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Why leaving your coins on an exchange is no good idea
Not your Seed – not your coins
At least since Mt.Gox we all know how dangerous it can be to leave your coins on an exchange.
Even if a lot has happened in the area of security since then, there is always the risk that a hack or other attack could endanger your funds.
Although most of the exchanges are insured against such incidents, the money is gone and it can take years to see it again.
If at all.
Even if you get your money back after some time, it may be that in the meantime a bullrun or a course increase has taken place that you missed in this case.
The insurances usually only refund the value at the time of the damage.
To avoid all these risks there is a very simple way: transfer the coins from the exchange to increase the security.
Because: not your seed – not your coins.
As soon as you have transferred your IOTA from the exchange e.g. to your Trinity Wallet or your Ledger Nano hardware wallet, you yourself have control but also responsibility over your coins.
When creating a Seed for your IOTA wallet make sure to never use online generators or other solutions that offer you helping to create one.
These services are mostly fakes and you can lose your funds. The official IOTA Trinity Wallet will help you to create a personal Seed in a safe way.
If you use a Ledger Nano you have to write down the pass phrase you created while installing your device.
Your Seed which is generated in this case by the device itself, will never leave the device.