Choosing where to hold or trade is the decision that determines how much of the other risk you have to think about. Six questions, and they are answerable.
1. Who holds the keys?
If a company does, your balance is an unsecured claim on that company. If you do, you are responsible for it — the wallet guide has the comparison. There is no third option that is free of both risks.
2. Is it regulated, and where?
Regulation is not a guarantee, but an unregulated operator in a jurisdiction you cannot reach is a worse position than a regulated one you can complain to.
3. Does withdrawal actually work?
Test a small withdrawal early. An exchange that will not let money out is the failure that matters, and it is invisible until it is too late. This is the same advice as in the withdrawal process, and it is the single most useful habit on this page.
4. What are the real fees?
Spread, withdrawal fee, deposit fee, and the rate at which they change. A headline rate means nothing on its own.
5. What happens if it fails?
Ask what assets are held back, how a insolvency would be handled, and whether you would be told. An honest answer is rare, which is itself informative.
6. Is the support real?
Send a question before you deposit and see what comes back and how fast. And note the one thing support must never ask for: your recovery phrase. If it does, you are not talking to support — see the scams running now.
Keeping it proportionate
Most people holding a modest sum do not need the most sophisticated venue. They need a mainstream regulated one, a small withdrawal tested early, and a total that is safe if it does not work — the risk checklist.