How do I know if a crypto exchange is safe?
Quick Answer
Check that it's well-established, regulated/licensed where you are, requires proper KYC, has strong security (2FA, cold storage, proof of reserves) and a real track record. Avoid no-name platforms promising bonuses.
TL;DR
Look for regulation, KYC, 2FA, cold storage, proof of reserves and a long track record. Avoid unknown platforms with big bonus promises.
Key Takeaways
- 1Prefer large, established, regulated exchanges
- 2Real exchanges require identity verification (KYC)
- 3Look for 2FA, cold storage and proof of reserves
- 4Be wary of unknown platforms promising bonuses
Full Explanation
A safe exchange is usually large, established, and operating openly under regulation or licensing in the regions it serves. It will require proper identity verification (KYC), which is a good sign, not a red flag.
Look for concrete security signals: two-factor authentication, the majority of funds held in cold storage, published proof-of-reserves, and a multi-year track record without major unresolved incidents. Be suspicious of platforms you've never heard of that promise guaranteed returns or unusually large sign-up bonuses — those are classic scam markers.
This is educational information, not financial advice. No exchange is risk-free, which is why many people move larger holdings to their own wallet.