The emergence of cryptocurrencies like Bitcoin and Ethereum prompted the development of crypto trading platforms where cryptocurrency owners may exchange their assets for other cryptocurrencies or fiat money like dollars. These platforms make trading digital assets possible.
Some sites even include bots that allow cryptocurrency owners to evaluate the market using specific indications. When all the requirements are met, they automatically execute the trade the user has set into them. Cryptocurrency owners may profit in this fashion without putting in any actual labor.
Despite these advantages, not all crypto platforms should be used because some of them are nothing more than con artists posing as “reliable crypto trading platforms.” In this interview, a leading expert from Coin Return Group shares tips on the security of crypto trading platforms.
Is Trading On Cryptocurrency Platforms Risky?
There is a risk associated with trading on cryptocurrency platforms, albeit this risk can vary greatly depending on the trading platform. Hackers, for instance, work nonstop to infiltrate reputable sites.
They use various phishing techniques to steal the cryptocurrency stored in digital wallets. In other cases, some cryptocurrency owners could have the misfortune of investing in fraudulent platforms that defraud them of their coins.
What Security Methods Does Crypto Trading Platforms Use?
Legitimate cryptocurrency trading platforms use various security measures to ensure that cryptocurrency owners trade with confidence without fearing that hackers can steal their assets. These include mandating crypto owners to create secret keys or seeds that are not easily guessable for others who want to gain access to the stored assets.
They also introduce two-factor authentication for access to crypto wallets, reference and background checks, and redundant key storage. Occasionally, they run penetration and vulnerability testing to look for weak links hackers can use to get around security measures.
How Can Crypto Owners Recognize Phony Cryptocurrency Trading Platforms?
Safe trading platforms are aware of their clients’ needs and make sure that their platforms are simple to use, whereas fake ones hide their information. There is a substantial likelihood that a platform is phony if a significant number of individuals are not utilizing them.
The lack of responsive customer care and a limited selection of in- and outgoing payment options also indicates that the platform might be fraudulent.
Are Crypto Platforms Insured?
Most cryptocurrency platforms lack insurance. Smaller platforms are probably not insured, but larger exchanges may be.
If you are a frequent trader, ask your insurance provider about buying coverage to protect against any potential losses. If not, you might be required to rely only on the security offered by the crypto platforms.
Can Coins That Were Stolen From A Consumer While They Traded On A Risky Cryptocurrency Platform Be Recovered?
If the theft is discovered early, there is a good probability that the stolen crypto can be recovered before they are turned into fiat. Our blockchain specialists at Coin Return Group can track the crypto movement in and around wallets and identify weak links in the chain of the con artists to ethically and legally freeze and reclaim your crypto.