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Legit Crypto Trading Platform 2024

Safe Crypto Trading Sites Summary

  • Bybit, Binance, Kraken, and Coinbase rank highest when combining scores from Coingecko trust score, Coinmarketcap, Trustpilot reviews, Google Play, and more.
  • We present a table with the top nine safe and legit crypto trading sites.
  • Bybit, Binance, Kraken, and Coinbase are also covered in detail.

Safe Crypto Trading Sites

The table below lists some metrics to evaluate whether a crypto trading site is safe and legitimate.

  • Coingecko’s trust score is calculated on a range of metrics such as liquidity, scale of operations, cybersecurity score, and more.
  • CoinMarketCap ranks and scores exchanges based on the following: Web Traffic Factor, Average Liquidity, Volume, and the Confidence that the volume reported by a business is legitimate.
  • Google Play: Users review with regards to the Android mobile trading app.
  • Launched: Operating history indicates that the business is stable over time.
  • Proof-of-reserves shows that the exchange has the depositor’s funds.
 

*Binance owns Coinmarketcap

What is a safe crypto trading site?

Crypto exchanges with Strong Security Features - A lock illustrated

A safe crypto trading site is where you can deposit your cryptocurrencies without being scammed or hacked.

Can a crypto trading site ever guarantee not to 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 of hacked crypto exchanges 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 is a crypto insurance fund?

The primary purpose of a crypto insurance fund is to cover unexpected losses from leverage trading(because positions are not liquidated in time due to extreme market conditions). Cryptocurrency exchanges do not qualify for deposit insurance programs because exchanges are not savings institutions.

What is cold storage?

Crypto cold storage refers to keeping cryptocurrency offline, significantly reducing the risk of hacking and theft often associated with internet-connected wallets, known as “hot wallets.” This offline method of storing cryptocurrency is considered one of the safest ways to secure digital assets.

What are international financial crypto regulatory authorities?

International financial crypto regulatory authorities are entities or groups that oversee and regulate the use of cryptocurrencies and related financial activities on a global or multi-national level. While there is no single global authority that regulates cryptocurrencies universally, several international organizations and cooperative groups play significant roles in setting standards and guidelines for cryptocurrency regulation.

Bybit – Safe and Legit Trading Site

Bybit is regarded as a reputable and secure cryptocurrency exchange by many in the crypto community for a range of reasons:

  1. High-Level Security Protocols: Bybit prioritizes user security using industry-leading technologies such as cold storage wallets, hardware security modules (HSM), and multiple offline signatures.

  2. DDoS Protection: The platform is protected against Distributed Denial-of-Service attacks, ensuring continuous uptime and service availability.

  3. Withdrawal Risk Management: Withdrawal processes on Bybit involve multiple steps of risk checks from both systems and personnel, reducing the chances of unauthorized transactions.

  4. Regular Security Audits: Bybit subjects its systems to regular third-party security audits, ensuring potential vulnerabilities are promptly identified and rectified.

  5. Insurance Fund: Bybit maintains an insurance fund to compensate users for unforeseen market anomalies or system failures, providing a layer of security for traders.

  6. Robust Trading Engine: The Bybit platform boasts a powerful trading engine that promises minimal downtime and can handle many transactions per second, ensuring smooth trading experiences.

  7. Clear Regulatory Stance: Bybit operates transparently and ensures it remains compliant with the regulations of the countries where it provides its services. Bybit is not regulated in any specific region but has mandatory KYC and works closely with regulatory bodies and institutions worldwide to fight cybercrime.

  8. Transparent Fee Structure: Bybit has among the lowest futures crypto trading fees, allowing traders to comprehend their trading fees easily.

  9. Advanced Order Types: The platform provides a variety of order types, allowing traders to execute complex strategies, and offers perpetual contracts with no expiry.

  10. Strong Community and Customer Support: Bybit emphasizes building a strong community with regular communication channels. Additionally, they offer 24/7 customer support, assisting users with potential issues.

  11. Educational Resources: Bybit Learn provides a range of free crypto trading academic content, including tutorials, webinars, and trading competitions, ensuring that both new and experienced traders have the resources they need.

Despite its reputation for security and reliability, like all online platforms, Bybit is not without risks. Traders should always be cautious, enable two-factor authentication (2FA), use strong passwords, and be informed about the platform’s features and the broader cryptocurrency market’s volatility.

  • Coingecko: 10
  • Coinmarketcap: 9.9
  • Google Play. 4.4
  • App Store: 4.5
  • Trustpilot: 2.4
  • Launched: 2018
  • Proof-of-reserves: Yes
  • Cold storage: User funds are stored securely offline in cold wallets.
  • Hack Incident: Bybit has never been hacked
  • Insurance Fund: Bybit maintains an insurance fund to cover the excessive losses caused by liquidated positions that are closed at worse-than-bankruptcy prices

Binance – Safe and Legit Trading Site

Binance, one of the world’s leading cryptocurrency exchanges, has cemented its reputation as a safe and reliable platform for new and experienced traders. Here’s why:

  1. Industry-Standard Security Measures: Binance implements rigorous security protocols, such as two-factor authentication (2FA), withdrawal allowlist, and advanced encryption technology to protect user funds and data.

