What should I pay attention to when encrypting currency transactions?

The media CNBC published an article saying that in the bitcoin frenzy at the end of December last year, Coinbase, one of the main exchanges, suspended trading when the price plummeted. As digital currencies become more popular, more and more unstoppable, and new systems and exchanges are formed, many of Coinbase’s competitors have experienced growth pains. These new exchanges have not stood the test of time, and hackers have invaded some exchanges. In January of this year, hackers stole $550 million from their users.

Asked on July 5, 2018 in BTC.
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First of all, I think the most important thing is to choose a good cryptocurrency exchange.

The media CNBC published an article saying that in the bitcoin frenzy at the end of December last year, Coinbase, one of the main exchanges, suspended trading when the price plummeted. As digital currencies become more popular, more and more unstoppable, and new systems and exchanges are formed, many of Coinbase’s competitors have experienced growth pains. These new exchanges have not stood the test of time, and hackers have invaded some exchanges. In January of this year, hackers stole $550 million from their users. After that, a Japanese cryptocurrency exchange system called Coincheck accepted government censorship. If the review is true, it is expected to be the largest cryptocurrence theft ever, far exceeding the $450 million bitcoin case that the Japanese exchange Mt. Gox stole in 2014.

In addition to these general necessities, there are some key factors regarding ease of use and safety.

reliability. Can the platform still function when the volume of transactions is very high or the price of money is falling? Experts say users should search the Internet and websites to record the frequency of system crashes and transaction disruptions. “Considering the poor regulatory environment, I think Twitter and Reddit are the only options for evaluating the reputation of an exchange,” said Storj Labs co-founder John Quinn. His main conclusion is that you should never expect a transaction to be safe. He recommends storing cash and cryptocurrencies in separate accounts from the trading venue.

Regulatory behavior. In web search, you should soon find news reports about cryptocurrency regulation issues. These sites are sometimes regulated, the most notable of which are regulators in China and South Korea. China plans to limit the electricity used by some bitcoin miners, which is a potential challenge for the industry. South Korea is considering restricting cryptocurrency transactions, trading only on qualified exchanges, and imposing capital gains tax on encrypted transactions.

Margin. A stronger trader can buy cryptocurrency in a margin like buying a Eos stock, so if you are planning to become a player, you have to pay attention to this.

Security measures. Users lose money on some platforms. Therefore, when searching for news reports and company announcements, it would be a dangerous sign to discover hacking history, unless the company can prove that it has strengthened its defense capabilities, experts say. To be sure, hackers have been detecting all trading platforms.

The cryptocurrency market is maturing, but you still have to be careful, nothing can be guaranteed to be safe enough.

Answered on July 5, 2018.
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