Things to Know Before You
Start Trading

There are a few things active traders should know before they start trading. First, know that exchanges implement safety protocols to make sure the market is safe: KYC, AML, cybersecurity safeguards and custody of assets. KYC stands for Know Your Customer or in some cases Know Your Client. AML refers to Anti-Money Laundering. Cybersecurity safeguards are devices, procedures or other processes that reduce the vulnerability of an information system. Custody of assets means the exchange is a custodian of the trader’s assets.

Know Your Customer

As with all exchanges and money service companies, account verification needs to be complete before you can begin trading. This helps trading platforms like CrossTower maintain compliance standards required by law. The government creates these safeguards to ensure all participants in the market are legally and fairly initiating transactions. Without KYC, markets would be susceptible to terrorist financings, cartel money laundering, or rogue regimes transactions -- all very bad things. This also prevents an unfair market for everyday traders, which is a good thing.

Anti-Money Laundering

This is another check regulatory authorities expect of regulated operating exchanges. It helps ensure money from illicit activities does not find its way into the financial system. With KYC completed, the exchange can create a transaction history with specific accounts to better understand your trading habits and flag obviously suspicious activities. This is done with computer code, which will alert exchange employees if there is a flagged transaction.

Cybersecurity safeguards

The best exchanges are the ones with top security measures in place and are not all the same. For example, CrossTower’s exchange infrastructure is hosted in a world-class Equinix data centre that is SOC 2 Type II, ISO 27001 and PCI compliant. In addition, our cybersecurity practices are audited by a leading cybersecurity expert. Other exchanges may not have the same safeguards that we have in place. Especially with decentralised exchanges, you are trusting your funds in a smart contract. Some DeFi smart contracts have been exploited in the past. You have to trust an audit has been done for the smart contract or review it yourself. So, pay attention to the smart contract’s code if you decide to trade on a decentralised exchange. There will be no centralised party and an increased amount of risk from a bug in the code or an exploit.

Custody of assets

It is very important to have control over custody of assets. Owning your keys means owning your Bitcoin. While you are trading on an exchange you are trusting that exchange to keep custody of your assets. Know that most of CrossTower’s assets are held in our offline, air-gapped cold storage system that uses a multisig digital signature scheme to prevent against the loss or compromise of any private key. When you trade on an exchange you trust the exchange. Make sure there are up to date security measures in place like the ones CrossTower deploys.

For any queries related to crypto trading, simply drop us a mail at Our team of experts will get back to you shortly.

Market Insights From Experts

Sign up for daily reports on latest market trends, webinars with pros and more.

CrossTower is on a mission to mainstream crypto investing and trading in India.

Copyright © 2022 CrossTower. All Rights Reserved.