How crypto exchanges secure our funds?

[btc_love]

I want to use one exchange and I want to be sure they protect my data and money. All my exchange say about protection is "Changelly is one of the most prominent instant cryptocurrency exchanges that has gained the trust of more than 2M users from all over the world. The service provides safe and fast transactions without revealing users identities. We provide the best possible rates by comparing a wide range of reliable trading platforms and work with a list of 140+ cryptocurrencies that is constantly increasing."

Can you explain that to me? What does it mean?

And how exchanges actually protect our funds?

[baigreen]

The project advertises its services. He says that many use their services. Protection is debatable. And it’s best to check the stock exchange before joining it and trading there. Look at the rating of exchanges on CMC and you can choose the one that suits you best. I did not work with this exchange.

[Thomas-s]

I think that now when exchanges are not regulated by the government, you cannot trust any of them 100 percent. so now the best strategy is to use multiple exchanges to trade

[thiscomm]

I think the purpose of the explanation is to prove or convince you that Changelly is the best cryptocurrency exchange that has been used and trusted by more than 2 million crypto users. and on the platform it has been listed as many as 140+ crypto exchanges. This platform does not use the KYC principle where you do not need to provide your personal data so that all your personal data remains safe. and I think you can use this exchange as one of the best platforms to exchange cryptos.

[jossiel]

It's very simple, from your perspective it's easy to understand what does it means. They don't require KYC unlike other exchanges that requires it although some popular exchanges does have that condition that they will give you a certain limit per day.

Why is it that your title is different from your question?

[sheba]

Neither of the two are totally safe, because if you give your personal info to them or your money are in there platform chances are they are prone to cyber attacks and no one can deny that fact. I guess if they can insured our funds the least that will be good but data or personal info been leaked it's questionable.

[Metall303]

Neither of the two are totally safe, because if you give your personal info to them or your money are in there platform chances are they are prone to cyber attacks and no one can deny that fact. I guess if they can insured our funds the least that will be good but data or personal info been leaked it's questionable.

a data problem existing in absolutely all projects/exchanges, etc. Now no one can guarantee the safety of your data

[knuckey]

I think for the issue of security of funds, you can store your assets in a personal wallet, not in exchange. Exchange is only for trading, after you get the target, then immediately come out, because all have risks and no one will guarantee it.

[#Darren]

It is advertising only. They are just a normal exchange without trading opportunity. You are purchasing crypto with your credit card and are getting Bitcoins to your wallet. I believe nobody keeps crypto on this exchange, so there is no need in funds "security".

[nxnqauff]

I think that now when exchanges are not regulated by the government, you cannot trust any of them 100 percent. so now the best strategy is to use multiple exchanges to trade

This is exactly the point. Since there is no regulations for crypto exchanges, trust is the very big issue. You never know what will go won't over night.

[Febo]

I want to use one exchange and I want to be sure they protect my data and money. All my exchange say about protection is "Changelly is one of the most prominent instant cryptocurrency exchanges that has gained the trust of more than 2M users from all over the world. The service provides safe and fast transactions without revealing users identities. We provide the best possible rates by comparing a wide range of reliable trading platforms and work with a list of 140+ cryptocurrencies that is constantly increasing."

Can you explain that to me? What does it mean?

And how exchanges actually protect our funds?

Changely like shapeshift or xmr.to or few other exchanges does only instant exchange. So you dont hold your coins with them for long. That severely reduces your risk.   Even better option are decentralized exchanges like BisQ. They never hold any of your coins.

[jozymens7]

As far as I know, the crypto you deposit on the exchanges are not kept in your account. They are immediately sent to a cold wallet where are the respective crypto coins are kept safe. Some are also kept in the hot wallet for automatic transactions of smaller withdrawals.
When you process a withdrawal, your few checks are made per what the exchange wants it to be and then sent to you.

How your funds are kept Safe from someone stealing your coins:
1. The use of 2 factor authorization
2. Security password for withdrawal
3. Email confirmation
And a lot of things. Some are made compulsory to prevent the uncertainty.

In one way or the other, it is advisable to enable all these  security features to help the exchanges fully protect your funds.

[key4co.in]

Exchanges keep funds safe by using cold wallets. Also security measures like Login passwords, transaction passwords which is normally different from login passwords,  2FA verification, sending verification links to emails, secret words, IP tracking etc have been taken by exchanges. Talking about exchanges securing your funds, please only send funds to exchanges only when you want to trade since it's proven that no exchange is above hacking, Binance had a lil pinch of the cake if you can remember. Well, decentralized exchanges like Changelly with instant exchange are safer comparatively.

[sorrros]

They have some funds in a cold wallet - offline wallets, since they are not connected to the internet, hackers can´t access these funds.
Some funds they have in a hot wallet, and these should be protected by the best security solutions avaiable in the market.

[Bitbtc8]

You can only swap coins and tokens on changelly,you can't use the platform for trading,it works just like a dex exchange,no profile no accounts that's why its more safer than even biggest exchanges like binance and huobi, the safest exchanges are DEX exchanges,you can use shapeshift as well,it works just like changelly

[leowonderful]

Most exchanges use a system of wallets, usually with cold storage that rarely moves around and is often multisignature for longer-term coin holding, and hot wallets that process large quantities of transactions often for withdrawals and deposits. You'll typically find that hot wallets have worse security measures than cold wallets for the reason that they need to be used often, but these wallets typically don't hold many coins compared to cold wallets so any breaches on these are typically minor.

[tycsols]

Most exchanges claim to provide multi-key multi-level storage of funds that is called as vault and some of the exchanges also call it cold wallet and mostly large sum of idle coins are stored their for security while for day to day base funds and withdrawals funds are stored in less secure hot wallet that is ready with some funds all the time, the bottomline is that exchanges at the moment do not provide complete security of funds and the security enhancements are inevitable if the exchanges want to survive and compete in this market.

[cabron]

Changelly has hired people to spread the word about them. I don't really remember anyone even recommend the exchange even before 2017 but I have however heard scam accusations to them during that time. Looks like there is a massive hiring of forum posters to make it look like changelly is a reputable exchange.

[Bonwin]

If an exchange is so sure of protecting the identity of its users, that is, providing the utmost security, to confirm that, it should first be used for some users before that can be guaranteed. There are big exchanges that have existed for some years now and have been put to such test, yet some of them failed. Of that should happen, how then can I be sure of an exchange that is just coming in newly. What technology is it using to protect the identity and the fund of its users? If it is the same tech used by others, then I see no difference in it, except there is a novel security system that is put in place. If that is what Changelly has discovered, then it should be an achievement. A lot of exchanges today I am sure are working on their security system.

[Chuky92]

There is no crypto exchange that is safe enough to secure your funds, although to an extent decentralized exchanges tries their best. The best way to secure your funds is through storing your coins in your personal wallet which you are in charge of, anything less than this is risky; that's the truth. Binance being one of the biggest exchange was hacked, thus confirming my statement, let's be careful with our funds.