Home / Crypto Currency / Kraken Is The Safest Exchange, OKEx, Huobi Pro And Bitstamp Among The Riskiest: Report

Kraken Is The Safest Exchange, OKEx, Huobi Pro And Bitstamp Among The Riskiest: Report

With crypto exchanges being a favorite target for hackers, placing your cryptos at the safest hands should be a priority for any crypto investor. And according to a report by cyber security firm Group IB, the safest exchange is the long-serving U.S-based exchange, Kraken. The report considered a variety of factors that included the level of technical security, the rigidity of the KYC and AML procedures and the reliability of the password protection protocols. It rated the world’s second-largest crypto exchange, OKEx and recently-acquired European exchange, Bitstamp among the riskiest exchanges.

How Safe Is Your Exchange?

In the first nine months of 2018, close to $1 billion worth of crypto has been stolen by hackers. A great majority of this was stolen from crypto exchanges, an indicator of just how crucial it is to put your crypto holdings with an exchange that has put in place sufficient security.

According to Group IB’s report, the San Francisco-based Kraken is the undisputed safe haven. Kraken was the only exchange that the report deemed worthy of being on ‘the most secure category.’

The Moscow-based cyber security firm partnered with CryptoIns, an online crypto insurance platform to develop a framework that categorized exchanges into four groups in order of risk. Those in the first were deemed the most secure and cheapest to insure, with those in the fourth being deemed extremely risky and almost impossible to insure.

Kraken was the only exchange in the first category. Speaking to tech magazine The Next Web, a spokesperson from Group IB explained that “the base insurance rate is 2.5 percent per quarter, with a discount applied depending on the group.” With the maximum discount being 50 percent, Kraken’s insurance rate stood at 1.25 percent, the lowest in the industry.

In the second group came in a big number of exchanges, the most notable of which is U.S giant Coinbase Pro and Bittrex. For this group, the insurers would demand a 1.5 percent premium to insure the digital assets.

The largest group of exchanges belonged to the third group, a group in which the insurance rate stood at 1.9 percent. The world’s largest exchange by daily trade volume, Binance belonged to this group, with other notable exchanges being the Circle-owned Poloniex, bitcoin derivative trading platform BitMEX, the controversial Bitfinex and South Korean giant Bithumb. Peer-to-peer trading platform LocalBitcoins was also included in the group, as was ERC-20 wallet, MyEtherWallet.

Exchanges in the fourth group were considered extremely risky and almost uninsurable. They included the Luxembourg-based Bitstamp which was recently acquired by a South Korean investment firm, Zaif, TopBTC, and Bit-Z. Bit-Z and TopBTC are the 19th and 24th largest exchanges by trade volume respectively according to CoinMarketCap. Yobit, an exchange that has recently been rocked by accusations of price manipulation was deemed the most insecure exchange.

Even after being pursued for the reasons behind labeling an exchange as too risky to insure, Group IB and CryptoIns stated that the information was confidential.

Read more

Check Also

Bitcoin Cash Price Gets Skewed due to Exchange Trickery

A lot of confusing action is taking place where the Bitcoin Cash price is concerned. Although its actual decline in value is quite obvious for everyone to see, the real price of BCH is not necessarily what people can see on Coinmarketcap. This is primarily because numerous exchanges treat BCHABC as Bitcoin Cash already despite nothing being decided in terms of which chain will be the longest. Bitcoin Cash Value Fluctuates Heavily Depending on where traders look at, the price of Bitcoin Cash will be either close to the $400 level or down to $250-ish. That is quite a large gap between prices, yet one that is also very easy to explain. Bitcoin Cash, as people knew it before the fork, no longer exists. Most professional exchanges have also retired this price ticker, for the time being. As the hash war rages on, there are still a lot of unknown factors waiting to be addressed. Despite this ongoing kerfuffle, there is a net 5.76% decrease in the Bitcoin Cash price, and a 5.4% decline over Bitcoin. More specifically, that is what CoinMarketCap reports at this time, although this is not necessarily the case whatsoever. In fact, some exchanges are clearly jumping the gun by labeling BCHABC as BCH and thus dragging the Bitcoin Cash price down a bit more. Exchanges currently engaging in this activity include Bittrex and Coinex, neither of which plays a big role of importance when it comes to trading. However, based on the current value of BCH on Bitfinex and Gate.io, it seems a similar incident is taking place. One also has to keep in mind Bitcoin Cash was getting battered ahead of the network split as well. Most exchanges have halted trading of BCH indefinitely, primarily because the currency no longer exists. It is evident either BCHABC or BCHSV will take over that name in the future, but nothing has been decided at this point. As such, any trading referring to just “Bitcoin Cash” or “BCH” should be avoided, as most users can never be sure which currency is effectively being traded under this name. All of this skews the picture pertaining to Bitcoin Cash altogether. Coinmarketcap reports there is still $392m in trading volume for BCH, even though that is virtually impossible right now. With so many exchanges freezing deposits and withdrawals, it is evident actual BCH trading is no longer possible whatsoever. Virtually all platforms have deposits of BCHSV and BCHABC frozen as well, which only makes this market trend more confusing. It is safe to say the entire network split has been a bit of a mess first and foremost. In the case of Bitcoin Cash itself, that name will – under the current circumstances- not be used across exchanges for much longer. Instead, the two separate camps need to be treated as such first and foremost. Until things settle down – with might not necessarily happen anytime soon – the Bitcoin Cash price itself is pretty much irrelevant for most traders and speculators. Disclaimer: This is not trading or investment advice. The above article is for entertainment and education purposes only. Please do your own research before purchasing or investing into any cryptocurrency. The post Bitcoin Cash Price Gets Skewed due to Exchange Trickery appeared first on NullTX.

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Disclaimer: Trading in bitcoins or other digital currencies carries a high level of risk and can result in the total loss of the invested capital. theonlinetech.org does not provide investment advice, but only reflects its own opinion. Please ensure that if you trade or invest in bitcoins or other digital currencies (for example, investing in cloud mining services) you fully understand the risks involved! Please also note that some external links are affiliate links.