In this crypto trading guide we will discuss what crypto and Bitcoin trading sites are safe to use?
To do so, we need to make security reviews of crypto trading platforms.
But how do you make a security review of a crypto trading platform?
Also, how can you determine is such a security review is good or bad?
Lets discuss some easy tips and hints to avoid the worst crypto trading sites and find the best and most secure crypto trading sites.
If you are interested in start trading directly we have already sorted out the top Bitcoin trading sites that we consider safe to use.
What is a safe crypto trading site?
A safe crypto trading site is where you can deposit your cryptocurrencies without being scammed or hacked.
Can a crypto trading site ever guarantee to not be hacked?
No, they can’t. However, crypto trading sites have been hacked historically, and they have handled this issue differently.
What crypto exchanges have been hacked?
Some examples are
- 2014: MtGox (850,000 BTC)
- 2015: Bitstamp (19,000 BTC)
- 2016: Bitfinex (120,000 BTC)
- 2017: Nicehash (4,000 BTC)
- 2018: Coincheck (523,000,000 NEM)
What crypto exchanges have gone bankrupt?
The most famous and recent example is the FTX crypto exchange filing for bankruptcy in 2022.
What crypto trading sites are safe to use?
We will create three rules for finding a safe crypto trading site.
At least these three tips will help you to avoid the worst crypto trading sites in terms of security.
- Only trade with large crypto trading sites
- Only work on crypto trading sites with a history
- Be suspicious of great ads and great offers
Large and Safe Crypto Trading Sites
The most simple rule to stay with safe crypto trading sites is to always stay with large crypto trading platforms.
By large, we mean the crypto trading sites with the deepest liquidity or largest crypto trading volumes.
Those are usually ranked among the top trading platforms in every review site.
They include Binance, Bitfinex, Kraken, Coinbase, BitMEX, ByBit, and a few more.
Why is this important? For several reasons
- If there is a hack they can easily cover it lite Binance and Bitfinex have done.
- Since they are large crypto trading sites, they can spend more time on security than small crypto trading platforms
- They have more advanced trading features (there is no reason or need for a small trading platform)
Safe crypto trading site, Tip1: Stay with large and well-know crypto trading sites. Avoid small crypto trading platforms.
History of Safe Crypto Trading Sites
Always check the history of the crypto trading platform. For how long time has it been around?
Simply because if a crypto trading platform has existed for five years with no security breach, it will have lower security risk than a new crypto trading platform.
In addition, if the crypto trading platform has some profitable years behind it will have a higher probability of covering a potential hack or similar loss of crypto money.
Safe crypto trading site, Tip 2: Only go with crypto trading sites that have been around for at least a couple of years.
Crypto Trading Sites - Bonus and Offers
Be careful if crypto trading sites have great bonuses and offers. Also, if they perform aggressive marketing and profit guarantees.
However, there are way more bad crypto trading sites with aggressive welcome bonuses and sign up offers. Stay away from them.
Safe crypto trading site, Tip 3: Only go with legit crypto trading sites bonus and offers. If something sounds to good to be true, be suspicious.
Summary - What crypto trading sites are safe to use?
In this guide, we learned how you can easily stay with safe crypto trading sites.
Don´t get fooled by new crypto trading sites with aggressive marketing strategies and great bonuses and offers.
Stay with the large crypto trading sites
Look for how long a trading site have existed
Don´t only look for great bonuses and offers. More important, look for a great crypto trading site.
If you read this guide because you are new to crypto trading, we recommend our crypto trading guide for beginners.