What to do when a crypto exchange suspends withdrawals.

First word

The traditional cryptocurrency exchanges are usually custodial of users’ assets, including bitcoin, ether, Dai, etc. For instance, Kucoin, Binance, Crypto.com, Paxful, and so on. However, there are decentralized exchanges such as Uniswap, Chocoswap, Changelly, and many others hoping to achieve non-custodial protocols. Meanwhile, they are still a promise and are a work in progress. 

The big question is, what will you do when your cryptocurrency exchange is undergoing maintenance or suspends operation for some reason. 

Before answering your question, let’s clarify that traditional cryptocurrency exchanges are designed to hold your keys, invariably holding your coin. Remember that you have no control of your coin once you don’t have control of your keys. Therefore, your custodian exchange dictates for you how to use, withdraw, transfer and trade your assets. 

Recent withdrawal suspensions necessitated this article. For instance, Kucoin suspended withdrawals for some time, as stated in a previous article. Binance today, Monday 21, suspended withdrawals saying they are under maintenance. 

In a press release, they said, 

“Binance has completed temporary system maintenance and we will resume all trading activity at 2020/12/21 6:00 PM (UTC).”

They added, 

“From now until the commencement of trading, users will be able to cancel orders, make deposits, trade on P2P, trade on OTC Portal, subscribe to or redeem funds from Savings, deposit or redeem funds from as well as trade on Liquid Swap, make asset transfers from sub-accounts, margin accounts, futures accounts, fiat wallets, pool accounts, and use all other account-related functions.”

The two events did not go down with users, and they are utterly bittered. When Kuccoin finally resumed withdrawals, many of their users ditched the exchange. On the other hand, many Binance users call them out for intentionally staging maintenance when the market is swinging in all directions. 

While there may be a need for such maintenance, users want full control over their assets. Concurrently, what users beg to think is how to have control of assets. 

Here you go! 

There is no other way to own your assets except holding a cold wallet. A cold wallet is a kind of wallet that gives you control over your private keys and, as such, control your coin. Unlike its counterpart hot wallet, it is accessible offline and connected to online platforms to perform financial obligations. Such examples are BC Vault. 

About a solution

BC Vault is a cold wallet or sophisticated hardware wallet that boasts of maximum security. Hence, it is unhackable. BC VAULT is the only cryptocurrency hardware wallet on the market supporting sending, receiving and managing all your different funds in one application and on one device. Different wallets. BC VAULT gives you the possibility to store more than 2000 other anonymous wallets, each encrypted with an additional passcode and PIN.