How to protect your Solana crypto from bankrupt exchanges

To keep your crypto safe from exchange failures, here are some ideas to protect yourself.

An exchange can fail on a few fronts, such as bankruptcy, an internal hack and third party loan defaulting.

• Withdraw after trading: Once you complete a trade, transfer your crypto to a wallet outside of the exchange, this way you’re protected from most of the exchange’s potential failures. Avoid leaving an important amount on exchanges, so if anything happens, the impact is minimal. Do not prioritize the convenience of leaving assets on exchange over security. Bonus tip: store into cold wallets / hardware wallets what you do not need to trade immediately. If you can afford the 5 minutes it takes to move assets from a cold wallet to a hot wallet, do it, it’s worth it to be safe.
• Use insured exchanges: Opt for exchanges that offer insurance for customer funds in case of theft or failure. They are rare, make sure to read all of the fine prints.
• Diversify exchanges: Spread your assets across multiple exchanges, with insurances, if you absolutely have to leave assets on the exchanges to reduce risk.

Remember to enable 2FA, this is the minimum you should do to avoid an external threat to drain your funds. If an internal employee targets you, it probably won’t help, but it’s a good measure anyway. Does not protect against bankruptcy or lack of liquidity.

These measures can significantly reduce the risk of losing your assets.