A hack on one of Binance's busiest wallets is a fresh warning that keeping crypto on exchanges carries real risk.

• Exchanges split funds between offline "cold storage" and internet-connected "hot wallets" used for instant withdrawals.
• The hacked wallet, one of Binance's busiest, had processed tens of millions of transactions, making it a high-value target.
• Holding crypto on an exchange means trusting that company to keep your money safe, not truly owning it yourself.
• Moving funds to a wallet where you control the keys, ideally a multi-signature setup, removes that single point of failure, though self-custody brings its own risks like lost keys or personal security threats.

Outlook: Expect more pressure on crypto holders to move funds off exchanges and into self-custody as exchange hacks keep surfacing.