Keeping your assets on a centralized exchange might seem simple — just log in, trade, and withdraw when needed. But in the world of crypto, convenience often comes at a cost.

1. You Don’t Own the Keys

When your crypto is stored on an exchange, you don’t actually control it.
The exchange holds the private keys, which means your assets exist under their custody — not yours.
If the exchange freezes withdrawals, experiences technical issues, or goes offline, your funds are effectively locked.

The golden rule of crypto still stands: “Not your keys, not your crypto.”

2. Exchanges Can Fail — Even the Big Ones

History has shown that no platform is immune to risk. From Mt. Gox to FTX, users have lost billions in assets because exchanges operated like banks — centralized, opaque, and vulnerable to collapse.
Even with strong reputations, exchanges remain a single point of failure in a decentralized world.

3. Security Breaches Happen

Centralized exchanges are prime targets for hackers.
A single breach can expose millions of user accounts, and stolen crypto is nearly impossible to recover.
No matter how secure the exchange claims to be, your funds are safest when you hold the keys yourself.

4. Withdrawals Can Be Restricted Anytime

Exchanges can freeze or limit withdrawals due to internal policies, regulations, or even liquidity shortages.
When this happens, users find out too late that they don’t actually control their money — someone else does.

5. Self-Custody Means True Ownership

A self-custodial wallet puts you in charge.
You hold the private keys, you authorize every transaction, and you decide where your crypto goes — without intermediaries.
It’s the foundation of what makes Web3 truly decentralized.

Final Thoughts

Exchanges are useful for trading, but not for storage.
Once your trade is done, always move your assets to a self-custodial wallet — where you have full access, privacy, and peace of mind.

Learn more about secure storage and crypto safety on the Unity Wallet Helpdesk.