If you squirm at the thought of creepy germs on toilet seats and faucet handles you probably spend as little time as possible in a public restroom.
Turns out crypto exchanges are not that much different than a public restrooms. Stick around long enough and bad things happen !
FTX was one of the largest exchanges and spent millions of dollars lobbying U.S. legislators to institute crypto regulation only to experience a monumental crash in a matter of days.
More than a million investors stand to lose their money from the FTX collapse including Kevin O’Leary who is a spokesman for FTX .
The list goes on with many other exchanges that have failed over the years leaving no chance for investors to recover their crypto.
All this begs the question , why leave your crypto on an exchange and assume the risk ?
Don’t know how to use a hardware wallet ? There are many YouTube tutorials out there. I don’t consider myself a tech savvy person but I was able to set up my LEDGER after watching a ten minute video. A quick search on Medium also pulls up a handful of helpful articles. It may seem daunting at first but it’s not as difficult as it may seem at first.
Is it because the exchange you are using has been around for years ? Although an exchange may have more credibility for standing the test of time it is not a guarantee of future success. After all Celsius and Voyager were both in business for five years. Voluntary audits are now in vogue as exchanges are trying to prove their stability with a trust exercise meant to curtail exchange outflows.
Is it because an exchange has customer support ? Do yourself a favor and read reviews for centralized exchanges and you will find a host of complaints ranging from poor to almost nonexistent customer service. Also , if you are using a decentralized exchange most offer no customer service.
You think your crypto is insured ? Many may roll their eyes on this one but some actually think they are insured . If you are holding your crypto on an exchange and they go bankrupt you are not insured and will in most cases get pennies on the dollar. Your crypto will be used to pay off their debts and legal fees and retail investors come last. Those are the cold , hard facts.
If I start hearing bad news about my exchange I’ll just move my crypto. When things begin to unravel that ball of yarn unravels fast. I personally experienced this with Celsius. I was able to move my SUSHI and USDC off the platform but my BTC and MATIC withdraws would not go through. If you think you can move faster than bad news I wish you God speed !
Do your business and get out. You wouldn’t want to spend any more time in a public restroom than you have to , why would you keep your crypto on an exchange ?
