There are more than 600 crypto exchanges that invite investors to buy and sell digital assets like Bitcoin. But fees, customer service and safety vary widely. B3i.tech

Cryptocurrency exchanges function similarly to stock trading apps, offering tools that enable you to buy and sell popular digital currencies like Bitcoin. They can also provide access to ICOs, other blockchain tokens and traditional investable securities.

Learn About the Safest Cryptocurrency Exchanges: Secure Trading Options

The safest crypto exchanges feature strong security measures, including two-factor authentication and cold wallet storage to minimize the risk of hacking. They also adhere to regulatory requirements, like Know Your Customer (KYC) rules, which require users to verify their identity by submitting documents like a driver’s license or passport. They may also offer insurance policies that cover losses resulting from hacking or other security breaches.

Other factors to consider when choosing a crypto exchange include liquidity and user-friendly interfaces. High liquidity means that there’s a significant volume of trades on an exchange, which can speed up transactions and stabilize prices. In addition, beginner-friendly interfaces that make it easy to navigate and understand an exchange’s features can help reduce frustration and learning curves.

Once you’ve traded on a crypto exchange, be sure to transfer your funds out of the platform’s hot wallet and into your own cold wallet. This will protect them from cyber attacks, since the exchange can only steal assets that are physically in its custody. You can also use your seed words or create an encrypted keystroke file to generate a new, unique address, which is a long string of characters that acts as a private key.