Cryptocurrency exchanges are magnets for hackers. 2018 was a bad year for cryptocurrency exchanges as record amounts were stolen from them by hackers. Here are some precautions to take note of when dealing with cryptocurrency exchanges.
1. Avoid purchasing through exchanges where possible
Purchasing on exchanges puts your information “out there”. Purchasing from an exchange means that the government would absolutely know you own crypto.
2. Use different user names and passwords for different exchanges
So that your funds on them don’t all get wiped out if one of your credentials is compromised.
3. Diversify, diversify, diversify
Register on multiple exchanges so that you have multiple avenues to cash in / out.
4. Never store crypto on exchanges
Exchanges store vast amounts of crypto and are a magnet for hackers.
5. Sign up for exchanges with a good track record
Avoid those that manipulate their trading volume. Users can refer to the Blockchain Transparency Institute for guidance on this.
6. Get 2FA up ASAP
Activate this even before you send a single cent to the exchange.
Want to know more about protecting your crypto when using cryptocurrency exchanges? View the full article on Cryptocurrency Exchange Safety Guide (click here)
. It contains easy to follow steps on how to use cryptocurrency exchanges safely. There we further explain each of the above points in greater detail. Additional tips can also be found on that page.
In the next part of this series, we would discuss how to safely send and receive cryptocurrencies.
Have other security tips to suggest? Did we miss something? Leave them in the comments below and we will update the list.