Can crypto exchanges take your money?

Crypto exchanges can take your money. It’s a fundamental risk, often overlooked. Think of it like this: you’re entrusting your digital assets to a third party. Their compliance with regulations – or lack thereof – is paramount. Non-compliant exchanges are essentially operating in a legal gray area, making them vulnerable to government crackdowns. A mandated shutdown means your funds become inaccessible, potentially lost forever. This isn’t just a theoretical concern; we’ve seen numerous examples of this playing out.

Beyond regulatory risk, security is critical. Many non-compliant exchanges cut corners on security, leaving user funds and data vulnerable to hacking and theft. Look for exchanges with robust security protocols, including multi-factor authentication (MFA), cold storage for a significant portion of assets, and transparent security audits. Don’t fall for flashy marketing; delve into the specifics of their security measures.

Furthermore, consider insurance coverage. Reputable exchanges often have insurance policies in place to protect users in the event of a security breach. This is a crucial differentiator, offering a level of protection against unforeseen circumstances. The absence of insurance is a major red flag. Due diligence is key; research the exchange’s history, financial stability, and regulatory standing before depositing any significant funds. Remember, diversification across multiple secure and compliant exchanges is a sound risk management strategy.

Ultimately, safeguarding your crypto involves understanding the inherent risks and mitigating them proactively. Ignoring these risks is a gamble you might not be able to afford.

How to tell if a crypto exchange is legit?

Due diligence is paramount before engaging with any cryptocurrency exchange. Social media endorsements, especially those from celebrities, should be treated with extreme skepticism; they are often paid promotions and not endorsements of legitimacy.

Thorough Research is Key:

Independent Verification: Search the exchange’s name on Google, alongside terms like “scam,” “review,” “complaint,” “fraud,” and “warning.” Pay close attention to results from reputable sources like government agencies and financial news outlets.
Regulatory Compliance: Check if the exchange is registered and licensed with relevant financial authorities in its jurisdiction. Lack of regulation is a major red flag. Look for proof of compliance, not just claims of it.
Security Measures: Investigate the exchange’s security protocols. Look for details on two-factor authentication (2FA), cold storage of assets, and insurance against hacks. Transparent security audits from reputable firms are a positive sign.
Transaction Fees and Limits: Compare fees and withdrawal limits with other exchanges. Excessively high fees or restrictive limits might indicate a less trustworthy platform.
Customer Support: Test the exchange’s customer support channels. A responsive and helpful support team is crucial for resolving potential issues.
Website Transparency: Examine the exchange’s “About Us” section and look for details about the company, its team, and its location. Avoid exchanges that lack transparency in this area.

For New Coins (Token Offerings):

Scrutinize the Whitepaper: Carefully read the whitepaper, looking for inconsistencies, unrealistic promises, and technical flaws. A well-written whitepaper demonstrates a serious project.
Team Background Check: Research the team behind the project. Experienced and reputable developers increase the project’s credibility.
Code Audit: Look for evidence that the project’s code has undergone independent security audits. This reduces the risk of vulnerabilities and exploits.
Community Scrutiny: Assess the project’s community engagement and activity on forums and social media. A healthy and engaged community indicates a project with long-term potential.

Avoid Urgent Requests: Never send crypto to an exchange or individual based on unsolicited requests or high-pressure sales tactics. Legitimate exchanges won’t employ such practices.

Remember: No investment is risk-free, especially in the volatile world of cryptocurrencies. Diversify your investments and never invest more than you can afford to lose.

Is it safe to keep crypto on exchanges?

Storing cryptocurrency on exchanges for a long time is risky. Think of it like leaving all your cash in a bank that’s prone to robberies. Exchanges are convenient for buying and selling, but they’re also targets for hackers. A successful hack or the exchange going bankrupt could mean losing all your crypto.

Why is this risky? Exchanges hold vast amounts of cryptocurrency, making them attractive targets. Security breaches are unfortunately common. Even if the exchange has good security, there’s always a risk.

What’s a safer option? Consider using a personal crypto wallet. These are like digital safes you control. There are different types, like hardware wallets (physical devices) and software wallets (apps). Hardware wallets are generally considered much more secure.

Important Note: No method is 100% secure. Research thoroughly before choosing a wallet or exchange. Understand the risks involved in storing and managing your own crypto.

Is crypto riskier than stocks?

