This is Why I Don't Use BRAVE Browser
Don't Fall for Exchange Rewards for "Soft-Staking" of Coins
Recently, I've noticed a new trend among crypto Exchanges.
Since many tokens these days offer a passive income model for investors who stake (or power-up) those tokens in their own on-chain wallet; people who had funds in Exchange wallets were missing out on these income source.
So, now many crypto exchanges like KuCoin, Binance etc. have started offering these rewards to their customers under there soft-staking model.
Although this is a good service on behalf of exchanges that maintain the token liquidity along with giving you the staking rewards for it; I won't like to use this service. Simple reason being:
Not your keys, not your coins!
However, it's good to get the staking benefits while your tokens wait on Exchanges to be traded and liquidated but it's not recommended to stake tokens on the Exchanges for the sake of receiving staking rewards.
If you are really looking for staking rewards and want to hodl your funds for medium to long term, I'd suggest you to withdraw all your tokens in your own Exchange-independent wallet and stake the tokens there.
You truly own and control the assets held in a wallet only if you hold the private key and mnemonic phrases for that wallet. Don't ever delegate your hard-earned funds to any centralized exchanges, whatever it reputation may be.
The bottom line is, no centralized exchange is safe for holding funds long term. Only use them when you really need to liquidate your funds. In case, you're a day trader then too only keep as much funds on the Exchange as you actively trade in.
Better safe than sorry!
Happy investing!!!
