What are the risks of storing crypto on exchanges and how can I mitigate them?

3 answers

• Dec 20, 2021 · 3 years ago
  Storing cryptocurrency on exchanges can be risky due to the potential for hacking and security breaches. Exchanges are often targeted by hackers who aim to steal users' funds. To mitigate these risks, it is recommended to use exchanges with strong security measures, such as two-factor authentication and cold storage for funds. Additionally, it is advisable to only keep a small amount of cryptocurrency on exchanges and store the majority in a secure offline wallet.
  468234
• Dec 20, 2021 · 3 years ago
  One of the main risks of storing crypto on exchanges is the possibility of the exchange being hacked. This can result in the loss of your funds. To mitigate this risk, it is important to choose reputable exchanges with a track record of strong security measures. It is also recommended to enable two-factor authentication and regularly update your passwords. Additionally, consider using a hardware wallet for storing your crypto, as it provides an extra layer of security.
  473158
• Dec 20, 2021 · 3 years ago
  Storing cryptocurrency on exchanges can be risky, as exchanges are often targeted by hackers. However, there are steps you can take to minimize these risks. Firstly, choose exchanges that have a good reputation and a history of strong security measures. Enable two-factor authentication to add an extra layer of security to your account. It is also recommended to regularly monitor your account for any suspicious activity. Finally, consider using a hardware wallet to store the majority of your cryptocurrency holdings, as it provides offline storage and is less vulnerable to hacking attempts.
  595149