Most Secure Crypto Exchanges In The World
The assurance that your crypto is safe in an exchange is next to none, and sadly, not all crypto exchanges provide this to their customers.
Between January 2009, when Bitcoin was launched, and now 2023, the crypto space has witnessed massive growth. Within fourteen years, over 20,000 cryptocurrencies have been released into the crypto market and over 800 crypto exchanges have been launched worldwide.
Although the crypto space has seen steady adoption in various parts of the world, it has been plagued with bad actors. This year, just like other previous years, many crypto projects and exchanges experienced malicious hacks.
According to Crypto News, the number of crypto hacks skyrocketed by 60% compared to Q3 in 2022. Hackers made away with a total of $686 million, and these hacks were centered on known crypto exchanges like Mixin, Huobi, MultiChain, CoinEx, etc.
Today, many Cryptocurrency holders are wary about the safety of their funds in crypto exchanges. As many crypto exchanges spring up daily, one of the most important offerings a crypto exchange should offer their customers is security.
With the rising rate of alarm on the security of our digital assets, in this article, I will be writing all you need to know about spotting a secure crypto exchange and the most secure crypto exchanges in the world.
What to Look Out For in a Crypto Exchange?
Before selecting a crypto exchange, it is essential to do your research to know more about the exchange.
However, when carrying out your research, it can be unclear what to look out for. Not to worry, below I will highlight some key things to consider before selecting a crypto exchange.
1. Security Standards
When searching for a crypto exchange, the first thing you should look out for is Security.
A secure crypto exchange makes use of the latest security standards. Currently, the most secure security standard is AES key lengths of 128, 192, and 256 bits. This algorithm helps to encrypt your data, protecting it from hackers.
The crypto exchange should also use SSL(Secure Sockets Layer) and TLS(Transport Layer Security). These protocols are cryptographic protocols that help to protect your data, like credit card details and passwords, during transactions.
You can verify this by checking if the website’s URL starts with “https://” and displays a keylock symbol in the address bar.
Additionally, it’s good to use an exchange that stores clients’ funds in cold storage. This means the cryptocurrency is stored offline, making it inaccessible to hackers.
Furthermore, secure exchanges regularly check their systems for weaknesses. They do this both by themselves or with verified cybersecurity experts like Hacken.io.
2. Merkel Proof
What’s Merkel Proof?
Merkel Proof, also known as membership proof, is a cryptographic technique that proves your cryptocurrency transaction is valid without showing all the transaction details. It’s a way to confirm your crypto move without revealing everything on the blockchain.
Exchanges with Merkle proofs let you check if your transactions are valid. This transparency builds trust, as users can confirm that their trades and withdrawals are handled correctly.
3. KYC
KYC, or Know Your Customers, is a vital process employed by secure cryptocurrency exchanges to verify the identity of their users. This is an important feature to check out when researching a crypto exchange.
It’s similar to how a bank verifies your identity when you open an account. KYC requires you to provide personal information and identification documents like your ID or passport before having full access to your account.
It is an essential security measure that helps prevent fraudulent activities, ensures compliance with financial regulations, and adds an extra layer of security to your crypto wallet.
4. Proof of Funds
This is the assurance a crypto exchange provides that they have sufficient funds to cover up user deposits. To ensure a safe crypto exchange, you must look for clear evidence of these funds.
This evidence often includes the crypto exchange public blockchain addresses, which show verifiable balances that match or exceed the total user deposits.
5. Total Balance in Reserves
The total balance in reserves represents the amount of cryptocurrency and fiat currency the exchange holds in reserve to cover user withdrawals.
A secure exchange values transparency and typically provides real-time or regularly updated information on its website regarding its reserve balances.
It’s important to note that trustworthy exchanges often allocate a significant portion of user funds into cold storage wallets.
6. Social Media Presence
A secure crypto exchange has an adequate social media presence and usually engages with its community on various social media channels.
They use platforms like Instagram, Facebook, Twitter, Telegram, and Reddit to share news, updates, and educational content about the exchange.
Also, an exchange actively available on social media shows commitment to helping its users and being transparent.
7. Customer Service
Effective customer service is vital for crypto exchanges, ensuring users can reach out and get assistance when needed.
These exchanges offer various communication channels like email, live chat, or support tickets. These channels are to respond quickly to inquiries and maintain a knowledgeable support team.
They also operate 24/7 to cater to users across different time zones. Multilingual support, efficient issue resolution procedures, positive user feedback, and educational resources further enhance the user experience and trustworthiness of the exchange.
8. PR
PR is so important when looking out for crypto exchanges. By including PR, I do not mean the bogus hype most crypto projects are known for.
Instead, PR will mean if it has been featured on other prominent crypto websites and magazines like CoinMarketcap, CoinGecko, CoinTelegraph, Forbes, Crunchbase, etc.
When a crypto exchange has little to no presence on prominent blogs, it might want to avoid it because something fishy might be up on its sleeves.
9. Audited Assets and Liabilities
Reputable exchanges undergo financial audits, examining both assets and liabilities. These audits, conducted by third-party firms, ensure the exchange’s financial stability and transparency.
Audit reports, publicly available on the exchange’s website, offer insights into their capability to manage finances and safeguard user funds. Also, consistent successful audits demonstrate a commitment to financial responsibility, enhancing the trustworthiness of the exchange.
Features Every Secure Crypto Exchange Should Have
When it comes to the features a secure crypto exchange should have, there are a handful. Below, I will be listing some essential features you should look out for in a crypto exchange.
Note: You should know that not all secure crypto exchanges have all the features listed below.
This is because most exchanges are tailored to some regions and have to follow the compliance laws set in the country in which they operate.
