Understand the Liability in Bitcoin Exchange

Since we know that bitcoin is an isolated property in itself and any third party is not involved in it means it is not regulated by any third party or government. In the case of regulated property, you are more secured.

But not in the case of bitcoin, it is decentralized and all the exchanges we use for the trading of bitcoin are risky and there is no guarantee of 100% security, which means if they are saying we will protect your account, there is no surety.

Remember 

In the case of bitcoin exchange, it is regulated in itself i.e. there are certain rules and regulation means they are legal for use. Most exchanges with a high reputation on the internet provide security to your bitcoin wallet. You have to adhere to these rules and regulations.

Suppose you are using an exchange for storing your bitcoin and the exchange got hacked and who is liable for this hacking. Who will pay you money? How you will get back your coins? 

We know that new exchanges provide security at a certain level but it is not good enough to depend upon the bitcoin exchange to use as secured storage and also learn how to invest. 

If you lose your bitcoin by hacking or crash into the exchange then there are some rules and regulations that you will get back those coins and the exchange will give you from their pocket.

Economists say that the bitcoin exchanges are self-regulated and it works on regulation and if you will lose your bitcoin, you can claim it but the biggest problem is that the bigger the bitcoin exchange is the chances of getting back coin is none. It means if you will use the bigger exchange, there are no changes to get back your loses coins and so it is your liability to be aware and not entirely dependent on the bitcoin exchanges.

Remember this Warning

The security or protection that is offered by all the exchanges is independed upon the legal requirements of the exchanges, where they are registered. You can check the exchanges and their legal requirement before choosing an exchange.

We suggest you don’t store your bitcoin on any exchange for more than one day, try to change your address, or always make it in a use. If your coins are stored in one bitcoin exchange for more than one day it may be risky.

As we know or read the tougher the legal requirement for an exchange is the more protection you will get for your wallet. You can find the verification and legal requirements for that exchange in your local law and you can find out that they are providing you proper protection or not and you can case a file against them if there will be some mishappening but a suit the court is very costly and time-consuming. 

There are many new third parties that provide an independent audit for an exchange to check whether the data of bitcoin users are safe or not and if there is a need for more security they can improve.

Tip for finding out the audit report

Every exchange has its own audit result publishing method since there are many exchanges and there may be different methods in generating auditing reports and you can check their publishing reports on perhaps their websites or other report publishing websites.

If you want to take more information about their audit result or report the best method is to contact their support and you can contact them through email and live chat option, you can find it on their website.

Conclusion

From the above information we have learned that if you want to use a bitcoin exchange, don’t use more than one day, you can change your wallet address, and for choosing the secured exchange check the detail about their legal registration documents because the tougher the legal requirements the more protection about your bitcoin wallet you will get. You can collect more information about the exchange by contacting their support team and you can contact them by live chat option and you can send them simply an email. In different exchange website, there may be different support methods.