Cryptocurrency

How Safe are Crypto Exchanges?

Cryptocurrency Concepts

Crypto trading and investment are gaining momentum. More and more people worldwide are considering getting into crypto, looking at many successful examples of when people made a fortune from small initial investments.

There are several factors for successful trading:

  • Picking a promising crypto asset that would bring you a fortune in the future.
  • Learning and practicing crypto trading strategies.
  • Understanding of trading tools and financial instruments.
  • Tracking up-and-coming assets to invest in.
  • Diversification.
  • Cool head.
  • Analysis of the market.
  • Pick a reliable and trustable cryptocurrency exchange.

In this article, we would like to talk about how to choose the safest place to buy cryptocurrency. It is a crucial topic for when you entrust your funds to a platform, you need to be confident about its safety.

Crypto trading brings enormous amounts of profits, and it would be a pity to lose them all because of unreliable or scam platforms, and there are many such in the market, by the way. They beckon inexperienced users with low fees and attractive bonuses. So as not to be caught in a trap, read on and see how to pick a reliable exchange.

So, How Safe Really Are Crypto Exchanges?

It is not advisable to use simple exchangers that overwhelm the Internet. They are small websites with a limited number of digital assets, usually at a higher rate and higher fees.

Depending on the way of platform’s management and the level of security of offers, crypto platforms vary:

  • CEX – centralized, regulated cryptocurrency exchanges that have a central authority that tracks transactions and is responsible for clients’ funds, for CEX holds investments on its servers.
  • DEX – unregulated platforms with no responsibility for clients’ funds. DEX is just a space where traders exchange crypto directly from their wallets at their own risk.

We described the main difference between CEX and DEX. Now let’s talk about CEX in more detail. When picking a centralized crypto platform for secure and profitable trading, pay attention to the following factors:

  • Platforms reputation, the number of users, and partners.
  • The commission policy. Does the fee vary depending on a financial tool?
  • The level of safety? Check out if a platform was subjected to hacker attacks and what protection mechanisms does it implement? Is there personal profile protection?
  • The number of digital assets supported.
  • Is it possible to start trading with fiat money and consent fiat-crypto pairs?
  • Read user reviews on the exchange and see what difficulties they face when working with it.
  • Find out what trading tools are available and what conditions are. For example, what is the max leverage you may use? Is it possible to make passive income through staking, etc.?
  • Is there customer support, and how does it work?
  • Are transactions fast?
  • Are anti-money laundering and know-your-client mechanisms implemented?

It is advisable to start your crypto journey with one of the largest crypto exchanges, for they are much more convenient for a beginner trader and much more reliable. Decentralized platforms are also actively used by traders, but it is harder to handle them, and a novice trader will hardly recognize a reliable one.

Let’s discuss one of the largest crypto exchanges that are definitely worth your attention.

The Largest Crypto Exchanges

Considering all the points mentioned in the previous paragraph, we selected the safest and largest crypto exchanges for you to check out:

  • Binance
  • ByBIT
  • WhiteBIT
  • Coinbase
  • Kraken

Binance is the world’s biggest platform. Probably every crypto investor has an account on it. It offers all possible trading tools, but its fee is not fixed and varies depending on the tool you use. Plus, Binance may be somewhat challenging for a novice user. So we recommend starting with another platform – much easier to handle and still the same reliable as Binance.

The most secure cryptocurrency exchange operating officially and complying with KYC and AML is WhiteBIT. It is the largest crypto exchange in Europe that operates in over 150 states and has over 2 million registered clients. WhoteBIT supports over 450 crypto pairs and the following financial instruments:

  • p2p exchange
  • spot market
  • futures derivatives
  • leverage
  • margin
  • codes

If it is the first time you are purchasing crypto, don’t worry, you can use cash to do that. The exchange provides the option of purchasing crypto with fiat via bank cards and supports fiat-crypto trading pairs for clients to withdraw and deposit funds quickly and conveniently. To buy crypto with fiat, you should:

  • pass registration and verification
  • pick a payment method
  • select the fiat money you have and deposit the sum to your account
  • go to the crypto converter and select the currency you have and the coins you wish to get
  • pay the fee (which is fixed at 0.1%)

You will be surprised by how fast crypto will be accrued in your account. You may hold it in the WhiteBIT account or move it to any other wallet or use cold storage. It is safe to hold coins on the WhiteBIT wallet long-term. The exchange offers cold funds storage for clients, holding 96% of investments on offline wallets. It protects funds from jackets and third parties. The remaining 4% of clients’ funds remain in circulation. The WhiteBIT platform has an Insurance Fund collected from clients’ fees in case a large amount of money is immediately needed.

This exchange is aimed at expanding the adoption of digital assets and is very suitable for beginner traders. Its interface is divided into basic and advanced. The same with the WhiteBIT application, which can be configured on a smartphone.

WhiteBIT is the most secure cryptocurrency exchange because it proposes that clients install a two-factor authentication to their accounts, not letting third parties access their wallets. So when you enter your account, you will randomly receive a code to your smartphone and will be the only one who knows it and can enter it to access the account.

Funds are protected with several layers of mechanisms. The platform has never been involved in scandals and has never been hacked.

WhiteBIT is expanding, thus, adding new features and making new partnerships. Recently, it released its utility token WBT, which has already shown growth. As of mid-Decemer 2022, one WBT costs $4.14, with a market capitalization exceeding $255 million. Having this token, you will receive additional discounts on trading fees and zero commissions for several operations on the platform, as well as additional earning opportunities and products-partners that cooperate with the platform. Besides, if you participate in an affiliate program with WBT, you will receive increased interest for a friend brought.

If you want to learn more about WhiteBIT, welcome to its blog. The resource regularly rolls out interesting articles and long reads, descriptions of up-and-coming projects worth your attention, and helpful guides on different operations like buying crypto with fiat, creating your own token, attaching a bank card, etc. If you doubt your trading skills, you may try the demo trading option on WhiteBIT. Using demo tokens, you can understand how to use trading strategies and tools such as futures, leverage, etc. Demo trading will teach you to navigate the website and handle its features. Then, when you understand how it works, you may switch to real markets trading and start making real money, working with the most trusted crypto platform.

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