Tesla CEO Elon Musk is not endorsing any centralised cryptocurrency exchanges. Musk, who is a staunch supporter of cryptocurrency, wants crypto holders to take custody of their ‘keys’, and not rely upon cryptocurrency exchanges such as Robinhood or Binance.
This became clear after a recent Twitter spat between Musk and Binance CEO Changpeng Zhao. The billionaire investor and founder of SpaceX raised concerns on behalf of Dogecoin holders regarding the recent DOGE problem at cryptocurrency exchange Binance. The issue resulted in numerous erroneous dogecoin transactions with some users reporting that their accounts were frozen.
Musk asked Zhao (CZ), “What’s going on with your Doge customers?” adding that, it “Sounds shady.”
Recently, Musk had also responded to a tweet by Bill Lee, an investor in Musk’s ventures, agreeing that until the wallet keys are in the user’s possession, they should not consider the holdings as “their own”. The Tesla CEO wants people who own digital assets to own their own private keys rather than letting a crypto exchange handle it. Here’s why.
Types of crypto exchanges
The safety of cryptocurrency depends largely on which cryptocurrency exchange you use. A cryptocurrency exchange is an online marketplace where users buy, sell, and trade cryptocurrency. It works similar to an online brokerage, as users can deposit fiat currency, and use those funds to purchase cryptocurrency online.
There are two types of crypto exchanges—centralised and decentralised—but both come with their own benefits and pitfalls in terms of safety and reliability.
If you are keen on using a centralised cryptocurrency exchange such as Binance, WazirX, CoinDCX etc, you would be availing the services of a company that facilitates crypto to crypto and crypto to fiat transaction between two or more individuals.
Such exchanges ask their users to submit Know-Your-Customer (KYC) documents while registering on the platform. After signing up, users…
