Friends, it is a well known proverb that bird in hand is better than two in a bush. This means any thing on your hand is better than twice which is not in your reach. Same rules appy on crypto market. Crypto market provides an opportunity to keep your coins on either centralized exchange or personal wallet.
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Centralized exchanges are easy to use. It provides large trading volume.Trading is easier here with low fee specially if you deal with ethereum coin which has huge gasfee. Centralized exchange suits to big traders. Trading is a good way of generating income but is it safe to trade on centralized exchanges. The answer is no. One of the main reason of this no is the FTX collapse. FTX collapse deprived investors with million of dollars. The situation promoted self custody. Although self custody don't give you liberty to trade freely but at least it will keep your asset in your custody.
FTX Collapse has promoted cash outflow from centralized exchanges. Investors are shifting stable coins from centralized exchange to self custody. A large outflow from centralized exchange will reduce the trading volume which is obviously not good for the crypto market which is struggling to achieve $1 Trillion global marketcap.
Personally, I am not against keeping coin in centralized exchange, but recent collapse of FTX taught me a lesson to keep minimum investment on centralized exchange and maximum investment on self custody. Minimum investment will provide an opportunity to earn through trading. What is your opinion my friends?
This is it for my today post. Wish you all a very happy, healthy and prosperous life ahead. Have a nice time.
FTX Collapse promote crypto self custody
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