The answer, in short, is NO.
Cryptocurrency exchange can be the best way of getting coins, but many people who use them make the mistake of keeping them in the exchange wallet instead of transferring them to a private wallet.
Storing cryptographic coins on exchange wallets can be dangerous for several reasons. Let’s take a look.
1. Exchanges can be hacked
This has recently happened with Cryptopia, a New Zealand exchange.
Two months later, although the Cryptopia team is working to solve this problem, we still do not know how many customers have lost all or part of their funds.
2. The problem of not being regulated
The world of cryptocurrency is a bit like the Wild West, no one is in charge and there are not many rules.
This means that in situations, such as in the recent survey of a crypto exchange in South Korea, assets may be frozen. Although exchange owners can tell their customers that their encryption assets will remain safe, they cannot guarantee this in any way.
So, it’s better to be safe than sorry.
3. The owner of the exchange dies and takes all the coins to his grave
One of the strangest stories in the history of cryptocurrency: Gerald Cotten, owner of the Canadian Quadriga Exchange, recently died while traveling to India. All the customers lost access to their funds because Cotten was apparently the only one to know the password.
P.S. This is not only unprofessional and stupid but also so careless that it seems almost impossible. The internet, therefore, thinks that Cotten is much more likely to have faked his own death.
4. Zero property
You can store all the coins or tokens you buy on your exchange wallet, but you do not really own it. Exchange wallets differ from personal wallets because they are ideally “hot wallets” for trading.
If something happens during the exchange, you have no control over your coins because they are not in your custody.
So, what should you do?
Make sure you only use exchanges to exchange – that’s what they are supposed to do. The exchanges are intended for the exchange of coins, the wallets for their storage.
If you have to leave coins on the stock market, because you want to trade them or lend them, use only amounts that you can afford to lose.
Keep all your crypto-currencies in a separate wallet, such as BlockBanc.
BlockBanc is a multiprotocol utility portfolio that combines the power of centralized and decentralized technology with a simple and secure mobile application. You will be able to store all your altcoins in the smart wallet safely.
With features such as PIN lock, portfolio backup, fingerprint recognition, and e-mail verification, you can be sure your chips are safe.
Crypto-currencies supported include:
• SYS • BTC • LTC • ETH • AiBe • XRP • AiBx • EOS • WAV • BCHABC • XLM.
You can download the application here.