What are the risks of keeping crypto on an exchange?

3 answers

• Jan 07, 2022 · 3 years ago
  Storing your cryptocurrencies on a digital currency exchange can expose you to several risks. One major risk is the possibility of a security breach or hacking attack on the exchange platform. If the exchange gets hacked, your funds could be stolen, and you may have little to no recourse to recover them. It's important to choose reputable exchanges with robust security measures to minimize this risk.
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• Jan 07, 2022 · 3 years ago
  Another risk is the potential for the exchange to go bankrupt or shut down. If this happens, you may lose access to your funds or face delays in withdrawing them. It's advisable to only keep a portion of your cryptocurrencies on an exchange and store the rest in a secure offline wallet.
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• Jan 07, 2022 · 3 years ago
  At BYDFi, we understand the risks associated with keeping crypto on an exchange. That's why we prioritize the security of our platform and implement industry-leading measures to protect our users' funds. However, it's always recommended to diversify your storage options and consider using hardware wallets or cold storage for long-term holdings.
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