The most secure cryptocurrency exchange of 2020 is still Coinbase. But, there are four other crypto trading platforms that are very safe to use as well. Binance, KuCoin, Okex, and Bitfinex all have very good security features for their users and I would feel safe to use any of them.
There are several things that make a cryptocurrency exchange safe and some of them are not the typical security feature you would think of. I will go through and explain why these crypto exchanges are the top 5 safest on the market.
It’s very important to feel safe while trading cryptocurrency and you should never transfer funds to a new trading platform that you don’t know anything about.
I want to mention though, no cryptocurrency exchange is completely safe. There is always a risk of theft when trading on any crypto platform.
The most secure cryptocurrency exchange security features:
- Regulation and License
- Digital Asset Storage
Out of all the trading platforms, I will go through today, most of them have several of these important safety features. It’s important that you understand why this will keep your funds safe on an exchange and I will do my best to explain in detail.
There will always be some differences between the platforms and you might like one more than the other. I’ve made a cryptocurrency security comparison table for you to compare all 5 exchanges.
I would recommend that you spend some time to really understand these platforms before you pick your winner.
However, if you are in a hurry, check the comparison table below to pick your favorite.
What is the most secure Crypto exchange?
Coinbase is still the safest crypto exchange to use out of all centralized trading platforms.
The reason is that Coinbase is regulated and licensed as a Money Transmission Service, MTS.
In short, this means that for every dollar you deposit on the exchange, there is back up funds in case of any theft or security breaches.
So if your coins get stolen from Coinbase, they will refund you with the funds they have kept in storage.
Now, let’s take a look at why Coinbase is such a safe and secure cryptocurrency exchange.
As I mentioned, Coinbase is regulated as a Money Transmission Service.
This is taken from the Coinbase exchange it self.
But what is a Money Transmission Service.
An MTS is a business that is dealing with money transfers and money transmitting in general.
By regulation, they are required to have security bonds ranging from 25,000$ up to several million depending on the size of the organization.
When it comes to cash balances, Coinbase is storing their customer funds in actual bank deposits and treasury bonds.
For clients outside of the US, the cash deposits are held in custodial accounts.
Check out what the exchange is saying about this.
In my opinion, this makes Coinbase the safest cryptocurrency exchange of 2020.
I can’t see how any other exchange could compete with this right now.
There are plenty of centralized crypto platforms that have very good security measures, but Coinbase takes things just a little further.
One more thing that Coinbase is doing very well is how they are handling the Digital Asset Storage.
98% of the digital currencies on the exchange is held in offline or cold storage.
This is another security layer to protect your deposited funds and your cryptocurrencies on the trading platform.
Take a look at what the exchange is saying about it.
So far, Coinbase has never been hacked and I can really see why.
If someone were to try to steal funds from a cryptocurrency trading platform, they would target someone with weaker security.
To penetrate these security features you need to be a next level criminal.
What is the safest crypto exchange?
I’ve already mentioned that Coinbase is coming in as a number one on the list of the most secure cryptocurrency exchanges.
But what about the other platforms?
Are there no crypto trading platforms that has good security.
Yes, of course there are.
I’m going to mention some of the most secure crypto exchanges I know of in 2020.
Which Crypto Exchange is the safest?
The other trading platforms might not have the sophisticated regulation and license as Coinbase but they do offer some extra layers of security.
For example, all of these exchanges have 2FA system to protect your accounts from getting hacked.
As we know, the biggest reason for getting hacked is because your email gets hacked.
That way, hackers can steal your personal info and log in to your account and steal your funds.
However, if you apply a 2FA security verification with your mobile phone, the hackers would need to steal your phone as well to even log in to your account.
Another thing you can do to secure your account is to apply so-called “withdrawal addresses” to your account.
This basically means that you will only be able to withdraw money to certain wallet addresses.
So if a hacker takes control over your account he is only able to send funds to your own wallets.
Pretty cool right.
I would definitely recommend that you apply this security feature before you start sending cryptocurrencies or depositing money into your account.
So, you can see how this would benefit your cryto accounts security.
Most secure Cryptocurrency Exchange – Coinbase
As mentioned, Coinbase is regulated and licensed in the US and this is a very good reason to use this trading platform.
I feel very safe when I’m trading here and I always recommend new traders to start out here if they don’t know where to begin.
The fact that Coinbase keeps 98% of the digital assets in cold storage is a huge plus.
The reason most people don’t know about this is that when they deposit money to the platform and start trading, they only have access to the hot wallet address.
The exchange will not give out the private keys for the cold storage.
Another thing that makes this platform very safe to use is the size.
This is the about page on the platform.
Size doesn’t come just like that.
There has to be some level of trust for a crypto exchange to reach 30 million users.
