Cryptocurrency exchanges are websites where such currencies are bought, sold and stored. For Bitcoin and its ilk theyre a soft and vulnerable underbelly. There is no Federal Deposit Insurance Corporation (FDIC) to protect your assets the exchanges are not backed by any governments or central banks. Bitcoin owners can spend, sell, trade, donate or otherwise use their bitcoins with little fear of the strong cryptography behind it being cracked. Its as close to bulletproof as youll get so long as you keep your private keys private.”]
Source: https://nakedsecurity.sophos.com/2017/10/02/bitcoins-soft-and-vulnerable-underbelly/