What are the risks associated with 'not held' in cryptocurrency trading?

3 answers

• Dec 15, 2021 · 3 years ago
  When it comes to 'not held' transactions in cryptocurrency trading, there are several risks to consider. One of the main risks is the potential for hacking and theft. By not holding your own cryptocurrency assets, you are relying on a third party to secure and protect your funds. If the third party's security measures are compromised, your assets could be stolen. Additionally, not holding your own assets means you have limited control over your investments. You may not be able to access your funds when you need them or make quick trading decisions. It's important to carefully consider the risks before choosing a 'not held' approach in cryptocurrency trading.
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• Dec 15, 2021 · 3 years ago
  Not holding your own cryptocurrency assets can also expose you to counterparty risk. When you entrust your assets to a third party, you are relying on their financial stability and trustworthiness. If the third party goes bankrupt or engages in fraudulent activities, your assets could be at risk. It's crucial to thoroughly research and choose a reputable and trustworthy third party if you decide to go with a 'not held' approach in cryptocurrency trading.
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• Dec 15, 2021 · 3 years ago
  At BYDFi, we understand the risks associated with 'not held' transactions in cryptocurrency trading. While it may offer convenience and ease of use, it's important to be aware of the potential consequences. We always recommend our users to take control of their own cryptocurrency assets and store them in secure wallets. This way, you have full control over your funds and reduce the risks associated with relying on third parties. Remember, the security of your assets should always be a top priority in cryptocurrency trading.
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