4 Ways to Know if Your Crypto Exchange Is Safe and Legit
When it comes to cryptocurrencies, our biggest concern is always security. This market is very attractive, but at the same time, it is quite changeable, dynamic, demanding, volatile, risky, and exciting. If you start your crypto adventure properly and on time, you can easily make a profit. But this requires a lot of time, dedication, and a lot of patience.
Nowadays it is much more practical to trade through crypto exchanges. But there are also many challenges, especially when we need to assess whether a service is legitimate or not. Of course, this is a really ungrateful thing to do, especially for the inexperienced. With this article we will try to help you as best we can and we hope you will not be in a situation to be deceived or lose some of what you have saved in cryptocurrencies.
What is a crypto exchange?
This is a service through which you can trade cryptocurrencies and exchange them for other cryptocurrencies or fiat money, or some other asset. In fact, you are selling and buying, following the current market offer. These activities are not controlled by any government or bank, which means that all decisions are based only on your realistic assessments of things. Therefore, we recommend that you click here to see which are the best crypto exchanges in the UK. You can expand your search to all countries in the world. Nowadays all this information is available to us and it is not worth risking with an exchange that is not known to us or that seems risky.
To make the most of your assessment, consider these factors:
1. General security
Many exchange platforms offer secure registration and transactions. Most often, it will be a written guarantee, authentication of everything you do, secure transfer of money, etc. You will recognize this by the 2FA requirements, the codes you will receive when logging in, as well as by the implemented security protocol. That way you can be sure that the service is doing everything it can to protect you as a user.
2. Easy and intuitive to use
When things are safe, there is no need to be complicated in any way. Exchange providers and developers know this very well. Therefore, even if a platform is too difficult for you to use, you should know that things should not be like that and stay away from it. We can’t say for sure, but when you are asked for too much data and the platform is difficult to use, it can be a case of a scam.
3. Reputation of exchanges
Reputation is a very important parameter and should not be ignored in any process. If no one has ever heard of the new platform, there really is no need for you to be the first to test it. If there is a long history of crypto activities, but also a real reputation among users, then it is probably a secure exchange.
4. Check on their work license
This process will also take you very little time and will save you a lot of nerves and doubts. Each country has different licenses that govern these platforms. That’s why it’s good to know the laws of your country. Note that where cryptocurrencies are unregulated or illegal, it is difficult to verify this parameter. In such cases, it is good to go with popular platforms that have millions of active users.
But if there is any regulation of the crypto market, then surely all these things take place under a given license and you should check it in time.
Why are all these things important?
The interest in cryptocurrencies is growing every day, so there is a need to establish new trading platforms. This is good in one way, but in another way, it means that the market has long been full of various offers and the choice can be really complicated.
You should also make sure that your favorite exchange supports the cryptocurrencies you want. Many experienced traders would tell you to stick to those mainstream platforms, even if they seem more expensive than others.
Also, additional things to check are the volume of coins traded through that platform, how long it has existed and whether there is a customer support system. The most expert advice you can get is, if in doubt, then use another wallet instead of the one implemented in exchange.
Can you be scammed while trading?
You reduce the chances of this happening when you use relevant crypto exchanges. Inexperienced people can easily fall into the trap, so it is important for everyone to follow the news and all the changes first, and then take any action.
Of course, do not trust anyone who tells you that they can help you, much less ask for access to your cryptocurrency trading accounts. Remember, that information is yours alone and can easily be misused if you trust the wrong people.
Crypto transactions are non-refundable and you will hardly be able to recover them if you do something like this.
Every cryptocurrency user must know what they are facing, but also what the standards and legal norms are, in case of insecurity and fraud. Therefore, we will advise you again to check the legal regulations that apply in your country. This will also enable you to locate legitimate crypto exchanges that have work permits and licenses.
Isn’t it really easy to know all these things? If you follow the daily news related to cryptocurrencies, you will easily be able to keep up with the changes that are happening, and also find out if an exchange is in crisis. In that case, you should avoid them. As a currency trader, you need to do everything you can to protect yourself. In that way, you protect the money, i.e. your crypto coins, for which you have invested time and effort to acquire them.
When you know all these things, it’s much easier to be a part of a huge market like this, without putting yourself in some risk of being scammed.