Where to buy cryptocurrency? How does trade reduce risk? One article to count the current five major exchanges
In Taiwan, there are centralized trading institutions for buying and selling stocks or futures, which are the three major exchanges we know—the stock exchange, the OTC center, and the futures exchange. And when it comes to decentralized cryptocurrencies, where to buy and sell? When there are unspecified people around the world who want to buy and sell cryptocurrencies, to be able to find buyers and sellers in one place, smart businessmen create a platform, which is a cryptocurrency exchange.
How does trade reduce risk?
However, unlike the stock exchanges and futures exchanges, the decentralized nature of cryptocurrencies has caused a lot of headaches for financial regulations and regulatory agencies in various countries. The relevant laws and regulations have not yet been perfected. Bearing certain trading risks, such as the hacking of exchanges and the closure of exchanges, have been heard from time to time, and the ability to protect the security of user assets and transactions depends on the reputation and technical strength of the trading platform.
In addition to the large scale, good reputation, and good transaction quality, the choice of exchange is an important key to reducing the risk of Taiwanese investors.
The current top five exchanges
Referring to the virtual currency data statistics website, the top five exchanges that currently support the New Taiwan dollar and the trading volume are as follows:
One, Binance
According to the statistics of CoinMarketCap, Binance is currently the largest cryptocurrency exchange in the world. Since it is the largest cryptocurrency exchange in the world, it means that the market already has a certain degree of trust in its security evaluation. The user security assets launched by the platform The fund (SAFU) is
used to ensure that when the funds are unexpected, they can be misappropriated to compensate the user's funds to ensure that the user's funds will not be lost. It is one of their safety measures
For example, in 2019, Binance was hacked and stole 7,000 bitcoins. At that time, the SAFU mechanism was enabled
Huobi was initially established in China and has since established offices around the world. The cumulative transaction volume has exceeded 1.2 trillion US dollars, serving users in more than 130 countries. To maintain the security of the digital trading environment and the rights and interests of investors, the top security risk control system developed by Goldman Sachs and other companies is adopted in terms of security, and the decentralized exchange structure can reduce the denial of service attacks by hackers.
In addition, Huobi launched an investor protection fund in 2018, they will buy back 20% of the net income generated from all transactions on the Huobi platform and put these tokens in the user protection fund, in the event of a hack or When there are issues such as security breaches, the fund can compensate users.
3. KuCoin
There are currently 8 million users in 207 countries around the world, and there are more than 400 trading pairs to choose from. It is a fairly well-known cryptocurrency exchange in the world. However, the biggest disadvantage is that there is no legal currency deposit channel at present. The only similar channel is credit card swiping, but the handling fee is very high, so only cryptocurrencies can be used for deposits and withdrawals.
In the information security part, about 250 million US dollars of assets were hacked in September 2020, and most of them were recovered afterward. Although there were mistakes, they were dealt with immediately and promised to compensate customers. So far, KuCoin has continued to strengthen security vulnerabilities and strengthen risks Controlled network security deployment.
AOFEX was registered in London, UK in January 2019 and is subject to its financial supervision. It has also obtained a license from MSB to allow the trading of cryptocurrencies in the United States. AOFEX allows investors to monitor investments in real-time, providing users with scalability and security. The platform offers over 400 trading pairs, advanced charting tools, and derivative financial commodities trading on the interface. In addition, margin trading of cryptocurrency assets is also possible on the platform, and Defi functions such as staking are also provided.
5. MAX Exchange
MAX Exchange must be the leader of Taiwan’s local digital currency exchanges. In 2018, it was founded by MaiCoin, which first launched the service of converting NT dollars to Bitcoin in Taiwan. Although the ranking of MAX Exchange on CoinMarketCap is not very high, it is also a local Taiwanese. The highest-ranking on the exchange.
All data communications of MAX are encrypted by SSL, and the patented technology AMIS WS threshold signature and multiple monitoring are applied to protect the security of users' funds. If it is due to system security issues, hacking leads to loss of funds, you can apply for compensation to the platform. MAX also has trust cooperation with banks. The deposit funds of users are deposited in the special trust account of Far East Bank. The exchange cannot directly use the funds in this account, which also adds a layer of protection to the information security of the MAX exchange. 80~90% of its cryptocurrencies are also stored in offline cold storage, which greatly reduces the risk of hackers stealing coins.
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