Is my money safe on an exchange?

It is a claim on a company, not property you hold. That is the whole distinction, and it has decided several bankruptcies.

When coins sit on a platform, the platform holds the keys and owes you a balance. Legally and practically you are a creditor, and if it fails you join a queue rather than keeping your coins.

Deposit insurance mostly does not apply. Where a platform advertises "insurance", read what it covers — usually the company's own hot-wallet losses, not your account.

That is not an argument against ever using one. Buying requires a platform, and a small balance for trading is a reasonable convenience. It is an argument against a large balance sitting there by default, for years, because nobody made a decision.

What reduces the risk: a second factor that is not SMS, a withdrawal whitelist, and moving anything you are not actively trading to a wallet you control.

Who holds the keys works through the trade-off properly.

Last checked 19 Oct 2026.