What are the risks associated with leaving funds on a cryptocurrency exchange for an extended period?

» Wallets and Exchanges
  • Exchanges can be hacked, resulting in the loss of funds.
  • Exchanges may face regulatory issues, potentially leading to frozen assets.
  • Exchanges could go bankrupt or shut down, making funds inaccessible.

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What are the risks associated with leaving funds on a cryptocurrency exchange for an extended period?

Keeping crypto on an exchange for a long time - what could go wrong? Thinking of potential hacks, but there's probably more to it, right? Like, how safe is it really and what are the other risks to consider?

Well, leaving your crypto on an exchange is a bit like forgetting your chocolate bar in a room full of toddlers – it might be there when you get back, but I wouldn't bet on it. Besides, ever seen what happens to socks in a laundry machine? Now imagine that's your digital wallet... poof!

Sure, but even if you dodge the hacks, exchange outages or sudden regulations could freeze access to your funds when you need them most. Plus, there's always the chance of the company going belly-up. Ever thought of that?

The best stock exchanges in comparison

We have compared the best crypto exchanges for you. Just take a look at our free crypto exchange provider comparison.

Already thought about the tax for your coins?

We have compared the leading crypto tax tool providers for you. Check out our free crypto tax tool provider comparison.

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