Tesla and SpaceX founder Elon Musk does not support centralized cryptocurrency trading platforms. He suggests that cryptocurrency holders keep their “keys” and not be dependent on exchanges like Coinbase or Binance.
Musk said that as long as the keys to the wallet are not in the possession of the user, he should not consider his assets as “his”. There are two types of cryptocurrency trading: centralized and decentralized. Both have advantages and disadvantages in terms of safety and reliability.
Unlike centralized exchanges, decentralized exchanges do not have a user-friendly interface and are quite difficult to use. This is also due to the fact that in the case of decentralized exchanges, users must first log into their crypto wallets every time, which is simply inconvenient for many. While most transactions take place on centralized cryptocurrency exchanges, decentralized exchanges are the best in terms of preventing market manipulation and reducing the risk of hacking.
When users buy cryptocurrency through platforms like Binance or Coinbase, they don’t own the keys. They also don’t have a virtual wallet with keys. These platforms provide key storage and protection in exchange for a seamless working environment.
At the same time, Elon Musk supports the idea of abandoning such platforms, which are currently used by millions of cryptocurrency holders.