In this guide, we will examine the security of the NAGAX exchange, a newly launched Web3 social trading cryptocurrency platform by the German Fintech Naga Group AG. Specifically, we will consider its reputation (so far) in the market, the measures it takes to safeguard customer funds, and the account security tools it provides its customers, among other things.
NAGAX is a social trading cryptocurrency platform launched in March 2022 by German-based publicly-traded Fintech company Naga Group AG. The exchange, based in Tallinn, Estonia, is part of a suite of subsidiaries operated by its parent, including:
- NAGA Global (SV) Ltd, based in Kingstown, St. Vincent, and the Grenadines;
- NAGA Global (CY) Ltd, based in Nicosia, Cyprus;
- NAGA Markets Europe Ltd, based in Limassol, Cyprus; and,
- NAGA Technology GmbH, is based in Hamburg, Germany.
Even though these entities are registered in various locations, they offer similar services, including brokerage and trading services for traditional financial instruments such as stocks, forex markets, and even crypto.
However, NAGAX is the first dedicated subsidiary to offer the cryptocurrency-related services, including:
- Crypto spot trading;
- Cryptocurrency brokerage with fiat support;
- Cryptocurrency wallet with support for more than twenty blockchain protocols and over 1,000 digital assets.
Other products scheduled for a subsequent release include:
- NAGA Coin (NGC) staking;
- Crypto derivatives trading (with leverage);
- Non-fungible token (NFT) marketplace; and
- A crypto project launchpad.
Note: For more information on the platform and its main products, check out our in-depth review of the NAGAX platform here.
NAGAX’s reputation in the industry
NAGAX is a relatively new company, launched on March 7th, 2022, by Naga Group AG. Given that it has yet to establish any longstanding presence in the marketplace, potential stakeholders can only judge its reputation based on that of its parent.
Naga Group AG is a trading and investment company launched in 2015 and is publicly traded on Germany’s Frankfurt Stock Exchange. So far, it is serving more than a million accounts in over 100 countries.
Two of its Cyprus-based subsidiaries are regulated by CySEC (Cyprus Securities and Exchange Commission) and are fully compliant with applicable local and international laws. The rest of its affiliate entities are also equally compliant with relevant regulations, which shows that Naga Group AG strives to operate within a regulatory framework.
- Besides regulations, NAGAX has also been well received by its users. Looking at the independent ratings and reviews website Trustpilot, the months-old exchange scores an average of 4.3 stars from about 15 reviews (so far);
- 80% of those who left comments rate the exchange at five stars and rave about the platform’s customer support;
- The parent company NAGAX currently has an average rating of 4.2 stars from more than 1,300 reviewers showing that even the more established properties have been well received,
- NAGAX assures the safety of your assets after the exchange of cryptocurrencies. The crypto assets are housed in a cold vault with two-factor authentication for further security.
What makes NAGAX safe?
NAGAX conforms to strict regulations such as KYC (know your customer) and AML (anti-money laundering). The platform becomes safer for customers to use as they can consider their funds and private information secure.
KYC and AML regulations require companies to collect identifying information from their customers, including their:
- Country of residence;
- Telephone number;
- Income source; and,
- Reason for opening an account with the business.
NAGAX Europe OÜ (the “Company”) with registration number 16112787: is a private limited liability company in Estonia. Its services exchange virtual currency against a fiat currency under the Act.
Built-in security features
Other than complying with KYC/AML provisions, NAGAX has taken extra measures to ensure the security of its customers’ accounts and the platform’s infrastructure. These include:
- Storing data privately on reputable cloud storage facilities;
- Regularly making multiple backups of data stored on these cloud servers;
- The service uses firewalls to filter traffic accessing their servers;
- There is also the use of load balancers to ensure that servers are not overwhelmed through DDoS (Distributed Denial of Service) attacks;
- The cryptocurrency wallet is protected using MPC (multi-party computation) and hardware isolation technologies;
- Sensitive information such as private keys and KYC data is encrypted to avoid compromise in the event of unauthorized access;
- Finally, the platform takes an active offensive approach to security with constant security surveillance and quick application of security patches whenever a vulnerability has been discovered.
Personal account security
The account holders or users also have a role to play in ensuring the safety of their assets and accounts. NAGAX encourages its users to:
- Enable multi-factor/second-factor authentication (2FA) through SMS or authenticator apps;
- Use strong passwords to deter brute force hackers.
NAGAX Customer Support
There are several channels to contact NAGAX’s customer support. To reach the exchange’s help desk, you can use any of the following available channels:
The Live Chat feature is available in the Help Center section. To receive live support, tap or click on the blue button on the bottom right of any page within the help section.
Users can get further assistance through the social trading Feed feature, whereby they can chat with other users, ask questions or even copy trading strategies as they are posted without having to edit them.
The social trading feature is beneficial not just to the beginners who learn from the experts, but everyone using it will have a chance to learn by helping others use the platform and take advantage of all the exchange has to offer.
Overall, NAGAX is a solid social crypto exchange with an enabling trading environment for both newcomers and experienced users. It is highly secure and complies with global KYC/AML provision standardss.
Regarding reputation, despite being a newly launched asset, it is part of a family of subsidiaries, all of which enjoy stellar reputations within their respective marketplaces. Whether NAGAX maintains its inherited reputation remains to be seen, given the dynamic nature of the cryptocurrency marketplace.
Frequently Asked Questions about NAGAX Exchange
What is NAGAX?
NAGAX is a social cryptocurrency trading exchange launched in March 2022 by German Fintech NAGA Group AG. It is a spinoff of the NAGA trading platform, which already offers crypto brokerage services on top of other traditional-focused products. However, with NAGAX, the platform will focus on offering blockchain-related services including brokerage and trading.
What services does NAGAX offer?
So far, NAGAX users are able to buy, trade, and sell cryptocurrencies on the NAGAX platform. There is support for two fiat currencies (USD and EUR) against hundreds of digital assets. The platform is looking to expand its service offering to include:
- An NFT marketplace;
- Crypto project launchpad;
- NAGA Coin (NGC) staking; and
- Cryptocurrency derivatives trading with leverage.
Is NAGAX safe?
NAGAX is a solid social crypto exchange offering its users a safe brokerage and trading environment. The platform is not only compliant with relevant global and Estonian local laws, but it is also very secure employing multiple measures to help secure its systems and customer assets. All in all, NAGAX is a very secure exchange.
Where is NAGAX based?
NAGAX’s main offices are based in Tallinn, Estonia.