What Should Traders Expect From A Secure Crypto Exchange Platform? 

The poor security and mismanagement associated with yesterday’s largely unregulated exchanges was akin to navigating through a minefield, but fortunately most of those dangers have been cleared, making way for an increasingly secure and compliant ecosystem of top-notch trading platforms. 

While exchange hacks still occur, they’re a lot less frequent than they were in the past, and that’s in no small part due to the secure nature of modern platforms such as Binance, Kraken and On-Demand Trading, which have embraced the regulatory standards associated with traditional finance. These changes are driven by the rapidly growing maturity of a crypto industry that is increasingly being seen as a viable asset class by governments and financial institutions alike.  

Rock Solid Security 

Back in the old days, very few platforms had safeguards that could protect their users from sophisticated cyber threats such as phishing attacks. You simply logged in with a password and that was it. Traders used them at their own risk, and it was a perilous time to be involved. 

The modern exchange landscape couldn’t be any more different, with enterprise-grade security mechanisms becoming more or less standard, even on smaller platforms. For instance, multi-factor authentication to secure users against password theft has become standard, while cold storage wallets that are disconnected from the web are used to store funds. Encryption is another standard feature for protecting user’s data and transaction information, and many platforms will undergo regular security audits to reassure customers that they’re impenetrable. 

Some platforms even use more sophisticated tools, with Binance implementing intrusion detection systems to warn of suspicious activity and prevent fraud in real-time.

Fanatical Support

It used to be that the idea of customer support was an alien concept on many exchange platforms – all you got was an email address, and if you were lucky, you might get a response, but more often than not, your grumbling about lost funds or delayed withdrawals would fall on deaf ears. 

Not anymore. Modern exchanges increasingly pride themselves on offering first-class customer support, and the days of perennial waiting for help and unhelpful replies are – mostly – a thing of the past. 

The best crypto exchanges now provide extensive support by way of live chat interfaces and sometimes even a phone number that allows you to speak to a human – a real rarity in the modern world. Mudrex, for instance, offers live chat, AI chat, email, phone assistance and is also responsive on social media platforms like Reddit and Discord, ensuring users can get assistance any time and anywhere. On-Demand Trading goes even further, offering each customer a dedicated account manager who’s available any time they need help. 

Compliant Platforms

Regulatory changes are afoot, too. When crypto first became popular, early adopters cherished its decentralized nature so much that they viciously fought against any mention of regulation. As a result, the first exchange platforms were totally unregulated. 

Fortunately, common sense has prevailed and most exchanges recognize that a certain amount of oversight is required if digital assets are to become anything more than a niche investment. And so many willingly adopted the best practices of regulatory frameworks found in the traditional financial world. 

These days, KYC and AML checks have become the norm. By verifying their user’s identities, it becomes a lot easier to keep track of who is up to no good. We also see exchange platforms applying for, and receiving licenses that allow them to operate as a money service business legally, such as FinCEN registration in the U.S. At the same time, governments have moved to try and legislate crypto platforms, imposing strict financial reporting requirements on them to increase transparency and accountability. 

Some platforms are so focused on compliance that they see it as a matter of pride. For instance, Multibank.io likes to proclaim itself as the world’s most-regulated exchange platform in the world, having secured licenses to operate in 14 different countries. 

Setting New Standards

It’s hard to pick a winner these days because many crypto platforms nowadays have eliminated the risks associated with the shady platform of yesteryear, but if we’re going to choose one, it’s hard to beat On-Demand Trading and its concierge-like trading experience. 

The platform stands out for its unwavering commitment to security, and to date there have not been any reports of a security incident involving its platform at all. When you think that even the most famous platforms, such as Binance, Kraken and Bybit, have all suffered hacks in recent years, it’s an impeccable record that stands as a testament to its robust infrastructure, laser-focus on regulatory standards and its dedication to its customers. Truly, it sets a benchmark for other exchange platforms to live up to. 

Trading crypto used to be an extremely dangerous endeavor, but advances in security, oversight and customer service mean that investors can now trade with confidence. So long as they choose an exchange that meets today’s highest standards, they can rest easily knowing that their funds are extremely secure, allowing them to focus their attention exclusively on the crypto markets.