Re: Why do people store their cryptocurrency on exchanges?
I am in the process of purchasing a Ledger Nano offline wallet and it got me thinking about why people store their digital assets on crypto exchanges.
These exchanges are susceptible to hacking, insolvency/bankruptcy, misuse of customer funds (FTX) etc.
What would happen if Binance got hacked tomorrow and lost the majority of its cryptocurrency? Would they be able to reimburse customers or would they become insolvent?
I asked my close group of friends how many store their assets on exchanges and only 1 out of 6 uses an offline wallet.
The recent incident with Luke Dashjr confirms that you are always at risk of being hacked no matter how vigilant you are.
Will give my thoughts on the Ledger Nano once I receive it.
These exchanges are susceptible to hacking, insolvency/bankruptcy, misuse of customer funds (FTX) etc.
What would happen if Binance got hacked tomorrow and lost the majority of its cryptocurrency? Would they be able to reimburse customers or would they become insolvent?
I asked my close group of friends how many store their assets on exchanges and only 1 out of 6 uses an offline wallet.
The recent incident with Luke Dashjr confirms that you are always at risk of being hacked no matter how vigilant you are.
Will give my thoughts on the Ledger Nano once I receive it.
I do not think that most people truly understand the spirit and motivation behind cryptocurrency, especially Bitcoin. Its about taking away the power that others have over our money and our life by decentralization, trust-less payments and making your money your own responsibility.
But for some people, this responsibility is too much so they would rather outsource it. Whether for convenience or just because they do not trust themselves with holding on to their own money, people still run to the exchanges and hand over all their money.
Its a lazy and sad excuse but at some point, when their money is taken away from them, they will understand the spirit of crypto. Then perhaps they will become true hodlers.
Suffice it to say, we need to push decentralization and decentralized tech much much harder. People are definitely starting to wake up.
