Where should you store you tokens?
Do you remember the infamous Mt. Gox incident of 2013 where millions of crypto vanished off the exchange and none of the users were able to obtain the private keys needed from the blockchain? This happened due to an exchange crash. People needed these private keys to prove ownership of their specific Bitcoin address.
Now tell me — why are you still using centralised exchanges like Bittrex, Coinbase, GDAX, Poloniex, Binance, or others? There is some likelihood this can happen again in the future as code is never perfect. You don’t own the private keys of the wallet (the exchange owns it). In case of an exchange crash, the same will happen as with Mt. Gox.
Besides that, you fully trust the implemented security measures by the exchange. But even with two-factor authentication and other security measures, you have a chance of 0.01% to be hacked. You can decrease this number to 0.001% when you use a hardware wallet. Hardware wallets are by nature much harder to hack as they require physical access to the device. At last, not many exchanges are insured against potential theft or losses. You won’t receive a refund for your lost funds in case of a hack or other security breach.
We have developed the MT Wallet as an optimal solution which allows you to safely store your funds and allows to to trade with all the world through the MT Market. No exchange is involved, so you completely own the created wallet. In unrealistic case of ModulTrade crashing, you will still be able to retrieve your funds. Let’s imagine this won’t happen! :)
However, if you are a frequent trader, it’s more beneficial to store your funds on an exchange. Although, we recommend to spread your funds across different exchanges to minimize your losses in case of a breach.
Key points:
- You don’t own the private keys of your wallets on the exchange.
- Most exchanges are unregulated and/or uninsured.
- You possess the private keys of the MT Wallet.
You can always check the MT Wallet here https://wallet.modultrade.com