  2. Cold and Hot Wallets: Binance uses a combination of hard (offline) and hot (online) wallets to store funds. Most funds are kept in cold storage, ensuring they remain inaccessible to potential cyber threats.

  3. Anti-Phishing Features: The platform offers anti-phishing measures, allowing users to set up a unique anti-phishing code to distinguish legitimate Binance communications from fraud.

  4. SAFU (Secure Asset Fund for Users): In the unlikely event of a breach, Binance’s SAFU fund acts as insurance. A portion of trading fees goes into this fund to offer additional protection to users and cover potential losses.

  5. Regular Security Audits: Binance conducts periodic third-party and internal audits of its systems, ensuring they remain free from potential vulnerabilities.

  6. DDoS Protection: Binance’s infrastructure is designed to detect and counteract Distributed Denial-of-Service attacks, ensuring platform stability and uptime.

  7. Apparent Regulatory Compliance: Binance actively engages with regulators and ensures it adheres to local regulations in its jurisdictions.

  8. User Education: Binance Academy offers many free crypto trading articles, tutorials, and educational videos, ensuring users have access to valuable information to trade safely.

  9. 24/7 Customer Support: With a robust customer support team available around the clock, users can quickly address and resolve any concerns or issues.

  10. Transparent Fee Structure: Binance offers some of the lowest futures trading fee structure. It’s transparent and competitive, ensuring users are always aware of the costs associated with their trades.

  11. Extensive Trading Options: From spot trading to futures, Binance provides a comprehensive suite of trading options, making it a one-stop shop for all trading needs.

  12. Strong Global Presence: Binance has a vast global user base, which is a testament to its reliability and the trust it has garnered over the years.

Despite its rigorous security measures and positive reputation, it’s essential to approach all online platforms, including Binance cautiously. Users should consistently maintain good security habits, such as regular password updates, enabling 2FA, and being wary of phishing attempts.

  • Coingecko: 10
  • Coinmarketcap: 7.4
  • Google Play. 4.7
  • App Store: 4.7
  • Trustpilot: 2.1
  • Launched: 2017
  • Proof-of-reserves: Yes
  • Cold storage: User funds are stored securely offline in cold wallets.
  • Hack Incident: Binance has been hacked in May 2019.
  • Regulation: Binance is not regulated in any specific region but has mandatory KYC.
  • Insurance Fund: Binance has an insurance fund to limit the occurrences of counterparty liquidations.

Kraken – Safe and Legit Trading Site

Kraken is widely recognized as a legitimate and safe cryptocurrency exchange for several reasons:

  1. Long Operating History: Established in 2011, Kraken is one of the oldest cryptocurrency exchanges, demonstrating resilience and adaptability in the ever-evolving crypto space.

  2. Robust Security Measures: Kraken has a vital security infrastructure that includes cold storage wallets, encrypted databases, and two-factor authentication (2FA) for user accounts. They also have a bug bounty program that rewards individuals who find vulnerabilities in their system.

  3. Regulatory Compliance: Kraken operates with transparency and is compliant with regulations in the countries it serves. It is known for working with regulators rather than against them, ensuring that its operations align with legal requirements. Kraken is registered with authorities in the USA, Canada, Europe, Italy, the UK, Australia, and the Middle East(Abu Dhabi Global Market).

  4. Transparent Fee Structure: Kraken offers a clear and transparent fee structure, allowing users to understand exactly what they’re paying for each transaction.

  5. Comprehensive Offerings: Apart from spot trading, Kraken offers futures trading, margin trading, and an OTC desk, catering to a diverse range of traders from novices to professionals.

  6. Audits and Financial Transparency: Kraken has undergone independent audits to prove it holds all the bitcoins that users have stored in their exchange. This builds trust with their user base.

  7. High Liquidity: As one of the top exchanges in terms of volume, Kraken offers high liquidity, ensuring that large transactions can be executed without significant price slippage.

  8. Educational Resources: Kraken provides a range of educational resources and tools, such as their Kraken Learn platform, to help newcomers understand crypto trading.

  9. Stellar Customer Service: With 24/7 live chat support and an extensive library of FAQs, Kraken is dedicated to helping its users with any issues they might encounter.

  10. No Major Hacks: Unlike some other exchanges, Kraken has never suffered a significant security breach. This track record demonstrates the effectiveness of its security measures.

