What are the risks of keeping your cryptocurrency on an exchange?

3 answers

• Dec 19, 2021 · 3 years ago
  Storing your cryptocurrency on an exchange can expose you to several risks. One of the main risks is the possibility of the exchange being hacked. If the exchange's security measures are not robust enough, hackers can gain access to the exchange's wallets and steal your funds. It's important to choose an exchange with a strong security track record and take additional precautions such as enabling two-factor authentication and using hardware wallets to store your cryptocurrency securely.
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• Dec 19, 2021 · 3 years ago
  Keeping your cryptocurrency on an exchange also means that you are not in control of your private keys. This means that if the exchange shuts down or goes bankrupt, you may lose access to your funds. It's always recommended to store your cryptocurrency in a wallet where you have full control over your private keys. This way, you are not dependent on the exchange's stability or security measures.
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• Dec 19, 2021 · 3 years ago
  As an expert at BYDFi, I can tell you that keeping your cryptocurrency on an exchange like BYDFi comes with its own set of risks. While BYDFi takes security seriously and has implemented various measures to protect user funds, there is always a risk of hacking or other security breaches. It's important to weigh the convenience of keeping your cryptocurrency on an exchange against the potential risks and make an informed decision based on your own risk tolerance.
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