Binance & FTX Exchange: Risks of Investing in a Centralized Exchange (CEX)

Many people know Binance and of course know what a CEX is and today I want to talk about why it is not a good idea to deposit or own your cryptocurrencies in a centralized Exchange and why we should have it in a DEX, I want to mention that from my point of view we can be the owners of our cryptocurrencies if we have the keys to our wallet.

When you have a cryptocurrency wallet, you own a key to access your funds, when you have a Binance wallet they own your keys and you personally do not own your cryptos and they can do whatever they want with your cryptocurrencies.

Let's talk a bit about the collapse of FTX and a bit about the Binance Smart Chain (BSC)

Many people know what happened with the Binance Smart Chain (BSC) and the 600 million dollars that were created in $BNB after a hack in the Binance network, this is due to a computer bug in the Binance Smart Chain (BSC) bridge to other Blockchain, what I mean by this is that nothing on the internet is safe, I have read a lot of information on the internet that claims that Binance has been hacked a lot of times.

Another important point is what happened with FTX, the regulations do not insure your money, many people have lost their funds after the collapse of FTX Exchange and we have to be clear about that, now, who will answer for the lost money of FTX investors? Why should we use a DEX? Very good questions.

When you create a wallet in Hive, we give you keys to access your wallet at any time and you are the owner of your keys and at no time we are responsible for the loss of your keys, another very important point is that if you want the best security for your keys, it is better to store them cold, for example a USB.

Conclusion

It is very difficult to know the dark business of centralized projects and therefore I can not say if it is a scam or not, what I can say is that if you use a centralized exchange, they are neither your keys, nor your crypto, so I always recommend keeping them cold or perhaps keep a diversified cryptocurrency portfolio to protect your funds from attacks or a collapse, as happened with FTX exchange.

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