Bitvavo started as a broker for buying and selling cryptocurrency, but quickly grew into the Dutch exchange we know today.
The Amsterdam-based platform mainly targets Dutch and European Customers, but does it meet European security measurements?
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Is Bitvavo safe and secure?
It can be said that Bitvavo is well protected against the dangers of cybercrime.
Bitvavo has never been hacked and their systems comply with international security standards. Meaning that cryptocurrency of their users is safely stored and even insured.
What is 'Stichting Bitvavo Payments'?
‘Bitvavo Payments’ is a separate company working alongside Bitvavo. Here, the broker stores the funds of their users.
The sole purpose of the foundation is to store Bitvavo’s cash reserves.
Which means that if Bitvavo were to go bankrupt, your funds cannot be used to pay-off possible debts. This gives users a higher sense of security.
Please be aware that Bitvavo is not in the deposit guarantee scheme – DGS, which means you’re not guaranteed to recoup your deposits up to €100,000 in worst case scenarios.
Am I safe as a user on Bitvavo?
Usually this happened due to lack of knowledge or being too naive.
It is therefore important to take your digital safety into your own hands.
Bitvavo helps you, by providing some safety measures:
- When you log in to Bitvavo, you immediately get the option to secure your account with two-factor authorization (2FA). You can use this extra layer of security to protect your account.
- When you use a new device or IP address, you will need to approve a confirmation email. This extra confirmation, although it sometimes takes a bit longer, can ensure that individuals who get their hands on your account information still don’t gain access to your funds.
- The ‘whitelisting‘ of addresses for sending or withdrawing cryptocurrency will make it impossible for hackers to send to other addresses. This also guards users for making mistakes themselves.
- Anti-phishing code: This is protection against phishing mails. With this code, every e-mail from Bitvavo will have a visible message in it. When you receive a mail without, you know you are dealing with a phishing attempt.
- Finally, it’s best to use a unique and complex password. Passwords with several random characters, upper, lower case letters and symbols are the safest. Just make sure you keep your passwords safe and don’t forget it yourself.
Is my Crypto safe on Bitvavo?
The most important question is, are my beloved cryptocurrencies safe on Bitvavo ? Well we can state that they are.
Just like big international exchanges like Coinbase or Kraken, Bitvavo is subject to several rules they have to keep in mind when securing their users’ funds.
We take a look at some of these measures taken by Bitvavo.
Of all the cryptocurrency Bitvavo manages, a limited portion will be stored in ‘hot’ wallets. The vast majority will be stored offline, in ‘cold’ storage wallets.
These wallets are distributed over different vaults in different locations. This makes it very difficult to get hold of any of them.
Bitvavo also works with cold storage custody providers who have taken out insurances to minimize risks of loss even more.
In addition to this cryptocurrency cold storage, Bitvavo uses multi-signature wallets. Wich will require the authorization of several people to open one of the wallets and move any of the funds.
This is an additional security mechanism that rules out malicious intent by any of the wallet holders.
External Verification and Audits
Another important control mechanism is the monitoring of all transactions. If there are any unusual transactions, the system intervenes and the transaction will be manually reviewed.
On top of that, Bitvavo rewards the help of external companies, such as specialized IT security companies or white hat hackers, that try to breach Bitvavo servers.
Bitvavo really takes security seriously. Think at all implemented security measures, ranging from 2FA login security, e-mail confirmation of a new device, anti-phishing codes and many more.
Thereby we can conclude that Bitvavo is in fact reliable and secure.