Why You Should Not Keep Your ADA on Exchanges?
Updated: Dec 6, 2022
Storing your ADA on an exchange might seem like a convenient way to hold your digital assets, but it's not without risks. In this article, we will discuss some of the reasons why you shouldn't store your ADA on an exchange, and what you can do instead to keep your ADA safe.
One of the biggest risks of storing your ADA on an exchange is the potential for hacking or other cyber-attacks. Exchanges are a prime target for hackers because they hold large amounts of cryptocurrencies in a single location. If an exchange is hacked, it could potentially result in the loss of your funds.
In addition to the risk of hacking, storing your ADA on an exchange also means that you don't have full control over your digital assets. When you store your ADA on an exchange, you are trusting the exchange to keep your ADA safe. This means that if the exchange experiences any technical issues, your ADA could be at risk.
So, what can you do instead of storing your ADA on an exchange? One option is to use a secure and reputable wallet, such as the official Daedalus, Nami, Flint, Eternl, etc. By using a wallet, you can store your ADA on your own device, which gives you full control over your digital assets.
Another option is to use a cold wallet, such as a hardware wallet or a paper wallet. Cold wallets are not connected to the internet, which makes them more secure than hot wallets. Cold wallets also give you full control over your private keys, which are the keys that allow you to access your ADA.
In conclusion, storing your ADA on an exchange is not without risks. To keep your ADA safe, it's best to use a secure and reputable wallet or a cold wallet. By doing so, you can ensure that your ADA is protected from potential security threats and that you have full control over your digital assets.