Bitcoin Cash and Laptop

Rule number two of crypto - never leave your crypto on an exchange!

Exchanges are big red targets for hackers. Many Exchanges have been hacked in the last 10 years and huge amounts of cryptos have been stolen.

You may have heard of Mt.Gox hack in 2011, and again in 2014. Bitstamp in 2015 and Cryptopia in 2019. Even Binance have been hacked in 2019. But there are many more hacks of less known Exchanges.

Do yourself a favor and don't leave your crypto on Exchange.

DOs:

  1. After you buy or exchange cryptos on and Exchange, immediately transfer it to your self-hosted wallet
  2. Make sure you have a self-hosted wallet installed for the crypto you plan to buy or exchange
  3. Have your receive (public) address for the specific crypto ready - you will send the crypto from the Exchange to this address
  4. The only exception to leave your crypto on an Exchange is if you are actively trading this crypto

DON'Ts:

  1. Don't use Exchanges as a wallet. Apart from the fact that they can be hacked, remember rule number one of crypto - not your keys, not your crypto
  2. Don't send crypto from one Exchange to another. Always send your crypto from the Exchange to your self-hosted wallet
  3. As with rule number one - Don't buy crypto on services that don't let you send your crypto to your wallet; Services such as PayPal and Robinhood

This rule is fundamental to managing your own (crypto) bank.

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