Crypto’s volatility dwarfs that of even the most speculative stocks. The lack of regulatory oversight and deposit insurance means your investment is entirely at your own risk. This inherent risk, however, is the engine driving its potential for astronomical returns. Think of it as high-stakes poker – you can win big, but you can also lose everything. Understanding this fundamental asymmetry is crucial. Furthermore, the decentralized nature, while lauded by many, ironically creates a fertile ground for scams targeting retail investors. Due diligence is paramount; thoroughly vet projects, understand tokenomics, and never invest more than you can afford to lose. Remember, market manipulation and pump-and-dump schemes are rampant. Focus on fundamentally sound projects with clear utility and strong community support. Diversification across multiple reputable projects and strategies is key to mitigating risk. This isn’t about getting rich quick; it’s about carefully navigating a high-risk, high-reward landscape.

How to spot a crypto scammer?

Identifying crypto scammers requires a healthy dose of skepticism. Don’t trust unsolicited messages promising quick riches; legitimate projects rarely reach out directly with such aggressive pitches. Always independently verify everything. Deep dive into the project’s whitepaper – look for realistic roadmaps, not just hype. Check the team’s backgrounds; are they doxxed (publicly identifiable)? Look for verifiable experience and credentials, not just anonymous pseudonyms.

Crucially, investigate the project’s tokenomics. Understand the token’s utility, its supply, and the distribution model. A heavily pre-mined token with a large team allocation is a major red flag. Similarly, avoid projects with vague or unrealistic token utility claims.

Social media analysis is key. Check for significant negative sentiment or reported scams associated with the project or team. Look beyond official channels; scan independent forums and communities for honest opinions. Don’t let flashy marketing or celebrity endorsements blind you. Remember, due diligence is your best defense.

Google the project name along with “scam,” “review,” or “reddit.” This helps unearth potential negative feedback or warnings from others who may have encountered similar projects. Remember that even a seemingly legitimate project can be a rug pull (where developers abandon the project and steal the funds). Thorough research is paramount.

Avoid high-pressure tactics. Legitimate investments don’t require immediate decisions. If someone is pressuring you to invest quickly, it’s a strong indication of a scam.

Is it safe to leave crypto on crypto com exchange?

Crypto.com boasts robust security measures, a key consideration for any serious investor. Their claim of 100% cold storage is a positive, though independently verifying this is always advisable. Remember, “cold storage” doesn’t automatically equate to impenetrable security; the implementation is crucial. The 24-hour withdrawal hold is a solid anti-phishing measure, buying you time to react to potential compromises. Multi-factor authentication (MFA) is a bare minimum; ensure you utilize the strongest options available. While 24/7 support is a plus, proactive security is paramount. Always prioritize diversification – don’t keep all your eggs in one exchange basket, regardless of its security reputation. Consider using a hardware wallet for long-term holdings; this offers an extra layer of protection beyond even the most secure exchange. Regularly review your transaction history for anomalies. Understanding the inherent risks of centralized exchanges is crucial; they remain vulnerable, despite security enhancements.

Remember: No exchange is completely risk-free. Due diligence and a layered security approach are your best defenses.

Consider these points: Insurance coverage (if offered), regulatory compliance (look for reputable licenses), and the exchange’s history of security incidents (publicly available information) are critical aspects of your risk assessment.

How do I get my money back from Crypto exchange?

Getting your money back from a crypto exchange isn’t just about selling your crypto; it’s about choosing the right method for your situation. While the simplest route might seem to be selling directly back to the exchange, exploring your options is key to optimizing your returns and minimizing fees.

Methods for Cashing Out:

Crypto Exchanges: Most exchanges offer direct fiat withdrawals (USD, EUR, etc.). This is usually the most straightforward method, but fees can vary significantly depending on the exchange and the withdrawal method (bank transfer, debit card, etc.). Compare fees before proceeding! Processing times can also be slow.
Brokerage Accounts: Some brokerage accounts now support crypto trading. This can offer a convenient centralized approach if you already use a brokerage for other investments, allowing you to manage both traditional and digital assets in one place. However, not all brokerages support all cryptocurrencies.
Peer-to-Peer (P2P) Platforms: P2P platforms like Paxful or LocalBitcoins connect you directly with buyers. This offers potentially more favorable exchange rates, but carries higher risk due to the lack of regulatory oversight and potential for scams. Thorough due diligence is essential.
Bitcoin ATMs: Bitcoin ATMs provide a quick and relatively anonymous way to convert Bitcoin to cash. However, they often charge significantly higher fees than other methods and usually only support Bitcoin. Their availability is also geographically limited.

