Crypto Assets in Exchanger are at Risk

The banking system was created to control our assets and in the current time people are getting conscious about it and cryptocurrency is the way to get full access to assets. This is the reason people are getting more interested in cryptocurrency even governments trying to ban it. Who wants to lose control? There are some other reasons also such as inflation because of what our money kept in the bank losing it's value. As the inflation rate at the current time is high, people naturally adopt cryptocurrency for their own benefit.

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So every day many people start their crypto journey. In most cases, the journey of the cryptocurrency world starts with creating an account in exchangers as well as exchange. The exchanger can be Binance, Kucoin, Coinbase, etc., etc. Naturally, we keep our crypto assets in exchangers. We do trade and try to make a profit also. After getting some knowledge we start to invest for the long time frame. We dream of gaining huge profits from our invested assets. But the most important question is whether any exchangers are safe to hold our assets or not.

The answer is "NO". It is not only my opinion but also the opinion of Crypto experts.
Keeping assets in an exchanger and keeping assets in a bank both are almost similar things. In cases of getting full access to our assets exchangers don't provide it. Let me explain a little bit. We all know that banks can freeze our assets anytime for various kinds of reasons and like that the exchangers can also freeze our assets anytime. Moreover, exchangers can also ban user's accounts for several reasons. There exist many rules and regulations like our traditional banking system.

Let's talk about the security. In the case of our traditional Bank, we feel secure although it doesn't give us full access to our assets. In the case of an exchanger, the security is also tight but hacking is a very common thing and the hacker is capable of stealing the money of users from the exchanger. In the past, it happened many times. Even if the security system is high at the current time but there is no guarantee hacking won't happen in the future. As the security system is improving, the hacker also getting more intelligent with time. So there I was exist the possibility of it.

In exchanger, we can see the digit of how many assets we have. The owners of an exchanger say that they have the same amount of assets in their backup. But I doubt🤔. We will be able to understand it when most of the whales withdraw their funds at the same time. The incident of the FTX exchange is the best example of it. The FTX exchanger was one of the top 3 exchangers with a huge market cap. I hope you know what happened with the FTX exchanger. They declared bankruptcy when most of the whales has withdrawn their fund from there. It was the incident which shook the cryptocurrency world at that time. Many people never imagine such kind of situation but it happened actually. There is no guarantee that the same thing will not happen with Binance, Coinbase, Kucoin, etc., etc. The owners of many exchangers loot the assets of users just declaring bankruptcy.

So one thing is very clear that the exchanger is not the safe place to keep our crypto assets. So what should we do and how can we keep our assets safe and secure?

In that case, cold wallet which is known as hardware wallet is the best which is the most safe and secure option to keep our crypto assets and till now there is no history of hacking cold wallets as well as I know. Some of the best cold wallets are Ledger, Trezor, and Coolwallet. Many people use cold wallets especially when they have a huge amount of crypto assets.

After a cold wallet, Hot wallet is considered to be a secure one. Considering many things experts suggest using it. Some most popular hot wallets are Trust Wallet, MetaMask, and Coinbase Wallet not exchenger. We can keep our assets in a hot wallet which we are holding for the long term or the middle term.

Now another question is how much asset we should keep in exchanger? In that case, I have a very simple answer. And I am giving the answers with a daily life example.
When we go to the market, do we go there with all the money we have in the house? Obviously "NO". We only go to the market with the money which we need to buy something. Like that, we should keep those amount of assets in the exchanger which we need for trading. I hope you understand my answer very well.