How to find a safe and trustworthy crypto platform?
Although there are many ways to exchange cryptocurrencies, centralized exchanges provide a fairly straightforward way to turn cash into coins and tokens. For dealers and investors, security and transparency rank among the most crucial criteria when selecting a reliable crypto exchange.
Security is of Utmost Importance
Exchanges are frequently targeted by hackers because of the amount of money they house. It is advised that traders select an exchange with a robust security system even though scam efforts rarely succeed.
The top cryptocurrency exchanges should always put security first. It forms the basis from which the rest of the user experience flows. Most cryptocurrency exchanges have strong security procedures in place. For example, two-factor authentication (2FA) is frequently used for user-level security.
The most secure cryptocurrency exchanges must take additional precautions in addition to the norm to protect their users’ cryptocurrency. Below, we’ve outlined the three things you should think about before selecting the most reputable cryptocurrency exchange:
- Wallet: There are mainly two types of cryptocurrency wallets: hot wallets and cold wallets. Exchanges are required to retain a portion of the available online currency in hot storage. But for security reasons, it would be preferable if an exchange kept the majority of its assets in cold storage. “Cold” means that it is inaccessible and disconnected.
- System: Many firewalls are employed on high-secure trading platforms to partition distinct zones for different trading goals. The security of trading engines, such as the risk check and disaster recovery system, should also be improved by the best cryptocurrency exchanges.
- User Data: In addition to the 2FA feature already described, a reliable cryptocurrency exchange should take additional steps to guarantee that the data of its users is completely protected. For instance, Phemex uses double-entry bookkeeping at the bank level to preserve account security.
Transparency
The blockchain industry was founded on the principles of transparency. The exchange should operate so that users and other stakeholders may easily understand how the cryptos are handled and secured.
One of the most transparent cryptocurrency trading platforms among CEXes, if not the most, must be Phemex. All users can verify that their assets are accounted for using Phemex’s Proof-of-Reserve system without depending on an outside auditor. The Phemex cryptocurrency exchange is also one of the few that has achieved Proof of Solvency by making a portion of its cold wallet addresses public.
Very important to consider is a clear line of communication between the exchange and its users. Phemex, one of the most reliable cryptocurrency exchanges, never holds back on releasing the most recent platform news as quickly as possible, even though the updates occasionally could be unfavorable. In order to offer prompt assistance, our customer service is open 24/7.
Conclusion: Why is security and transparency so important for crypto platforms
Major platforms’ top priority is to keep users safe, and as the blockchain sector expands, they have created ever-more advanced security measures to do just that. It is highly advised that you can independently verify as a user. Transparency is crucial when selecting a crypto platform because of this.
Phemex, a trading platform that always prioritizes security and transparency, has put in place a number of safeguards to secure user cash, all of which can always be checked by the users themselves.
Blog Link: https://phemex.com/blogs/how-to-find-a-safe-and-trustworthy-crypto-platform