When you trade on a centralized exchange, a platform that holds your crypto in its own wallets and controls access. Also known as custodial exchanges, they make trading easy—but they also make you vulnerable. You think you own your Bitcoin or Ethereum because it shows up in your account. But if the exchange gets hacked, goes bankrupt, or decides to freeze withdrawals, you lose everything. There’s no recovery. No blockchain ledger can save you when the company behind the screen shuts down your access.
That’s why exchange hacks, cyberattacks targeting platforms like Cryptonex or Nanex that stole millions aren’t just headlines—they’re routine. In 2022 alone, over $2 billion was lost to exchange breaches. And it’s not just hackers. custodial wallets, where the exchange, not you, holds the private keys mean you’re trusting strangers with your life savings. If they mismanage funds, get sued, or face regulatory pressure—like under New York’s BitLicense, a strict crypto licensing rule that forces exchanges to prove financial stability—you’re the one left holding worthless paper.
Even deposits aren’t safe. fiat on-ramp risks, the process of buying crypto with bank transfers or credit cards expose you to KYC creep, account freezes, and identity theft. Platforms like Thore Exchange or Cryptonex offer low fees but hide behind vague terms. No transparency. No audit trails. No recourse. And when you see a token like SANI or TITCOIN listed, you’re not buying a project—you’re gambling on whether the exchange will still be open next week.
Most people don’t realize that the convenience of one-click buys, customer support, and mobile apps comes at a hidden cost: total loss of control. You’re trading security for speed. And in crypto, speed without safety is just a path to ruin. The posts below show you exactly how this plays out—real cases where users lost everything because they trusted the wrong platform. You’ll see what happened with Nanex’s shutdown, why Cryptonex’s "guaranteed returns" were a trap, and how even big names like Binance can freeze funds under new laws like Hong Kong’s Virtual Assets Ordinance. This isn’t theory. It’s what’s happening right now. Know the risks before you click "Buy".
Centralized exchanges make crypto easy to buy but dangerous to hold. Learn why 98% of crypto hacks target CEXs, how insurance fails users, and what steps you can take to protect your assets.