To me, this says a lot about how Coinbase is treating its clients and how trusted they are.
I would much rather trade on a trusted platform with less functionality than a new hyped exchange.
Crypto exchange support is security as well but most traders don’t really understand why.
To trade on a platform with good support can make a huge difference.
If your account gets compromised, you want to be able to talk to a representative about the issue and have your account locked.
If your trading platform has good support they can get in contact with a supervisor or a manager to temporarily suspend your account.
Does Coinbase have KYC?
Yes, coinbase has a strict KYC policy to protect your account.
KYC and Customer support go hand in hand.
If your account gets hacked and you contact support to suspend the account you are the only person who can send in the correct KYC documents.
So thank Coinbase next time you have to spend 15 minutes with the KYC documents.
It’s definitely worth it.
Is Coinbase safe?
Yes. Coinbase is one of the safest cryptocurrency exchanges operating today.
If I would recommend one trading platform for anyone starting out, it would be Coinbase.
Coinbase has all the deep security features needed to protect your digital assets.
They also have the proper security to help you protect your account.
For example, 2FA verification.
The 2FA verification is something that you need to activate on your account.
It’s an extra layer of protection to your account and it should be activated from day 1.
How it wors is simple.
You will have a code on your mobile phone that you type in when you log in.
It looks like this.
This helps you because in order for hackers to enter your account they need to steal your phone as well.
It’s a very simple but good security feature on Coinbase.
Safest Crypto Exchange – Binance
Binance is not only a crypto exchange.
It’s a brand name that stretches out in many parts of the world.
Binance Singapore and Binance Jersey etc.
All brand names are regulated in their own jurisdiction and this makes them licensed in the area they operate.
Second to Coinbase, I would say that Binance is also one of the safest cryptocurrency platforms today.
With over 15 millon users Binance is climbing the trust ladder very rapidly.
This is also something that creates trust by other traders.
If you know your friends are trading on a specific platform, you feel more safe to try it out.
Binance has really got the reputation as a safe exchange.
How does Binance store digital assets?
The exchange is only 3 years old and they have reached this level of trust already.
That’s very impressive.
I can’t wait to see how Binance is doing in 5 years or more.
But what makes Binance stand out when it comes to security.
Well first of all it’s a huge centralized exchange.
They also keep your digital assets in cold storage.
You don’t know it because you only have access to the public key of your wallet address.
You never get to see what’s under the surface.
This is what the Binance support has to say about this.
Another thing to mention is the KYC and the Support agents on Binance.
When you send in your KYC documents you know that only are able to re-send the same documents if your account gets hacked.
This is where the super fast support on Binance will come in very handy.
The live chat is very fast and they will reply to you in less than 1 minute.
This creates even more trust.
Is Binance safe?
Yes. Binance is very safe.
No crypto trading site is completely safe but Binance definitely stands out a little bit.
You have the option to use a Trust Wallet when trading on the exchange.
This is a third party wallet that will put you in control of your own coins.
When you used Trust Wallet you are able to trade on Binance but with your own wallet.
You are in control of storage and all the wallet keys.
For some people, this is the better option because if you can keep track of your own keys and keep the coins in Cold storage you are better off with this option.
Binance also let’s you activate a 2FA verification code before you log in.
I would recommend that everyone activates this from day one when they start out.
This is an extra security feature that will protect your account from getting hacked because, in order to steal your account, hackers first have to steal your phone.
This is highly unlikely.
It’s very easy to apply the 2FA and can be done on your account page.
You can either choose the YbiKey or the Google authenticator.
Over all, Binance is very safe to use.
It has a reputation, size, and several of the most important security features.
I feel very safe trading on Binance.
Most secure Crypto Exchange – KuCoin
KuCoin is another very safe cryptocurrency exchange.
They are not regulated like Coinbase and Binance, who are the two exceptions in the crypto space.
So don’t take for granted that a cryptocurrency exchange will be regulated, it’s rare.
However, KuCoin will protect your funds to the best of their abilities through disciplined KYC procedures, 2FA verification codes, and Anti Money Laundering policies.
KuCoin also has a live chat where you can contact a support agent straight away if something were to happen.
I was chatting with a support agent on KuCoin and they told me that they are using both Cold and Hot storage for your funds.
This means that they have bigger cold storage for your deposits and a smaller hot wallet for the trading assets in your account.
The hot wallet is the wallet address that you send your funds to on the exchange.
Does KuCoin have AML?
Regarding the Anti Money Laundering policies there is usually some confusion about this.
How it works is very simple but you might not know about it.
When you are trading on KuCoin, you have a specific trading pattern.
You buy or sell.
Sometimes you might short a coin.
This is all normal.
But if someone were to enter the trading platform and started executing very strange trades in a very weird pattern, they would be flagged by the AML system.