Important Considerations:

Fees: Exchange fees, network fees (gas fees for Ethereum, for example), and withdrawal fees all eat into your profits. Factor these into your decision.
Speed: Withdrawal times vary dramatically depending on the method. Bank transfers can take several days, while some P2P transactions might complete instantly.
Security: Prioritize secure platforms and practices. Use strong passwords, two-factor authentication, and be wary of phishing scams. Never share your private keys or seed phrases.
Tax Implications: Selling cryptocurrency is a taxable event in most jurisdictions. Consult a tax professional to understand your obligations.
Conversion to Different Crypto: Sometimes, converting your crypto to a different asset, like stablecoins (e.g., Tether, USDC) before selling for fiat, can be advantageous due to lower volatility or potentially better exchange rates on certain platforms.

In short, there’s no one-size-fits-all answer. The best method for cashing out your crypto depends on your specific needs, considering fees, speed, security, and tax implications. Research thoroughly before making a decision.

What is the biggest risk with cryptocurrency?

The biggest risk in cryptocurrency is its inherent volatility. Prices can swing wildly and unpredictably, meaning a substantial investment can plummet in value overnight. A cryptocurrency worth thousands of dollars today could be worth a fraction of that tomorrow, and there’s no guarantee of recovery. This high volatility stems from several factors, including speculative trading, regulatory uncertainty, and technological advancements within the crypto space itself. New projects emerge constantly, while established ones face challenges like scaling limitations and security breaches, all impacting prices.

Regulatory uncertainty is a significant contributor to volatility. Governments worldwide are still grappling with how to regulate cryptocurrencies, and shifting policies can drastically affect market sentiment. This uncertainty creates an environment where even small news events can trigger large price swings.

Technological risks are also substantial. Cryptocurrencies rely on complex blockchain technology, which can be susceptible to vulnerabilities. Successful attacks or flaws in the underlying code can lead to significant losses for investors. Moreover, the scalability of many cryptocurrencies is a persistent concern. As adoption grows, transaction speeds and fees can become a major bottleneck, impacting the practicality and usability of the technology.

Market manipulation is another significant risk. The relatively unregulated nature of the cryptocurrency market makes it susceptible to manipulation by large players, who can artificially inflate or deflate prices to their advantage. This makes it crucial to conduct thorough due diligence before investing.

Security breaches affecting exchanges or individual wallets are frequent occurrences. Losing your private keys or having your exchange hacked can result in the complete loss of your cryptocurrency holdings. Proper security measures, such as using reputable exchanges and employing robust security practices for your private keys, are absolutely essential.

The lack of intrinsic value differentiates cryptocurrencies from traditional assets. Unlike stocks or bonds that represent ownership in a company or a loan to a government, many cryptocurrencies have no underlying asset or revenue stream. Their value is entirely driven by market speculation, making them highly vulnerable to market sentiment shifts.

Scams and fraudulent projects abound in the cryptocurrency space. Many projects are designed to defraud investors, often utilizing sophisticated marketing tactics and misleading information. Thorough research and a healthy dose of skepticism are vital when considering any cryptocurrency investment.

What are the disadvantages of cryptocurrency?

Cryptocurrency’s learning curve is steep; understanding blockchain technology, wallets, and various protocols requires dedicated study. However, this is a worthwhile investment of time as mastery unlocks significant opportunities.

Volatility is a double-edged sword. While price swings can lead to substantial losses, they also present opportunities for significant gains through strategic trading and understanding market cycles. Diversification across multiple cryptocurrencies and employing risk management strategies are crucial.

The long-term viability of crypto is still being established, but its underlying technology has immense potential. Focusing on projects with strong fundamentals, experienced teams, and real-world applications mitigates this risk. Early adoption can be highly rewarding, but patience and due diligence are essential.

Scalability limitations affect transaction speeds and fees, particularly on some older networks. However, advancements like layer-2 solutions and improved consensus mechanisms are actively addressing these issues, paving the way for broader adoption.

Security risks are real, but manageable. Using reputable exchanges, hardware wallets, and practicing good security hygiene (strong passwords, two-factor authentication) greatly minimizes vulnerabilities. Staying informed about emerging threats and best practices is crucial.

