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As with any investment, there’s always a level of risk involved.
The same goes for Crypto exchanges where you can trade various cryptos with the aim to profit in the short term and long term.
Apart from the fact that your investment can reduce in value or increase in value, one safety measure to consider is the type of platform you make your transactions in.
It’s important that you choose your platforms wisely, otherwise you could end up lose or all of your funds!
When you invest in Crypto, some platforms will require you to deposit funds into their platform and then trade within the platform. These types are known as “custodial” platforms.
Whereas other “non-custodial” platforms, which are now becoming more popular allow you make transactions from your trusted crypto exchange wallet, ie binance.
Depending on the platform you use, you can potentially reduce your risk by simply only using Crypto exchanges that are “non-custodial” trading platforms.
With non-custodial platforms, you do not need to deposit any funds into the platform you want to trade in.
Because, non-custodial platforms enable you to make trades directly from your wallet, which is stored in your crypto storage exchange.
For example, let’s say you have some crypto stored in binance.
You can make trades with your binance wallet funds without transferring any funds from Binance to the platform you wish to trade in.
This way, your funds are safe in your own binance wallet, but at the same time you can still use them to invest in various platforms that are “non-custodial” and enable you to trade and receive any potential profits directly into your binance wallet.
Another benefit of this facility is that there is no need to request “widthdrawals” from the platform you’re trading in, as your trading funds and profits will have already been in your binance wallet from the start.
We just used Binance as an example, but it works this in other popular platforms as well, where you can trade from your trusted wallet directly in to various “non-custodial” trading and investment platforms.
To sum it up, that’s why I prefer “non-custodial” platforms, as I know my funds are in my own trusted wallet and I can trade directly from it.
I also have full control of my wallet, as I can stop any trades or transactions when I want to.
In additional I don’t need to request a “withdrawal” from the platform I’m trading in, as any realized profits will instantly be stored in my wallet.
So if you want that extra bit of percentage of safer crypto trading and investing, you may want to consider “non-custodial” investment platforms.