It can detect suspicious trading activity.
When this happens your account is temporarily suspended and you are asked to send in your KYC documents.
That’s very good for both the exchange and you as a trader.
You don’t want to be trading against a robot or any other shady bot.
Is KuCoin safe?
I regard KuCoin as a very safe crypto trading platform.
Here is a quick look at the Account Security page on KuCoin.
Here you can activate:
- Email verification
- Restricted IP Login
- Anti-Phishing Safety Phrase.
This is why I recommend new traders to try it out before they end up on some new hyped exchange.
It’s so easy to make your account safer in a few clicks.
Did you know that 1 out of 4 traders has an account on KuCoin.
That tells me something about their reputation.
There is also a lot of trust in big numbers.
If there are a lot of traders using one platform without any problems, you should consider giving it a try.
Over 5 million traders are actively trading on KuCoin.
This is a very healthy sign for the security of a cryptocurrency exchange.
Most secure Cryptocurrency Exchange – Okex
Ok, let’s take a look at how Okex will protect your account and coins.
Okex is also a safe crypto exchange and it has a very good reputation among traders.
Today they have over 20 million traders on the platform from all over the world.
This is a very large exchange and just by knowing that I can tell that they have some serious security features for your stored coins.
To start off with, they have your digital assets in cold storage outside of the exchange.
So there is no risk of theft while you keep them on the platform.
Of course Okex has the standard KYC and 2FA verification systems.
I would suggest any trader to activate the 2FA verification code immetidately from day one when you register on Okex.
It’s one of the easiest ways to protect your funds from hackers that might steal your email first.
All customers on Okex are asked to fill out the KYC forms before they start trading.
This is to protect your account in case of any theft.
If your account gets suspended, you are the only one who can send in the right document to regain control over the account.
Is Okex safe?
Yes, Okex is a very safe cryptocurrency exchange.
It is also one of the larget exchange is the world.
Okex has Hot and Cold storage for your digital assets but the only keys you will get is to the hot wallet to your account.
The rest is hidden under the surface.
Okex also have a designated page for account security where you can add a few extra layers of security.
You have the option to add:
- Email verification
- Anti-Phising Code
- Mobile verification
The more KYC documents you send in the more secure your account will be on Okex.
You will get more priviliges with higher verification levels.
Is Okex regulated?
Okex is registered in Malta and is connected to their regulatory frame work.
Binance has the same frame work since they are also connected to Malta.
Their contract address is however registered in the Seychelles but I could not find more information about this.
It’s not very common for a crypto exchange to be regulated so it’s an extra bonus for Okex.
Safest Crypto Exchange – Bitfinex
Bitfinex is another very safe crypto platform.
They have a very advanced DDoS protection system that makes sure their servers are never going down.
This will save the traders if someone is trying to attack this part of the organization.
Bitfinex also has a very good system of how they store the customer’s digital assets.
The assets that you trade on the platform are only 0.5% of their total pool of deposited funds.
The rest is kept outside of the exchange.
They are keeping 99.5% of users funds in offline storage, or cold storage.
Does Bitfinex have 2FA?
Yes Bitfinex has 2FA verification available for every trading account.
In fact, they have very good individual user security.
Every time you log in from a different IP address you are asked to verify your login on your email.
This is very good.
Even though I have to click this bloody button every time I go to the office or if I change to my 4G network on my mobile phone I’m happy they have it.
Because if someone were to steal my account and tried to log in with the correct username and password, they would not get past my email.
Here is a snapshot from the exchange and what they say about their individual security.
How will Bitfinex protect my account?
You will even get an email from the exchange every time you log in to your account.
This way you will be able to detect if someone is trying to scam you.
You can also choose to shut down the session after 30 minutes of inactivity.
That’s pretty good if you are not used to logging out yourself.
Here is another takeout from the Individual user security
The best part about this security is that your withdrawals will get locked for 24h hours every time you change the IP address.
This will give buy you enough time to contact a customer support agent to suspend your account before you can send in your KYC documents.
Is Bitfinex safe?
Yes Bitfinex is a secure crypto exchange.
They are not regulated but that’s not very common for a cryptocurrency trading platform.
I would recommend any new trader to try this exchange out.
But before you start trading, make sure you activate all the security features they have to offer.
At least use the 2FA verification code.
This review is meant to help you find a secure crypto exchange.
All of these trading platforms are a little different when it comes to safety.
Some of them are regulated in their jurisdiction and that’s a plus for any cryptocurrency platform.
They all stand out because they have their own special features when it comes to safety.
I suggest that you read through the whole review before you pick a winner.
If you are in a rush to start trading, take a look at the comparison table at the top.
Today Coinbase i the most secure Crypto Exchange with a regulation as a money transmission service.
Yes, Binace is very safe to use.