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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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?
As safe as the smart contracts they run on.
I think solid cefi is a little safer than defi since if things go wrong, cefi has reserves and their investors may also bail things out. But I spread my assets across 7 cefi and several defi to reduce risk.
I use these cefi
https://docs.google.com/spreadsheets/d/1f6DwnVbrBameGwtbtjaW8VGPZgRtRjxyDDyjIFiNL_w/edit?usp=sharing
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.
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.