Crypto exchanges need to start giving customers their keys

The business model that cryptocurrency exchanges currently use relies on ignorance and fear. 

It relies on their customers not knowing much about

But there are ways in which centralized exchanges could implement more decentralized methods without falling into some of the pitfalls. It is possible to create a kind of hybrid — to get the best of both worlds.

Retail investors and the average exchange users quite understandably don’t want to buy a token that could be a rug pull. But they also want the safety of knowing that their crypto can be accessed at any time. However, the price of ownership and assuming control of the assets means taking on the requisite responsibility, which, in turn, necessitates the requisite level of education. Exchanges that are considering the future of crypto need to understand this.

Critically they need to understand that the sooner customers become educated on crypto, the sooner they’ll find themselves on a direct pathway to complete decentralization. Therefore, I would call on exchanges to take the decentralized way forward by creating a hybrid system that protects customers as well as their own brands.

History is littered with examples of corporate giants that failed to adapt and paid the price. Blockbuster was an arrogant behemoth that never thought streaming would be a thing; today, it is dead. Money is the same. It’s not your money if the bank owns it; it’s not your crypto if an exchange holds it. Freedom comes from letting go of the fear of responsibility.

Companies, like living organisms, have to adapt to changing environments in order to survive. It’s clear that customers want to be able to fully control their digital assets. If exchanges don’t embrace this trend, they may just embrace their own destruction.

This article is for general information purposes and is not intended to be and should not be taken as legal or investment advice. The views, thoughts and opinions expressed here are the author’s alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.