Since digitalization has become one of the most widespread trends out there, we know that there’s practically no person around the world who’s not aware of it. Not only that, this concept has become so widespread and there is no field of work where it doesn’t play a significant role.
Nowadays, the concept of cryptocurrencies is the hottest topic in the world. We can understand this because it is something that people saw only in Hollywood movies. So, when it became a reality, people were instantly attracted to it. The result was millions of traders from all over the world.
With that in mind, it is obvious that the number of crypto exchanges, like bitcoinprestige.app, has skyrocketed. But, many traders are interested in learning about whether is it safe to keep their digital currencies inside these, due to the increased activity of cybercriminals.
Now, let’s take a look at a couple of things that can say whether it is safe to do so.
Modern Bank Robbers
Since cryptocurrencies are now a big part of our lives, we can see that numerous startups have been created solely with the purpose to help people to are interested in investing in this market. Along with the number of these startups, the number of cyberattacks has grown enormously.
Sure, these offer a significant level of security to their users. Nevertheless, hackers and cybercriminals have become more experienced. So, these startups and exchanges require increasing these levels even more in the future. Still, this market is highly unregulated in many aspects.
For that reason, it is not possible to find all the answers to all these questions. The gap that needs to be bridged leaves a lot of space for cybercriminals to make any maneuvers. So, there is no better term we can use to describe these than to say that they’re modern bank robbers.
How Safe Are Exchanges?
As we all know, a vast majority of crypto transactions are conducted via exchanges. The software offers you a chance to actively participate in the market through trading. Those who participate have a chance to purchase or sell cryptocurrencies through digital or fiat currencies. So, the number of opportunities is practically endless.
Some of them even function as banks and offer similar conditions to those who use their services. When it comes to the question of the safety of exchanges, the opinions are quite divided. Many voices do not recognize them as places where keeping cryptocurrencies is a proper thing to do.
On the other side, those who believe this is a good thing to do, point out that users should make a careful choice. The reason is obvious, there are a plethora of exchanges to choose from. Therefore, the chances of making a wrong decision can get pretty high.
Now, let’s take a look at the pros and cons of this approach.
Pros
First, we want to shine a light on the advantages of using crypto exchanges. The most important one is that this is a much faster and cheaper option. For instance, you can use them whenever you need them, change them instantly into some other digital currencies, or withdraw them into fiat currencies.
Even those traders who are not in favor of utilizing this approach agree with the fact that they should have smaller amounts of their investments into these. That way, they can act instantly when needed. Naturally, that doesn’t mean that they do not use other options like wallets.
But, keeping all their investments into these doesn’t leave them with enough room for maneuver, as we’ve stated. Not only that, moving their digital assets between these can lead them to lose a high percentage, especially if they do it frequently. With that in mind, exchanges leave a way out of this.
Cons
Now that we understand the advantages, let’s take a look at potential setbacks. The first one is its heavily centralized structure. Since they are centralized, it is clear that they are accessible for hackers, and some of them do not have a proper level of security, which we’ve already talked about.
It’s because the blockchain system is not involved in the process. Therefore, there is a point where exchange’s security can break, and hackers can take a significant amount of money in just one try. Plus, it is not possible to count on the security of your personal information and assets.
However, the ultimate reason for these cyberattacks is that these are places where a high amount of transactions are performed every day, which makes them a target. Therefore, this is something that can lead to large losses over time.
How to Recognize a Safe Exchange?
After you know all of these facts, we want to help you recognize a safe exchange.
1. 2FA
The first aspect you need to take a look at is two-factor authentication. Thankfully, you can take a look at these rather easily. It is manifested through SMS and hardware devices. However, focusing solely on SMS authentication would be a mistake. Instead, look for those that have more than just one of these.
2. HTTPS
Those exchanges that can be described as secure offer a valid HTTPS certificate to their users. Once again this is easy to spot. You can find it in a browser search bar. On its left side, to be precise. If you do not see it, then you shouldn’t hold your digital assets inside these.
3. Password Strength
Even though it might sound contradictory, looking for password strength is an absolute must. For instance, exchanges that do not have a high level of security can allow individuals to set a weaker password, which can cause a wide array of different problems down the road.
In Conclusion
You will agree that storing your digital assets is an absolute must. Theoretically, exchanges can be one of these places, but only if you make a decision that’s based on a couple of elements. In this article of ours, you can take a look at all the most significant elements. We’re sure you will find them useful.
