{"id":35071,"date":"2021-03-09T10:42:04","date_gmt":"2021-03-09T05:12:04","guid":{"rendered":"https:\/\/www.the-next-tech.com\/?p=35071"},"modified":"2021-03-09T19:28:57","modified_gmt":"2021-03-09T13:58:57","slug":"what-are-the-risks-of-leaving-your-crypto-in-an-exchange","status":"publish","type":"post","link":"https:\/\/www.the-next-tech.com\/blockchain-technology\/what-are-the-risks-of-leaving-your-crypto-in-an-exchange\/","title":{"rendered":"What are the risks of leaving your crypto in an exchange?"},"content":{"rendered":"

With all the recent news regarding exchanges getting hacked, many people are wondering
\nwhat the\u00a0risks<\/a>\u00a0of leaving crypto on an exchange are. There are different options to store your
\ncrypto. Some are safer than others. So let’s look at what those are.<\/p>\n

There is an unspoken rule among crypto enthusiasts. It is that you should never leave your
\ncrypto under someone else’s control for longer than you should. Of course, each time you
\ndeposit crypto or buy crypto with fiat on any crypto exchange, there is no way to avoid that.
\nAnd if you are interested in trading rather than holding your crypto \u2013 then keeping a small
\namount on your preferred exchange is best.<\/p>\n

Trading crypto is different than holding it as an investment. When you trade, you need to be
\nable to react quickly to market movements. This means having your crypto handy for
\nexecuting market or limit orders. For this purpose, keeping your crypto on an exchange is
\nnecessary. Since security differs from exchange to exchange \u2013 this isn’t inherently risky.
\nAlso read:<\/span> Top 10 Job Search Websites of 2024<\/a><\/span>\nCrypto exchanges that use 2FA (two-factor identification) are more secure.
\nCryptoExchange.com is definitely one of those exchanges that are taking their security
\nseriously. Because of that, it is a great platform to use for trading cryptocurrencies. The
\nbottom line is that no matter how secure exchange is, it will always be a hot target for
\nhackers. Hence, storing funds for long-term storage on CryptoExchange.com<\/a> and any other
\nexchange is not recommended.<\/p>\n

If you want to hold your crypto funds rather than trade, it’s always best to take them off the
\nexchange where you purchased them. You can then store them in a non-custodial wallet.
\nPreferably, it should be a reputable hardware wallet like Trezor. That way, your funds aren’t
\nin some ambiguous Cloud online. They’re in your hand. Every exchange in the world can get
\nhacked, and your crypto coins will still be relatively safe. Of course, there are other means of
\nstoring coins that are even safer, as described below.<\/p>\n

That being said, using CryptoExchange.com for its sole purpose, as a platform to exchange
\nyour money for some bitcoin and other cryptocurrencies, is perfectly safe. Simply withdraw
\nyour funds after every transaction. You should do that for the same reason why you wouldn’t
\nleave your hard-earned money in the hands of money remittance centers and brokers. You
\nwant your money in a safe place where no one has access to it but you.<\/p>\n

Get in the habit of leaving just enough funds on exchanges to be able to trade. And only leave
\nfunds that are actually being traded on the platform.
\nAlso read:<\/span> Everything You Need To Know About Drive4Walmart<\/a><\/span>\nMost crypto users prefer to retain full control of their funds. The only way to do that is by
\nselecting a crypto exchange with strong security and having an offline backup wallet. There
\nis only one way to have total control and to have significantly better security over your funds.
\nThat is to use a digital wallet that gives you access to your private keys\/recovery seed. That
\nway, even if the crypto exchange you are using gets hacked, your money will be untouched.<\/p>\n

Using a good\u00a0mobile wallet\u00a0is safer than using the wallet on an exchange. If you feel mobile
\nwallets’ security is not enough if you’re holding a significant amount of coins, you can look
\ninto a good offline wallet, which usually looks like a USB. For people who hold a good<\/p>\n

amount of bitcoin and cryptocurrencies, it’s best to use a secure exchange with 2FA<\/a> as well as
\nget a hardware wallet.<\/p>\n","protected":false},"excerpt":{"rendered":"

With all the recent news regarding exchanges getting hacked, many people are wondering what the\u00a0risks\u00a0of leaving crypto on an exchange<\/p>\n","protected":false},"author":146,"featured_media":35072,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[135],"tags":[],"_links":{"self":[{"href":"https:\/\/www.the-next-tech.com\/rest\/wp\/v2\/posts\/35071"}],"collection":[{"href":"https:\/\/www.the-next-tech.com\/rest\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.the-next-tech.com\/rest\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.the-next-tech.com\/rest\/wp\/v2\/users\/146"}],"replies":[{"embeddable":true,"href":"https:\/\/www.the-next-tech.com\/rest\/wp\/v2\/comments?post=35071"}],"version-history":[{"count":5,"href":"https:\/\/www.the-next-tech.com\/rest\/wp\/v2\/posts\/35071\/revisions"}],"predecessor-version":[{"id":35082,"href":"https:\/\/www.the-next-tech.com\/rest\/wp\/v2\/posts\/35071\/revisions\/35082"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.the-next-tech.com\/rest\/wp\/v2\/media\/35072"}],"wp:attachment":[{"href":"https:\/\/www.the-next-tech.com\/rest\/wp\/v2\/media?parent=35071"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.the-next-tech.com\/rest\/wp\/v2\/categories?post=35071"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.the-next-tech.com\/rest\/wp\/v2\/tags?post=35071"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}