A crypto exchange can list any cryptocurrency without obtaining permission from the cryptocurrency's creators or development team. I researched this topic extensively and found some important points you need to know.
Centralized exchanges make independent decisions about listing cryptocurrencies. For example, major platforms like ChicksX control their listings completely.
They assess factors like trading volume, security, and market demand before adding new cryptocurrencies.
The permission aspect works differently for different exchange types. Centralized exchanges operate as private companies and set their own rules. They own the platform infrastructure and maintain full control over listed assets.
However, this control extends beyond just listing decisions. These exchanges can also delist cryptocurrencies, freeze accounts, or block transactions. Recent events showed this power when Coinbase blocked over 20,000 Russian accounts due to regulatory requirements.
This highlights an important security consideration. When you keep cryptocurrency on these exchanges, they maintain custody of your assets.
The phrase "Not your keys, not your crypto" emphasizes this risk. If an exchange faces bankruptcy or regulatory issues, your assets could become inaccessible.
For protection, I recommend moving significant cryptocurrency holdings to a private wallet. This gives you direct control over your assets. The exchange's ability to list or delist cryptocurrencies won't affect coins in your private wallet.
Exchange terms and conditions outline these powers clearly. Read these documents carefully before using any platform. They explain how the exchange can handle your assets and what rights you have as a user.
Remember that cryptocurrency exchanges lack traditional banking protections. Even if exchanges claim insurance coverage, policies may change without notice. Private wallet storage remains the safest option for long-term cryptocurrency holdings.
