Picking a suitable crypto exchange can be a complicated process. But first and foremost, an investor should look for a secure exchange. As crypto has grown in popularity, it has increasingly become a target for hackers. And many leading exchanges have been hacked to the tune of tens of millions.
While exchanges often reimburse those whose coins are stolen through their insurance, an investor probably wants to avoid being in that position to begin with. That’s why it’s important, to potentially minimise that risk and only invest on reputable exchanges.
An investor may be able to further minimise their security risk by spreading their crypto purchases across multiple exchanges or moving their crypto off of an exchange’s default wallet to their own secure “cold” wallet that is not automatically connected to the internet (and therefore should be much harder to hack). Although they’ll need to keep up with their passcode or they could lose access to their crypto forever. It’s also wise to look out for withdrawal fees when moving crypto off of an exchange. These…