Storing funds under another party means the owner at bearing the risk of any losses that may come to the exchange.
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Safety
Relying on a custodial crypto-exchange to hold your funds comes at a risk. Storing funds under another party means the owner at bearing the risk of any losses that may come to the exchange. Stolen, lost, mis-accounted, hacked, these are all things that can happen to your funds while relying on a custodial exchange.
A promising fundamental solution is available, a non-custodial exchange which reduces the risk the user will hold. This is by never holding any user funds under the exchange, the user has full control of the assets they trade or purchase. All in all a much safer option to trade or buy cryptocurrencies.
Easy to Use
A simple user interface and experience is something custodial exchanges struggle with, normally flooding the user multiple settings and terms that must be agreed to. A normal procedure an entity is obliged to do when they hold the user’s funds.
Taking n.exchange as an example of a non-custodial exchange, providing multiple crypto currencies available to purchase with any other crypto or multiple fiat currencies. Easy to follow and clear instructions to fulfill your needs safely and risk free.
Storage
In recent days Russia has blacklisted custodial exchange Binance. This is news that may affect the entire ecosystem of exchanges whether being custodial or non. However, it is safe to say that having to deal with a situation such as this is easier if your funds are always safely stored with your own wallet.
Despite the exchange asserting users that their funds are safe, it continues to be a risk if not more than before holding your funds on these platforms. We can take Bitcoin’s teachings of “not your keys, not your coins” into consideration and say that keeping your digital assets stored safely with your full control is a must to be 100% safe.
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The Importance of A Non-Custodial Exchange was originally published in The Capital on Medium, where people are continuing the conversation by highlighting and responding to this story.
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