Presented by AltcoinTrader

Choosing credible cryptocurrency exchanges – How to keep your money safe

As cryptocurrencies start gaining traction on the African continent and more Africans than ever begin to invest, continued education on cryptocurrencies is needed.

AltcoinTrader, one of South Africa’s leading cryptocurrency exchanges, is currently one of the oldest exchanges in both South Africa and the continent at large.

Established in 2015, the exchange boasts having the most cryptocurrencies in their portfolio that can be bought with fiat directly, outpacing their competitors across the continent.

Currently, AltcoinTrader has nine coins, with more additions to be included in 2018.

Japan, the US, and South Korea are currently at the forefront, with the largest Bitcoin exchanges in the world.

As the crypto community evolves across the world, however, easier access to cryptocurrency exchanges is imperative in allowing Africans to participate and not to be left behind – AltcoinTrader was established for this reason.

“We are proud to be one of the first exchanges in South Africa,” said Richard De Sousa, partner at AltcoinTrader. “Our aim is to ensure that our people are not left behind during this revolution. As one of the oldest exchanges in Africa, we consistently ensure that we offer trending coins so that people can expand their own crypto portfolios beyond just Bitcoin and Ethereum.”

Choosing an exchange

As demand increases and the market continues to grow, more exchanges have started opening. It is the established exchanges that still stand out, however, because they have a longer track record than their competitors and they have proven their value as an optimally-functioning exchange.

Various factors need to be considered when choosing an exchange, such as credibility, years in service, operations, support, and security.

Exchanges that have been in operation longer have more experience in ensuring customer satisfaction and security, which is pertinent in the cryptocurrency space.

Cash purchases

One of the major challenges across Africa is access to cryptocurrencies that can be bought easily with cash.

“As we are market leaders, we continually assess the industry and bring more value-adds to South Africans,” said De Sousa. “At AltcoinTrader, we are continually revising our own internal strategies to bring more value and security to our people. We are looking, in the very near future, to bring more coins on board to our existing basket of coins that can be purchased with cash to ensure that no one is left behind.”

Security

Another aspect that needs to be taken seriously by investors entering this market is security.

Exchanges do their best to ensure internal safety precautionary measures, but it is up to investors to also do their part and understand that they need to play active roles in taking extra care with their money.

There have been numerous scams and phishing reports recorded across cryptocurrency exchanges worldwide, and 2017 has seen the highest records of people getting into the space.

Investors must ensure that they understand their need to play an active part in securing their personal details, as criminals find any opportunity to prey on ill-informed investors.

Scams

As the market is also highly driven by speculation, more people that do not fully understand how to ensure their safety are entering into it – and as such, they create loopholes that can allow scammers access to their accounts.

“Recently, we have seen that people are getting involved with scam programs that are offering them higher monthly returns. They are asked to deposit cash into the scammer’s exchange account using the scammer’s reference number. The scammer then converts their cash quickly to cryptocurrency which is sent out of the exchange to a different address,” said De Sousa.

“In such a case, the exchange cannot be held liable. Do not deposit money into anyone else’s exchange account. When you do a deposit with their reference number, it credits their account, and they can do anything they want with the money as it is in their hands.”

Government regulations

The South African government is looking into regulating the cryptocurrency industry, which will give users stronger legal recourse and will offer improved security.

The cryptocurrency market is currently valued at just over $389-billion dollars and is expected to grow to a trillion-dollar market cap in the next year or so.

There has been further development regarding country regulations on cryptocurrencies, and the sentiment across the community is that more governments will continue to see more regulations in the future.

Currently, South Africans have to declare profits on Bitcoin for Capital Gains Tax, but SARS has issued a statement recently noting that they will release a more comprehensive tax stance on Bitcoin in 2018.

Tips to ensure your safety:

  • Ensure that you enable two-factor authentication on personal accounts.
  • Ensure that you have a strong password.
  • Do not respond to any email from an exchange that asks for your login details, such as username and password.
  • Do not give anyone your email address and email password.
  • Do not give your login details to anyone over the phone who call you and claim that they are from an exchange.
  • Do not give anyone access to your accounts by providing them with login details, whether it is friends or family.
  • Do not deposit money into a cryptocurrency exchange account that has someone else’s reference number. If you want to buy Bitcoin or other cryptocurrency yourself, open your own account with an exchange and buy it directly.

For more information, visit the AltcoinTrader website.

This article was published in partnership with AltcoinTrader.

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Choosing credible cryptocurrency exchanges – How to keep your money safe