So you have already chosen a crypto exchange where you can engage in crypto trading at a well-established trading platform like BitiQ. You might have looked into reviews to be able to find the most secure platform available in the industry. It may have offered additional layers of protection in its system to pacify account holders. But you should always know that there is no such thing as a guarantee unless you have got it covered with an insurance policy. Here are some risks that you can expect when it comes to crypto exchanges.
Data privacy
Of course, you are entitled to privacy when it comes to your data. You would not want to wake up one day realising that someone might have known your name, social security number and even your bank account. It would pose a huge risk that would make you vulnerable to identity theft. Someone can claim your data for his or her benefit. While some tend to be harmless such as those gathering email addresses for marketing purposes, some can go extreme such that your personal privacy can get encroached upon. Perhaps you may have been wondering why you have been receiving email notifications when you have no recollection of making any subscription. It would help to be mindful of any encroachment on the privacy of your data.
The best thing to do would be to scrutinise the terms and conditions upon opening an account. You should not simply tick the box indicating your consent when you have no idea of the provisions enumerated in the agreement. In any case, you can always call a friendly customer service representative to report possible data privacy breaches.
Financial security
Security is the holy grail of any online financial transaction. While cryptocurrencies are characterised by decentralised operations, they appear to be interwoven with financial transactions as far as the buying and selling of coins are concerned. They are linked to payment channels so that investors can fund their crypto wallets by buying coins using fiat money. It is for this reason that you will have to be aware of financial risks.
In dealing with risks against your financial asset, you will have to do your share of due diligence. You cannot simply rely on the system installed by the crypto exchange, no matter how efficient. There are professional hackers out there ready to accept the challenge of accessing even the most secure online financial infrastructure. It would help if you could check on your crypto wallet frequently.
Any irregularity will have to be reported to the authorities. First, you have to call the help hotline so that proper protocols can be imposed right away. You may also decide to alert the police to investigate the matter. Estate agents can also issue a warning so that others will not fall prey to the modus operandi. A collaboration of investigation would be useful in resolving your crypto issues and concerns.
Criminal activities
The reason why most crypto exchanges are regulated in some states is the presence of criminal elements. Some may use the vulnerability of crypto transactions to be able to perpetrate crimes such as money laundering. These perpetrators will use the anonymity of crypto transactions to launder money from criminal activities. They may find it more convenient than using traditional methods busted by law enforcement authorities.
Some would also develop a crypto trading platform to initiate a scam. You should never forget about the Crypto Queen, who was able to run away with a huge amount of money after crashing the value of the cryptocurrency to zero. She waited for several years before she was able to consummate the criminal activity. After all, the length of crypto operation is not always a guarantee of credibility.
As of now, there are many crypto exchanges available on the web. You will have to find a legitimate one where you can invest your hard-earned money. It would be great to check on compliance with government permits before you open a crypto account online.
Conclusion
These are only some of the risks involved in crypto trading platforms that you should know about. You may discover some more as you engage in this business. The important thing is for you to observe some measures to control the risks.