• David Schwartz is indifferent about storing cryptocurrency on the Coinbase crypto exchange.
• Schwartz thinks the safety of users’ funds depends on the exchange’s activities.
• Crypto exchange depositors are unsecured creditors.

Ripple’s Chief Technology Officer, David Schwartz, has expressed skepticism about the safety of storing cryptocurrency on centralized exchanges. In a recent online discussion, Schwartz highlighted the potential risks for users’ funds in the event of an exchange’s financial instability.

Schwartz commented while responding to Joe Carlasare, a commercial litigator, who analyzed the potential risks of storing funds on crypto exchanges. According to Carlasare, depositing funds into a crypto exchange makes the depositor an unsecured creditor to the exchange.

Carlasare explained that by doing so, the depositor effective…

The post Centralized Exchanges vs. Self-Custody: Which is Safer for Your Crypto? appeared first on Coin Edition.

• David Schwartz is indifferent about storing cryptocurrency on the Coinbase crypto exchange.
• Schwartz thinks the safety of users’ funds depends on the exchange’s activities.
• Crypto exchange depositors are unsecured creditors.

Ripple’s Chief Technology Officer, David Schwartz, has expressed skepticism about the safety of storing cryptocurrency on centralized exchanges. In a recent online discussion, Schwartz highlighted the potential risks for users’ funds in the event of an exchange’s financial instability.

Schwartz commented while responding to Joe Carlasare, a commercial litigator, who analyzed the potential risks of storing funds on crypto exchanges. According to Carlasare, depositing funds into a crypto exchange makes the depositor an unsecured creditor to the exchange.

Carlasare explained that by doing so, the depositor effective…

The post Centralized Exchanges vs. Self-Custody: Which is Safer for Your Crypto? appeared first on Coin Edition.