Cryptocurrencies have been on a wild ride in the past year. Exchanges have risen to fame and then crashed, leaving many people with huge losses. If you are looking to reduce your counterparty risks, it’s time to get your crypto off exchanges and into a safe place! In this blog post, we will give 3 reasons why you should do this now!
Reason #1 – Risk of Exchange Hacks
One of the biggest risks of holding your cryptocurrency on an exchange is the risk of the exchange being hacked. In the past year, there have been numerous exchange hacks, with the most famous being the Mt. Gox hack in 2014, which resulted in the loss of approx. 650,000 BTC!
While Mt. Gox is no longer in operation, there is still the risk that other exchanges could be hacked. By leaving your crypto on an exchange, you are essentially trusting the security of the exchange to keep your coins safe.
If you hold your own private keys, however, you are in complete control of your own coins and no exchange can take them away from you. This is the safest way to store your cryptocurrency.
Reason #2 – Poor Management by Exchanges
Another reason to take your crypto off exchanges is the poor management by many of these exchanges. In the past year, there have been numerous examples of this, with popular exchanges being forced to declare bankruptcy. This has led to many users effectively losing all their assets stored on these exchanges.
If you store your own crypto, you don’t have to worry about this happening as you are in complete control of your own assets. With proper private key management, you can ensure that your coins are always safe and secure.
Reason #3 – Freedom to Move Assets
Exchanges have been known to freeze user withdrawals before. This has led to many people being unable to access their own assets when they need them. By storing your crypto offline, you are in complete control of your own coins and can freely move them as you please.
Government officials can also put pressure on exchanges to freeze user accounts or prevent withdrawals. Thus, by storing your crypto offline, you can ensure that you will always be able to access your assets regardless of what happens.
How To Maximize Your Self-Custody Experience
The best way to self-custody is to pair the experience with a free crypto portfolio tracker that does not require your private keys to operate. By doing this, you can get the best of both worlds – the security of self-custody with the ability to monitor crypto in real time.
Moonrig.io is the best and most advanced crypto portfolio management software that enables traders and investors to track all their assets in one place without ever needing to give up their private keys. Try it out now for free at moonrig.io!
