Why security Matters
When you store your cryptocurrencies on a centralized exchange, basically you’re losing the benefits of the cryptocurrencies. Instead, the risk of being stolen or lost is significantly higher with centralized exchanges:
- Centralized exchanges are often the subject of major problems. Because of the irreversible nature of cryptocurrencies, it is very appealing for cyber-criminals. Billions of dollars of cryptocurrencies are stolen from centralized exchanges.
- Centralized exchanges are often the subject of serious accidents. Since there are still many opportunities in the crypto-economy, there is a steady influx of technologically inexperienced entrepreneurs who are trying to capitalize on the new technology. There have been many cases of centralized exchanges that have lost millions of dollars due to fatal and simple mistakes.
- Deposits are rarely secured or insured. In most of the countries, all bank accounts are insured by the government, but cryptocurrencies have different have no such regulation, and insurers usually move away from cryptocurrencies because of its common association with bad management and theft.
Money in a HW Wallet = Your money
Money on an exchange = Not your money