Storing Cryptocurrency on Exchanges - Don't, They Get Hacked

The Australian exchanges and trading platforms are much the same as the larger international counterparts. They are a honeypot, and a potential point of weakness. And just like other stores of value they are subject to attacks and can be hacked and have cryptocurrency stolen. For this reason you should not keep your digital currency in an online exchange wallet for more than a few days.

MT Gox

I learned this the hard way with Mt Gox back in 2013, :( Read more on MT Gox…

So you don’t become a creditor of a failed exchange still waiting for a payout 9 years later, like me. Never leave your cryptocurrency in an online exchange wallet for more than a few days. When you finish purchasing your crypto you should as soon as possible transfer it out of the exchange wallet and into a personal wallet where you control the keys and the backups.

A few days at most

Similarly when you wish to sell some crypto you should only transfer the currency from your private wallet to your exchange wallet when you are ready to trade. Don’t let it sit in the exchange wallet while you wait to see what’s happening. You could have to wait up to an hour to get the funds transferred between your wallet and the exchange wallet, while the transactions are confirmed. So make sure you allow this time in your trading plan.

Next : Get A Secure Personal Wallet