Why Centralized Cryptocurrency Exchanges Make Terrible Custodians For Crypto Assets – Rachel Wolfson

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“Today there are over 300 centralized cryptocurrency exchanges in the world. Almost all of these centralized exchanges also act as custodians,” Alex Mashinsky, CEO of Celsius Network and one of the inventors of VoIP (Voice Over Internet Protocol), told me. While cryptocurrency exchanges allow customers to trade cryptocurrencies for other assets, some of the biggest exchanges in the world also act as both exchanges and custody holders. What exactly does this mean? According to a blog post written by Miko Matsumura, cofounder of Evercoin Exchange, a custodial exchange holds the private keys to a user’s digital assets. A non-custodial exchange does not hold users keys. In the cryptographic asset space, whoever controls the private key is 100% in control of the asset…………..

 

 

 

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