One of the hurdles faced by crypto adoption remains the lack of safe crypto exchanges. Even the most vocal crypto enthusiasts find it difficult to get an answer to this question: can they carry out safe, reliable, and quick crypto exchanges within an online space plagued by hacks and privacy violations?
When addressing the issue of safe crypto exchanges numerous problems give a negative outlook. Firstly, these exchanges can always be subject to cyber attacks since most custodial platforms do not have fortified security protocols in place. Secondly, there is also a chance of the owner’s consent violation since their funds are being managed by those custodial exchange platforms. And to top it off, the exchange provider can simply crash taking all of the user’s funds with it.
Given this troubling context, one might think: are crypto exchanges safe at all? The answer is yes if the user stays vigilant and chooses the safest instant crypto exchange with a crypto exchange aggregator.
A cryptocurrency exchange is a service where users can buy or sell cryptocurrencies. These trades are made using either digital monetary units or legal tenders- which are fiat currencies as declared by governments. Unlike the stock market trading scene, a typical cryptocurrency exchange, especially if it’s an instant non-custodial one, runs 24/7.
On these platforms, users can make rapid cryptocurrency exchanges at real-time exchange rates. The strongest attraction point of these exchanges is that most of them allow for anonymous trading- nobody on the market can know who the buyers and sellers are since they rarely conduct KYC procedures.
They also provide the best crypto exchange rates since they work with such platforms as Binance, Kucoin and others.
The rise of cryptocurrency was backed by a movement that supported anonymity and decentralization in financial transactions. It would pain crypto lovers to see these principles being violated when carrying out crypto exchanges. The fundamentals of anonymity and decentralization are exactly what needs to be considered when choosing the safest crypto exchange.
There are numerous services on the market that allow users to indulge in rapid crypto exchanges without the prerequisite of verifying their credentials such as ID. Not having to share personal data is a must-have because it eliminates chances of probable violation of consent or anonymity. If matters of anonymity and consensual data sharing are important for you, then going for a no-registration crypto exchange platform makes sense.
It is also important to carve out the difference between custodial and non-custodial exchanges to assess whether a service is secure. Custodial exchanges are similar to centralized banking services. On these platforms, the service provider can manage funds on behalf of the users, but like all banking applications, this convenience comes at a grave cost – users lose their financial independence.
A non-custodial crypto exchange allows complete financial independence to users since it does not store any of the user’s data. This has made the popularity of custody-free crypto exchanges soar. When there is no compulsion to create an account, divulge private information, and transfer responsibility to a centralized third party, the risks of online hacking are severely mitigated.
We have already analyzed the importance of non-custodial crypto exchanges when assessing safe crypto exchanges. Like all financial transactions, cryptocurrency trade needs to be free of risks that come with public exposure and online hacking. Here are some vital risks to stay clear of:
The world of crypto witnessed four major exchange hacks in previous years, all of which could be traced back to hot wallets and the risks associated with them. The problem with hot wallets is that they are connected to the internet and any sophisticated hacker can gain access to them.
We have discussed the importance of anonymity when selecting a crypto exchange at length. In summary, choosing a non-custodial crypto exchange mitigates exposure to hacking and non-consensual fund management.
Using Swapzone to choose a safe crypto exchange is convenient since all the crypto exchanges integrated into Swapzone are custody-free and require no registration.
Dissecting safe crypto exchanges is important before committing to investing in crypto, and with this article, you have all the necessary tools to evaluate a convenient and safe exchange. If you want to see, how to create an exchange on Swapzone, please, watch out step-by-step video tutorial: