Secure Your Crypto 2024: Top Crypto Exchange Security Tips 

Cryptocurrency is synonymous with top-notch security. Hacking cryptocurrency is a challenging task for everyone. However, multiple security breaches in the crypto exchanges bothered crypto enthusiasts globally, bringing crypto exchange security into question. 

For instance, the sudden collapse of the FTX crypto exchange caused a loss of $8 billion to customers and $1.7 billion to FTX investors. Afterward, day traders and long-term investors prioritized the selection of the safest crypto exchange. 

This crypto security guide will help you learn the following;

• What is crypto exchange for security
• What are the top crypto exchanges in terms of security
• How to secure cryptocurrency
• Which are the best crypto security tips for a safe crypto trading experience

Without further ado, read on to refrain from getting into an unpleasant loss due to security. 

Top Crypto Exchanges for Security

Exchange Name	Main Security Feature	Call to Action
Kraken	Proof of reserves with many funding options	Join Kraken
Crypto.com	Cold storage for user funds and high-volume	Trade with Crypto.com
Coinbase	Oldest and most reliable exchange with top-grade compliance	Start with Coinbase
Bitget	IP whitelisting and 2-factor authentication	Join Bitget
WhiteBIT	AML and KYC compliance with IP whitelisting security features	Sign up on WhiteBIT

Understanding Crypto Exchange Security  

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With cryptocurrency’s increased popularity over the past few years, security has become the primary concern for many. Cryptocurrency itself is safer, as the blockchain is a challenge to hack. However, scammers can exploit users with various techniques, including unsafe crypto exchanges. 

Another risky feature of cryptocurrency is its unpredictability and volatility. Without proper knowledge and analysis of the market, beginners can lose huge capital. If you are a beginner, read this guide to level up your crypto trading endeavor. 

Continue reading to learn about multiple crypto exchanges for security and how they are safe for trading. This will help you stay safe and avoid unpleasant financial losses. 

For more insights on how to navigate the crypto world, explore our detailed guides on:

• How to Buy and Sell Bitcoin Safely
• How to Trade Crypto Anonymously in 2024: The Ultimate Guide for Beginners
• How to Avoid Crypto Exchange Scams in 2024: The Only Guide You Need
  
  

What Is Crypto Exchange Security? 

As crypto traders, we rely on crypto exchanges. How safe are they, and which ones can go off like a ticking bomb? This crypto security guide has the answer to all your concerns. 

After the unexpected explosion of the FTX exchange, security problems have arisen exponentially. A few additional layers of security in a crypto exchange can guarantee the safety and protection of digital assets. 

Crypto exchange security refers to various legal compliance and safety measures that an exchange considers for safeguarding its users against malicious activities. That includes:

• regulations 
• Insurance
• 2-factor authentication, etc. 

How Secure Are Crypto Exchanges? 

The first step for secure crypto trading is to pick and trade on the most reliable crypto exchanges. How safe a crypto exchange can be is a detrimental concern for every trader. 

Since day traders and investors opt for high-volume crypto exchanges for lucrative profits and safety, high volume can become an exploiting zone for hackers and evil masterminds. You can learn more about high-volume crypto exchanges by reading our complete guide. 

Generally, a crypto exchange is highly secure for investments and trading if it has robust safety practices. Before you start trading on a platform, make sure to check out the availability of the following factors:

• 2 Factoir authentication
• Cold storage
• Secure software wallet
• Matchless encryption
• On-time customer support
• Regular security audits, etc.

When you find these qualities in a crypto marketplace, you can rely on it for day trading and long-term investments. Moreover, customer feedback and reviews can guide you about the security and trustworthiness of the platform. 

Multiple Security Layers to Safeguard Crypto Assets on the Exchange  

Each crypto exchange goes through a series of safety practices. The purpose of these factors is to give hackers and scammers a hard time taking away users’ digital assets. Here are some top things that make crypto exchanges safe and sound. 

• Licenses: Every company has a native regulatory license to operate a financial company. One of the best security tips for crypto traders is to check the licenses of a crypto exchange. For instance, Binance is registered with FinCEN, which allows it to operate legally in the US. 
• FDIC Insurance Policies: Insurance policies enable users to stay mentally peaceful even if an event of hack or scam occurs. FDIC insurance makes it possible for crypto traders and investors. 
• Transparency and Public Trading: If a crypto exchange is available for public trading, it has undergone security audits and other measures. Thus, it is safe for trading and investments. 
• Customer Support: In case of an unpleasant hack or scam incident, timely customer support guides you on the right path. For instance, Coinbase has one of the best customer support services in the industry. 

