Is it safe to store your crypto on CEX

In order to start buying and selling cryptocurrencies and other digital assets, the most common way is to do it via Crypto Exchanges. Centralized cryptocurrency exchanges (CEXs) act as an intermediary between a buyer and a seller and make money through commissions and transaction fees. You can imagine a CEX to be similar to a stock exchange, but for digital assets.

Unless you are a mature trader, there's a need to store or hodl your crypto somewhere. Leaving coins on the exchange is not the best practice, and here are some major grounds for that.

1. Centralized exchanges are (mostly) regulated by financial authorities and have to operate under KYC and AML regulations to ensure their operations are legal. As a result, your personal data may be exposed to governments upon request.
2. Centralized exchanges are widely used by investors, which means they provide a lot of trading volume. This results in a greater risk for the exchange to be hacked, so either your personal data or funds can be lost.
3. Storing crypto on the exchange does not really pay you off. On the contrary, it may incur losses because you may want to trade it, especially during market hype events.

Nevertheless, there's a good solution that minimizes all these risks. Hexn is a platform where you can safely bring your crypto, open a savings account and let it work for you with competitive APY rates.

Hexn offers a great variety of cryptos, a range of savings periods, and no hidden commissions or fees. If you have any questions, feel free to drop us a message in the live chat.