Most people use centralized crypto exchanges more or less. It is convenient and easy to use to do trading, investing, withdrawing crypto in fiat currency, and depositing fiat currency to buy cryptocurrency. How safe do you feel when you use centralized crypto exchanges?
You secure your email address and password. You are careful about the safety and security of your crypto. You don't click malicious links that may cause you to get access to your password, email address, or cryptocurrency exchange credentials.
You set up two factors authentication in exchange and feel safe because if anything happens, you will get a notification instantly. You maintain everything on your side so that you don't lose your crypto.
So is there any way you can lose your crypto on crypto exchange? You are trading in a crypto exchange when something happens and everything pauses. You cannot do anything for a specific time. You have positions in trading that you should take a profit or exist, but since you cannot do anything, you may lose your fund.
Crypto exchange OKX has been going through connection issues with its cloud provider Alibaba Cloud. As a result, traders cannot trade and the exchange pauses its transactions. There are some glitches that show $0 balance in the account.
OKX says funds are safe, but traders may lose money in trading at that time. It's not the traders' fault, they are suffering the consequences. You don't do anything wrong and the crypto exchange is not hacked, still, you can lose money in trading because of this kind of problem.
Centralized crypto exchanges become victims of exploitation and hacks. Hackers target crypto exchanges and steal crypto from their wallets. That's common and we have seen it. It can be a big risk factor when you do anything in centralized crypto exchanges.
If the crypto exchanges do not get hacked and experience any connection issues with their cloud provider, can you still lose money in centralized crypto exchanges? Yes, you can. As soon as you deposit your crypto in any centralized crypto exchange, the crypto exchange is in control of your crypto. They can do anything with your crypto.
When you find out about their fraud, mismanagement, and all shady activity, maybe it becomes too late. Customers already lose their crypto and the exchange files for bankruptcy. The crypto exchange says one thing and does other things. They violate their own terms and conditions and take customers' money to do whatever they want.
The thing is, there are different ways you can lose your money in centralized crypto exchanges when you don't do anything wrong except trust the exchange. So what do you think? Please feel free to leave your comments. Thank you for reading this post. That's it for now. I'll be back with another post.
Image Sources: 1, and 2.
Reference: 1.
About Me
Hi, I am Rezoanul Vibes. I'm a content creator and passionate learner. I write about finance, cryptocurrency, and lifestyle. I'm glad to meet amazing people all over the world.
Follow me on Twitter
Watch my videos: 3Speak, DTube, and YouTube.