If you’re new to crypto exchange, you may not know what the basics are when using an exchange to trade Bitcoin. There are several things to keep in mind when using an exchange, including some potential downsides of crypto exchanges that you should understand before using one. With that said, let’s take a look at the main points to remember when using cryptocurrency exchanges and trading Bitcoin in particular.
Beware of Malware on Mobile Devices
Many mobile devices, especially those that run on Android operating systems, are vulnerable to malicious software. Malware can interfere with your trade by giving you false information or even stealing your private keys.
To ensure complete protection, you should always ensure avoiding any file that contains malware. Make sure to double-check that the file you are downloading has zero harmful files. Be aware of apps that collect your location and other sensitive data, as these may be used by hackers or identity theft services.
Set Limits on Losses When Trading
Don’t ever give your private keys to anyone, and check that any URL you visit is exactly correct. If ignored, you may end up choosing a platform that will make you lose all of your traded cryptocurrencies. A quick and easy test? Type in an address. If it starts with http:// or https:// followed by a whole bunch of random letters and numbers, it’s most likely fine; if it starts with bitcoin: followed by anything else, stay away.
Protect Yourself From Phishing Sites and Scams
In order to prevent phishing sites and scams, follow these steps: Use a Bitcoin Exchange with an Authentic Domain: The domain of your exchange should end in .com. There are many fake sites that have .net or .org domains but may trick people into thinking they’re real. Always verify that you’re on a legitimate site by looking at their domain name.
Enable Two-Factor Authentication For Added Security
Once you are done choosing a cryptocurrency exchange platform, the first and foremost point you need to keep in mind is enabling a multi-factor authentication system. Designed to add double layers of security, you can ensure your chosen cryptocurrency exchange platform remains safe and secure. Since passwords are easy to steal, 2FA adds an extra layer of security that means a thief would need both your password and your phone (or other secure physical tokens) in order to get into your account.
Change Passwords Regularly
Because of how much Bitcoin is worth right now, and because Bitcoin exchanges can be prone to hacks, it’s important that you protect your account by utilizing two-factor authentication. Enabling two-factor authentication will ensure the complete safety of your funds, making sure you are the only one to get access to your funds.
It’s not foolproof—if someone gets hold of your phone, they can still hack into your account—but it’s as close as you can get without securing every step in between with a six-foot security wall. (You should never store large amounts of cryptocurrency on an exchange, either.) To enable two-factor authentication on most crypto exchanges, just go into settings and turn it on.
Don’t Store Cryptocurrencies on an Exchange for Long Periods of Time
If you’re using an exchange like Coinbase, Kraken, or Gemini to buy and sell cryptocurrencies (such as Bitcoin or Ether), avoid keeping your coins there. That’s because exchanges are meant for trading, not storing. Most exchanges have insurance against theft and will reimburse you if they lose your funds.
It’s incredibly difficult to get them back if they do. However, if your crypto is stored on an exchange for long periods of time, it’s quite possible that people will be able to link it directly back to you—and then steal it from you. If that happens, all that would be left of your cryptocurrency holdings are a bunch of worthless digits on some website somewhere… and more importantly: no money in your bank account!
Whether you’re looking to buy Bitcoin, or Ethereum, or are just learning about crypto exchanges in general—these are all important things to consider when choosing your exchange. Always do your research to ensure ending up with the right platform.