Top Crypto Exchanges for Security in 2024 

Provided security concerns and solutions for secure trading, we have created this guide to facilitate your trading journey. After thoroughly researching and comparing multiple crypto exchanges, we have concluded this list of secure crypto exchanges. 

The crypto platforms we enlisted are top-ranked on the CER list. CER is a trustworthy company that verifies the security protocols of crypto projects. 

Furthermore, we have a dedicated guide about top crypto exchanges for day traders. You can click here and read it on the go. 

1. Kraken: Rigorous Security and Low Fees 

Known as the best spot trading platform, Kraken is a reputable crypto exchange. As one of the oldest exchanges, it offers crypto enthusiasts the security and confidence to buy, sell, and store their crypto assets in Kraken. 

Kraken enables investors and traders to trade with low that ranges from 0% to 0.4% of the order. The low fees and robust security protocols help Kraken stand out. 

Key Security Features: 

• Proof of Reserves: Proof of Reserves (PoR) is pivotal for secure crypto trading. PoR means verifying a crypto exchange to check the maintenance of users’ assets. Kraken has a PoR with external security audits, which is secure for trade and investment. 
• Custody security: Kraken offers hot and cold wallets with a well protected infrastructure. It ensures that users’ digital assets stay safe from online and physical attacks. 
• Security Testing: Kraken’s best feature is regular security testing through a dedicated team of security experts. A bug bounty program is another top feature that promotes the safety of users’ crypto holdings. 

2. Crypto.com: Comprehensive Security Measures  

Crypto.com is one of the most secure crypto exchanges worldwide. Its primary focus is protecting its customers and their assets from hackers and scammers. 

Crypto.com hosts a robust security infrastructure to safeguard users from attacks. Since Crypto.com’s high volume of trades on Crypto.com can be the focal point for cybercriminals, its security measures are an excellent shield against any odds. 

Key Security Features: 

• Custodial Bank Accounts: Crypto.com is a hybrid crypto exchange, which is both centralized and decentralized. The centralized feature is the use of a bank account for digital assets. It has a network of custodial banks in the US and other regions of the bank. 
• 1:1 Reserve: The custodial bank accounts that Crypto.com provides for its customers ensure 1:1 reserves. It means your assets are stored in the same quantity as they are on the paper. 
• Round the Clock Customer Support: Users can encounter a crypto-related problem at any time. Thus, Crypto.com provides them with 24/7 live customer support service, offering them solutions on the go. 

3. Coinbase: User Friendly with Strong Security 

Coinbase crypto exchange is the favorite for a secure crypto trading experience. It is an efficient crypto marketplace for institutions as well as individuals. It is because of deep liquidity and high volume. 

Coinbase is a publicly traded organization in the US, which is a plus point for security. Furthermore, 1:1 asset holding allows everyone to ask for accountability for their assets from Coinbase.  

Key Security Features: 

• Top Notch Encryption: Coinbase has excellent encryption and security protocols in place. The expert security team ensures the protection of digital assets on the platform. 
• Finest Safety Tools: Coinbase’s two-factor authentication and multi-factor authorization are the first level of security. Plus, the withdrawal of funds requires multiple approvals, making it challenging for an unauthorized person to steal your digital assets. 
• Sophistication Protection of Privacy: Coinbase requires you to enter relevant personal information to strengthen your protection against any odds. It has well-established privacy protection, so you never suffer from data theft. 

4. Bitget: Military Grade Security  

Bitget is one of the largest brands in the crypto and web3 space. With over 20 million users in over 100 countries, it offers high security for crypto users. Started in 2018, it has established a reputable name in the crypto market. 

According to CoinMarketCap, Bitget’s 24-hour spot trading volume is around $1.473 billion at the time of writing. This high volume suggests the reliability of Bitget’s crypto users. 

Key Security Features: 

• Essential Safety Protocols: Bitget has taken the issue of securing cryptocurrency seriously, bringing effective solutions. With 2FA, encryption, cold storage, a risk control system, and proof of reserves, Bitget employs excellent safety protocols. 
• Bitget Protection Funds: The protection fund expresses the crypto exchange’s commitment toward its users’ safety. In case of any hack or loss of money through social engineering on the platform, Bitget will pay customers using the funds. 
• Awareness Programs: Bitget has a dedicated education space for traders, investors, and institutions to learn about their safety during trades. This reduces the occurrence of malicious activities. 

5. WhiteBIT: Perfect Security Score 

WhiteBIT is another secure platform for buying, selling, and storing cryptocurrencies. Founded in 2018 as a European Centralized Exchange (CEX), it offers top-level security with lower trading fees of up to 0.1%. 

