- Top Dog
Pros / Cons of Crypto Exchanges – Ryan CMO
A lot of crypto investors prefer to trade on a Centralized Exchange, while some people prefer to trade on a decentralized wallet. Is one better than the other? In this blog I will go through some of the pros and cons of holding crypto on a centralized exchange, and why I personally choose to always hold my crypto on a cold wallet. Many investors are new to the crypto space and don’t really understand why crypto was made and why decentralization is so important when it comes to crypto. Below I am going to list some pros and cons of centralized exchanges.
o Easy to use
o Fast Transaction Speed
o Higher Volume
o Lower Fees
o Exchanges have access to your private keys
o Targets of large-scale hacks
o Ability to stop / close trading at any time for any reason
o Exchange users are essentially renting the tokens for a fee, not full ownership
o Bot trading
o Fake Volume
o Have to cooperate with government regulations
I think the most important thing to remember is that if you don’t have primary access to your private keys, you do not have full ownership of your crypto. Keeping your crypto in a cold wallet / storage gives you sole custody of your private keys, meaning no one can access your wallet without permission. This should be something to think about, weigh the pros and cons of exchanges to see if it is right for you. I personally believe in decentralized wallets; I don’t want to give anyone access to my crypto investments.
As always; this is not financial advice, just something to think about. It is always better to be proactive when it comes to securing your assets.