By James Davis
When selecting a crypto platform, it is vital to consider its security features to ensure that your funds are safe. Are you in Canada and looking for a secure crypto platform? If so, stick around. In this guide, we will explore five platforms in Canada that take security matters seriously.
Most Secure Cryptocurrency Platforms in Canada
Coinbase
Headquartered in California, Coinbase is a leading crypto exchange that lets users purchase, sell, and store cryptocurrencies. Moreover, The platform offers merchant solutions, which allow businesses to accept crypto as a payment method.
Since its launch in 2012, Coinbase has taken a significant role in promoting crypto adoption. The exchange aims to onboard traditional institutional traders and investors by providing an easy-to-understand user interface.
Being one of the most trusted exchanges, Coinbase has become popular among crypto enthusiasts in Canada.
Security Features
Coinbase adopts Multiparty Computation to boost asset security. This method allows the exchange to separate cryptographic keys, thus eliminating the risk associated with a single point of failure.
Additionally, Coinbase stores user funds in separate bank accounts from the company’s, ensuring they are not misappropriated. In case of a security breach, the exchange compensates all affected users holding deposits of up to $250,000.
Coinbase requires all users to apply two-factor authentication to protect their accounts. Moreover, these users have the power to lock their trading accounts in the event of a suspected security breach.
Kraken
This exchange was co-founded by Michael Gronager, Jesse Powell, and Thanh Luu in 2011. Kraken is one of the first exchanges to support Bitcoin trading. Along with crypto trading, the exchange offers other services, including staking and NFT trading.
Security Features
Kraken adopts several security measures to safeguard its users. The crypto platform uses cold wallets to store user funds, blocking cybercriminals from making them a target. Additionally, Kraken’s physical facilities are under surveillance 24/7 with armed security officers, video monitors, and alarm systems.
The exchange has hired a qualified team to detect vulnerabilities within its code and runs a bug bounty program to encourage the community to participate in identifying vulnerabilities.
Kraken adopts sophisticated encryption mechanisms to keep user data safe. The trading platform has secured an ISO 27001 certification due to these security controls and procedures.
Bitbuy
Bitbuy was launched in 2016. Initially, the Canadian crypto exchange only served retail customers but now accommodates institutional traders and investors. Bitbuy has put emphasis on security and compliance and is among the most regulated cryptocurrency exchanges in Canada.
Security Features
User funds on Bitbuy are held by a licensed custodian, Fireblocks. Moreover, the exchange keeps a significant amount of its digital assets in cold wallets. Bitbuy routinely conducts financial audits, transaction reporting audits, and security audits to detect suspicious activities.
The trading platform has adopted two-factor authentification to ensure unauthorized parties don’t access user accounts.
NDAX
Next Generation Digital Asset Exchange (NDAX) has become popular among Canadian crypto traders as it supports a wide range of digital currencies, including Bitcoin, Dogecoin, and Ethereum. The exchange accommodates both institutional and individual traders.
Security Features
There are several security measures adopted by NDAX to protect user data and funds. They include:
- Two-factor authentication for crypto deposits and withdrawals.
- User fiat balances are maintained in separate bank accounts at reliable financial institutions.
Wealthsimple
Wealthsimple is a popular investment platform in Canada. Besides Exchange-traded funds and stocks, you can invest in cryptocurrencies like Bitcoin and Ethereum. The company began operations in 2014. It is the brainchild of Rudy Adler, Michael Katchen, and Brett Huneycutt.
Security Features
To shield user funds from online threats, Wealthsimple partners with Gemini Trust Company to store them offline. Gemini Trust is a reputable custodian, given that the New York State Department of Financial Services regulates it.
Wealthsimple also requires users to apply two-factor authentication before accessing their accounts.
Conclusion
Cases of security breaches on crypto platforms have been on the rise over the past few years. So, if you are in Canada and want to participate in crypto trading, it is important to do so on a secure platform.