Key Security Features: 

• Regulatory Licenses: WhiteBIT has European Exchange and Custody licenses. It has compliance with Know Your Customers (KYC) and Anti Money Laundering (AML) regulations, making it a safer choice for crypto investors. 
• Fundamental Safety Protocols: WhiteBIT provides customers with 2FA, passkey (a unique identifier for users’ confirmation), AML checks, etc. These features are the best security tips for crypto users to stay safe and sound. 
• Anti-Phishing Feature: The anti-phishing feature of WhiteBIT reduces the chances of you falling prey to hacks. You get specialized emails from WhiteBIT with special identifiers, making detecting suspicious attempts easier. 

Best Security Tips for Crypto 

Unfortunately, regardless of how secure a crypto exchange is, you are not 100% safe. Given that, we have not only mentioned key factors for crypto exchange security but also suggested a few practical tips to eliminate any risk. 

Click here to read our guide about the top 10 decentralized exchanges. 

Here is a quick list of practical tips for adding safety to your crypto trading experience:

• Create a military-grade security for your cryptocurrencies’ private keys
• Stay informed about scams and other social engineering tactics
• Always use a secure and private internet connection, Wi Fi, etc. 

Read further to understand key tips that will help you safeguard your crypto assets. 

1. Safeguard Your Private Keys 

As a crypto enthusiast, you understand what a private key is. If not, a private key is a unique code that allows you to access your stored crypto assets in a wallet. It is integral for the safety of your assets. 

You must know that you can never access your crypto holdings without a private key. This is exactly true for other people as well. Thus, your crypto is safe unless someone knows your private key. 

One of the best crypto tips for crypto users is to store private keys in a cold wallet that no one can access. Moreover, limit yourself from keeping or posting such information on the internet as hackers may get ahold of it, making you lose your assets. 

2. Be Vigilant of Social Engineering Scams  

Social engineering has become a disastrous concern over the past few years due to the rise of internet usability. Hackers and scammers can dupe you through phishing, manipulation, and other tactics for financial and personal information. 

For secure crypto trading, you must inform yourself about various social engineering strategies to stay ahead of the curve and never fall prey to these incidents. Here are some of the various social engineering attacks:

• Baiting\scareware
• Pretexting
• Phishing
• Spear phishing, etc.

You can protect yourself against these ill practices by being vigilant about fake emails and clickbait. Also, deposit funds into your crypto exchange from a verified and trustworthy source and withdraw them to your secure crypto wallet. 

3. Avoid Unsecured Internet with VPN 

Virtual Private Network (VPN) is the most advised tip in every crypto security guide for its benefits. A VPN saves you from attacks and adds an extra layer of protection to your internet usage. 

Cybercriminals can track your transactions and create a socially engineered strategy to manipulate you into taking crypto from your wallet. With a VPN, your internet connection gets encryption, which is a challenge for malicious actors to crack. 

Furthermore, you must never use public internet or Wi-Fi. The reason is these internet networks’ lack of encryption and security layers. A cybercriminal can get inside your connected device effortlessly. Once they are in your system, what they want to do with your data is in their hands. 

4. Go for Complex Passwords  

When you use a crypto exchange, you are the sole owner of your crypto holdings. The internet-based use of crypto exchange demands that you use a password to protect your crypto assets. 

We advise you to consider complex passwords, which are nearly impossible for cybercriminals to crack. Given cybercriminals’ sophisticated devices and tools, the general rule of thumb is to use various data types in your passwords. 

For instance, you must include alphabets, numbers, and symbols in a complicated pattern. This will increase your chances of survival against cyberattacks. Moreover, you need to remember the password, as forgetting the password can give you a hard time accessing your assets. 

5. Keep Track of Your Crypto Wallet 

A crypto wallet is another important tool that every crypto enthusiast, including long-term investors and day traders, uses regularly. There are two fundamental types of crypto wallets: software and hardware wallets. 

In other words, software wallets are mobile applications, also known as hot wallets. The security of hot wallets is under question due to cybercriminals’ sophisticated attacks. A cold wallet or hardware wallet is the most advised method for storing your crypto-related information and assets. 

You can secure your crypto holding using a software wallet by regularly updating the app. Updates fix bugs and other concerns based on users’ feedback. On the flip side, keep your hardware wallets away from the internet connections. This way, hackers won’t access your cold storage of crypto-related private keys and other information. 

6. Reliable Backup and Recovery Plan 

After every precaution, chances are cybercriminals can attack your crypto assets. In that case, a reliable backup and recovery plan can save you from financial loss. Create a backup for another device within your reach. Ensure that you can instantly get it when things go wrong. 

