*Note: this article is published after the fallout of FTX
You might have heard what happened with FTX recently, where their customers did a massive bank-run on the exchange. The fallout of FTX has caused a huge impact on the crypto market, with many other big companies predicted to fall next.
If you don’t know what happened, you can check our news page about FTX here
You know, cryptocurrencies and blockchain technology are supposed to solve centralization issues. They are supposed to help people do transactions peer-to-peer without the need to trust a centralized party. In the case of FTX, their team mismanaged user funds, and they got away with it due to their centralization system.
We can only hope that with what has already happened, eventually crypto users will learn to take care of their own crypto assets in non-custodial wallets.
It is super important to never put your crypto funds with centralized exchanges (CEX-es), you should only use them to trade from one crypto to another, and pull out as soon as you have completed the trade. Even when it comes to crypto trades, you should prioritize using a DEX (decentralized exchange). Only if you cannot find enough liquidity on DEX-es, you should try to use CEX.
Imagine if everybody is hodl-ing his crypto assets in his own Metamask or Ledger or Trezor wallet, none of this would have happened. It’s super important to never trust centralized parties with your funds. Not your keys, not your crypto.
To start learning, you can check our how to use Metamask
tutorial. Hopefully this will allow you to stop being dependent on CEX-es.