- Crypto assets on centralized exchanges may be risky due to cyber-attacks and operational failures.
- Traders need to stay up-to-date on the latest news regarding cryptocurrency exchanges and their safety measures.
Choosing a crypto exchange that prioritizes security is smart, but even the top exchanges with stringent safety measures cannot completely protect an investor's account. According to CryptoMonday.de, 30% of cryptocurrency traders have had their accounts compromised at some point.
The most common security breach occurs when an investor's credentials, such as passwords and usernames, are compromised. Hackers can gain access to accounts through phishing or malware attacks. Other risks associated with crypto exchanges include fraud attempts by scammers, system malfunctions, and exchange shutdowns.
CryptoMonday Jonathan Merry commented on the data saying,
It's sobering to see that such a large number of crypto asset traders are being exposed to cyber-related risks. As cryptocurrency trading continues gaining traction, it's imperative for investors and traders to be extra vigilant in taking the necessary steps to protect their accounts from malicious attacks.BanklessTimes CEO, Jonathan Merry
Crypto Exchanges With High Security
Investors should look for crypto exchanges that prioritize security and have measures in place to protect trading accounts. Some of these safety protocols include KYC/AML verification, two-factor authentication, and email verification.
Crypto exchanges such as Coinbase, Binance, Kraken, and Gemini have implemented robust security protocols that help protect accounts from malicious threats. These exchanges also use cold wallets to store tokens and have cyber insurance coverage to mitigate operational risks.
Crypto Safety Measures
Account security breaches can happen for various reasons, including weak passwords, phishing attacks, and hacking. Crypto exchanges are beefing up their safety protocols, such as two-factor authentication.
Traders should choose a reputable crypto trading platform with industry-standard security measures and encourage customers to take extra precautions to protect their accounts from unauthorized access or malicious attacks.
Exchanges are trying to mitigate these risks by contracting cyber insurance coverage and creating separate compensation funds. Crypto asset insurance terms and conditions vary from policy to policy, but no crypto exchange can guarantee 100% safety. Investors need to be aware of the risks of trading digital currencies and take proactive steps to protect their funds.