Why are the crypto exchanges vulnerable? What happens when the crypto is beneficial. Perusing the user and custody agreements of these exchanges will give the potential customers an insight into how their assets will be stored — in pooled or segregated addresses. Additionally, the contract should clearly state the customer as the owner of crypto assets, while the exchanges remain the custodians.
Incidentally, the customer service, easy to use websites, and quick turnaround times for deposits and withdrawals are also a huge selling points for the crypto exchanges.
Yet, it is prudent not to have large amounts of cryptocurrencies stashed away with the exchanges for an extended period, despite all the meticulous research. Ambiguous cryptocurrency laws make the reparations difficult in crypto exchange insolvency cases. In the end, investors have to discern the risks associated with the benefits and exercise due diligence while choosing the crypto exchanges.
Originally published at https://www.datadriveninvestor.com on July 16, 2020.
Why Engaging With Right Crypto Exchange Matters | Data Driven Investor was originally published in Data Driven Investor on Medium, where people are continuing the conversation by highlighting and responding to this story.