A variety of cryptocurrency exchanges are currently available, each having unique services and asset selections. As digital assets grow in popularity, it is more crucial than ever to make sure your exchange holdings are secure, and that platforms are utilizing outstanding safety measures. Fortunately, as cryptocurrencies have developed the market competition is more fierce and exchanges have become much safer than before.
Below is a list of the safest cryptocurrency exchanges, including insights on what to look for in exchange security.
Phemex: Safest & Most transparent exchange
Practicing reliable asset safeguarding standards, Phemex stores 100% of its user assets in multi-signature cold wallets. This exchange segregates functional network areas and systems for varied trading motives by employing various firewalls. Internal network and security controls regulate access to different instances. Phemex also imposes limitations at the system level. To ensure account security, the platform uses a double-entry bookkeeping technique that’s on par with banks. The assets and equity balance serve as the foundation for accounting in double-entry bookkeeping. Phemex executes a matching accounting action in two or more accounts each time a user performs a funding operation, thereby preventing possibilities for record manipulation.
- Never been hacked
- Released transparent Proof of Reserves and Proof of Solvency
- Seamless and fast recovery system
- Hierarchical Deterministic Cold Wallet System
Coinbase: User-friendly exchange with strong security level
Coinbase is one of the most well-known and significant cryptocurrency exchanges available. Nearly 99% of the exchange’s consumers’ digital assets are kept in offline cold storage. Additionally, Coinbase demands that you enter a code they send you via text message in order to verify a phone number.
- Large selection of cryptocurrencies
- Low entrance threshold for account opening
- Strong crypto asset storage
Gemini: Exchange with reliable security
Gemini is a licensed cryptocurrency exchange that is appropriate for both inexperienced and sophisticated investors. Users may develop their cryptocurrency portfolios on this exchange’s user-friendly site, which prides itself on security.
- Cold storage
- Offers a large range of cryptocurrencies to trade
- Strong and dependable security
- Insurance against any cyber hacks
Kraken: Highly secure exchange
Kraken retains full reserves and 95% of funds in offline storage so this crypto exchange is capable of handling withdrawals whenever they come in. It performs penetration testing, which is attacking their own systems to identify vulnerabilities, and also operates bug bounties to continuously improve platform reliability.
- One of the first exchanges for cryptocurrencies
- Supports a range of financial services
- High-standard security methods
Discussion: What should a crypto exchange do to improve security level?
The fast growth of the crypto market makes it an attractive target for hackers. As a user, it’s important to look into the security level of a crypto exchange before making a choice. A range of elements, including licensing, asset storage, insurance, and account security, all contribute to the safety of a crypto trading platform. The top cryptocurrency exchanges combine industry-leading security with rigorous licensing and auditing requirements.
When reviewing the safety and security level of a crypto exchange, keep in mind that strong security should always be combined with transparency. Never believe a platform to be truly secure if you can’t verify it yourself.