- Centralized exchanges like Binance and Coinbase are secure but not risk-free.
- Recent hacks highlight the vulnerability of CEX platforms.
- Self-custodial wallets provide better control and security over assets.
Despite their reputations as top exchanges, Binance and Coinbase are not immune to cyber threats. The recent ByBit hack in February 2025 underscores the ongoing risks, even for leading platforms.
As Web3 adoption grows, the shift toward self-custodial solutions becomes more critical. Owning private keys ensures full control over funds, reducing exposure to exchange insolvencies, phishing scams, and unauthorized access.
Crypto Security 2025: Why Exchanges Aren’t Enough to Protect Your Assets
The crypto space continues to evolve, but security threats remain a major concern. With billions lost to exchange-related hacks over the past few years, investors must rethink their approach to asset protection. Relying solely on exchanges, no matter how reputable, increases vulnerability to cyberattacks and regulatory risks.
While Binance and Coinbase invest heavily in security infrastructure, history has shown that no centralized exchange is entirely safe. Users can fall victim to phishing scams, SIM-swap attacks, or exchange breaches. As a result, the industry is witnessing a growing shift toward self-custodial wallets.
Self-custodial wallets empower users by giving them full control of their private keys. This eliminates the risk of exchange insolvency and unauthorized access to funds. With crypto adoption rising, these wallets are becoming a fundamental tool for long-term investors.
The best strategy is to use exchanges strictly for trading while transferring holdings to a self-custodial wallet. This approach not only enhances security but also aligns with the decentralized principles of cryptocurrency.
No exchange is completely safe, and recent attacks have only reinforced this fact. Investors should prioritize security by adopting self-custodial wallets and minimizing their exposure to CEX-related risks.
“Not your keys, not your coins.” – Andreas Antonopoulos
