Is MoonPay Safe?

June 28, 2022

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The blockchain industry is booming exceptionally – and it’s only getting bigger. According to research, the blockchain market is projected to grow from $4.9 billion to $67.4 billion by 2026.

Thus, the demand for blockchain companies continues to fly.

One that’s creating a name in the blockchain industry is MoonPay, which allows people to buy and sell cryptocurrency using debit cards and other major payment methods. But is it safe? And how has it become so popular?

Let’s find out!

What is MoonPay?

MoonPay is a cryptocurrency technology company that offers a portfolio of digital assets. The company has a principal office in Singapore, but its service can be used in more than 160 countries and is accessible in 12 different languages.

The platform became popular because many investors also flocked to non-fungible tokens (NFTs), digital assets stored in a blockchain. Users could buy NFTs without owning cryptocurrencies. However, MoonPay’s popularity didn’t end there.

Celebrities, including Eminem, Stephen Curry, Jimmy Fallon, and Madonna, started using MoonPay to buy artworks from the Bored Ape Yacht Club. BAYC is an NFT collection built on the Ethereum blockchain.

Typical Exchange vs. MoonPay

In a typical cryptocurrency exchange, you first need to own a wallet, add the cryptocurrency amount, and make a purchase. This process can be time-consuming. That’s because you must carry out two transactions, go through the lengthy and extensive verification process, and pay twice as much in fees.

Buying Experience with MoonPay

Luckily, MoonPay made the process easier. With it, you only have to name a budget. MoonPay will act as your commercial agent and then use its tools to provide you with the benchmark price for the desired digital asset.

As your commercial agent, MoonPay will purchase the cryptocurrency on your behalf and deliver or send it to your wallet address. It’s like interacting with a private bank: you generate the invoice, wire money for it, and the bank (MoonPay in this case) settles the transaction.

Your account will automatically be created when you make your first purchase order with MoonPay.

MoonPay: Who Is It Best For?

MoonPay is best for anyone looking for a simple, fast way to buy and sell crypto.

To be eligible to use MoonPay, users have to be at least 18 years old, reside in a country where MoonPay services are accessible and can enter into legally binding contracts.

So, Is MoonPay Safe?

Yes, MoonPay is safe and is fairly established.

Aside from using a high standard of global regulatory licensing and compliance to help grow its userbase, MoonPay also uses data sync and pass-through feature. This MoonPay feature ensures that users do not have to verify their identity twice, eliminating the drop-off points.

They also use an anti-fraud stack, MoonPay’s proprietary software that prevents fraudulent transactions. It also serves as an AML-monitoring system with over 50 trained Support members to help users. All of these take the risk out of your cryptocurrency payment transaction.

MoonSafe claims that they also use AES-256 block-level storage encryption to ensure that all their data are encrypted in transit. It even offers a bug bounty program, rewarding people if they discover a weakness in the platform’s security.

The fact that MoonPay’s fees are high may also convince you that they’re not going to rip you off. Generally, the payment process takes one to three business days in the EU and UK and three to four business days in the US.

Pros & Cons of MoonPay

Pros

User and beginner-friendly
Supports numerous payment methods and currencies
Extensive cryptocurrency support

Cons

High trading fees
Lack of trading tools vs. other cryptocurrency exchange platforms
No crypto staking
No cryptocurrency swapping

5 Ways to Secure Your Cryptocurrency

The threat to digital currencies is often through exchange providers or cryptocurrency wallets. So, here are some ways to secure your cryptocurrency:

1. Use a secure internet

While making crypto transactions or trading online, avoid public Wi-Fi networks and use only a secure internet connection.

Even if you’re accessing your cryptocurrency account via your home network, you can add an extra layer of protection by using a VPN, which alters your location and IP address, so your browning activity is private and safe from threat actors.

2. Don’t get phished

Phishing scams through emails and malicious ads are rampant in the blockchain industry. So, avoid clicking unknown or suspicious links.

3. Double-check domain names and URLs

Check the domain name, URLs, or social media handle you’re using or visiting to ensure you don’t send information or money to someone falsely posting as a legitimate business or individual.

Moreover, ensure they are a verified account, or there are no apparent misspellings.

4. Never share your private key or financial information

Keep your private key safe. A private key is a secret number used in cryptocurrency transactions. It represents the final ownership and control of cryptocurrency. A private key can be in the form of:

A QR code
64 digit hexadecimal code
Mnemonic phrase
256 character long binary code

Regardless of its form, never share it with anyone. If you choose a cryptocurrency exchange platform, make sure it is a reputable and trusted company with a high emphasis on regulation and security.

5. Use two-factor authentication

If you want to keep your crypto safe, use unique or complex passwords – and change them at least every three months. You may choose not to change it unless you believe the password has been compromised.

Use two-factor authentication methods as well, wherein you must provide at least two verification factors before gaining access to your account. This way, an account breach is less likely to happen.

Wrap Up

There’s no question about the security of MoonPay.

Your transaction with MoonPay is safe, very fast, and, although expensive, is not too big compared with other cryptocurrency exchange platforms. But if you are more serious about crypto investing, I recommend trying other alternatives first.

Try Coinbase, for instance, if you’re a beginner trader, and Gemini if security is your priority. The latter holds most digital assets in cold storage and even carries digital asset insurance, so you don’t have to worry about security when doing a crypto exchange.

To learn more about trading strategies, check out FoxyTrades.com.