How Secure Are Your Personal Information and Crypto When You Transfer?
Your personal information is very valuable. When you first buy cryptocurrency, maybe you buy it from crypto exchanges. Sometimes it is mandatory to do KYC, so you have to give personal information and ID for verification. So what could go wrong? You think your personal information is safe and secure.
In case the crypto exchanges get hacked or your personal information is leaked, that can be used against you. We need to use crypto exchanges and your personal information might get exposed if something happens.
As long as you have cryptocurrency in exchanges, the crypto exchange is in control. If you buy cryptocurrencies and plan to hold them, you should hold them in your own wallet. As long as you hold the private key of your wallet, you are in control.
There are opportunities to earn interest in crypto lending platforms. You have to transfer your crypto to the lending platforms and you will keep getting interest. It feels like depositing money in the bank, but you are doing it in crypto.
When you transfer crypto to any lending platform, you don't have direct control over your cryptocurrency. Not your keys, not your crypto. Are you willing to take the risk to do that in order to get the interest? If you consider this, you may take the right decision.
You also need to do KYC to get interest from lending platforms. Are you comfortable giving your personal information to those lending platforms? Lending platform Celsius revealed customers' personal information to the court. When things like this happen, they don't bother to ask any permission from their customers.
This is a red flag. If you are concerned about your privacy and security, it is better to think twice before giving your personal information to any entity. What information you provide can be revealed in public. And you are the one who has to suffer for that.
Those lending platforms use your crypto to engage in highly risky activities. You think there is no risk, you are getting interest. But the moment they stop you from withdrawing crypto, things get ugly.
When you make any decision to transfer your cryptocurrency to others' hands and give your personal information, you have to think twice. Once they have your personal information and crypto, they can do what they like. You don't have control over their decision.
So what do you think? Please feel free to leave your comments. Thank you for reading this post. That's it for now. I'll be back with another post.
