Debunked: The Fake Myth of Cryptocurrency Ownership by Exchanges

People who have just entered the crypto scene are usually greeted by the anti-crypto movement at times by ridiculous ideas. And some of them are myth than fact. Like this one. So today we will be addressing this baseless myth.

So, Is It Really True?

Absolutely not. Cryptocurrency exchanges work like stock exchanges. Just like you use intermediary services to deposit or withdraw money in stocks, this works similarly. You can buy more currencies, or sell, or trade them for other currencies.

Then How Do Cryptocurrencies Really Work?

Currencies like Bitcoin, Litecoin and Ethereum work on Blockchain. Blockchain is incredibly hard to hack or steal as every chain has a limited number of transactions. All of which are updated routinely for every partner with every transaction. Blockchain is the whole reason why exchanges cannot just buy up all of your investments.

So Where Do You Save All the Currencies

Wallets are where they’re stored. Sites like Binance act as exchanges and as wallets. Methods such as public and private keys make exchanges hacking your currencies impossible. And now with the advent of seed phrases, this is becoming even harder to accomplish.