A serious question pops up for those of us who have already become cryptocurrency adopters – how to exchange one coin to another rapidly, conveniently, and, most importantly, securely? Cryptocurrency exchange safety is something that gets questioned quite often. When it comes to large custodial platforms, hacks occur, the funds can be managed without the owner’s permission, the service can, after all, just close down and take the user’s funds down with it. But the safest crypto exchange isn’t a unicorn that is hard to be found.
Instant cryptocurrency exchanges take it a step further by allowing customers to swap crypto without the lengthy registration process and the need to store the coins on the platform itself. Crypto exchanges of this kind not only simplify the overall crypto management process but also make it more secure. Let’s take a closer look at the security of instant cryptocurrency exchanges and the ways to keep and swap your coins safely.
There are quite some platforms on the market, allowing users to enjoy their services without the need to verify one’s identity, most of them being instant cryptocurrency exchanges. Not having to register on the platform is a great plus from the point of decentralization and consensual data sharing – if you are concerned with the matters of privacy and anonymity, no-registration crypto swap platforms are a way to go. When it comes to the services offering no registration or verification, some people get alerts. Is this something illegal? Is it possibly connected to dirty Bitcoins? Silk Road, maybe? Of course, the whole thing does not work like this. Usually, the no-registration policy comes together with non-custodial storage, which means that the security of the platforms is, actually, higher. Once compulsory verification takes place, the chances of user information leaks and deanonymization increase. Secondly, instant exchange services do have the KYC/AML policies – the procedures of customer checks and anti-money laundering protocols – the crypto space is more secure than one might think in the beginning!
There are two major types of services allowing us to interact with the blockchain – custodial and non-custodial. Generally, the crypto space talks about the differences in those quite a bit. Even if you already know the differences, we feel it is important to remind you of the differences between these two kinds. Custodial services are similar to the banking applications we are all used to – they are platforms managing the funds on behalf of their users. It comes with great perks – for instance, you can retrieve access to your wallet in case something happens. However, to have this convenience, a user needs to give us their right to financial freedom and self-management. Non-custodial services, on the other hand, do not store any of the user’s data and provide full access to keys and storing cryptocurrency. The responsibility for fund management, in this case, also is on the side of the user.
Usually, it is the wallets that get all the questions on the pros and cons of custodial and custody-free cryptocurrency storage, but exchanges are really not that different. After all, the crypto giants like Poloniex or Binance all have hot wallets on board. It might be handy, but doesn’t all the handiness come with a price? We saw at least four major exchange hacks last year. Besides, there can be even darker cases – we’re tipping the hat for all of you remembering the Quadriga story (or even being involved in it). Yes, cryptocurrency exchanges are vulnerable. This is why custody-free instant crypto swap solutions grow in popularity – if there is no need to create an account and trust a third-party with fund management, the risks of being exposed to the hacking threats decrease drastically. All the crypto exchangers integrated into the Swapzone interface are non-custodial. Hence, by eliminating intermediaries and offering decentralized cryptocurrency swap provides under one roof, providing a more extensive range of supported coins and the needed information of secure crypto storage, our team, too, says a word in the field of cryptocurrency security.
Keeping in mind what we have said about instant cryptocurrency exchange services, it is quite logical that the safest, easy to swap one crypto to another is by using a registration-free, non-custodial service. There are many options available on the crypto market, so it is important to find the platform with the best crypto rates, full availability of the currencies you are interested in, and the right working pace. So, how do you swap cryptocurrency instantly?
Some of the ways have already been mentioned in the paragraphs above - turn to registration-free, non-custodial services and pay close attention to the platform of choice, for instance.
Exchanging cryptocurrency securely is not such a hard task to fulfill. However, with the information overload, countless promotions, lack of suitable materials on the topic, and more it is sometimes challenging to make the right choice. This is precisely why we think it is vital to break everything in safe crypto swaps down bit by bit. Hopefully, this article sheds some light on instant cryptocurrency exchanges, the differences between custodial and custody-free services, and cryptocurrency management security. Now, it’s your turn!