Since digital currencies have started to be so widespread and numerous new crypto projects have emerged in the market, more and more people are willing to buy such assets. Many are wondering, is it safe to buy cryptocurrency? In this article, we will try to figure out this question.
First and foremost, the safest place to buy cryptocurrency is CEX. That is a centralized crypto exchange. Such platforms operate like traditional financial establishments. You invest funds buying crypto on a CEX, relying your money on it. In turn, a platform guarantees your fund’s safety and data protection. In this case, you are not the one responsible for your investments. An exchange takes measures to make your account and money as safeguarded as possible. It’s not a secret that there are many scammers and fraudsters trying to break in and rob crypto on many different days. Centralized platforms know it and do their best to make it impossible.
Let’s find out why CEX is the safest way to buy cryptocurrency:
- All credible crypto platforms implement the KYC verification procedures. It stands for “know your client.” To access all the functions of a centralized exchange, a user must pass this procedure. This is done to check clients and identify them, enduring that one has not been noticed in illegal activities in the past. Of course, this provides a high level of protection, sorting those who can threaten the platform and its users. It implies Customer Due Diligence – the procedure that identifies if a user was involved in any illegal activities or fraud schemes.
- Centralized exchanges always conduct a risk assessment. They monitor transactions carried out on the exchange and notice suspicious and unusual actions. Then the account that runs such transactions can be temporarily blocked. Exchanges often use special software to carry out due diligence checks.
These measures help the exchange always to know where the funds (coins) come from, which protects clients from dealing with fraudsters. These are the reasons why CEX is the safest way to buy cryptocurrency.
Some Trusted Crypto Exchanges
- Binance. The largest and most credible crypto platform. It offers a wide range of crypto assets, tools for grading, and educational materials.
- WhiteBIT. Young yet trusted platform with more than 2 million users worldwide. It offers numerous earning opportunities, tools for trading, a demo account, low fees, and the chance to trade with fiat.
- Coinbase. It is a user-friendly platform suitable for beginner traders. Allows do withdraw to Paypal. Although it offers more ways to buy crypto, the exchange charges higher fees.
All of them are trusted and credible platforms used worldwide.