Exchange Failures Highlight Benefits of Alternative Storage Options
There have been a number of circumstances now where cryptocurrency holders have been frozen out of their accounts on different exchanges and have been unable to withdraw. Many have been unfortunate in losing a great deal of money.
When the exchanges fail or engage in wrongdoing there is great risk that this poses to the cryptocurrency users and one good thing that might come out of those exchange scandals is that more people are learning about the options in how they can hold their cryptocurrency.
There are already several cryptocurrency exchanges that have closed down and many people are owed money from one failure or another.
How one chooses to secure their cryptocurrency is up to them and it has long been argued that cold wallets are the best and most secure method to go with. Since FTX went bust it's reported that there are several firms which have seen a sudden rise in demand as more people go looking for self-custody options for their cryptocurrency.
Despite the turmoil over the years one survey showed that about half of millennial investors might still trust crypto exchanges more than stock exchanges.
Surveys from a few years ago show that most BTC holders reported already using a hardware wallet to store their cryptocurrencies.
After FTX made headlines many more went searching for what the most secure option is for their cryptocurrency and what the most trustworthy exchange out there might be.
Pics:
pixabay
This is not financial advice.
Sources:
https://www.coindesk.com/business/2022/11/13/crypto-exchange-aax-suspends-withdrawals-as-ftx-failure-reverberates/
https://www.bbc.com/news/technology-63624894
What i want to know about FTX is how did they get pensions and stuff to invest in it?
HIVE is arguably better, but we had to work to just get listed.
Sooooo, how did all those big investment firms, that should know better, park all their money there?
My guess is to bring in regulation.
However, they are way too late. DEXs are already getting better.
It is interesting that what most people are getting from this is not "we must have regulation", it is "not your keys, not your coins".
And which is more secure? Crytpo exchange or Stock exchange?
Both appear to not have the stuff they say that they have.
Stock exchanges have a bunch of big people behind keeping up the appearance of liquidity.
So, you can usually get your money out of a stock exchange... but it is very hard to get your stock out.
Crypto exchanges often have problems getting your money out, but most of the time you can get your crypto... except when you can't.
We will see a moment when everyone realizes there is no stock traded on the stock exchange.