Proof of reserves is designed to get exchanges demonstrate transparency by proving that customers deposits are safe in their possession. In an industry riddled with uncertainties and fraud, the need to reassure investors that their funds are safe cannot be overemphasised.
In a bid to raise transparency and trust in cryptocurrency exchanges Proof of reserves allows customers and auditors to indeed verify that exchanges retain the funds they deposited in them.
Unfortunately only a handful of exchanges currently offer any kind of proof of reserves for their customers; while some cite security, cost and competitive disadvantages for their failure to release their proof of reserves, the bold ones have gone on to release theirs.
As a trader, do you feel safe using such exchanges that haven’t released theirs or should the more transparent ones be given preference?
To be able to know or able to see the better on which it does really give out that kind of transparency and we investors or users would really be having that kind of emotion of having that kind of confidence on which we do
always prefer on seeing on everything specially on reserves but its true that only a handful or platforms who do really give out that kind of transparency and the rest are just making out some reasoning that they cant just provide out such information and having the alibi about security or whatsoever but actually they might really just trying out to hide off something whether on those common means.
About unsafe things then as long you do put up your money on an exchange platform or something that you dont possess the keys of your wallet then its not considered 100% safe even if we do speak about the most
known or reputable exchange in the planet but still it wont really be giving out assurance of total safety of your coins because of possible circumstances that might happen then for sure you would be able
to experience those locked up for funds or really totally lost your asset which is totally that devastating.