Cryptocurrency is a rapidly growing field, and the crypto market is currently worth an impressive 1.36 trillion USD.
Alongside the rapid growth of the cryptocurrency market, there has been a significant increase in the number of crypto exchange platforms. If you’re planning on (or are currently) investing in digital currencies, you must ensure you do so through a trusted platform. There are plenty of platforms available, allowing you to trade gift card for crypto and so much more.
When purchasing cryptocurrencies, such as Bitcoin or Ethereum, you’re handing over your hard-earned cash. So, your chosen platform must be credible and trustworthy to prevent anything from going wrong. The problem is, how do you know if a crypto exchange platform is trustworthy?
Below, we’ve covered some key considerations to take when choosing a platform for buying, selling, and exchanging cryptocurrencies.
Compliance with Legal Regulations
One of the first things to consider before you invest your money into a cryptocurrency platform is the company’s legal compliance. These regulations ensure an exchange platform is secure and legitimate to protect crypto investors and traders, regardless of the crypto exchange strategies they’re using.
There are several regulations and industry standards that a crypto exchange platform must abide by to operate legally. A company’s compliance should be clearly displayed on its website or a relevant governing body’s website.
Regulations can vary significantly across countries and even between states, so make sure to double-check the regulatory compliance of your chosen exchange platform before you purchase anything through it.
Safety and Security Measures
Cryptocurrency exchange platforms must have extensive security measures to protect consumers. Hackers are using sophisticated methods of accessing people’s digital wallets, but they’ll struggle to get what they want through a secured and authenticated platform.
Any trustworthy crypt exchange platform will boast stringent security protocols, such as two-factor authentication (2FA) and encryption. They may also use something called cold storage, where they store the majority of their funds and assets offline, making them inaccessible to hackers.
You should take a look at an exchange platform’s precious breach records or cybersecurity incidents. A trustworthy platform should have very few, if any, previous security breaches or hacks.
A trusted cryptocurrency platform will have a plethora of user reviews and ratings online to showcase its popularity and credibility. These reviews may be present on the platform’s website, on the app store, or on third-party websites (ideally, all three).
Perform in-depth research to find testimonials of each crypto exchange platform so you can get a true, unbiased overview of what it’s like to use and how trustworthy it is. The best cryptocurrency exchange platforms will have a significantly higher percentage of positive reviews than negative reviews.
It’s important not to exclusively read positive reviews. You’ll want to take a look at the negative reviews of a particular exchange platform or app to see what people dislike about it. Do the negative reviews mention security breaches, problems with transactions, or any other worrying red flags? If so, you might want to continue your search for a more trustworthy cryptocurrency exchange platform.