In the cryptocurrency ecosystem, there are a few horror stories…
One of the biggest, the one that tanked the market in 2013 and shook a lot of crypto holders, is Mt.Gox.
Now, there have been more and more hacks being formulated towards these central entities.
Yes, there is a point that the only ones that get hacked are central entities as they store funds in a singular place, yet holding your funds yourself is a very important part of cryptocurrency.
Why You Need To Hold Your Cryptocurrency Off Exchanges
Cryptocurrency exchanges allow for convenience and hold trust.
With tons of different coins being able to be traded, and users promoting different exchanges everywhere (normally for affiliate money) they are becoming very popular to the lay investor.
A lot of people trust and keep their coins on exchanges.
But that isn’t what anyone should do.
Case in point, MT.Gox.
If you don’t know what Mt.Gox was then read our breakdown on what happened.
All in all, it was a major hack, a lot of lying and the displacement of almost $1 billion of funds from people “trusting” the exchange.
Then recently we have seen over $500 million of NEM get hacked.
The problem is the recreation of banks except utilizing the name Exchange, and then people assuming it is trustworthy.
Make your exchange then take your coins off of the exchange.
But where do I put my coins?
While we have coins spread across multiple wallets, exchanges, and areas the best place is a cold storage device.
Our favorite is the Nano Ledger S.
Use The Nano Ledger For Better Storage
The Nano Ledger S is a small compact storage device that looks like a USB.
It allows you to reset it in case of it being lost (using their 24-word passphrase that only you know) and it keeps your private keys safe with it.
And they just recently received funding of almost $100 million to expand.
This is what we use to keep our funds off of exchanges and out of sight from hackers, heck it isn’t even on the internet anymore – it’s completely offline.
Safe Guard Your Funds and HODL For Another Day,
The GCA Team