Is CEX.io Safe?
The last couple of years have seen a rise in the number of cryptocurrency exchanges on the market. From regular trading platforms to brokerages and peer to peer exchanges, any trader can easily find a platform that caters to his investment strategy.
What makes crypto exchanges so popular? Is the convenience of using one single platform to buy, sell, trade, and transfer cryptocurrencies and not having to worry about the level of liquidity? Does it have to do more with the fact that crypto exchanges now offer additional custodial and lending services?
The answer is all of the above and more! However, it’s not like every crypto exchange is equally popular with traders. To earn customers’ trust, they have to invest in providing seamless user experience and top-notch security methods.
This guide will introduce you to CEX.io, the most popular crypto exchange in the UK, and show you why traders consider it to be one of the most copper-bottomed platforms in the world.
CEX.io was launched in London, UK in 2013 as the first cloud mining provider. The platform owned GHash.io, a popular (and extremely large!) Bitcoin mining pool that was closed in 2016. CEX.io continued to operate as a Bitcoin exchange, later on adding support for 9 more cryptocurrencies.
Today, the platform allows you to purchase Bitcoin, Bitcoin Gold, Bitcoin Cash, Ethereum, Litecoin, Ripple, Stellar, Tron, Dash, BitTorrent, MetaHash, and ZCash. CEX.io is a fiat to crypto exchange, so apart from trading them for other cryptocurrencies, you can purchase these cryptos with USD, GBP, EUR, or RUB.
There’s a great variety of payment methods to choose from, but the only drawback is they incur slightly higher fees than the industry average. The platform uses current market fees for its cryptocurrencies but applies an additional 7% service fee on top of that price.
CEX.io is well-liked for its user-friendly interface and straightforward dashboard. Although suitable for beginners, the platform also has a couple of advanced trading options on offer for the more knowledgeable traders. We have in mind things like cross-platform and margin trading.
For a crypto exchange that has been part of the trading game long enough, CEX.io has been registered and regulated by a number of financial authorities including FinCEN and the Registrar of Companies for England and Wales which has certified CEX.io as a private limited company.
Moreover, the exchange has a certificate for compliance with the Payment Card Industry Data Security Standard (PCI DSS).
What’s more, CEX.io screens all registration applications against Sanctions and Politically Exposed Persons (PEPs) lists.
The platform has the right to monitor users’ transactional patterns in order to detect suspicious activity. CEX.io reserves the right to report suspicious trading to the right authorities and ask the user to provide additional information. If the user fails to oblige, the platform can suspend or terminate his/her account.
As far as users’ funds are concerned, CEX.io stores the majority in cold storage, i.e. in safe offline wallets. The private keys are encrypted and kept on secure devices called “Hardware Secure Modules” located in ultra-protected facilities with 24/7 surveillance.
Another thing that makes this platform a great and secure choice for traders around the globe is its thorough risk management framework. One segment of this framework is maintaining an emergency reserve fund, by allocating a portion of all transaction fees. This way, the platform can reimburse potential losses if a security breach takes place.
The two-factor authentication (2FA) is a proven security method that adds another layer of protection to your trading account. This step is a must when you’re registering and activating your account.
It consists of adding two factors or locks that only you will know and those particular factors will allow you to access your account. CEX.io offers the following two services for 2FA:
- SMS/ Voice call.
If you activate this type of 2FA service, you will get a code via SMS or voice call that you should provide when logging into your account. The only prerequisite is a valid phone number. In case you change your phone number, you should inform CEX.io’s team by submitting a support ticket to firstname.lastname@example.org.
- Google Authenticator.
You can download the Google Authenticator app to your Android or iOS device. Make sure you have previously installed a barcode scanner app to scan the QR code.
Withdrawal Address Whitelist
Another useful option to secure your account is to enable the address whitelist for withdrawals. This feature lets you list the IP addresses that are allowed to make withdrawals from your account. In case an unknown address makes an attempt to access your balance, the system will block this address and notify you of the unsuccessful attempt.
There’s no better reassurance in the security provided by CEX.io than the fact that this crypto exchange has never been hacked!
As you could read above, the platform spares no effort in combating money laundering and terrorist financing, in securely storing users’ funds, insuring them with their reserve fund, and adding high-level verification settings. And that, you’ll agree, is worth appreciation!
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Disclaimer: Digital currencies and cryptocurrencies are volatile and can involve a lot of risk. Their prices and performance is very unpredictable and past performance is no guarantee of future performance. Consult a financial advisor or obtain your own advice independent of this site before relying and acting on the information provided.