Check out the safest cryptocurrency exchanges available in the market where you can buy and trade crypto. Whether you already own digital assets or are planning to invest in crypto in 2023, you’re definitely concerned about security. That’s a fantastic perspective to have from the start. The FTX crisis demonstrated that the safest cryptocurrency exchanges aren’t necessarily the biggest or trendiest.
Exchanges are where money is transformed into digital assets, whether you’re purchasing coins, tokens, or NFTs, making them a tempting target for hackers and other criminals who want what you have.
The good news is that many of the most well-known brands in the industry have made significant progress in protecting their platforms and safeguarding the assets of their users. Here are the top performers and their most important security measures.
What are the safest cryptocurrency exchanges?
1. Gemini
On industry rankings that highlight the safest exchanges, Gemini frequently appears at the top or very close to it. The Winklevoss twins, who gained notoriety early on for Facebook, formed Gemini and gave compliance and security a top priority. The business supports Yubikey and other security keys and by default, both account access and withdrawals need two-factor authentication.
Gemini offers address allowlisting, allowing customers to limit asset withdrawals to addresses that have been approved. The exchange needs several signatures to transfer assets out of its Cold Storage System and maintains all private keys at high-security data centers off-site.
2. eToro
Users of eToro may purchase stocks, ETFs, options, commodities, as well as cryptocurrency. It is one of the oldest exchanges in the field and has users registered in more than 100 nations. It adheres to security guidelines established by several international regulatory organizations, including those from the United States, the United Kingdom, Australia, and the European Union.
It uses both offline cold storage and online hot storage as part of its multi-tiered strategy for protecting digital assets. No employee of eToro is permitted to remove cryptocurrency from the company’s cold storage system.
3. Crypto.com
Crypto.com pride itself as “the world’s leading cryptocurrency platform for licenses, registrations, and security certifications.”
All of its clients’ crypto assets are kept offline in cold storage as part of its zero-trust, defense-in-depth security architecture, and all user fiat money is kept in custodian bank accounts. Customers may check the exchange’s reserves on Crypto.com’s Proof of Reserves verification website, which holds all deposited assets in a 1:1 ratio.
4. Coinbase
Coinbase is the biggest publicly listed exchange in the world and one of the biggest overall, with more than 108 million members. The U.S.-based corporation utilizes required, automatically enrolled two-factor authentication and maintains 99% of its consumers’ digital assets offline in cold storage. The Coinbase security policies include provisions for security key support, password protection, and multi-approval withdrawals from Coinbase Vault.
All passwords are permanently hashed using the bcrypt technique and kept in the exchange’s database. The exchange never loans or otherwise uses your funds without your consent, and Coinbase constantly scans darknet marketplaces and third-party data breaches for danger indications.
5. Kraken
As one of the most secure international exchanges, Kraken has acquired a coveted ISO/IEC 27001:2013 accreditation for its approach to cybersecurity and information management security. Regular proof of reserve audits are scheduled through external auditors, and its custody security methods include cutting-edge cold storage and crypto equipment that is housed in safe cages and are constantly watched over by armed guards and video cameras.
Other security features include two-factor authentication, SSL encryption, no-phone/SMS account recovery, customized API key permissions with range restrictions, and no-factor authentication.
The Safest Cryptocurrency Exchange in the United States
The best exchanges all have strong security credentials, but Coinbase takes first place among those situated in the United States because it stands out from the competition in one particular way.
The first and only publicly traded Bitcoin exchange in the nation is still Coinbase. As a result, it is subject to the SEC’s close examination and the stringent guidelines that apply to all publicly traded firms listed on the NASDAQ.