Regulation remains an evolving landscape, creating uncertainty. However, regulatory clarity can ultimately provide legitimacy and stability to the market, benefiting long-term investors. Keeping abreast of regulatory developments is key.

What are the risks associated with crypto exchanges?

Crypto exchanges are risky because cryptocurrency prices can change wildly and quickly. One day your investment might be worth a lot, the next it could be worth much less, even zero. This is called volatility, and it’s much higher than with stocks or bonds.

Exchanges themselves can also be risky. Some are poorly run, have weak security, or might even be scams. Your crypto could be stolen through hacking or if the exchange goes bankrupt. It’s crucial to research an exchange thoroughly before using it, checking for things like security measures (like two-factor authentication), reputation, and regulatory compliance. Never invest more than you can afford to lose completely.

Furthermore, regulations surrounding crypto are still evolving globally. This uncertainty can affect the market and the legal protection you might have if things go wrong. There’s no guarantee of government protection like with traditional banks.

Finally, the technology itself is complex. Understanding blockchain technology, smart contracts, and various cryptocurrencies is important before investing, otherwise it’s easy to fall prey to scams or make poor investment choices.

Which is the most reliable crypto exchange?

Picking the “most reliable” is tricky, as each exchange excels in different areas. It’s more about finding the best fit for your needs and risk tolerance.

Here’s my take on some top contenders (April 2025, things change quickly!):

Kraken: Low fees are a huge draw, but remember, security is paramount. Research their insurance and security protocols before committing large sums. Their advanced trading features might overwhelm beginners.
Gemini: Strong security is their selling point. They’re regulated in many jurisdictions, which provides a layer of comfort, especially for larger investments. Expect slightly higher fees compared to Kraken. Excellent for experienced traders due to their advanced charting tools and order types.
Coinbase: User-friendly interface makes it perfect for beginners. It’s highly regulated, adding a sense of security, but this often comes with less competitive fees. Good for starting your crypto journey.
Crypto.com: The app is undeniably slick, and they’ve built a strong brand. They offer a wide array of services including a debit card – convenient, but research their fees carefully. Strong for Bitcoin trading, but their altcoin selection, while decent, isn’t as comprehensive as some others.
Bitmart: A decent choice for altcoin diversity, but always prioritize security research when dealing with less established exchanges. Read reviews carefully and understand the risks associated with less regulated platforms. The wider selection of less-known cryptocurrencies comes with greater inherent volatility.

Important Considerations (Beyond Fees and User Experience):

Regulation: Exchanges operating under strict regulatory oversight offer a degree of protection, but may have higher fees.
Security Features: Two-factor authentication (2FA), cold storage practices, and insurance are crucial elements to consider. Check their security track record.
Customer Support: Accessibility and responsiveness of customer support can be crucial if you encounter any issues.
Trading Volume: Higher trading volume generally means tighter spreads and better liquidity.
KYC/AML Compliance: Know Your Customer (KYC) and Anti-Money Laundering (AML) compliance measures are essential to protecting users and complying with global regulations. Be prepared for identity verification procedures.

Disclaimer: This is not financial advice. Always conduct your own thorough research before investing in any cryptocurrency or using any exchange. The crypto market is volatile and risky.

Which crypto exchanges to avoid?

Avoiding scams in the cryptocurrency exchange landscape requires vigilance. Many platforms operate deceptively, leading to significant financial losses. Here’s a breakdown of known problematic exchanges and broader advice:

Examples of Problematic Exchanges (Note: This list is not exhaustive and constantly evolving):

Presalexaitoken.com: This entity fraudulently impersonates the XAI token project, employing a fraudulent trading platform scam. This is a classic example of a clone site designed to steal user funds.
Crypto Plumb: This exchange is associated with “pig butchering” scams. These scams involve building trust with victims before ultimately stealing their investments.
Bitnice (bit-nice.com): Another platform involved in “pig butchering” schemes, preying on unsuspecting investors.
Moon X Beast: Categorized as operating a fraudulent trading platform, likely involving various deceptive practices.

