Ways to Know if Your Cryptocurrency Trading Platform Is Safe

Cryptocurrencies have become extremely popular when it comes to investing and making profits. What’s the reason for this?

They’re a new type of currency, which many people are willing to invest in, and there’s a good reason for this. Not only is it a fantastic alternative to traditional currencies and the way traditional banking systems work; but it’s also an amazing pool of opportunities for everyone who is willing to trust new technologies and benefit from them.

What do we mean by this? What cryptocurrencies and blockchain systems brought into the world are equal chances for everyone.

People who don’t have banking infrastructure in their city or country or cannot open a traditional bank account because of personal reasons, now have completely equal possibilities. With internet access and a smartphone, they can create, open and use their digital wallet, which works like a bank account.

Also, since cryptocurrencies are so popular and are on the rise, they make a fantastic investment opportunity and this is exactly why people who recognize this opportunity keep investing in them. Despite the volatility of the market and the very often ups and downs that are a part of it.

Research shows that the majority of individuals and businesses who invest in crypto are younger in age. This doesn’t come as a surprise at all. New technologies are something younger people or popularly called millennials resonate with and are not afraid of following the trends and testing things out.

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Source: sofi.com

But even the World’s biggest companies such as Tesla and serious investors that have diverse portfolios and invest in stocks, bonds, and now crypto – have started promoting this new ecosystem and emphasizing its significance of it.

Influencers and celebrities from different fields also advertise, predict and give advice on what to invest in, which is one of the reasons people decide to start their crypto journey.

Since all of this is happening, there is a simple question: have you started investing in crypto? If the answer is no, this might mean you have several concerns.

One of the biggest concerns within crypto newbies is the choices they need to make. When you first start your crypto journey, it might become overwhelming to pick the currency to invest in (since there are more than 2,000 of them at the moment), pick the type of wallet they will have, and finally: pick the right trading platform, or in other words, a crypto exchange.

At the moment, Bitcoin is known as the most popular cryptocurrency out there. It is currently worth around $40k but it could be worth thousands or even millions of dollars at some point. It is at the same time the first cryptocurrency that appeared on the market and it was the reason why all of the other digital currencies have been created in the meantime.

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When people finally accepted BTC, that is when it started to thrive. It took some time for people to understand that they can use a digital currency like this, to pay for things online. It’s completely digital. You can also buy bitcoins from a person in person or you can buy them online. You can also sell bitcoins for cash, or keep them until they grow in value. Simply put: there are innumerable things you can do with them.

Source: ifec.org

Logically, if you are first getting started, you would want to invest in BTC. But there are a plethora of other cryptos that are almost surpassing Bitcoin when it comes to their investment potentials, such as Ethereum, Chainlink, or Solana. No matter what you opt for, you need to know one thing: your digital wallet really matters.

That being said, the before-mentioned choices you need to make are the number one thing that is keeping people from investing in digital currencies. The first and the biggest problem seems to be – safety and security.

When you create an account on a crypto trading platform of your choice, you are exposing your personal info to the internet. More importantly, when you acquire some crypto and you store them in your wallet, all your private keys to your cryptocurrencies are vulnerable (in a way). This is why picking a trustworthy and reliable crypto platform is so important.

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But with so many websites and platforms for crypto exchange on the market today, it’s not an easy task.

Luckily, we made a list of things that can help you determine whether your crypto platform is safe or not. Let’s dive into it:

They Are Licensed

Firstly, you need to check if they have a license, and if they do, if this license has expired or not. Why is this relevant? As an exchange that trades extremely valuable assets, and also makes predictions, analyses the market, etc, it’s of extreme importance that it’s recognized, and a part of a bigger regulatory system. Spend a couple of minutes and do a small research about the platform before you decide to trust it.

They Have Good Reviews

Source: startup.info

The next thing you should do is to check the reviews. Always do this, no matter how boring it might seem. By investing a bit of your time, you’re actually getting a lot. Crypto is all about the community, so if a platform is not reliable, safe or it’s scammy, people will most certainly leave comments. That being said, by reading the reviews you will easily eliminate exchanges that are not reputable.

They Are Global

A good crypto trading platform will cover almost all the countries in the world. In modern technologies, this is very important. Imagine being limited to selling and buying your crypto-only in certain countries, and in others not? Always pick the ones that have global exposure.

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They Offer Two-factor Authentication

Source: pymnts.com

According to https://trustpedia.io/crypto/, a good exchange needs to have high-security standards for its users. This means that you have to expect to have the option to enable two-factor authentication, add your fingerprint, etc. Their support team should be able to explain all the safety aspects and to constantly make security updates so that potential hackers can be stopped right at the beginning. They also need to have certain programs for fund losses, in case something unexpected happens.

They Have Clear Terms And Conditions

Transparency is key, especially when it comes to trading. You need to be able to read all the small letters with no effort and know exactly what you can expect, every step of the way. If