PrimeXBT is one of a number of trading platforms that have entered into the cryptocurrency market in the past few years and which have been called the “next-generation” of crypto trading platforms because of the distinctly advanced tools and features that they provide in comparison to many of the older trading platforms in the crypto space.

While much of the focus is on the tools that are relating to trading that are available on PrimeXBT, another critical element of this equation is the safety and security features that are found on the platform and that are unmatched elsewhere.

In this guide we're taking a look at the question of why PrimeXBT is a safe place to trade in 2020, starting with a look at the background of PrimeXBT before moving on to looking at whether or not the platform is heavily focused on safety and security, then finishing off with an in-depth look at some of the security aspects of the platform.

Many Crypto Platforms Suffer Hacks Over the Years

The reason that cryptocurrency traders and investors place so much importance on whether a platform is safe is because even some of the largest trading platforms in the cryptocurrency space have suffered astronomical hacks over the past few years.

From Binance’s hack of $40 million in 2019, to the more recent hack of KuCoin for $150 million, the size of a platform and the number of traders there seems to mean little when it comes to whether or not it can remain hack-free.

Instead one of the factors that we see is on the security mechanisms in place at the platform selves, and whether or not the platform has a strong record for security and protecting its users throughout its time of operation.

PrimeXBT 101

PrimeXBT is considered to be one of the fastest growing trading platforms in the cryptocurrency space in 2020, and in only a short space of a few years PrimeXBT has now grown to become the world's leading multi-asset margin trading platform.

PrimeXBT manages up to $3.6 billion of global trade every day and this is largely as a result of the fact that the platform doesn't just list the leading cryptocurrencies, but also lists a wide range of the world's most popular traditional assets such as stock indices, forex pairs, and commodities.

The platform has built a powerful reputation for protecting the funds and data of its users, with it having one of the strongest security profiles of any trading platform in 2020.

When looking at the question of whether PrimeXBT is focused on safety and security, there are a few considerations that we can make that help us to answer this question.

Is PrimeXBT Focused on Safety and Security?

PrimeXBT entered the cryptocurrency market at a period of time where a huge flood of new trading platforms were being launched quickly to take advantage of the rapid increase in the number of traders in the market following the 2017 bull run.

However at this time, a majority of these new platforms were low quality and quickly launched in order to try to get some of the action without actually taking the precautions to make their platforms robust against hackers

With PrimeXBT launching at this time, the quality of the competition would have been clear and it would have been obvious that the best way to become a market leader was to integrate high-quality security and safety systems throughout the platform and actually provide world-class security systems.

Evidently, this seems to be exactly what PrimeXBT did, and as such the platform has built a reputation for being one of the safest and most secure platforms in the cryptocurrency space in 2020.

Why Might PrimeXBT Be So Focused on Safety?

In the cryptocurrency market safety is really an investment by trading platforms, being that by investing their time and resources into developing advanced security features and implementing them, the rewards that they expect are long-term success.

Many platforms in the crypto market have obviously not felt this investment was worthwhile however, and we have seen some hacks into the tens of millions of dollars in the last few years as a result of this.

However, PrimeXBT is a professional trading platform that understands the importance and value of providing a secure and robust environment for its users, and as such the cost of investing into developing advanced security features has clearly worth it.

What are the Security Considerations of PrimeXBT?

Bank-Grade Security Features

One of the most distinguishing things about PrimeXBT in comparison to a majority of the rest of the market is the bank-grade security features that are implemented throughout the platform and that have protected the funds and data of the platform's users successfully over the past 3 years.

Some of the advanced features that can be found on PrimeXBT include cold storage of digital assets with multi-signature technology and hardware security modules with rating of FIPS PUB 140-2 Level 3 or higher.

Many of these security features work together with others and complement each other to create a robust security network throughout the platform that mitigates against vulnerabilities and attack vectors. 

Never Been Hacked

Unlike many other platforms in the market that have suffered devastating hacks in the tens of millions of dollars recently, PrimeXBT has never been hacked or breached by hackers and has successfully protected its users’ funds 100% of the time.

This is in no small part as a result of the range of advanced security features implemented throughout the platform, as well as PrimeXBT's focus on creating a range of communication channels with its users to be able to quickly tackle issues.

PrimeXBT has built a strong reputation for safety precisely because of its ability to defend the data and funds of its users.

No Hot Wallet Means Reduced Risk

There is one security feature amongst all others that stands out as potentially having the biggest impact with regards to making PrimeXBT impenetrable.

Unlike a majority of other trading platforms on the market, PrimeXBT does not use a hot wallet and cold water system, but instead stores all of its users’ funds on cold wallets alone. 

By not having hot wallets and storing all funds in a way that is completely disconnected from the internet, PrimeXBT ensures that hackers have no way of being able to get to those funds, and instead turn their attention towards other platforms that do have hot wallets.

In the recent hack of KuCoin, $150 million was stolen from the hot wallets and so the implications of PrimeXBT storing everything in cold wallets alone is significant.

Fully AML Complaint

PrimeXBT is an AML/KYC compliant platform and implements some of the most robust AML and KYC measures in the industry.

PrimeXBT uses Bitfury Crystal's AML compliance software and blockchain monitoring tool set on all incoming transactions to the platform in order to ensure full AML compliance and safety for all users on PrimeXBT.

PrimeXBT also restricts citizens from problematic jurisdictions with users confirming their country of residence in order for KYC compliance throughout the platform to be achieved.

Using this system, PrimeXBT not only ensures that it is fully AML compliant, but also that it is able to monitor and manage transactions that may be fraudulent in real-time throughout the platform.

Excellent Customer Support Systems

PrimeXBT provides excellent customer support for its users and as a result allows them to be able to quickly and easily get solutions to any issues that may crop up, as well as being able to understand any safety and security threats that may be occurring.

In fact, a study was conducted in 2019 where the top 5 crypto margin trading platforms were compared to see which one had the best customer support systems by measuring a number of metrics including helpfulness, responsible, politeness, and the number of communication channels available.

Not only did PrimeXBT perform better than all of the other trading platforms’ customer support systems, but it was also the only 1 of the 5 to receive full marks for all 4 metrics in the study.

Final Thoughts

PrimeXBT is a safe place to trade as has been shown over the years of its operation where it has never been hacked or breached by hackers and has successfully protected its users’ funds 100% of the time.

It does this by implementing a range of different bank-grade security features, as well as intelligently disconnecting its users’ funds from the internet by removing hot wallets and only using a cold wallet system.

If you would like to learn more about PrimeXBT, and in particular about the security features that are available on the platform that have been used to protect the funds and data of its users, check out this link.