Is bitcoin exchange safe? Do you get hacked while trading bitcoin?

Wondering if bitcoin exchanges are safe or not? If your answer is then read on. If you read crypto news often, you will find that often cryptocurrency exchanges are getting hacked. And this is a pretty good reason to be careful with bitcoin exchanges.

As all your bitcoins can get vanished once it is hacked. And your exchange will not be responsible for this. A pretty scary thing, right?

Well, in this article, I will talk about why bitcoin exchanges get hacked. And how can you protect yourself from being affected by it?

So here we go:

Is bitcoin exchange safe? Do you get hacked while trading bitcoin?

There are two main types of crypto exchanges that are available out there. These ones are the centralized and decentralized exchanges. And most of the exchanges that get hacked are the centralized ones. And let me tell you the reasons behind this.

These exchanges have their own funds, and users fund under their control only. And most of them have even the private key of the users. So in case if you are using them, then you do not have full control over your funds. And whenever a hacker attacks the platform, they get easy access to your funds. And as a result, you end up losing all your cryptocurrency.

Also, when they design the system, they use a combination of hot and cold wallets to keep the funds safe. Hot wallets are the ones that are connected to the internet, so if a hacker finds access to the wallet. It could simply end all the available funds immediately from the hot wallet to an address.

For example, one of the famous exchange, Bithumb, was hacked. Because they have kept $30 M in hot wallets, and now they have to refund their users.

However, dealing with hackers is not that hard part. The bitcoin exchanges should apply proper security measures. This would keep more than 90% of the user’s funds in cold wallets. These wallets are disconnected from the internet. So the hackers will not have access to the funds.

How can you protect your funds from hackers?

If you are a crypto trader who has a long term plan, then it is advisable not to use exchange wallets. As they are not so reliable. And you will have to face a lot of trauma if the exchange gets hacked.

For your own safety, it is recommended that you send all your funds to a wallet. It could be anything online wallet or offline wallet like Ledger. This way, you will be able to protect your bitcoins from the hackers. Also, when you would like to sell your coins, you can simply transfer it back to the exchange and sell it off.

So that was the answer to your “is bitcoin exchange safe? Do you get hacked while trading bitcoin question?” I hope this has cleared all your doubts.

Which is the best cryptocurrency exchange to invest your money?

Wondering which is the best cryptocurrency exchange to invest your money? If your answer is yes, then I am here to help you out. There is no doubt that it is extremely important that you use a reliable cryptocurrency exchange platform.

But as the market has a lot of options to offer. Hence, choosing the best one among them can be a really difficult task. However, not to worry as in this article, I am going to answer your which is the best cryptocurrency exchange to invest your money question. So let’s just head into the topic without wasting much of the time:

Which is the best cryptocurrency exchange to invest your money?

Coinbase

First of all, I have the Coinbase, and it is one of the best exchange websites that you can use. The website is based out of San Francisco, California.

And Coinbase is considered by many to be the most beginner-friendly exchange. Thanks to their simple yet beautiful user interface. So you can easily get started with the website. Coinbase basically works as a brokerage. It means that instead of buying bitcoin or other cryptocurrencies from others, you directly buy it from Coinbase.

Also, coinbase charges 1.49% fees on bank purchases and 3.99% fees on credit and debit card purchases. And let me tell you the fact that they have the lower fees out of all the crypto exchange platforms.

So overall, if you are a beginner to cryptocurrency and you like low fees. Then you should definitely consider using Coinbase. Also, the Coinbase is only available in selected countries like United States, Europe, Singapore, Australia, and a few others. 

Bitpanda

Next, I have Bitpanda. There are quite a lot of people out there who call it the Europe version of Coinbase. And this one also works as a brokerage that sells you Bitcoin, trading Ethereum future, Ripple, and many other cryptocurrencies for US Dollars, Euros, Brtish Pounds, and so on.

Just like the Coinbase, Bitpanda also has a very simple user interface. Hence, it becomes an easy task for us to purchase cryptocurrency. Also, the website has several payment methods such as bank transfers, credit cards, debit cards, skrill, and so on. Plus, each of the options comes with a different deposit charge.

Overall, Bitpanda supports a variety of payment methods. Also, the platform lets you purchase a wide range of altcoins. And most importantly, if your country is not supported by Coinbase. Then you can try this one out.

Kraken

Next, you can check out Kraken. This one is also one of the popular United States based exchange which is in operation since 2011. In terms of trading fees, Karken is very fair and scale based on your 30-day trading volume. If you’re a maker, they range from .16% all the way t0 0%. Taker fees on Kraken range from .26%-.1%.

Also, for depositing your money, Kraken allows you to deposit in USD, EUR and CAD. Also, if you already own cryptocurrency, then you can transfer it on the website. One of the unqiue features that Karken has is that it allows for margin trading with up to 5x leverage. When margin trading on Kraken, eligible accounts can borrow up to $500,000 to go long or short on a cryptocurrency.

Overall, it is a pretty great option if you want to trade cryptocurrent on fiat and crypto pairs. Along with that you will be able to enjoy low fees. As well as it allows you to trade it a wide range of cryptocurrencies. Plus it supports a huge number of countries too.

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