A few days back, the Indian cryptocurrency exchange CoinDCX collaborated with the cryptocurrency custodian platform BitGo. BitGo will be providing security and insurance to the assets traded on CoinDCX’s platform.
Talking about this initiative by CoinDCX, the Co-Founder of Cryptokanoon Kashif Raza, posted a video where he is acknowledging this collaboration of BitGo and CoinDCX. Kashif Raza thinks that this is a unique initiative that will keep the crypto assets of the traders secured.
Even the best crypto exchange in the world can get hacked.
The only way to make an exchange secure is to take unique Initiatives.
One such industry first initiative has been taken by @CoinDCX.
Must Listen👇 pic.twitter.com/uMemduiTHE
— KoinX (Crypto Taxes Simplified) (@getkoinx) May 19, 2020
Raza strongly believes that even the best cryptocurrency exchanges are hackable. And to work upon forming the most secure platform for the users, the companies will have to form strategies and come up with new initiatives for securing the platform.
Raza applauds CoinDCX for taking up this initiative to keep the user’s assets secured under BitGo. According to him, using cryptocurrency over an exchange platform is always a bad idea. Looking at the situation and certain circumstances certainly, it is understandable that crypto exchange platforms have to be used for trading and investment.
On the lines of security and insurance, a lot of exchange platforms claim that after making an investment on their platform, their assets and crypto are safe because their exchange platforms are not hackable. The companies assure their users that their platforms can never be corrupted and can’t be hacked. Raza believes that these are all false claims and assurances; no such exchange platform is unhackable. But that doesn’t mean that the assets of the users cannot be secured.
About The Initiative
The collaboration with BitGo and CoinDCX is a great example of how to keep the user assets secured. CoinDCX is now transferring its assets to the BitGo wallet. The BitGo custody secures all the cryptocurrencies on CoinDCX with a two-factor authentication account. A part of the funds traded on the CoinDCX’s platform will be secured by BitGo’s insurance policy worth $100. Along with this, the user assets held on CoinDCX’s Lending service platform are also secured under BitGo.
BitGo is the first custodial platform that is approved by the US government. Not only CoinDCX, but BitGo has also been protected by several other exchange platforms like Bitstamp and LGO Market. This year in February, they also established separate crypto custody services in Switzerland and Germany, and later in March, they launched a crypto-lending service on an institutional level.
What Do We Get To Learn From This Move?
Raza believes that the Founders and CEOs of the organizations have to be responsible enough to formulate new strategies and plans to keep the user’s assets secured. If we talk in numbers, BitGo has insurance policy worth 700cr INR, which is why if your crypto is traded on CoinDCX, it definitely means it is safe under BitGo’s insurance policy. It very necessary for companies to make such investments if they want a brighter future of the crypto industry.
If the firms genuinely want newcomers to make investments in the crypto who barely have an idea about the working of the industry, it is important not to let their first investments fail. For that matter of fact, the exchange platforms will have to provide them with security and insurance. According to Raza, it can’t be denied that CoinDCX had to pay a premium to BitGo to keep the user assets secured, but the companies who are willing to invest in providing their users with the most secure platform then they should not hesitate to pay the premium.