As digital currencies like Bitcoin, Ethereum, Bitcoin Cash, and XRP gain legitimacy, it’s only natural for investors seeking asset diversity to fit into this new asset class. The recent drop in prices across the crypto atmosphere might also tempt traders to look for a good entry point.
But negative news about cryptocurrency scams, rogue exchanges, and other criminal schemes discourages many people from entering the space. And indeed, from the issue of security scale on the operational and technical side of trading, there are many things that investors must watch and learn for more information is Kraken better than Binance
After reading a source, recently a reader tweeted:
“Where is the safest place to buy XRP?”
For all cryptocurrency trading, Monax CEO Casey Kuhlman says start by considering the exchange’s credibility and focus on software. He stressed that “trust and credibility” are probably the two most important factors to focus on when deciding on the best crypto exchange to work with, is Kraken better than Binance?
“I would recommend that regardless of the exchange chosen, all users set up trustworthy antivirus software packages, in addition to applying operational system patch-up and antivirus focus updates as quickly as they are announced. Users should always ensure that they back up their data to online storage sites regularly. As with all transactions made online, I would recommend using a VPN for trading, as your wifi is not always as secure as you think.”
When it comes to buying cryptocurrencies, Paul Puey CEO and co-founder of Edge, notes that there are many and varied options. The best choice will depend on the user’s desire for security, cost, speed, and simplicity.
“At the other end of the spectrum is a fully centralized order exchange, which can get you very close to the spot price but requires understandable types of trading orders and may have long delays on account verification and withdrawal. They also compromise on security, as the funds are held by a custodian. With such a central exchange, it is important after making a trade to move funds to a user-controlled wallet.” is Kraken better than Binance
Daniel Schwartzkopff CEO of Invictus Capital provides additional details on some things to keep in mind when choosing an exchange. see this for more comparison between Kraken vs Binance. It provides nine factors to note:
- Choose a large, well-established exchange that has been around for some time. The long uptime of exchange doesn’t necessarily guarantee future security, but it does eliminate the risk of a bad operator.
- Make sure the exchange has significant volume and liquidity in the cryptocurrency pairs you choose to trade.
- Before signing up, send a request to their customer support team to get an estimate of how long it will take them to get back to you and see if you are comfortable with that timeframe.
- If this is your first time doing business with an exchange, never exchange the full amount you wish to trade. Instead, start by depositing and withdrawing a small amount of value first.
- If you need help, always email the exchange’s official support team. Keep in mind that admins will never start a conversation with you on apps like Telegram. If you are approached this way, it is almost certainly a scam.
- Always type the full website address. Never select it from the list of results on Google because some of the ads you see may be phishing sites.
- Regulated exchanges such as Liquid.com (Japan), Bitstamp (Luxembourg/Europe), and others provide an additional layer of security. Always do your research on the exchange before depositing funds. A quick Google search can often determine if an exchange is currently facing issues or not.
- Make sure the exchange performs KYC (Know Your Customer) procedures. This is a universal legal requirement. KYC procedures may include taking a copy of your ID, proof of residence, and so on.
- Most importantly, never keep your funds permanently on an exchange/exchange. Crypto assets should always be stored in a cold storage wallet such as a Nano Ledger device or on a computer that is not connected to the internet.
Cold vs. Hot Storage
Perhaps the most important security decision crypto investors can make is whether to leave their assets in ‘cold storage’, says Cobus Kruger, CEO of Stackr. This term means storing digital assets offline, on a USB drive, for example, or other data storage options. Storing cryptocurrencies on exchanges is often referred to as ‘hot storage. He shows that both methods have their problem:
“There are issues surrounding both storages. The ideal scenario is to use a third-party repository as an independent custodian [which can also] provide access to capital investments and digital assets in one place.”
Crypto exchanges are also growing according to CEO Stefan Neagu Persona, which means security is constantly improving. Nonetheless, he continues to believe that investors are not focused on putting their security first. “I doubt that most people will choose the safest exchange, if higher volume exists on other exchanges, even if it is less secure.” For more information look at this web-site
Disclaimer: The information provided above is for research purposes only. And should not be considered a recommendation or advertisement. Do your test.