MONEY DECODED

Is Your Crypto Safe on an Exchange? 3 Checks Before You Trust One

When your crypto sits on an exchange, the exchange holds the keys. If it is hacked, freezes withdrawals or goes bankrupt, you may not get your money back. That is what "not your keys, not your coins" means.

Check 1: Is it regulated where you live?

Look for registration with the financial regulator in your country, and be wary of platforms that cannot say where they are based. A copycat website with a similar name is a common trap, so type the address yourself.

Check 2: Can you withdraw easily?

Test with a small withdrawal. Unusual delays, surprise fees or new requirements to withdraw are warning signs.

Check 3: Is your account locked down?

• Use an authenticator app or security key for two-factor login, not SMS if you can avoid it.
• Turn on withdrawal address allow-lists if available.
• Use a unique password and a separate email for your crypto accounts.

When to use your own wallet

For savings you do not trade often, many people move funds to a self-custody wallet, such as a hardware wallet, where only they hold the keys. That also means only you are responsible for backing up the seed phrase safely.