Over 200 cryptocurrency exchanges were launched for the past few years. How to choose the one that meets your requirements and not to stay without personal funds for someone else’s fault? About $ 1 billion was stolen from trading platforms in 2018 which is 400% more than in 2017. $533 million in NEM coins was stolen from CoinCheck at the beginning of 2018. Lack of professionalism of employees became the reason for this theft: CoinCheck team ignored NEM recommendations for using a smart contract with a multi-signature function.
How to choose a platform for trading and investments and not to become a victim of hacker attacks and not to lose all your funds? In this article, we will analyze the question on the example of p2pb2b cryptocurrency exchange.
What advantages should a good exchange have
1 – Security system
An exchange should correspond to the OWASP TOP 10 standard and implement KYC procedure in order to check traders. OWASP Top 10 is a list of the 10 most critical web application security risks.
This rating is updated every year. P2PB2B cryptocurrency platform fully corresponds to the following standard. Hackers attempted to attack P2PB2B 10000 times during its lifetime but they all were warded off.
2 – Convenient trading
Any exchange should have a convenient way to deposit and withdraw personal funds (support several currencies and provide fast transactions).
Trading platforms usually set limits to withdrawal amount in order to avoid big thefts. Sometimes these security measures are unnecessary when, for example, you need to withdraw a large amount in a short time. A verified account on P2PB2B has a limit of $500 per day, in case if you have a 2FA the limit is $100 000, this way the exchange encourages people to take care of their safety.
An exchange also should be adapted to different languages, have an intuitive interface and high computing power in order to process large trading volumes. P2PB2B exchange is able to process up to 10 000 orders per second and 1 000 000 TCP-connections. A personal balance can be deposited with USD, UAH, BTC, and ETH.
3 – 24/7 customer support
Technical support should be provided in several most common languages in a short period of time, preferably immediately in chats. OKEx platform supports 7 languages, Bit-Z — 5, Bitfinex — 3, P2PB2B — 8. Besides, P2PB2B exchange will soon introduce premium support: you will be able to have own personal manager who will be ready to help you and provide the answers to your questions at any time.
4 – Safety of funds
Most of all cryptocurrencies should be stored on cold wallets. Cases of hacking exchanges and theft of huge sums are quite frequent.
About $60 million was stolen from Zaif Japanese exchange hot wallets in September 2018, while Coinrail South-Korean exchange lost almost $40 million. 95% of all assets on P2PB2B are stored on cold wallets.
Which country the exchange is located in is an important factor. If it is located in the countries of the first world then you can count on the help of the court in case of hacking of your account or loss of personal funds from the balance. We advise you to choose exchanges that are registered in European, East Asian countries or the United States. P2PB2B exchange is registered in Estonia.
5 – Low fees
It is advisable that there are no fees charged for depositing funds into a personal account. On average, the trading fee is 0.2% -0.5%. P2PB2B exchange has no fee for depositing funds and charges 0.2% for trading.
6 – Mobile application
This feature adds convenience, allows you to control your assets anytime and anywhere. All major exchanges have their own application (Binance, Bitfinex, Gate.io, KuCoin and CEX.IO). In the near future, P2PB2B will launch its app where it will be possible to trade using a smartphone, as well as view all information about tokens and check your personal wallet. The first application prototypes have already been shown on P2PB2B official website.
7 – Referral program
Many exchanges have their own referral programs were you can get bonuses for attracting new users to the trading platform. For example, it is possible to get 50% of your referral’s commission back on Binance. P2PB2B replaced traditional referral program with referral games based on the Game of Thrones. The 1st season was recently completed. The user that has attracted the most people received 250 000 ETC, and those who have attracted at least 10 people were trading at a lower fee (0.1%) during the whole season. The new season started on February 1st, the team of the exchange provides more bonuses for the participants.
The future of cryptocurrency exchanges
The crypto community was actively investing in ICO projects in 2017 and 2018 but this type of fundraising has become obsolete as there are a lot of scams or projects which tokens have minimal liquidity because of their uselessness.
IEO will replace ICO. In the case of IEO, an exchange is the main organizer of the token sale. The coin is listed on the trading platform and distributes its security tokens.
Each token is a digital asset tied to securities. This excludes the sale of “useless” coins.
Unlike ICO, an investor doesn’t need to send funds to a smart contract but to directly purchase a token on the partner exchange.
This type of fundraising is beneficial primarily to the investor since the exchange itself evaluates the investment attractiveness of the project and possible risks. Scum-projects will not pass the selection.
Following current trends, P2PB2B plans to add IEO to its platform and is looking for startups right now to put their tokens up for sale.
When choosing a trading platform you need to look at all of the above factors, especially it is necessary to pay attention to security, support, as well as the legality of the exchange: they are responsible for the safety of your funds.