While no platform is entirely immune to risks, Kraken’s dedication to security, transparency, and regulatory compliance makes it one of the safer and more trustworthy exchanges in the crypto industry. As always, users should exercise caution, use strong unique passwords, enable 2FA, and not keep more funds on any exchange than necessary.

  • Coingecko: 10
  • Coinmarketcap: 8.3
  • Google Play. 4.2
  • App Store: 4.7
  • Trustpilot: 2.7
  • Launched: 2013
  • Proof-of-reserves: Yes
  • Cold storage: User funds are stored securely offline in cold wallets.
  • Insurance Fund: Kraken has no insurance fund, but they also do not allow for very high leverages in their platform.

Coinbase – Safe and Legit Trading Site

Coinbase, a renowned cryptocurrency exchange based in the United States, is widely regarded as one of the safest platforms for buying, selling, and storing cryptocurrencies. Here are the key reasons underpinning its reputation, ion for safety and reliability:

  1. Regulatory Compliance: Coinbase operates within the regulatory frameworks of the jurisdictions where it offers services. The crypto exchange is compliant with U.S. financial laws and regulations, ensuring a high level of scrutiny.

  2. Industry-Leading Security Features: Coinbase uses robust security protocols, including two-factor authentication (2FA), biometric logins, and end-to-end encryption for data protection.

  3. Secure Storage: Many customer funds are stored in geographically distributed cold storage. This practice ensures funds are safe from online hacks.

  4. Insurance Policy: Digital currency held in online storage protects against breaches or hacks. The insurance policy will compensate affected users if any security breach leads to a financial loss.

  5. Educational Resources: Coinbase offers an array of free crypto educational resources through Coinbase Earn and its blog, aiming to inform users about the latest security practices and general cryptocurrency knowledge.

  6. SSL Encryption: The website and the mobile application use SSL encryption to secure internet traffic and protect users’ sensitive information.

  7. Recurring Security Audits: Coinbase undergoes regular security checks and collaborates with external experts to identify and rectify potential vulnerabilities.

  8. Straightforward Fee Structure: Coinbase provides a transparent fee structure, ensuring users are well-informed about transaction costs.

  9. USD Wallet Insurance: The USD wallets for U.S. users are covered by FDIC insurance up to a maximum of $250,000.

  10. Dedicated Security Team: Coinbase employs a specialized security team that works diligently to ensure the platform’s infrastructure remains resilient against threats.

  11. Physical Security: The company ensures physical safety measures, including biometric access controls and armed guards, at data centers where sensitive information is stored.

  12. Bug Bounty Program: Coinbase has an active bug bounty program, encouraging ethical hackers to find and report potential security issues in return for rewards.

Despite Coinbase’s commendable efforts to ensure platform security, users should always exercise caution. This includes using strong, unique passwords, enabling 2FA, regularly monitoring account activity, and being vigilant against phishing attempts and scams.

  • Coingecko: 10
  • Coinmarketcap: 8.5
  • Google Play. 4.1
  • App Store: 4.7
  • Trustpilot: 1.5
  • Launched: 2012
  • Proof-of-reserves: No, Coinbase states that this is not necessary since they are a publicly traded company on the stock market and this is transparent enough regarding their balance sheet.
  • Cold storage: User funds are stored securely offline in cold wallets.
  • Hack Incident:  Coinbase was hacked in 2021 when a security flaw in Coinbase’s account recovery system was compromised. At least 6,000 Coinbase users were affected, but Coinbase quickly patched the vulnerability and reimbursed users.
  • Regulation: In most U.S. jurisdictions, Coinbase is licensed to engage in money transmission.
  • Insurance Fund: Coinbase has no insurance fund.

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.

  1. Only trade with large crypto trading sites
  2. Only work on crypto trading sites with a history
  3. Be suspicious of great ads and great offers
It’s essential to trade with safe trading sites to minimize risk exposure against other things than your trading risks. Read more about crypto trading risk management

1. 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, ByBit, and a few more.

Why is this important? For several reasons

  1. They can easily cover a hack like Binance and Bitfinex have done if there is a hack.
  2. Since they are sizeable crypto trading sites, they can spend more time on security than small crypto trading platforms.
  3. 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.

2. History of Safe Crypto Trading Sites

Always check the history of the crypto trading platform. For how long time has it been around?

Why?

Simply because if a crypto trading platform has existed for five years with no security breach, it will have a 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.

3. Crypto Trading Sites – Bonus and Offers

Be careful if crypto trading sites have great bonuses and offers and if they perform aggressive marketing and profit guarantees.

Some legit and safe crypto trading platforms have great offers, such as ByBit’s $90 sign-up bonus and Crypto.com referral code.

However, there are way more lousy crypto trading sites with aggressive welcome bonuses and sign-up offers. Please 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 sizeable 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.

Happy Trading!

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