Until recently, many cryptocurrency holders preferred to store their assets on centralized cryptocurrency exchanges such as Binance, Bybit, Huobi, Garantex, Bynex, EXMO, and others. These exchanges are managed by specific organizations that oversee their operations, provide technical maintenance, and ensure security. Users found it convenient to keep their assets on exchanges because it allowed them to:
⦁ Buy and sell assets seamlessly;
⦁ Conduct transactions at high speed;
⦁ Access extensive trading functionality;
⦁ Avoid spending time learning about the nuances of cryptocurrency wallets and transferring digital assets to them.
However, today the situation has changed dramatically. And we found out why this is the case.
Reasons for Distrust in Centralized Exchanges
Currently, the rankings of centralized cryptocurrency exchanges and user trust in them are rapidly declining. More and more users are choosing to store their assets in various wallets, including hardware wallets. Why is this happening?
One significant factor has been the incident with FTX – one of the largest exchanges by capitalization. Within just one week, it ceased operations, and a huge number of people lost their savings. This event shocked the cryptocurrency market, and it's no surprise that afterward, users began actively withdrawing their coins from centralized exchange accounts to specialized wallets.
To summarize the situation, several reasons for the distrust in centralized exchanges can be identified:
⦁ Control of Assets by Platform Owners: Exchange owners can use cryptocurrencies for their own purposes, potentially deceiving thousands or even millions of users.
⦁ Lack of Security Guarantees: Despite efforts to ensure security, exchanges remain vulnerable to hacks. In the event of a breach, clients' digital assets may be lost.
⦁ Lack of Transparency: The possibility for exchange owners to alter data, such as manipulating trading volumes, makes the operation of centralized exchanges opaque.
⦁ Need for Identity Verification: Verification requires the submission of personal documents, which creates a risk of information leakage in the event of a hacker attack.
These reasons have prompted many users to abandon centralized exchanges and switch to storing their assets in specialized wallets.
Types of Cryptocurrency Wallets
Software or Cold Wallets
To store cryptocurrency this way, you need to download and install the corresponding software on your computer. After that, you create a wallet within the program and transfer your digital assets to it. This method is convenient but has its downsides. The main drawback is the risk of your computer getting infected with malware that could give hackers remote access to your wallet.
Hot Wallets
Assets are stored at an address on a remote server of an app, website, or extension. You can access the wallet from anywhere by logging into your account. However, web resources are susceptible to hacks, which poses a risk of losing your funds.
Hardware Wallets
The most secure method of storing cryptocurrency. A hardware wallet is not susceptible to hacking, and transactions require manual confirmation. Visually, a hardware wallet resembles a USB drive. The main downside is its high cost, which makes this storage method inaccessible for everyone.
Why the Situation Benefits Cryptonica
Users are wary of storing their assets on centralized exchanges and are seeking suitable wallet options. However, they don't want their coins to simply sit idle. This is due to the risks involved, and because assets should work and generate profit.
The current situation prompts cryptocurrency holders to look for solutions that ensure the safety and growth of their assets. In this context, our company offers optimal options.
Why Cooperation with Cryptonica is Beneficial:
⦁ Transparency: Anyone can understand the principles of our investment operations. The assets provided to Cryptonica's liquidity pools are used to expand our reserves, which are applied to enable clients to buy and sell cryptocurrency through our company's serviced crypto ATMs.
⦁ Profitability: User assets are not lost, as they are used solely for exchange operations. A portion of the commission from the services is returned to users as rewards, generating passive income for them.
⦁ Timely Profit Distribution: Thanks to functional software and powerful servers, Cryptonica ensures there are no delays in dividend payments.
⦁ Opportunity for Increased Income: If funds are not needed by the investor, they can also be used to provide liquidity, further increasing their profit.
We guarantee the reliability of our partnership programs. Cryptonica has a solid reputation and excellent prospects for future growth. Our clients' investments will continue to provide them with substantial passive income.
As a result, the distrust towards centralized exchanges works to Cryptonica's advantage. We offer cryptocurrency holders not only a secure way to store their assets but also the opportunity to earn income from their use.
