Security Of Funds is A Big Concern in Crypto
Hi everyone, hopefully you are fine and having fun with your family and friends.
In crypto it is the hot topic that where one should keep funds so that it can be 100% safe.
Now a days Security is a big concern when it comes to money. We have Different centralized exchanges that claims to be the safest but in reality it is not 100% true.
My experience is not that good with the centralized exchanges. From these exchanges that claims to be best in security of funds, some of them Got hacked in the past as a result users lost millions of funds. What that means is we should not keep funds on these centralized exchanges. The money is at 100% risk.
Lets say you need some funds on the centralized exchange to do trading ir for some other purposes , in this case you should move only less than 10% of your money , the rest should be in a private wallet to which you are hllding the keys. Thats the strategy to minimze the risk .
Yes, the best way to keep your funds safe is to keep them in a private wallet or a hardware wallet. Make sure to keep the keys store in a safe place. Not your keys, not your funds. And also dont share the keys with anyone.
Keeping your crypto off the exchanges is actually have many benefits. The major of all is that you can move your funds at any time you want without any delay. While the exchanges sometimes block funds without any reason.
I have experienced such situation in the past. I requested a withdraw from a centralized exchange and it got stucked for many days without any reason. It was really a big pain . Since then i now keep my funds at multiple places so that i can use other ways if one is not working.
Even Binance which is the biggest centralized crypto exchange in the world sometimes wont allow smooth withdrawl of funds. Why we should wait for our own funds ? This is sometimes very disturbing. So its better to keep your funds in a private wallet, move it to exchange only if you really need it.
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@coolguy222 is a full time crypto trader and content creator on hive blockchain. He loves to make new friends.
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