How safe is it to store cryptocurrencies on an exchange like FTX?

With the recent collapse of FTX, can we trust centralized exchanges, or should we move our funds from them?

I don’t know what the best option in this situation is. Can anyone guide me on what to do in this kind of situation?

I am new to crypto investment.

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12 thoughts on “How safe is it to store cryptocurrencies on an exchange like FTX?”

  1. Having your crypto funds on a centralized exchange is like putting all of your money in your friend’s house. Your friend controls your money now and if they go bankrupt, they’ll take your money. If their house burns down (insolvency), your money is gone. If they decide to betray you like FTX did, your money is gone. Your friend’s house could be burglurized by hackers, like the FTX hack. Not your house keys, not your crypto.

    Basically, before you ever leave money on an exchange for a period longer than a few hours, ask yourself: Would you store all your money at a close friend’s house? No matter how much you think you trust them, there will always be unease in the back of your mind than if you kept it at your house in a cold storage hardware wallet.

    Same applies to major crypto exchanges. They are not like banks. They are an unregulated industry. Like an informal agreement between 2 friends with no legal recourse.

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  2. Move them to non-custodial wallets. To be guaranteed the safety of your funds and your privacy, you should have them in private wallets such as Railway, where you maintain self-custody rights over your assets. IMO, it’s the best option at the moment.

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  3. Funds aren’t safe. Use a non-custodial wallet. Not your keys, not your coins. Better safe than sorry.

    I can only say it in so many ways 😅

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  4. You may want to do trading or whatever on a CEX, in that case keep an amount of money on there you that would only ruin your day for a few days if you lost it. And HODL the majority of your money on a cold storage wallet.

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  5. >Can anyone guide me on what to do in this kind of situation?

    Buy a self-custodial wallet like Ledger or Trezor and learn how to use them. You don’t need a centralized exchange to store your assets

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  6. I’m gonna pretend that I’m taking your post seriously. Some cexes can be more reliable than others. But keep in your mind that they have control of your funds. Binance or ftx, whatever. They can do what they want. Some of them have bigger odds than others. Stick to defi and dexes like trader joe on avalanche

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  7. Man, crypto is NOT for you, while you ask so stupid questions. You must google and educate yourself on crypto fundamentals at least. Can’t google – can’t possess crypto at all.

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  8. It might be quite complicated to create and maintain wallets in DeFi. If this is indeed your first time, you should try out asset management protocols that streamline the whole process. Certain identity protocols have enabled it in such a way that you can create such wallets using everyday logins such as Gmail.

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