Centralized exchanges (CEX), such as Binance, Bybit, OKX, and others, remain the primary gateway for millions of users entering the crypto economy for the first time. They offer high liquidity, user-friendly interfaces, fast execution of transactions, and a wide selection of trading pairs. However, this comfort comes at the cost of security compromises. When using CEX, it is important to understand what risks you are taking on and how to minimize them.
Main risks when using CEX
1. Lack of control over assets. While crypto is on the exchange, you do not own the private keys. This means that technically, the funds belong to the exchange, not you.
2. Hacking attacks. History has seen numerous cases where even large exchanges were hacked. Some incidents led to complete loss of funds.
3. Regulatory risks. Exchanges may be forced to freeze accounts or limit withdrawals at the request of regulatory authorities.
4. Phishing and social engineering. Users often fall victim to fake websites, fraudulent apps, or scammers posing as technical support.
Best security practices on CEX
Set up two-factor authentication (2FA). Use apps like Google Authenticator or Authy. Do not use SMS — it is the least reliable option.
Whitelist of addresses for withdrawals. Exchanges allow you to set a list of trusted wallets. Once this feature is enabled, withdrawals can only be made to these addresses.
Limit the storage of funds on the exchange. Use CEX as a trading platform, but not as an asset storage. Keep the majority of your funds in cold wallets.
Regularly check account activity. Monitor logins, IP addresses, and account actions. Many exchanges have an activity log.
Do not click on suspicious links. Create a bookmark with the official exchange address and always use it.
Disable unused features. For example, if you do not use P2P or margin trading — disable them to minimize risks.
Reasonable balance
Centralized exchanges are a convenient tool, but do not forget that the main philosophy of cryptocurrencies is control over your assets. An exchange is good for trading, but not for long-term storage. Security starts with understanding: the simpler the access, the higher the user's responsibility.
Conclusion:
using CEX is possible and necessary, but it is important to treat them as a 'service' rather than a 'bank'. The biggest threat is the illusion of complete security. Form good habits from day one — and you will be one step ahead of most.
