Sense

Learning Crypto with /sense

What are the cons of using a centralized crypto exchange ? 

Lack of Full Control Over Your Funds
When you use a centralized exchange, you don’t actually hold your crypto, the exchange does. 

Security Risks
Centralized exchanges are popular targets for hackers because they manage large amounts of crypto in one place.

Censorship and Freezing of Accounts
Because they follow government regulations, CEXs require ( KYC - Know Your Customer ) and can block transactions or freeze your account.

Regulatory Risk
Centralized exchanges must follow local and international laws. If a government bans or regulates crypto suddenly, the exchange could be shut down or restricted.

Lack of Transparency
Some exchanges have poor internal controls, mismanage user funds, or even engage in fraudulent activity.

Downtime and Performance Issues
During periods of high market activity (like crashes or pumps), centralized exchanges can slow down or go offline, causing trade delays or withdrawals.

Crypto Quiz with /sense 

Which of the following statements is false ? 

A - Centralized exchanges offer customer support 

B - Centralized exchanges must comply with local jurisdictions

C - Centralized exchanges can experience heavy trading volumes and go offline 

D - When your crypto holdings are on an exchange, you still hold your private keys

Hodler exploring web3. Solana airdrop farmer, bitcoin solo miner, Helium network miner, and Medium blogger. Sense channel mod.

The answer is D..False  False
Am i correct?

DeFi aficionado | Web 3 explorer | A forex trader & lastly, a lover of sport 👓