Trading cryptocurrencies involves buying and selling crypto coins. You need to be linked with a crypto exchange platform or a broker to carry out trades successfully. While there are several cryptocurrency brokers, you must do thorough research before settling for a broker. However, this article isn’t focusing on brokers.
Like brokers, there are many cryptocurrency exchange platforms in that crypto space. Platforms like Coinbase, Bitstamp, Gemini, etc., are available to give you the ease of trading. However, brokers differ from exchange platforms because brokers provide financial services in a regulated environment. On the other hand, Crypto exchange platforms aren’t as highly regulated as brokers.
Therefore, to aid your selection process, we have compiled a list of the five safest cryptocurrency exchange platforms. Our Top 5 safest crypto exchange list is based on the recent research by Broker Chooser.
Coinbase is not just the largest crypto exchange platform in the United States but also one of the safest. With a safety rating of 4.1 / 5, Coinbase is renowned for its high level of security. Also, it was initially ranked as a tier one crypto exchange due to its security features. However, proprietary trading restrictions and several hacking incidents have caused the platform to move down the ladder to a tier-three exchange.
FTX US Derivatives
The overall safety score of FTX US Derivatives, coming in second place, is 4.0 / 5. The tier-one exchange platform, formerly known as LedgerX, is regulated by CFTC (Commodity Futures Trading Commission).
Although FTX US Derivatives is a relatively safe exchange, it lacks legal and financial transparency. Also, as regards complex products, it doesn’t have transparency.
Making its way to number three on our list with an overall safety score of 3.8 / 5 is Bitstamp. Bitstamp is an exchange that’s based in UK-Luxembourg. One exciting feature of the exchange is that it facilitates seamless trading between fiat and cryptocurrencies.
Additionally, Bitstamp offers simple yet straightforward products and boasts a 5-year record of no regulatory incidents. Also, to prevent theft and hackings, Bitstamp employs the use of two-factor authentication and stores almost all crypto assets offline (cold crypto storage)
Gemini is our fourth safest exchange platform with a safety score of 3.7 / 5. Funds on Gemini are stored offline in airtight cold storage. Interestingly, Gemini’s principal regulator is the New York State Department of Financial Services (NYDFS).
People love Gemini because the platform ensures users’ wallets against breaches and has features for additional security.
Bittrex has been in the crypto space since 2014. It comes fifth place with an overall safety score of 3.7 / 5. It has top-notch security features that safeguard your assets and excel in market fairness. Also, like Bitstamp, a large chunk of user funds on Bittrex are stored offline. Bittrex uses security measures like IP and wallet address safe listing and two-factor authentication.
When selecting exchange platforms, you must prioritize the safety of your assets. SAFU, a crypto term that connotes that assets are safe, should be taken seriously in the crypto market. Your choice of crypto exchange platform can impact your trade either positively or otherwise. With our top 5 Safest crypto exchange list, you can ensure that your assets are in safe hands.