Monero [XMR] Exchange Safety

In the digital assets world, exchanges are considered the most appropriate way to sell or buy Monero [not all exchanges are equal]. Therefore, having digital assets exchanges, whether centralized or decentralized, should be one of the prime concerns in order to be able to grow and move forward towards a new asset class.

Due to the considerably huge amounts of money contained in the wallets of digital exchanges worldwide, they are likely to target hackers and other malicious actors. Over the last ten years the exchange hacks that have taken place are massive.

How to Choose a Safe Exchange

There are a few things one has to keep in mind when it comes to the safety of their XMR while using exchanges.

First and foremost users have to carry out their own research before using any exchange. Users should consider factors such as; whether there are any reliable and positive reviews available through third party sources, or if in any case the exchange site has ever been attacked, if so, what was the response taken towards the attack and how appropriate the response was.

Another factor users should be very keen about is the period of time the exchange has been in operation and if the creators or managers are known reputable individuals. Also the exchange site should be able to provide total privacy by not sharing client’s personal information.

The website should be using security precautions such as the Two-Factor Authentication [2FA] or Captcha.

Secondly, exchanges create their own wallets for users. If the exchange gets hacked or turns out to be scam, users may lose the XMR they have saved on their wallets. Users are therefore advised to only keep XMR on an exchange if they plan on using it soon.

Another point to note is that, if you want to trade a huge amount of XMR over an exchange, you should consider trying out the transaction with a smaller amount first. This will protect users from loosing huge amounts of XMR. Also users are advised to always recheck the send or receive wallet addresses and make sure they are correct. This will help users protect their XMR.

Monero is a decentralized cryptocurrency; therefore Monero exchanges are built with the ethics of the Monero platform. The Monero Contributors are running a “know Your Exchange Safety” campaign.