Real Examples of people losing crypto on exchanges
There are many examples of people losing crypto on exchange due to hacks, scams, or bankruptcy. Here are some of the most recent and notable cases:
In November 2022, FTX, one of the largest crypto exchanges in the world, filed for bankruptcy after losing $8 billion of customer funds. Many retail investors were unable to withdraw their money and suffered significant losses. Some of them shared their stories with the Guardian.
In August 2021, Liquid Global, a Japanese crypto exchange, was hacked and lost $100 million of customer assets3. The company promised to reimburse the victims, but some of them were still waiting for their money as of December 2021. One of them was Chris, a small crypto-holder from Austria, who told the BBC that he had lost $3,000 in the hack.
In 2018, Coincheck, another Japanese crypto exchange, was hacked and lost $534 million of customer funds, mostly in NEM tokens3. It was one of the largest crypto hacks in history. The company eventually refunded the victims, but it took more than a year to do so.
These are just some of the examples of the risks and challenges of trading crypto on exchanges. It is important to do your own research, choose reputable platforms, and secure your own wallets before investing in crypto!
Why You Need to Hustle Your Crypto Off Exchanges
First off, why take your crypto off exchanges? Imagine leaving your vintage wine collection in a tent at a music festival. Not smart, right? Exchanges are juicy targets for cyber-thieves, and you don’t want your digital treasure chest to become pirate booty.
The Down-Low on Cold Wallets
What’s a cold wallet, and why do you need one? Think of a cold wallet like a safe buried under a mountain. It’s an offline crypto storage that makes it hard for hackers to get a whiff of your stash. No internet, no cyber-shenanigans.
Hardware Wallets: Your Crypto’s Personal Bodyguard
Now let’s rap about hardware wallets. These gizmos are like having a personal bodyguard for your crypto. They store your coins on a physical device, disconnected from the web’s wild west. It’s like keeping your cash in a vault, except it fits in your pocket.
The Sweet Freedom of Non-Custodial Wallets
Non-custodial wallets? They’re the real MVPs. Unlike custodial wallets, where a third party holds your keys (and thus your crypto), non-custodial wallets give you total control. It’s like being the king of your crypto castle.
Keep Your Private Keys Under Lock and Key
Your private keys are the magic spells that unlock your crypto fortune. If someone else gets them, game over. So, keep them secret, keep them safe. It’s like not giving out the secret formula to your grandma’s killer cookie recipe.
The Exchange Heist: Why It’s Risky Business
Keeping your crypto on an exchange is like parking your Lamborghini in a bad neighborhood with the keys in the ignition. It might be convenient, but it’s risky as hell. Exchanges can get hacked, go bankrupt, or play dirty. Don’t risk it.
Making the Move: Transfer to Personal Wallet Like a Boss
Want to transfer your crypto assets to a personal wallet? It’s not rocket science. Just set up your wallet, find your receive address, initiate the transfer from the exchange, and boom—you’re the sole keeper of your digital domain.
Wrapping It Up
Protecting your crypto isn’t just smart; it’s essential. It’s not about paranoia; it’s about being a step ahead of the bad guys. So get yourself a cold wallet, guard those private keys, and remember: In the crypto world, being a smart-ass means keeping your assets secure.
Now, let’s add some visuals that drive the point home about safeguarding your crypto assets with the same blend of savvy insight and smart-ass humor that’s peppered throughout this guide.
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