Beyond Specific Examples: Red Flags to Watch For:

Unlicensed or Unregulated Operations: Legitimate exchanges are typically registered and regulated in specific jurisdictions. Lack of regulatory oversight is a major red flag.
Unrealistic Returns: Promises of extraordinarily high returns are almost always a scam. Sustainable investment strategies rarely offer such lucrative gains.
High-Pressure Sales Tactics: Legitimate platforms don’t employ aggressive or coercive sales tactics. Pressure to invest quickly should raise significant concerns.
Lack of Transparency: Difficulties verifying ownership, operational details, or financial audits should be cause for immediate suspicion.
Poor Customer Support: Unresponsive or unhelpful customer service is a common trait of scam exchanges.
Negative Reviews and Complaints: Thoroughly research an exchange online and look for user reviews and complaints. A pattern of negative feedback should be taken seriously.

Due Diligence is Crucial: Always conduct thorough research before investing in any cryptocurrency exchange. Check reviews on multiple independent websites, look for regulatory information, and verify their security measures.

How do I know if my crypto exchange is safe?

Due diligence is paramount. Don’t solely rely on flashy marketing. Verify the exchange’s regulatory compliance. Look for registration with relevant financial authorities like the SEC (in the US) or FCA (in the UK). Absence of regulation doesn’t automatically equate to a scam, but it significantly increases the risk.

Investigate the exchange’s security measures. Do they offer two-factor authentication (2FA)? What about cold storage for a significant portion of their assets? Look for transparency regarding their security audits and insurance coverage against hacks. Be wary of exchanges lacking detailed information on these aspects.

Scrutinize their trading volume and liquidity. High volume generally indicates a more established and liquid exchange, reducing the risk of price manipulation. Check independent resources like CoinMarketCap or CoinGecko to corroborate their reported volumes.

Examine user reviews on multiple platforms, not just the exchange’s own website. Look for patterns in complaints. Recurring issues with withdrawals, poor customer support, or unexplained account freezes are serious red flags. Consider the age and reputation of the review sites themselves.

Understand the inherent risks of cryptocurrency exchanges. No exchange is completely immune to hacking or other security breaches. Diversify your holdings across multiple exchanges to mitigate this risk. Never store large amounts of cryptocurrency on an exchange for extended periods.

Research the exchange’s history and team. A long operational history with a transparent team builds trust. Look for information about the founders and their backgrounds. Be wary of anonymous or opaque operations.

Consider the exchange’s fee structure. While low fees are attractive, excessively low fees might indicate unsustainable business practices. Analyze the overall cost, including deposit and withdrawal fees.

Remember that online reviews can be manipulated. Use multiple sources and critically assess the information you find. If something seems too good to be true, it probably is.

What are Tier 1 crypto exchanges?

Tier 1 cryptocurrency exchanges represent the apex of the industry, distinguished by their immense trading volumes, robust security protocols, and extensive regulatory compliance. These platforms aren’t just popular; they’ve earned their prestige through years of operation, weathering market volatility and maintaining user trust. Their high liquidity ensures smooth trading experiences, minimizing slippage and maximizing order execution. This liquidity attracts institutional investors, further bolstering the exchange’s reliability and reputation. Security is paramount; Tier 1 exchanges invest heavily in advanced security measures like cold storage for a significant portion of their assets, multi-factor authentication, and rigorous cybersecurity practices. While no exchange is entirely impervious to hacks, Tier 1 platforms typically demonstrate a superior track record in mitigating risks. Furthermore, their regulatory compliance, often involving registrations with multiple jurisdictions, provides a degree of user protection and adds another layer of trustworthiness lacking in many smaller, less-regulated exchanges. Key players commonly cited as Tier 1 include Binance, Coinbase, Kraken, Huobi, and OKX, although the exact composition of this elite group can be subject to ongoing debate within the industry based on various factors and evolving regulatory landscapes.

Choosing a Tier 1 exchange doesn’t guarantee absolute safety, but it significantly reduces the risk inherent in cryptocurrency trading. The increased security measures, higher liquidity, and stronger regulatory compliance provide users with a more secure and reliable trading environment compared to lower-tier alternatives. However, individual due diligence remains crucial; research each exchange thoroughly before entrusting your funds.

What is the most secure crypto?

Defining “most secure” requires nuance. Security in cryptocurrencies is multifaceted, encompassing network security, consensus mechanism security, and smart contract security. No single cryptocurrency is unequivocally the “most secure.” However, Ethereum’s robust security features warrant consideration.

Network Security: Ethereum benefits from a large, decentralized network of nodes. A larger network is inherently more resistant to 51% attacks, requiring significantly more computational power to compromise. While not impenetrable, this makes it considerably more difficult to attack than smaller networks.