However, a secure crypto exchange should have at least 80% of the features mentioned below:
- Basic trading features: This includes the type of crypto wallet available (either hot or cold), the deposit, transfer, and withdrawal options, analytics, crypto listing page, feed, etc.
- Advanced trading features: This includes the spot market, the futures and derivatives market, the stock exchange, etc.
- Availability: Here, you should be looking for how many countries or states is this crypto exchange available in and how many digital assets are available to trade on the exchange.
- Customer service: A secure crypto exchange should have 24/7 customer service available on the exchange. Also, you can reach the customer service team via email, telephone, live chat, social media, etc.
- Academy, Blog, & Community: If a crypto exchange is offering advanced features like futures, Margin, Derivatives trading, etc, It should have an academy, blog, or community where it constantly teach and update it’s community on ways they can trade effectively its platform.
- Credit/Debit cards: Most secure crypto exchanges offer credit and debit card options to their users for their day-to-day transactions. This is important as most crypto holders are now adopting making day-to-day transactions via crypto.
- Crypto Loans: Crypto loans have become a norm in the crypto space, and this option is seen on most high-value exchanges.
- Staking & rewards: Some exchanges support staking. This allows users to earn rewards by holding and supporting specific cryptocurrencies on the platform.
- P2P Trading & Convert: The P2P trading feature allows you to trade your crypto for fiat via peer-to-peer traders. This is a technical offering and is not available on many exchanges. However, the convert option allows you to swap a crypto to another. This feature is available on most crypto exchanges.
Most secure Crypto Exchanges in the world
Here are my top picks on the most secure crypto exchanges. I currently trade with some of these exchanges, while others were selected based on their security level and multiple recommendations.
1. Kraken
This crypto exchange is available in over 190 countries in the world. It offers many cryptocurrencies, including BTC, ETH, and many altcoins.
With over 10 million users globally, Karken is known for its strong security measures like cold storage for funds and two-factor authentication. It also offers low spreads, high rate limits, and deep market liquidity.
2. Binance
Binance is available in 100+ countries globally, including Asian countries, the US, a few locations in Africa, and the Middle East.
This exchange was founded in China, but it now operates from multiple locations, including Malta and the Cayman Islands. Binance has 90 million users worldwide.
Binance has over 100+ other cryptocurrencies listed on its exchange. Additionally, it offers a user-friendly platform, competitive trading fees, and its native cryptocurrency- Binance Coin (BNB). Binance also provides advanced trading options for professionals.
3. BitDelta
BitDelta is a cross-asset trading platform available in 50+ countries worldwide, with its headquarters in Dubai. This exchange has over 400 traditional and digital assets listed on its exchange, like BTC, ETH, stocks, oil, etc.
It offers personalized security settings, robust encryption, and Institutional-Grade security to its users. Also, on BitDelta, you can access advanced trading features like Margin, Futures, OTC, and Derivatives trading.
4. Coinbase
Coinbase is known for its user-friendly interface, making it an excellent choice for beginners. It also offers secure storage for digital assets and an educational platform.
This exchange has over 56 million registered users and is available in 100 countries globally. Also, Coinbase has over 100 cryptocurrencies listed on its exchange and provides advanced trading features to its users
5. Bybit
Bybit is headquartered in Dubai, United Arab Emirates.
It has over 80 cryptocurrencies listed on its exchange. The strength of this exchange is in its focus on cryptocurrency derivatives trading.
This offers advanced features like leverage and perpetual contracts. It is available in over 180 countries and has over 10 million users worldwide.
6. Gate.io
This exchange has over 13 million users and is based in George Town, Cayman Islands. Gate.io is available in over 180 countries, but it’s restricted to Canada and the United States.
It supports Bitcoin, Ethereum, ASTRA Protocol, and multiple altcoins.
Furthermore, Gate.io has robust security measures, a user-friendly interface, and margin trading. It also offers staking opportunities, a variety of trading pairs, and responsive customer support.
7. Crypto.com
Crypto.com offers a mobile app with a user-friendly interface, crypto debit cards, and staking options.
It has over 250 cryptocurrencies listed on its exchange, including its native cryptocurrency called Crypto.com Coin (CRO).
This exchange has 80 million users and is available in 90 countries globally. Crypto.com has its headquarters in Hong Kong.
8. Bitstamp
Bitstamp’s headquarters is in Luxembourg, a European country known for its financial stability and regulatory framework.
Its strength lies in its focus on providing a secure and regulated trading platform. It was one of the first exchanges to obtain a BitLicense, making it compliant with U.S. regulatory standards.
Additionally, it offers features like two-factor authentication (2FA) and cold storage for user funds. Bitstamp has 4 million customers and is available in over 100 countries globally.
9. Gemini
Gemini stands out for its rigorous regulatory compliance and commitment to security. It has received various licenses, including the coveted New York State Department of Financial Services (NYDFS), making it one of the most regulated exchanges in the United States.
This exchange is located in New York City and is available in over 60 countries. It has 13 million users worldwide, with up to 80 cryptocurrencies listed on its exchange.
10. Bitget
This platform allows traders to leverage profits and losses.
It focuses on providing a robust platform for derivatives trading, primarily involving Bitcoin and Ethereum. Bitget has 20 million registered users in 100 countries.
Wrapping Up!
The crypto space is predicted to outgrow where it is now in the next five years. This will mean more exchanges will be created to accommodate the growing adoption rate and offer unique services to their users.
While it can be overwhelming to find a suitable secure crypto exchange to trade on, this article has provided almost all the information you need to get started. I also included my top secure crypto exchanges, which you can check out today.
