Option #1: Exchanges
An exchange is a third-party storage system that has full control of your cryptocurrency assets. β€Œ
Exchanges offer ease and usability as you do not have to manage your crypto yourself β€” somebody else takes ownership of your asset security. However, this can hurt as much as it helps - if the exchange shuts down, is hacked, or they simply walk away; you lose everything. β€Œ
It is evident that exchanges cannot always be trusted. Even if you think yours is safe, you still don't have autonomy over your funds. Because they hold your private keys, the exchange is ultimately in control of your crypto and can freeze your account at any time.β€Œ
The idea of an exchange goes against the very nature of crypto. It is supposed to be decentralized, but exchanges act like a bank - the very thing we are trying to steer away from!
Last modified 1mo ago
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