Seed phrases are essential for you. Multiple crypto exchanges and wallets generate one-of-a-kind code for you, known as a seed phrase. If you encounter a cyber attack, the seed phrase can help you access your crypto holdings from another device and recover them. 

Furthermore, never store your crypto-related information in a single place. Diversify your crypto holdings in various crypto exchanges and wallets. This way, you won’t suffer massive losses even if any unwanted incident happens. 

How to Secure Cryptocurrency? 

Now, you know many tips for a secure crypto trading experience. It is time to explore various strategies to make your crypto journey foolproof. 

You will surprised to know that a group of hackers bypassed a 2FA-protected Crypto.com exchange to take $34.6 million unlawfully in 2022. There are many other events of scams and money losses on the internet. 

It shows the importance of applying every possible technique to protect your crypto holdings. Here are some of the top strategies for improving cryptocurrency security. 

1. Choose a Secure Wallet 

As we mentioned, a crypto wallet is a necessity for crypto investors. Even when you trade crypto, spot trading is where you will hold the crypto assets for longer. It is when you need a secure wallet to protect your stored crypto. 

The first approach to starting trading and investing in cryptocurrency is selecting the right crypto wallet. Every crypto exchange for security we mentioned in this article comes with an in-built crypto wallet. 

For instance, Coinbase has a hot wallet. Whenever you buy a crypto token, it will go directly into your Coinbase wallet inside the app. You can check your crypto balance via the app on the internet. This makes it vulnerable to hacks and social engineering. 

However, you can transfer your crypto holdings to cold storage for enhanced security. We suggest cold storage for prolonged holding. 

2. Diversify Storage Methods 

One of the best security tips for crypto traders and investors is diversifying your storage methods. Never rely on a single crypto exchange for crypto holdings. In case of any unwanted event, you won’t lose all your assets in a single go. 

Use the built-in hot wallet for the above-mentioned crypto exchanges. They are secure but not 100%. Use your computer system to store private keys and essential information related to crypto. 

Doing so will decrease the likelihood of losing your hard-earned crypto funds. 

3. Regularly Review Security Practices 

When you start your crypto investing journey, pick a secure exchange with an unbreakable wallet. Ensure that you protect your exchange with a complex password. Alongside passwords, two-factor authentication and multi-factor authorization will strengthen the security. 

However, you must always keep track of your security practices. Check out the Play Store or App Store for timely updates of crypto-related applications. This will prevent any vulnerability that could compromise the protection of your crypto assets. 

4. Use Reputable Exchanges  

A well-established crypto exchange offers several benefits. That includes:

• Matchless security
• Higher volume
• Higher liquidity
• Lower fees and faster transactions
• Accessibility, etc. 

These are key requirements for a secure crypto trading and investing experience. The crypto exchanges we enlisted are top-ranked in the crypto market for their security, user satisfaction, timely customer support, and accessibility. 

Moreover, high-volume crypto exchanges are top-rated among beginners and seasoned traders because the high volume is a testament to trust and confidence. However, a higher volume also means extra attention from cybercriminals. Once you have followed all the security precautions, you can be confident that your crypto assets are safe. 

Conclusion 

Crypto exchange security is the top priority for new and seasoned traders. Despite the enhanced security of cryptocurrency due to blockchain, cyber-attacks have always been a concern. 

With several safety measures, you can safeguard yourself from various attacks. However, you must choose a secure and reliable cryptocurrency exchange to stay safe during your investing journey. 

Frequently Asked Questions 

What are the security risks associated with crypto? 

security risks in crypto trading and investing are many. That includes regulatory compliance, cyber attacks like phishing, baiting, ransomware, unregulated crypto exchanges, etc. 

What is the most secure crypto exchange in 2024? 

Kraken is among the best crypto exchanges for secure crypto trading and holding. Its security protocols are matchless. Other safer exchanges are Coinbase, Crypto.com, WhiteBIT, Bitget, etc. 

How can I improve my crypto security? 

You can practice safe crypto trade by following a few tips. That includes using complex passwords, diversifying crypto storage with hot and cold wallets, trading on reputable and secure crypto exchanges, etc. 

What makes cryptocurrency secure? 

Blockchain technology is at the core of crypto security. Every transaction goes into the blockchain, creating a new block with the version control system. It also restricts an unauthorized person from accessing your transactional record, making it nearly impossible to hack. 

Can crypto exchanges be hacked? 

Due to the massive crypto assets a crypto exchange holds, it becomes the top target of hackers. Despite the substantial security protocols, evil masterminds may find a vulnerability and exploit it, leading to a gigantic financial loss.