has grown, so have the security threats. The cryptocurrency market is all about personal accountability. You are solely responsible for the security of your crypto assets. Decisions you make or do not make can mean the difference between prosperity and disaster.

In this article, we will provide you with valuable information that will assist you in making some of those difficult security decisions.

A cryptocurrency exchange is similar to a stock exchange. Each crypto exchange lists a specific number of crypto assets and facilitates transactions between buyers and sellers. Depending on the exchange, they may or may not charge transaction fees. 

Many cryptocurrency exchanges also serve as custodians for their customers’ cryptocurrency. Exchanges come in all sizes, some may only list a few cryptocurrencies, while others may list a hundred or more.

There are also two types: centralized exchanges (CEX), with a central authority that controls the exchange, and decentralized exchanges (DEX), which are run on a blockchain and operate in a decentralized peer-to-peer manner without any central authority.

Anyone with any experience in the crypto market understands the importance of security. There is no shortage of bad actors attempting to separate you from your cryptocurrency. Furthermore, cryptocurrency exchanges are a huge target due to their massive honeypot of crypto assets. 

It is critical to review the security measures implemented by an exchange before opening an account. You should look not only for security measures to protect the platform but also for security features that will help keep your account safe. In terms of exchange security, see if the exchange protects electronic data with encryption such as AES-256. Also, check to see if the exchange’s website has an SSL certificate. The SSL certificate protects customers’ information while securing online transactions. Find out what steps the exchange takes to isolate crypto assets in their custody. Offline cold storage is the most secure way for exchanges to hold their customers’ crypto.

Now it’s up to you to take the first step in keeping your account secure. As always, creating a strong and unique password is one of the best things you can do to protect your account. If the exchange allows it, you can add a second layer of security to your password by enabling 2-factor authentication (2FA). If you have the option, use an authenticator like Google, Duo, or Authy.

So, we have defined a cryptocurrency exchange and also identified critical security features that will aid in protecting your cryptocurrencies. Now we’ll take a look at a few different cryptocurrency exchanges to see how they stack up.