How to Choose a Safe Crypto Exchange?  

Key points

  • How To Determine If A Crypto Exchange Is Safe?
  • What to Do If an Exchange Gets Hacked?
  • What If Crypto Wallet Is Hacked?

As been discussed in the previous block that it’s not the cryptocurrency but it’s the crypto exchanges that have been hacked. So the question that is required to be answered is how to determine which crypto exchange is safe? 

How To Determine If A Crypto Exchange Is Safe?

The easiest way to identify if a crypto exchange is safe or not is given below:

  • First: The first step is to check the name of the exchange and see if it sounds familiar. 
  • Second: Do a background check on the exchange, to see if it has ever been hacked. 
  • Third: The final step is to see the response of the exchange if they were hacked. 

Another important consideration when looking for a secure exchange is to determine where they are based. There could be exchanges, which are based in jurisdictions where they are regulated, thus requiring higher standards for cyber security or insurance for the funds of its consumers. Though there is no complete assurance that these exchanges will be completely secure, there is a high probability that they will take security more seriously. 

Lastly, the trust score must be checked for the exchanges, on the listing sites. 

What to Do If an Exchange Gets Hacked?

This is a very interesting question. The first thing to do in a situation like this is to stay calm. Any FUD related to the hack should be completely avoided. Look for updates about the hack from exchange top officials, most preferably from a security head. All the reputed and good exchanges will have a security head. The Chief Security Officer (CSO) will act as the point of contact for the public when such an event happens. The most important thing to do here is to stay calm and let exchange solve your problem. 

What If Crypto Wallet Is Hacked?

Well, this is a piece of bad news for all of you; any funds lost from crypto wallets are very difficult or impossible to recover. There is a reason that individual owners are targeted by hackers than a crypto exchange, the reason being that it is easy to trick an individual into giving their details than it is to hack an exchange. 

There have been a few cases, where stolen crypto from a wallet has been recovered, but don’t get your hopes high. It’s like once in a million possibility. It is possible when a hacker is moving the stolen funds onto an exchange and you can prove that the funds are stolen from you. In this scenario, the exchange might assist and intercept the fund for you. 

The best option here is to educate yourself on how to protect your assets from hacks. 

Disclaimer: The article is just to provide information and shouldn’t be considered as any financial advice. It is advisable to conduct thorough research before investing in any cryptocurrency. 

Photo by – mohamed_hassan on Pixabay