With the development of the cryptocurrency market, more and more people are starting to use cryptocurrency exchanges and exchangers to buy, sell and exchange their digital assets. However, with the growing popularity of cryptocurrencies, the number of security threats is also increasing. What precautions should be taken to save your money, and which exchanges and exchangers should be preferred – this was told to UNN by the co-founder of the first fintech ecosystem in Ukraine, Sopsog Fintech Solutions, Olena Sosedka.
Choosing a reliable exchange or exchanger
The first step to using cryptocurrency safely is to choose a reliable and proven platform. When choosing an exchange or an exchanger, you should pay attention to the reputation and user reviews, the availability of a license, transparency and openness of the platform.
"Study the reviews and ratings of other users to ensure the reliability of the platform. For example, if most of the reviews are negative, this is a serious signal to look for another exchange. Preference should be given to platforms that are regulated by government agencies and have the necessary licenses," says Olena Sosedka.
According to her, it is also worth remembering that reliable platforms provide information about their team, location and legal status.
Account Security
After choosing a platform, you need to pay attention to the security of your account. To do this, according to Olena Sosedka, you should definitely use two-factor authentication (2FA). This can be an authenticator application, SMS, or a hardware token. For example, even if scammers find out your password, without the second factor they will not be able to access your account.
A reminder about using complex passwords with a mandatory set of letters, numbers and symbols will not be superfluous.
You especially need to be attentive to phishing attacks. You should not click on links from suspicious emails, and always check the site URL before entering data.
Protection of funds and care in transactions
For the security of your assets on the exchange, it is advisable to store only that part of the cryptomonets that is necessary for trading.
"It is better to keep the rest of the funds in cold wallets, because they are not connected to the Internet and are less susceptible to hacking. It is not worth storing all your assets on one platform. It is better to divide funds between several exchanges and wallets to reduce risks. For example, if one platform turns out to be compromised, you will not lose all your funds," advises Olena Sosedka.
Special attention should be paid to verifying the correctness of recipient addresses, since an error in just one character can lead to irreversible loss of funds. To prevent this from happening, Olena Sosedka advises making a test transfer of a small amount before the main transfer to confirm the correctness of the data.
She also recalled that some cryptocurrencies require the indication of labels (tags) when sending. They also need to be specified.
In order for financial activity on cryptocurrency exchanges to bring both pleasure and profit, according to the co-founder of the first fintech ecosystem in Ukraine, Sopsog Fintech Solutions, you need to be aware of all the latest developments that relate to this area.
"Regularly read news and articles about security in the field of cryptocurrencies. Learn from the experience of other users. Join cryptocurrency communities where you can discuss security issues and get advice from experienced participants. Stay tuned for updates on the software and applications that you use," Olena Sosedka summed up.
Recall
UNN has started a series of publications in which it talks about digital currencies and their capabilities. Our first material was devoted to the technology underlying cryptocurrencies - the blockchain: "Crypt for dummies". Part 1: what is blockchain and its "chips" that few people know about.
The second material is the halving of bitcoin: "Crypt for dummies". Part 2: what is halving, and why it causes a stir in the cryptocurrency market.
The third material: "Crypt for dummies". Part 3: step-by-step instructions on how to buy a crypto coin.
The fourth material: "Crypt for dummies". Part 4: What are coins and tokens and what are their differences.
The fifth material: "Crypt for dummies". Part 5. Cold and hot wallets