Tips on How to Safeguard Your Cryptocurrency Against Fraud and Theft.
First, it is important to understand that when you buy bitcoins through an exchange, the ownership of the cryptocurrency lies with the exchange – just the way it does with your broker in a trading account until you transfer it to your demat account. For complete ownership of the bitcoins, you ought to transfer it to a bitcoin wallet so that you don’t lose ownership even on account of a fraud.
Sumanth Neppalli, cryptocurrency and blockchain analyst at Zebpay, a bitcoin exchange, says, “When you trade on exchanges your private key remains with the exchange, so they can even spend your bitcoins. Wallets give you the ownership and allow you to control your private keys.”
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