The Danger of Crypto Exchanges

The Danger of Crypto Exchanges


I recently had a chat with someone regarding her experience with crypto. During our chat, I later found out that she had lost some crypto from the exact crypto exchange that I had lost mine on (QuadrigaCX) last year.

It wasn't like QuadrigaCX was some random, no-name, exchange. In fact, they were probably Canada's top exchange at the time. They had a decent history and I never had problems up until shortly before they had shut down.

However despite their reputation, they shut down due to the owner "passing away." As a result, the users' funds and crypto couldn't be accessed as the CEO was the only person who had access to the cold storage wallets.

That experience had taught me a great lesson about the crypto world: "Not your keys? Not your coins."

Having said that, I learned to never put more than I'm willing to lose on any one exchange no matter how much of a top dog they are. You just never know. 

If you look at this blog post here by IDEX, it lists out all of the hacks that have happened over the years. Even with a quick glance, you can pretty much conclude that no crypto exchange is immune to these hacks.

I believe it was Andreas Antonopoulos who had said something along the lines of, "There are exchanges that have been hacked and there are exchanges that haven't been hacked yet." I may have butchered what he said but essentially, no exchange is completely safe from a hack. 

The conversation that I had with the woman got me thinking of the importance of not putting more than you're willing to lose on a single exchange and thus motivated me to write this blog post and make the video to share that message.

If you've ever experienced losing your funds due to an exchange hack, please let me know in the comments! I would love to know.

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If you have any questions or comments, please feel free to leave them down below as I will respond. You can also contact me at crypto4canadians@gmail.com. You can also message me on Telegram @cryptoforcanadians or feel free to join my Telegram group where we talk crypto: https://t.me/crypto4canadians.


cryptoforcanadians
cryptoforcanadians

Educating Canadians, and others, about crypto.


cryptoforcanadians
cryptoforcanadians

Educating Canadians, and others, about crypto.

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