- Hackers Love Exchanges: Exchanges store a lot of crypto, making them a juicy target for hackers.
- You Don’t Really Own Your Crypto: When your crypto is on an exchange, they control it, not you.
- Exchanges Can Go Out of Business: If this happens, you might lose your money, or it could take a long time to get it back.
- Less Privacy: Exchanges have to collect lots of information about you, which could get stolen.
What to Do Instead?
For long-term storage, a crypto wallet that you control is much safer. The two most popular kinds are:
- Hardware Wallets: These are small devices, like a USB stick, that store your crypto offline where hackers can’t get to it.
- Software Wallets: These are apps or programs for your phone or computer.
Learn more about types of crypto wallets
The Big Idea: Exchanges are good for buying and selling crypto, but think of them like a bank ATM, not like a bank vault. Don’t leave your money there for long periods of time!
