The best trading platforms for crypto almost always prioritize security and reliability above all. Overall, a safe crypto platform is essential for protecting assets, building trust and credibility, complying with regulations, and bestowing users with some peace of mind. It’s important to choose a trustworthy platform that has a strong track record of security while also showing the ability to adapt and improve on their safeguards. Many automatically assume that the most prominent platforms like Binance or Coinbase are the safest. While there is merit in trusting the biggest players, most of them including the two just mentioned have actually suffered hacks before. Here are some lesser known but very safe cryptocurrency exchanges that should be noted if asset protection is an important concern.
Phemex: A Safe and Trustworthy Crypto Platform
Phemex has proven to be a legitimate, safe, and highly trustworthy crypto exchange. Being a major centralized exchange, it has never been hacked during its entirety of operation. The platform focuses on cryptocurrency security by continuously monitoring and bolstering its Hierarchical Deterministic Cold Wallet system which eliminates fund exposure to bad actors. Meticulous risk control structures are put in place to scrutinize every withdrawal request, ensuring that all transfers are legitimate and that assets move to where they’re supposed to. Not only does Phemex excel at safeguarding assets, it’s one of the best trading platforms for crypto because the trading engines exhibit high velocity and 24/7 uptime with instantaneous recovery, saving users from abrupt wicks or system errors.
CEXes are generally seen as more efficient but less transparent than decentralized platforms. Phemex aims to be an exception by making its Merkle-tree proof-of-reserves and proof-of-solvency fully transparent. While other exchanges released proof-of-reserves, Phemex’s is unique in that it empowers users to verify their asset backing while relying on code and cryptography, not on a third-party auditor. Phemex also makes a portion of its cold wallets public so that anyone can check its total liabilities, and therefore platform solvency, at all times. Dedication to being transparent and trustworthy has allowed Phemex to emerge as one of the safest crypto exchanges.
Bisq: How to Keep Your Crypto Safe on Decentralized Crypto Exchange
Another top platform that’s notable for transparency is Bisq. Being a DEX focused peer-to-peer trading, Bisq does not custody the user’s private keys. Essentially all trades on the platform can be traced on-chain and users are responsible for their own wallet security. To perform its decentralized escrow service, Bisq uses 2-of-2 multi-signature wallets for an extra layer of protection. The most unique aspect of Bisq is that it’s run by open-source code, removing any centralized points of failure. Of course, all private and financial information is encrypted to build trust and reduce concerns of data leakage.
Coinspot: Secure Australian Crypto Platform
If you’re located in Australia and looking for a legit platform, then CoinSpot may be a good choice. Its reliability mainly comes from regulatory compliance, because it stands as one of the top regulated exchanges in Australia. As a member of the Australian Digital Commerce Association while boasting full compliance with AUSTRAC enforced anti-money laundering (AML) laws, CoinSpot is no doubt a secure trading platform for Australia-based users.