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Crypto Exchange Storage: Why “Not Your Keys, Not Your Coins”


Mar, 06, 2025
< 1 min read
by Ikemefula Aruogu
for CoinEdition
Crypto Exchange Storage: Why "Not Your Keys, Not Your Coins"

Coin storage is a crucial aspect of cryptocurrency ownership and use. Most new cryptocurrency users adopt centralized exchanges for coin storage, and their reasons are understandable. 

For instance, crypto exchanges are most users’ gateway into the crypto industry. They serve purposes like providing options to buy and trade cryptos easily. However, it is crucial to understand the inherent risks of leaving one’s crypto assets on such exchanges.

Why Users Choose Centralized Exchanges

Apart from buying and trading cryptos, most centralized exchanges provide extended services that benefit crypto users. 

Staking, lending, margin trading, and consistent liquidity represent some features that attract crypto users to centralized exchanges. Such users store their assets in custodial wallets on the exchanges to make it easy for them to carry out their activities. The question is whether a crypto holder would choose convenience over security.

Major Risks of Centralized Exchange Crypto Storage

No matter the attractive features of a centralized exchange, it is incomparable with the cons associated with centralized exchanges, it is nothing compared to the cons asso…

The post Crypto Exchange Storage: Why “Not Your Keys, Not Your Coins” appeared first on Coin Edition.

Read the article at CoinEdition
MainNewsCrypto Excha...

Crypto Exchange Storage: Why “Not Your Keys, Not Your Coins”


Mar, 06, 2025
< 1 min read
by Ikemefula Aruogu
for CoinEdition
Crypto Exchange Storage: Why "Not Your Keys, Not Your Coins"

Coin storage is a crucial aspect of cryptocurrency ownership and use. Most new cryptocurrency users adopt centralized exchanges for coin storage, and their reasons are understandable. 

For instance, crypto exchanges are most users’ gateway into the crypto industry. They serve purposes like providing options to buy and trade cryptos easily. However, it is crucial to understand the inherent risks of leaving one’s crypto assets on such exchanges.

Why Users Choose Centralized Exchanges

Apart from buying and trading cryptos, most centralized exchanges provide extended services that benefit crypto users. 

Staking, lending, margin trading, and consistent liquidity represent some features that attract crypto users to centralized exchanges. Such users store their assets in custodial wallets on the exchanges to make it easy for them to carry out their activities. The question is whether a crypto holder would choose convenience over security.

Major Risks of Centralized Exchange Crypto Storage

No matter the attractive features of a centralized exchange, it is incomparable with the cons associated with centralized exchanges, it is nothing compared to the cons asso…

The post Crypto Exchange Storage: Why “Not Your Keys, Not Your Coins” appeared first on Coin Edition.

Read the article at CoinEdition