Hey everyone,
I'm back with an important topic that I think needs to be addressed - why custodial exchanges are not the place to store your crypto in 2023.
As the cryptocurrency market continues to grow, more and more people are getting involved and buying crypto. And with that, custodial exchanges have become increasingly popular as a place to buy, sell, and store crypto. But as someone who's been in the crypto space for a while now, I want to stress that custodial exchanges are not the safest place to store your crypto.
First of all, it's important to understand what a custodial exchange is. Essentially, it's an exchange that holds your crypto for you, instead of you holding it yourself in a non-custodial wallet. So when you buy crypto on a custodial exchange, you're entrusting that exchange to keep your crypto safe.
But here's the thing - custodial exchanges are prime targets for hackers. We've seen it time and time again, with big exchanges getting hacked and people losing their crypto. And even if an exchange has never been hacked before, that doesn't mean it's immune to it in the future.
Additionally, custodial exchanges are centralized, meaning that the exchange has full control over your crypto. This can lead to issues like account freezes or seizures if the exchange is facing legal troubles, or if the government decides to shut it down. Or in some cases, the exchange's management team can make the decisions that are not beneficial for their users, like mishandling of funds, insider trading, fraud, and so on.
That's why, in my opinion, non-custodial wallets are the way to go in 2023. With a non-custodial wallet, you hold your own private keys and you're in full control of your crypto. This means you can access your crypto anytime you want, without having to rely on a third party. And even if the wallet provider gets hacked, your crypto will still be safe because it's not stored on their servers.
In summary, custodial exchanges might be convenient for buying and selling crypto, but they're not the safest place to store it. If you're serious about holding onto your crypto for the long-term, a non-custodial wallet is the way to go.
Take it from me, someone who's seen the crypto space evolve over the years. Trust me, non-custodial wallets may be a little bit harder to use at first, but it's worth the extra step to have full control and security over your crypto.