Cryptocurrency exchanges are the primary way to buy and sell cryptocurrency, but they aren’t a safe place to store assets long-term. There are several reasons why you should avoid using CEXes as a storage solution for your crypto assets.
Crypto exchanges control your funds and private keys. If you want to access, send or receive your coins, you must permit them. If the exchange is hacked, it could take some time before you can reaccess your digital funds.
In addition to this downside, governments can shut down centralized exchanges anytime — rendering your coins inaccessible for good! There have been many cases of governments trying to crack down on crypto traders by shutting down the centralized crypto exchanges they use. Although that isn’t as common today, always opt for self-custody solutions when possible.
In short, centralized exchanges are like the Wild West of money and cryptocurrency storage. There’s no sheriff in town, and all sorts of sticky situations can happen if you don’t protect yourself.
There are many reasons why people choose to keep their cryptocurrency on centralized exchanges. But there are also many reasons why you shouldn’t. Security of your funds—mainly your personal information—is among the biggest.
Let’s first make sure that everyone understands what a cryptocurrency exchange is. It is an online platform where you can buy and sell currencies like Bitcoin, Ethereum and others.
When deciding whether or not to use one of these platforms to store your cryptocurrency long-term, it’s important to understand what they are and how they work.
Every exchange operates like a bank by controlling user funds. No user can do anything without the exchange’s express permission.
The most important thing to remember is that centralized exchanges are not banks.
They are not where you should store your funds long-term, and they do not offer the same level of security as a bank account.
So if you want to hold onto your cryptocurrency for any extended period, it’s best to move it off the exchange and into your wallet.
The post 4 reasons why you shouldn’t keep crypto on centralized exchanges appeared first on CryptoMode.
Lyra Finance recently unveiled LDX, a new token intended to serve as the primary currency…
Seoul, South Korea, 8th May 2024, ZEX PR WIRE, WEMADE and WEMIX were honored with…
Seoul, South Korea, 7th May 2024, ZEX PR WIRE, The 25th of May 2024 will…
Hong Kong, 7th May 2024, ZEX PR WIRE, The MAOCAT project is proud to announce…
FinTech firm Block, formerly known as Square, intends to raise $1.5 billion by issuing senior…
Mexico City, Mexico – Today marks a significant milestone in Mexico's financial history with the…