Kraken is the most secure cryptocurrency exchange on the market, followed by Coinbase Pro and Bittrex. These are the results of research by cybersecurity firm Group-IB and published by The Next Web. They developed a framework to judge cryptocurrency exchanges on their safety. The research was done in co-operation with CryptoIns, an insurance firm specialized in the cryptocurrency space.
The risk assessment for crypto exchanges took things like the technical security, the reliability of basic storage, passwords and personal data into account. Obviously know-your-customer and anti-money-laundering procedures were part of the analysis as well.
The base insurance rate is 2.5 percent per quarter. Kraken gets a 1.25 percent rating and is therefore the cheapest to insure. Bittrex and Coinbase Pro both have a 1.5 percent rating. Binance, Bitfinex, Bithumb, Bitmex, Localbitcoins, MyEtherWallet and Poloniex all got a 1.9 percent rating.
The percentage rating is the monthly fee that needs to be paid to be insured by CryptoIns. So if Kraken wants to insure 1 BTC, it would cost them 1.25 percent of that bitcoin per month.
Among the exchanges CryptoIns will definitely never insure, is YoBit. This exchange made headlines when it introduces an organized pump-and-dump scheme on their own exchange. Other excluded exchanges are Bitstamp, TopBTC and Bit-Z. CryptoIns and Group-IB don’t comment on question about the reason for not insuring certain exchanges.
It’s also possible to insure yourself individually. The maximum amount that’s possible for individuals is 15 BTC. The monthly premiums can be paid in 100 different coins.