Should I keep my Bitcoin Cash on an exchange?

If you are interested in truly using Bitcoin Cash, you should not keep Bitcoin Cash on an exchange.

Cryptocurrency exchanges have been known to use fractional reserves, meaning that they hold fewer coins in their reserves than their customers are supposed to own. This can cause big problems when many customers want to withdraw their coins. Several exchanges have become insolvent due to such issues and many customers have lost everything they thought they owned.

When you self custody, there is no intermediary between you and your money. Eliminating intermediaries was one of the foundational purposes of the idea of Bitcoin in the first place. Using intermediaries with cryptocurrency represents a return to the many problems that banking has caused.

If you are interested in trading Bitcoin Cash, you should also consider withdrawing your Bitcoin Cash from exchanges and instead speculate using self-custodial means. BCH Bull allows users to take either long positions (with leverage) or hedged positions on Bitcoin Cash against metals, fiat currencies, or other cryptocurrencies. This is all done with smart contracts on Bitcoin Cash using the AnyHedge Protocol.

Learn more about BCH Bull here.

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