Are you interested in Cryptocurrency? Where will you keep it?
Posted By RichC on October 23, 2021
It is probably inevitable that we will all be using cryptocurrency someday. The early adopters are already immersed and getting comfortable investing and trading it … perhaps too comfortable???
Risks of Leaving Cryptocurrency in Exchange
A brief look at the history of Bitcoin and cryptocurrencies reveals why it is dangerous to leave your crypto funds in an exchange. Since 2011, over $1.65 billion worth of crypto assets have been stolen, and the numbers are getting bigger every year. According to Hackernoon, that amounts to a jaw-dropping $12.6 billion loss when values are adjusted for inflation.
The point here after doing my reading and research is to remind people enticed by the exploding number of crypto trading exchanges popping up is that your assets are only as secure as the company hold them. It is inevitable some will fail based on their business practices (high interest on holdings offers) as they compete for customers … and others will struggle just as early online banks did as they are acquired and absorbed in buys and mergers. Having had my identity leaked in the 1990s partially due to being anxious to bank online, my ID info was stolen by the sale of an acquired banks hardware (computers/hard drives we think), I can only imagine what could be coming from cloud-based overseas exchanges and unregulated cryptocurrency exchanges?
My advice if are trading and using cryptocurrency is to stick with well financed major US based companies who you “know”
insure your assets that could be at risk due to fraud or employee issues AND to keep only the assets you need to trade, exchange or use for crypto “banking” in an online wallet. Your other crypto assets should be stored in a reputable hardware wallet “offline” (see Ledger, Trezor, etc) except when moving coins to and from that wallet … and purchase it directly from the company to prevent 3rd party tampering).
As Aldous Huxley penned in 1932 dystopian social science fiction novel, we are living in a “Brave New World.”
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