Consensus Mechanism Security: Ethereum’s transition to Proof-of-Stake (PoS) significantly enhanced its security profile. PoS is more energy-efficient and arguably more secure than Proof-of-Work (PoW) due to the high cost of entry for attackers (requiring substantial staked ETH). The validator network’s distributed nature further mitigates single points of failure.

Smart Contract Security: This is a major area of ongoing development and concern. The complexity of smart contracts introduces vulnerabilities exploitable by malicious actors. While Ethereum has improved auditing and security practices, smart contract vulnerabilities remain a risk and impact the overall security of the platform. Regular audits and rigorous testing are crucial.

Factors impacting perceived security:

Network size and decentralization: A larger, more decentralized network is generally more secure.
Code audits and security practices: Regular security audits and strong development practices are critical in mitigating vulnerabilities.
Community engagement and response to vulnerabilities: A responsive community can help identify and address security issues promptly.
Regulatory landscape: While not a direct security feature, regulations can indirectly impact security by promoting better practices and discouraging malicious activity.

Comparative analysis is essential: Comparing Ethereum’s security to other cryptocurrencies (e.g., Bitcoin, Solana, Cardano) requires considering these factors for each platform. Each has unique strengths and weaknesses regarding security.

Ongoing evolution: Cryptocurrency security is an ongoing process. New threats and vulnerabilities constantly emerge, requiring continuous improvement and adaptation from developers and the community.

Can crypto crash to zero?

Bitcoin hitting zero is a theoretical possibility, but highly unlikely in the short to medium term. The narrative of a complete collapse ignores several crucial factors bolstering its value.

Network Effects: Bitcoin’s established network effect, with millions of users and nodes globally, creates inherent resilience. A significant drop would trigger buying pressure from long-term holders and those anticipating future growth. The network’s decentralized nature makes it significantly harder to manipulate than centralized assets.

First-Mover Advantage: Bitcoin enjoys a significant first-mover advantage in the cryptocurrency space. It established brand recognition and trust, making it the benchmark against which other cryptocurrencies are measured. This established position is difficult to displace.

Scarcity and Limited Supply: The fixed supply of 21 million Bitcoin is a key driver of value. As adoption grows and fiat currencies continue to inflate, the scarcity of Bitcoin becomes increasingly valuable, counteracting downward pressure.

Regulatory Uncertainty: While regulatory clarity remains a significant variable, a complete ban is unlikely globally, considering Bitcoin’s decentralized nature and the political implications of such a move. Regulation, even if restrictive, tends to foster legitimacy and further institutional adoption.

However, risks remain:

Quantum Computing Threat: Advancements in quantum computing could theoretically compromise Bitcoin’s cryptographic security, though this remains a long-term concern.
Black Swan Events: Unforeseen events, like major security breaches or unforeseen regulatory crackdowns, could trigger sharp price declines.
Competition from Altcoins: The emergence of superior cryptocurrencies with more efficient technologies or use cases could potentially erode Bitcoin’s dominance.

In summary: While a complete collapse isn’t impossible, the confluence of network effects, first-mover advantage, limited supply, and evolving regulatory landscapes suggests that a complete crash to zero is far from a certain outcome. However, understanding and mitigating the identified risks are crucial for any serious investor.

What is the safest crypto exchange in the US?

Choosing a safe crypto exchange is crucial. Gemini stands out because of its strong security. They have really good security measures, follow all the rules and regulations, and get their security checked by independent experts regularly. This means their systems are regularly tested and proven to be secure.

What’s also great about Gemini is that they offer insurance. This isn’t typical for crypto exchanges. They offer FDIC insurance (for your USD held on the platform) and their own crypto insurance, meaning if something goes wrong, you have a better chance of getting your money back.

Important Note: No exchange is completely risk-free. Cryptocurrency itself is inherently volatile, and even the safest exchanges can be targets for hackers, though Gemini has a strong track record. It’s always wise to only keep on exchanges what you need for immediate trading. Consider using a hardware wallet for long-term storage of your crypto holdings for maximum security.

FDIC insurance protects your US dollars, not your cryptocurrencies. It’s a type of insurance backing your cash held in US banks and, in some cases, at certain exchanges. Crypto insurance is specific to the cryptocurrency held on the exchange and is offered by the exchange itself or a third-party insurer. It’s important to understand the terms and conditions of any insurance offered.