Post
Topic
Board Bitcoin Discussion
Re: Coins on an exchange, any exchange, are never safe
by
real_newguy05
on 10/11/2022, 02:21:07 UTC
Every day it seems a new story emerges about an exchange going bankrupt. Has been a recurring pattern since the Mt. Gox collapse. Why, with so many examples of failures, do people continue to keep their money on these? You don't own crypto if you have "coins" on an exchange, you have an IOU from a business that may or may not even be solvent.

It’s not so cut and dry. Keeping it at home or in some secret bank vault has its own risks, people can steal it(which they only need to copy the key you won’t even know until the coins are gone), it can burn down, access is severely limited etc… you can make backup and put it somewhere else, but that just opens up another point of exposure.

It all depends on your situation, if you live alone in a concrete house where no one has access, then yes keep it yourself, but most of us aren’t in this situation. 

Life is all about risk management, this is no different. Any exchanges outside of us regulation or foreign owned is a definite no, coinbase despite all the hate I think is pretty safe as they are us listed company and well regulated. Their risk management is also well defined. Can it still go down? Of course, is it likely to happen? Probably not.   Is it safer to keep your crypto there vs at your home safe? Only you can answer.