Risks of Anchor Protocol vs. Nexo, Celsius, BlockFi | Are Crypto Savings Accounts Safe?

There is a common believe that centralized crypto platforms (CeFi) are safer than decentralized platforms (DeFi). But is it truly the case? In reality, CeFi platforms are just as risky as DeFi. The only difference is the nature of risks in DeFi and CeFi space.

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5 thoughts on “Risks of Anchor Protocol vs. Nexo, Celsius, BlockFi | Are Crypto Savings Accounts Safe?”

  1. Nexo has a $375 million insurance policy to cover losses from a hack and if I’m not mistaken Celsius self insures. Don’t know about BlockFi. Why was that not discussed?

    Nexo is also registered and licensed in multiple US states and foreign countries. This requires that it comply with certain consumer protection laws. What consumer protection laws does Anchor have to comply with?

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  2. Personally, I don’t think CeFi is anyway more secured than DeFi cos with CeFi you’re loosing custody of your asset since it’s not your keys while DeFi gives you full control. Regardless it’s better to diversify between both and BlockBank does it easier for me.

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  3. Your crypto savings is safe with DeFi and not all but the ones that offer an enterprise grade security like Unido which uses a multisig wallet to enhance the security of assets being stored in it. CeFi will put you at the mercy CEXs, I don’t like that.

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