Assessing the Safety of Centralized Cryptocurrency Exchanges: A Closer Look at Proof of Reserves
Centralized cryptocurrency exchanges (CEXs) have become an integral part of the cryptocurrency ecosystem, allowing users to buy, sell, and trade various digital assets. However, concerns about the safety and security of funds held on these platforms have persisted. To address these concerns, Is That CEX Safe? Understanding Proof of Reserves ." In this article, we will delve into the concept of Proof of Reserves and explore how it can enhance the safety of CEXs. The Importance of Safety in Crypto Exchanges The cryptocurrency market has seen tremendous growth over the past decade, attracting a wide range of investors, from retail traders to institutional players. As the popularity of cryptocurrencies has soared, so too have the risks associated with using centralized exchanges. CEXs operate as intermediaries that hold users' funds in custody, providing liquidity for trading. While this centralization can offer convenience, it also exposes users to various risks, includi