Hello,
One of the most talked topics in the crypto world is why you should always take your crypto out of exchanges. I´m going to give you some perspective into this with a real example later in the article.
Remember, only take it out if you are comfortable paying the withdraw fee or if you have enough to pay for gas fees like in ETH, don´t take small amounts of ETH or ERC-20 tokens out because gas fees will drain your ETH.
Why is this so important?
Well first of all, you should have heard of decentralization, this is a major fundamental of crypto and Exchanges own large amounts of coins. If you get it out of an Exchange you will be spreading the large amounts of crypto they have to personal wallets. This has a good side effect, if Exchanges have smaller amounts of coins on their disposal they will be forced to buy more to keep working normal, this will make the price of a coin increase because they will be willing to pay higher prices to keep their system running without prejudice to the user.
Another point is that some Exchanges hold big amounts of a coin that is running on a POS or DPOS blockchain system. The problem with this is that they can stake their coins and have more power over decisions made in the blockchain. An example is Tron (DPOS), the biggest super-representative of the network is Binance because they froze an enormous amount of TRX in the blockchain. For a little context DPOS works in a way that every token you have is worth one vote and you vote in the representative that you think is best. The problem is Binance bought billions of TRX and voted for themselves.
Now the real life personal example, you think it might never happen but it has happen to me. I left some VET in an Exchange and didn´t remember to take it out to my wallet. Well one day I read that this exchange was facing some problems and you couldn´t do anything in there. You couldn´t trade, see graphs or withdraw coins, you instantly have a mini "heart-attack", you don´t know if your coins are safe or lost forever, the support team doesn´t answer your questions. After almost 2 days things were back to normal and all went well, but the panic is real and the situation can go bad to worse if they close the Exchange and run away with your money.
These are some of the reasons you should take out your coins out of an Exchange, sure there are a lot more, make sure to do your research on wallets and fees before taking these steps.
Best Regards,
Cryptopeach
Let me be an example to support the article. I had a large amount of xbc cryptocurrencies on Cryptopia exchange and lost them all. They confiscated all the assets on the exchange and still have not paid back.