Things to Consider When Opening a Crypto Exchange Account

These are the main steps we need to follow when opening a crypto exchange account:

a. Choose Licensed and Regulated Exchanges

The regulatory processes of crypto exchanges differ from traditional exchanges. Choosing exchanges licensed by competent regulators such as MAS (Singapore), FCA (UK), etc. ensures reliability. Also, choose platforms that operate in compliance with local regulations.

b. Trade on Official Websites

When opening an account, make sure to use the verified official website of the crypto exchange, check for “https” links to avoid possible Phishing attacks and make sure that the website has an SSL certificate.

c. Use Two-Factor Authentication (2FA)

Two-factor authentication (2FA) is vital for the security of crypto exchange accounts. Enable 2FA through apps like Google Authenticator and Authy. This creates an additional layer of security to prevent unauthorized access.

d. Create Strong and Unique Passwords

Use a special password for your crypto account. Make sure your password is complex and difficult to guess. Password manager apps can help you create secure passwords on different platforms.

e. Diversify Your Funds and Use Cold Wallets

Instead of just keeping your cryptocurrencies in an exchange wallet, transfer some of them to offline storage options such as a cold wallet (hardware wallet). This provides extra protection against cyber attacks.

f. Follow Security Updates

Crypto exchanges are regularly updated. Take precautions by following the exchange's announcements about security breaches and new features.