As the FUD continues in the crypto industry, it is good to know which exchange to trust with your funds.

Therefore, it’s of the utmost importance that you choose a safe crypto exchange.

In this article, I will discuss how to know safest crypto exchanges on the market today and show you what you need to know to determine whether an exchange is safe to use or not.

WHAT TO LOOK FOR IN A SAFE CRYPTOCURRENCY EXCHANGE?

If you’re a relatively new entrant into the cryptocurrency space, it can be difficult to distinguish between exchanges that could be unsafe and exchanges that are likely worthy of your trust. Here are the most important factors to consider when trying to determine whether an exchange is safe or not.

LONGEVITY

This is a very simple way of evaluating a cryptocurrency exchange, but it allows you to easily filter out exchanges that haven’t yet proved their trustworthiness over the long term. If you’re looking for a primary exchange to buy, sell and potentially even store your crypto, it’s best to avoid exchanges that haven’t been around for a long time. This is not to say that new exchanges are unsafe by default, but when it comes to your money, it’s better to stay on the safe side and pick platforms with an established track record.Ideally, you would want to choose between exchanges that have been in operation for a period of 5 years or longer. However, longevity is by itself not a guarantee that an exchange is safe to use. There’s unfortunately quite a few cryptocurrency exchanges that have been operating for a long time despite having a poor reputation in the cryptocurrency community.

THE BOTTOM LINE

One of the most important decisions for any cryptocurrency investor is choosing which crypto exchange to use. When you’re using a cryptocurrency exchange, you need to deposit funds to their platform, after which the exchange is effectively in control of the funds. Therefore, it’s of the utmost importance that you choose a safe crypto exchange.

WHAT TO LOOK FOR IN A SAFE CRYPTOCURRENCY EXCHANGE?

If you’re a relatively new entrant into the cryptocurrency space, it can be difficult to distinguish between exchanges that could be unsafe and exchanges that are likely worthy of your trust. Here are the most important factors to consider when trying to determine whether an exchange is safe or not.

LONGEVITY

This is a very simple way of evaluating a cryptocurrency exchange, but it allows you to easily filter out exchanges that haven’t yet proved their trustworthiness over the long term. If you’re looking for a primary exchange to buy, sell and potentially even store your crypto, it’s best to avoid exchanges that haven’t been around for a long time.

This is not to say that new exchanges are unsafe by default, but when it comes to your money, it’s better to stay on the safe side and pick platforms with an established track record.Ideally, you would want to choose between exchanges that have been in operation for a period of 5 years or longer.

However, longevity is by itself not a guarantee that an exchange is safe to use. There’s unfortunately quite a few cryptocurrency exchanges that have been operating for a long time despite having a poor reputation in the cryptocurrency community.

TRANSPARENCY

Safe crypto exchanges don’t hide information about their operations, team and ownership. If you can’t easily find who founded an exchange and who its most important executives and team members are, you should probably stay away. Also, the exchange should disclose the licenses it has that allow it to operate in each market it’s serving.Another important factor to keep in mind is proof of reserves.

PROOF OF RESEARVE

Before choosing an exchange, make sure to check how the exchange’s users are feeling about the platform. The best way to do so is to use social media platforms like Reddit and Twitter.Of course, you will be able to find plenty of complaints and questions about every exchange — crypto exchanges are complex and platforms that are serving hundreds of thousands or even millions of users are bound to have some issues.

However, you should be able to distinguish between different types of issues. Most importantly, if you see a large number of users complaining about issues with withdrawing their funds, that’s a major red flag and a sign that the exchange is not trustworthy.History of security breachesCryptocurrency exchanges are extremely attractive targets for hackers. Cryptocurrencies are entirely digital, and transactions are irreversible. Combined with the fact that exchanges store hundreds of millions or even billions of dollars worth of cryptocurrency, it’s easy to see why hackers are working around the clock in an attempt to breach their security systems and gain access to their wallets.

Crypto exchange hacks are unfortunately quite a common occurrence, and even exchanges that are otherwise considered legitimate and safe have had some funds stolen in the past. However, if an exchange has suffered multiple hacking incidents, it’s probably best to stay away.

For exchanges that did suffer a security breach, it’s important to research how the matter was resolved.

For example, Binance had about $40 million stolen from their wallets in 2019, but quickly reimbursed all affected users in full.

Also Some exchanges such as Kraken and Coinbase have never suffered a security breach of their wallets. Exchanges that have been operating for an extended period of time without ever getting hacked are in the top tier when it comes to security.

Therefore the most secured cryptocurrency exchange worldwide remains Binance followed by Coinbase and kraken!