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3 reasons why cryptocurrency exchanges should be safe

BySeema Gurnani 19.12.2018         Mail Now X   Post Comments

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Digital currency is welcomed by people as it has a universal value across the globe, unlike the fiat currencies which differ in value in every country. As cryptocurrencies are decentralised eliminating the rule of Governments and institutions they are considered more reliable and trust-worthy. Cryptocurrencies are gaining immense popularity amongst the masses and hence people are finding different ways of buying them.

There are many online crypto exchanges, such as Coinama and CoinSwitch, where you can buy Bitcoin instantly and there are websites which offer peer-to-peer sales of cryptos for cash.  Out of many ways to buy cryptocurrencies, buying cryptos and altcoins through crypto exchanges is considered as safe as they facilitate in providing information on rates for ZEC to BTC converter, BTC to ETH exchange and also provide live price charts. However one needs to make sure that the site they are using to trade is safer. 

Find out below three vital reasons which say why cryptocurrency exchanges should be safe:

To safeguard your digital assets: finding a right cryptocurrency exchange out of hundreds may be tough. So people tend to choose the most trust-worthy sites for trading cryptocurrencies like Dash, Litecoin, Neo, ZCash and Bitcoin Cash. Big giants like CoinSwitch, Bittrex, Bitffinex, KuKoin, Changelly and ShapeShift are cryptocurrency exchanges for safe and secure crypto transactions as they have strong security codes and firewalls to stay away from hackers. However, once the systems loophole is detected by the hackers your digital assets in these exchanges are no safer. Remember the hacking incident that happened to Mt Gox which lost millions of worth Bitcoins that took the world by storm. Some cryptocurrency exchanges are functioning without following any regulatory issues so watch out for such unreliable sites and be cautious. 

To safeguard the personal information of the users: As the digital technology advances, there are more convenient ways emerging online for facilitating transactions. All of these online transactions majorly use the personal details of its users like name, location, bank details and email ids. Not only in cryptocurrency exchanges but also in many sites your personal information are prone to get leaked or hacked. The transaction data from these cryptocurrency exchanges are being utilised by other cryptocurrency information companies for various reasons. To make it simple even your details in the social sites are also being sold for companies to post relevant ads.

Lack of ownership: You happen to store the cryptocurrencies like Bitcoin, Bitcoin Cash and Litecoin in the crypto exchange wallets but it is not actually owned by you. Unlike personal wallets which provides you complete access to your wallet, these exchange wallets are called hot wallets. Because hot wallets do not give you the power to access your coins when the site crashes. This is the major reason cryptocurrency platforms request the users not use store ICOs in these exchange wallets. 

Conclusion

While using exchange wallets may be convenient as you need less identity proof, to begin with, they are not the most recommended type of crypto wallet. So, always carry out a proper research regarding the cryptocurrency exchange you intend to make your transaction. Keep in mind the above three important pointers which will help you in recognising the most legitimate crypto exchange out of the lot. 

TAGS: cryptocurrency,   cryptocurrency exchanges,