Every crypto enthusiast has an idea of a crypto exchange platform, and they make crypto recommendations that shows that it is a primary means of gaining access to currencies like Bitcoin, litecoin, and other coins. The number of crypto coins in the cryptocurrency market is increasing daily. Currently, it is even diversifying into other forms of digital currencies like crypto tokens. Therefore, it is impossible to put a cap on the operations of cryptocurrencies, and neither can you limit their use in certain instances.
Cryptocurrency prices are increasing, and it is now drawing the attention of many would-be crypto investors. There are reports from websites such as CryptoManiaks of over 300 million active Bitcoin users, and more are still coming. Bitcoin, the most popular cryptocurrency, owns most of that number. However, lesser-known coins and tokens also attract the interest of others in the crypto community. Their primary purpose in buying these meager coins is because of their expected growth. Hence, with exchange platforms, they can add any currency of their choice to their portfolio.
Since cryptocurrency operates on the blockchain network, it is nearly impossible to hack. However, anything outside the blockchain is any man’s game, making your Bitcoin susceptible to hackers and thieves. These hackers can gain access to your wallet and Bitcoin exchange accounts to steal your Bitcoin. Unfortunately, most people feel Bitcoin exchange platforms can easily escape hacking, and many crypto education guide fail to mention that no one can hack them. Hence, the primary purpose of this article is to tell you how you can stay safe on a Bitcoin exchange platform.
What is a Crypto Exchange Platform?
Crypto exchange platforms enable the easy transfer and exchange of any digital currency. There are numerous cryptocurrencies in the market, so an exchange platform provides all these options at your fingertips. You can easily trade your fiat currency on an exchange platform for any coin or token of your choice. Also, you can change one coin for the other, in its equivalent amount hence the name crypto token.
These platforms also allow for the trading and storing of cryptocurrencies. Aside from that, others also enable buying and selling assets and stocks. Before the introduction of exchange platforms, buying Bitcoin was very difficult. People had to post in forums and chat rooms, looking for someone willing to trade theirs. Moreover, this was unsafe as both parties needed to trust. Therefore, introducing Bitcoin exchanges brought about fresh air for crypto enthusiasts.
How to stay safe on Crypto Exchanges
Protecting yourself on a Bitcoin exchange is a personal feat other than what the platform automatically provides. The company does have its level of security offered, but in the end, it all boils down to how careful you are and if you follow the proper steps. Exchanges are usually one of the main targets of hackers, so here are a few ways to stay safe while using them.
● Choose a Trustworthy Crypto Exchange
Various Bitcoin exchanges saturate the digital marketing space. Using a trustworthy crypto exchange is the first step in safeguarding your cryptocurrency. Unfortunately, there are many false exchanges whose primary intention is to scam users out of their Bitcoin and other currencies. Therefore it is best to go for businesses with a long-standing history, among other Bitcoin enthusiasts.
Also, research these platforms, and check review platforms to know if there are any reports of hacking or unrefunded failed transactions. Therefore when joining a exchange platform, you should have certain factors in mind, like their deposit/withdrawal limits, payment methods, restrictions and regulations, and verification requirements.
● Enable 2-factor Authentication (2FA)
Most people need help to enable two-factor authentication on their crypto exchanges, despite being very easy. A good crypto exchange will always prompt its users to enable two-factor authentication. It is a highly effective step that protects you from losing your account to hackers.
2FA is a two-step process; the first step involves inputting your username and password and confirming it, then the 2nd step consists in providing an additional piece of information. For example, it could be an OTP, a fingerprint, or a face I.D. Also, a 2FA authenticator app is advisable rather than an SMS 2FA. The reason is that the SMS 2FA is flawed, and experienced hackers can easily break it.
● Use different passwords for your Crypto exchanges, email address, and phone
It is a common mistake for people to use the same passwords in all their online activities. For cryptocurrency owners, one vital thing you should have gotten from your crypto education guide is always to have a unique password for your Bitcoin wallets and exchanges.
If hackers gain access to your email, the first thing they do is try out the password on your other online platforms. So, if your email password is the same as that of your Bitcoin exchange, automatically, you have given the hackers access to your account. In situations like this, the Bitcoin exchange platform can only stop if you contact customer care. Usually, it is too late as there might already be empty reports.
● Limit the quantity of Bitcoin you store in the Bitcoin Exchanges
Bitcoin exchanges are huge targets for hackers due to the millions of dollars of Bitcoin stored. So, one way to avoid falling for this threat is not to keep your Bitcoin on their platforms. Hence, it would help if you had a Bitcoin wallet where you could safely keep your coins.
Bitcoin wallets are reasonably safer and more secure than most exchanges. Furthermore, there are different kinds of Bitcoin wallets: software-based hot wallets and physical cold wallets. Each offers its level of security. For example, your Bitcoin is stored offline with the physical wallet, making it safe from hacking. So even if your computer suffers hacking issues, they won’t still have access to your currencies. It is one of the safest means of storing your money, but expensive.
Conclusion
Staying safe on a Bitcoin platform depends on if you are willing to take the necessary precautions. If your account suffers hacking issues, there is no going back, as everything is lost. Therefore, always adhere to strict instructions in any crypto guide, as it is necessary to safeguard your currency.
