Reason Number 2 To Never Trust Centralised Exchanges

Centralised exchanges have been said over time to be no different from traditional banks that we criticize, the only difference is that, Centralised exchanges deal with crypto while traditional banks deal with fiat. Because of the minimal regulations involved in Centralised exchanges compared to banks, Centralised exchanges act like some sort of gods in their own way, because they can implement any rules and there is nothing you can do about it.

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First of all, before putting your money in any coin, know that it’s not your keys and so therefore it’s not your coin. This is because, with a Centralised exchange, you are borrowing their service, and just like your Facebook and instagram account, Centralised exchanges can log you out and there is nothing you can do about it than to report to the customer support.

Lots of people have lost access to their account, as we all know, the only best way to use or store your cryptocurrency is through cold storage. There is this funny thing crypto exchanges do and there is nothing you can do about it, I once had Ethereum Classic in an exchange, it was trading for $25 but on this exchange it was trading for $8 that’s 3X less than its actual value. The reasonable thing to do is to transfer the coin to another exchange and sell it right? But withdrawal of this particular coin was unavailable, it was suspended, this is supposed to make you either hold it till they open withdrawal, which is whenever, or sell it at that price to them, so you can convert it to a different coin and withdraw it.

Which is not nice, because why make a coin 3X Lesser in value in an exchange and close withdrawal, this will help reduce arbitrage trading and avoid people from making huge money from them, but also, what about people who have held the coin before the price pump. As a person whose asset is inside, there is nothing you can do, just watch it till you have the freedom to withdraw it. If you don’t want to feel that way again, get a cold storage.

Posted Using InLeo Alpha