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Saturday, November 27, 2021

Are Bitcoin Exchanges Safe?

Bitcoin is undoubtedly one of the most intriguing modern currencies in the world. Up until today, nobody is exactly sure who the progressive thinking creator of the cryptocurrency is. Yes, the name Satoshi Nakamoto was listed as the inventor of Bitcoin back in 2008. But, is it one person, or a collective group? Despite the mystery of Bitcoin’s creator, it proceeded to launch in 2009 as open-source software.

This speculation caused a lot of mistrust in Bitcoin as a decentralised virtual currency. It did for us too. It took a while for the world to sit up and take note of the incredible benefits it offers. 

As we speak, the value of one Bitcoin is touching on £27,000. Let’s say you invested in this crypto when it hit the international market back in 2010. The trading price per Bitcoin fluctuated between US$0.0008 to US$0.08. If you were one of the adventurous investors and you acquired £1,000 worth of Bitcoin, it would be worth 437,500 times your original investment today, equalling £437.5 million.

Looking at these facts, what is it about Bitcoin that still makes potential investors hesitant to get on board? One of the reasons is the number of unscrupulous Bitcoin exchanges that popped up overnight, took investor’s money and disappeared again. It’s not Bitcoin that’s unsafe. 

As with all investments, you have to ensure that you trade with respected and trustworthy exchange platforms.

What Is a Bitcoin Exchange?

It’s the web-based marketplace used to purchase and sell Bitcoins by all types of traders. You can do it using various altcoins or fiat currencies, and the currency ticker for Bitcoin is XBT or more commonly, BTC.

Bitcoin Exchange safety measures

It’s not the best advice to keep your Bitcoin in exchanges as it’s vulnerable to online threats. To summarise it quickly, since 2011, more than £1.117 billion Bitcoin assets have found virtual feet. If we calculate the total worth, including inflation, it amounts to a breathtaking £8.83 billion. Crypto exchanges are at the top of a hacker’s to-do list due to the sheer volume and value of daily trades globally.

There are various ways to keep your Bitcoin safe, and one option we recommend is to create a unique offline wallet. Check that the exchange is secured against cyber attacks and using the latest SSL 128-bit encryption. It’s advisable to use businesses that offer ‘cold storage’ facilities and necessary measures such as two-step account access verification.

Which Bitcoin Exchange to trust?

Fortunately, we have excellent online financial and consumer watchdog organisations. The best way to determine whether you can trust a specific exchange is to read as many reviews as possible. The online community is brutally honest, and you’ll quickly gather if an operator has multiple complaints against it of the same nature. 

You can’t believe everything you read on the internet, so it’s best to use only trusted sources such as Trustpilot, the Financial Ombudsman and Financial Conduct Authority when checking out online consumer complaints.

For more info visit Tradingbrowser.com.

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