Its well-known security is paramount in the cryptocurrency space, as once a hacker manages to get a hold of your coins there may be no going back – the funds may soon be laundered and lost forever.
While there are various well-known tips and tricks used to protect your crypto holdings – including using a cold storage solution – centralized cryptocurrency exchanges have been representing a security risk: not because they get hacked, but because of the accounts being created.
Most top exchanges have been hacked. Even Binance lost 7,000 BTC in May 2019 after hackers managed to obtain a “large number of user API keys, 2FA codes” to get to the cryptocurrency. As Binance did, exchanges often own up to these attacks and manage to repay users.
Some of these platforms even offer insurance on cryptoasset holdings: so chances of losing your crypto are minimized. The problem with creating an account isn’t related to exchanges getting hack, but it’s related to your personal safety.
Data Leaks Happen
Creating an account with any online service means you are sharing important data with them – your email address, date of birth, location, and other identifiable information. This information, if a data leak is to occur, may see your data get online.
After its online, hackers will sell it on darknet marketplaces for crypto, so scammers can use it to target you. What follows are phone calls trying to swindle you, phishing attempts, social engineering attempts, and more.
Unfortunately, data leaks are fairly common. These even occur in the cryptocurrency space, as last year for example BitMEX accidentally leaked its customers’ data because of a simple mistake as it sent out emails to batches of users with all email IDs visible in the ‘CC’ line. The accident, caused by an error in the software, created thousands of potential phishing victims for hackers.
The solution is simple: not having to create an account at all. If a service doesn’t use your email address, it can’t accidentally leak it. Similarly, if it doesn’t have a password to store, if it gets hacked your password won’t end up online.
ChangeNOW: an Account-Free Exchange
Enter ChangeNOW, a non-custodial cryptocurrency exchange that lets users trade over 200 cryptocurrencies – in over 40,000 trading pairs – without having to register an account with it. To use the service, all users need to do is determine which cryptocurrency they want to send and which they want to receive.
They then enter the amounts, send over the funds to an address given to them by ChangeNOW, and wait for the transactions to confirm. Using the service, it’s possible to buy cryptocurrency with Visa and MasterCard through a third-party, Simplex.
The exchange has partnered with prominent cryptocurrency wallet providers, including Trezor, Edge, Atomic, and CakeWallet, to help on-board new users. Data shows 98% of their transactions take around two minutes to complete, while the remaining 2% are handled by its customer support team, available 24/7.