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Is Cryptocurrency Exchange the Same as Your Wallet?

 

By sending your digital currencies to a centralized exchange, you are transferring ownership of your digital currencies to the exchange.

In these exchanges, full control of the digital assets of individuals is in the hands of the exchange. The assets are kept in the wallets of the exchange offices and only the balance number is included in the account of the exchange users. In this case, you have access to your digital currencies, but you have to trust an exchange to keep the company safe and secure.

Even when a centralized exchange wants to operate transparently, some external risks still threaten assets. According to the Quingiko website, hackers stole more than $ 286 million worth of digital currency from exchanges in 2020, bringing the total to more than $ 3 billion. As an example, the Cryptopia exchange was hacked and then disbanded in 2019. Due to the long legal settlement process, the users of this exchange have not yet reached their assets.

 

Keep your crypto safe

“your keys, your bitcoin. Not your keys, not your bitcoin.” Andreas Antonopoulos.

The best way to keep cryptocurrencies for a long time is to store them in a reputable wallet. You should use a wallet that is well-known and offers you a private key or 12-24 recovery word.

Reputable software wallets that are installed on a mobile phone (such as Trust Walt) or a personal computer (such as Exodus) are completely free and can ensure the security of your assets if you follow the safety tips and keep the recovery words on your own. If you want more security, you can use hardware wallets or other offline (cold) storage methods.

As long as your digital currencies are in your wallet and the necessary safety precautions are followed, they will not be in any danger.

 

Safety tips

Here are some safety tips for your investment.

Back up

After installing the wallet, the first thing to do is to back up the wallet. If you do not have a backup of your wallet and for any reason, the software is deleted, the device crashes and things like that happen, you have to say goodbye to the investments inside that wallet forever.

The type of backup in each wallet can be different. Most wallets provide the user with a set of 12 or 24 letters as a backup, which is no different from a private key, and in case of any problem, the users can recover their capital with those words. Some wallets also provide a private key directly to the user to store it in a safe place. A small number of wallets also provide the user with a special file that is encrypted with the user-selected password, and to access the assets, the file and password must be backed up.

 

Download from reputable sources

Wallets and related software downloaded from unreliable sources can be malware and theft of your assets.

The official website of any wallet is the best source for downloading the software. Even when you want to get the software you want from Google Play or AppStore, you have to be very careful, because sometimes counterfeit software with the name and logo of the main software appears on Google Play and App Store. As a prime example, Ledger wallet mobile software is called Ledger Live. Some time ago, several counterfeit software with the same name and logo as Ledger Live appeared on Google Play. Installing such software is tantamount to wasting all capital.

 

Use strong passwords

Software called “crackers” can check different passwords for a username very quickly, and if your password is simple, the software will find it in less than a few days. For this reason, it is better to use uppercase and lowercase letters as well as punctuation marks in your password. Of course, most wallet systems these days are equipped with anti-spam layers.

 

Update your software

Always provide the most secure environment for your wallet by updating your software. Not only wallet; Also, keep your PC and mobile phone systems up to date. Always keep your anti-virus up to date.

 

Use a separate browser

If you use a web wallet or you want to connect to your wallet through a browser, extensions in browsers should not be forgotten. It is best to allocate a clean, plug-in-free browser to access your wallet to reduce the risk of private key theft.

 

 

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