Best Crypto Exchange: A Practical Security Checklist
Use this 12-point checklist to choose a safe crypto exchange—security, transparency, fees, liquidity, and withdrawal reliability.
Checklist (12 Points)
Licensing & compliance in your country/region.
Security transparency: cold-storage % disclosed, bug bounty, SOC/ISO audits.
Proof-of-reserves + liabilities explained in plain English.
Withdrawal reliability & speed (user reports, status pages).
Incident history & response (breach disclosures, remediation).
2FA options (TOTP, hardware key), anti-phishing code, address allowlists.
Segregated customer funds; clear terms on custody & insurance (what's actually covered).
Liquidity & spreads (tight spreads = better execution).
Transparent fees (maker/taker, funding, withdrawal).
Supported fiat rails you actually use.
Customer support SLAs and response channels.
Jurisdictional fit (tax, reporting, and availability).
Quick Test
Open account → enable 2FA → deposit a tiny amount → execute a small buy → withdraw to your wallet. Time it.
Frequently Asked Questions
Are proof-of-reserves enough?
No—look for liabilities, audits, and holistic governance.
Should I spread funds across exchanges?
Yes, if you actively trade; still favor self-custody.
Do fees matter?
Yes—high-volume users should optimize for maker rates and VIP tiers.