Crypto Trading Platforms: How to Stay Safe When Investing

• (Photo : Crypto Trading Platforms: How to Stay Safe When Investing)

The internet is equally full of opportunities and threats. It is a fascinating place to observe the beauty and depravity of humanity all at once. For netizens, the price of freedom is, indeed, eternal vigilance.

Cryptocurrencies fit the aforementioned characterization perfectly. They are an innovative and potentially lucrative asset, with the propensity to attract nefarious elements. When using a computer with an internet connection, it is advisable to have antivirus software on your computer. Similarly, it makes sense to take certain precautions when interacting with crypto trading platforms.

Investing in crypto has to come from an informed perspective. Looking up useful tools like the guide from PrimeXBT on cryptocurrencies is essential in getting acquainted with the technology.

The Opportunities Are Immense

One thing that has been the silver lining of the pandemic period is the enduring power of digitization and technology. Trading assets on crypto brokerage platforms and equities online provided useful opportunities for millions during this period. The exciting thing about crypto trading in platforms like PrimeXBT is that it goes on all the time. Stocks and traditional equities have official trading hours, in a way restricting the activities of a trader.

Electronic payment services and digital banking services are also on the up. Fintech has been a buzzword for a few years but is now a permanent and significant fixture of the financial landscape. 

For the purposes of this piece, electronic trading platforms come into focus. These platforms are an equalizer of sorts, allowing practically everybody to participate in global markets.

Such platforms have also seen a spike in usage this period in line with overall technology adoption. In the age of cryptocurrencies, these apps have gained an elevated sense of importance to accommodate participants in this vibrant industry.  

Cybersecurity Should Be At The Fore 

Trading apps and exchanges are a singular draw for hackers looking to make a quick buck. There has arguably never been such a low-risk high reward asset to steal as cryptocurrency. 

Accordingly, platforms like PrimeXBT rely on industrial-grade encryption techniques to secure cryptocurrency transactions. The heightened security requirements also call for proactive threat detection to protect assets and data.

Before trading with any app, check out independent code reviews and analyses of their trading software. There is no price too high for conducting such due diligence on the security arrangements of crypto brokerage platforms.

Keep in mind that when using a crypto trading platform, a trader not only trusts them with their funds but also their emails, passwords, and ID information where applicable. Therefore, their practices in handling data are also a relevant component of the Cybersecurity equation. 

The Commitment of a Brokerage Firm to Security

Large trading platforms tend to be more committed to the security of their users. This translates to bigger Cybersecurity budgets. Other policy considerations are stronger password policies, two-factor authentication, and a lot of opt-in notifications of operational things. These are changes that have come about from the experience of exchange hacks in the wider cryptocurrency industry. In general, this sector is safer than it was a few years ago.

Liquidity and stability of technology are especially relevant to brokerage firms. In periods of frantic trading, some brokerage firms may struggle with the heightened demand. Top-tier brokerage platforms can adjust seamlessly to higher trading volumes. As a trader, you wouldn't want to remain stranded at a time when a lucrative trade is in the offing. 

There are countless reputable websites that have informative reviews of such brokerage firms online. It is unfair to expect that the average trader would understand all the security terminologies about a brokerage firm. These reviews can expand the scope of your understanding of Cybersecurity. 

Traders' Role in Security

For all the security arrangements a crypto brokerage firm can have, a trader cannot afford to drop the ball. This calls for taking proactive measures on your side to trade securely. Some of these include:

1. The use of FaceID/TouchID in mobile apps for authentication.

2. Do not use public Wi-Fi networks that may be susceptible to hackers.

3. Try and diversify your passwords for different accounts to prevent the possibility of devastating losses when one is compromised.

4. If possible, use the option of automatic logout when your device goes idle for some time.

5. Activate email/SMS notifications for any trading activity or movement of funds.

To Wrap It Up

When done right, crypto trading can open boundless opportunities. Unfortunately, many traders don't bother to go the extra mile in ensuring they are trading securely. This can lead to anguish from scams or losses. Security should be a deal-breaker in any platform, and there are no two ways about this.