Any other danger apart from storing funds on exchanges?

[Lontor]

Why are people scared of centralized projects too? I thought keeping money in exchanges is the danger? I have Cronos and Sologenic in my wallet and I believe even with the going FUD they will bring me good profits or is there more that I should know?

[Despairo]

Because if centralized project is really perfect about the security, value, utility, privacy etc, we're actually don't need any cryptocurrrency because banks and fiat already enough. The reason why Satoshi create Bitcoin is to avoid anything that can be controlled and manipulated by centralized entity. If you're choose a centralized project, I don't see any reason why you need to use crypto since banks and fiat are similar, the only difference is the price only.

Don't forget many CEO abandon their project and run with investor money, that's the worst case why many people avoid centralized project.

[UserU]

Centralized means someone or some team has custody over your assets. They will inform you that assets are safe with the "Trust me bro" assurance.

Yet many collapse because some idiots got too greedy or fucked some shit up. For example, Celsius Network by the unicorn investor Mashitsky,the same man that built and destroyed it single-handedly.

So customers (i.e. you) don't literally own their coins, they are given an IOU.

[OmegaStarScream]

Why are people scared of centralized projects too? I thought keeping money in exchanges is the danger? I have Cronos and Sologenic in my wallet and I believe even with the going FUD they will bring me good profits or is there more that I should know?

Are you talking about the custodial solutions used to store and stake your money or coins/tokens projects? If the latter, then I'm not familiar with the second project, but for projects using Cronos, or Binance's chain for example, then the danger here is mainly linked to the exchange's platform. All it would take for all the projects to die is for their exchanges to collapse. So if something like what happened to FTX, happens to either of Crypto.com or Binance.com, you can be certain that any project in either chain will die with them.

[cryptoaddictchie]

Why are people scared of centralized projects too? I thought keeping money in exchanges is the danger? I have Cronos and Sologenic in my wallet and I believe even with the going FUD they will bring me good profits or is there more that I should know?

Centralized project controls the decision and can any minute unload or unlock your funds in a system. This is alarming if ever there is something happened on their platform. It doesnt mean they are gonna do it but there are historical events where this happened in the past.

Maybe the one you are using has strong ties or good reputation. If its centralized then good for them if they keep their clients well satisfied.

[coin-investor]

Why are people scared of centralized projects too? I thought keeping money in exchanges is the danger?

They have a good reason why investors are afraid of keeping their coins in exchange it's not a false dilemma, there are present and clear dangers in storing your coins on exchanges after what happened to FTX, people should always be aware of the danger of custodial wallet and not owning your private keys means not owning your coins.

I have Cronos and Sologenic in my wallet and I believe even with the going FUD they will bring me good profits or is there more that I should know?

It's your choice and decision if you did your research and you believe that these two coins will yield you profit then it's good for you just protect your coins by doing the right thing and that is using a noncustodial wallet to store your coins of choice.

[Outhue]

Centralized entities are 100% manipulative. Dealing with centralized projects is just like keeping your money in the bank, this is not even about trading on centralised exchanges, they have the power to write and to erase when they feel like, this is why Bitcoin is Outstanding.

[dansus021]

It is dangerous but you can keep simplifying as like this.

* Only use a good exchange that so many people using it and trust it( Coingecko and coinmarketcap also have data to proof of asset a)
* don't put the big chunk of your money there, use cold wallet and save the private key
* Centralized exchange is good for day trading, scalping and futures so deposit -> trade -> profit -> Withdraw
* if you want to stake your coin choose a coin that have delegate mechanism so you don't need run your own node.
* Wanna withdraw to fiat, No problem transfer -> change it to your desired fiat -> withdraw or using p2p platform that all over the place
* Enjoy crypto world less worried

[pooya87]

That's because centralization of a cryptocurrency defeats its whole purpose and renders the said cryptocurrency useless. Which in turn means if you bought it and thought it is an "investment", you are actually gambling on a pump that may never come.

The two shitcoins you named are not even cryptocurrencies, they are tokens that have been dumping ever since 2021 and they both had their brief moment in the sun when they were pumped years ago. There is only tiny pumps and eventual demise waiting for them.

[Eternalman]

The biggest is that you don't get to have any guarantees on what would or could happen with your heard-earned cach. at any moment, they could collapse, well, there is so much to talk about collapsing and it is not that simple, but from your point of view, you can never be sure anyways, right?, even Binance had, and is having issues. So, storing money there means, you can't know what happens to it.

[Aanuoluwatofunmi]

Why are people scared of centralized projects too?

No one mean harm on them but they impose more danger than the benefits they offer, so many crypto projects have crashed down in the past and renders investors in penury of argony loosing their assets, anything that can be traced, hacked and attacked is unsafe enough to go with because the risk in there is high, people aren't scared about the centralized exchanges but fear loosing their entire investment on them.

I thought keeping money in exchanges is the danger?

The danger lies on the type of exchange you're using, we have a centralized exchange that has the custody of your wallet keys in their possession and such examples are the likes of hot wallet, mobile wallet etc. The second type is the decentralized exchange, which gives you access to your keys.

[dkbit98]

Why are people scared of centralized projects too? I thought keeping money in exchanges is the danger? I have Cronos and Sologenic in my wallet and I believe even with the going FUD they will bring me good profits or is there more that I should know?

Other than exchanges, danger of keeping shitcoins in any wallets, custodial or non-custodial, is even worse because it gives you false sense of security
Shitcoins are like rotten bananas, they are worthless, and you know they will die sooner or later, so better exchange them for Bitcoin as soon as possible and keep this BTC in some cold wallet.
Use exchanges only when you need to exchange coins with other coins or fiat, and choose decentralized exchanges like Bisq or other p2p alternatives.

[sheenshane]

Haha, dont believe that your fund is in SAFU, a centralized exchange will not help when it comes to the security of storing the fund, they are prone to hacks and scams, or it might possibly cause an inside job.  So why do we trust them to hold our funds?

Besides, Bitcoin was designed and created for a decentralized purpose why we need those centralized platforms.
Those you've mentioned above are also centralized coins, they are very danger to hold in a long term.

[BlackBoss_]

People are boycotting centralized exchanges because
- Not your keys, not your coins
- Centralized exchanges can be dead by many reasons: scam exit, hack leads to exchange bankruptcy, hack but is not able to compensate users, hack and use this reason to run away. See Exchange graveyards with many dead exchanges, reasons of their deaths.
- You have to wait for their approval to withdraw your coins and most terrible, can not withdraw your coins.

Security checklist

If you are not able to buy cold wallets to use, you can choose hot wallets which are surely better than exchange wallets.
Custodial vs. Non Custodial Wallets - "Not your keys, not your coin" Explained.
Reminder: do not keep your money in online accounts

[tech30338]

Why are people scared of centralized projects too? I thought keeping money in exchanges is the danger? I have Cronos and Sologenic in my wallet and I believe even with the going FUD they will bring me good profits or is there more that I should know?

one of the best example is FTX look what happen to the investors their money is now gone, people really need to understand that if you dont have control anything can happen, they can just get your money and there is nothing you can do about it, exchanges? look what happen to cryptopia and other coins, their money is there and there is nothing they can do but to wait, if their coin is going to be release to their real owner.