Should I Keep My Cryptocurrency on the Exchange or in a Wallet?
This post tells you more about the safer method for storing your digital assets, the reasons for this, and why it is important not to use exchange maintained wallets.
Published May 31, 2021.
First, it is important to understand the difference between a wallet and an exchange. The wallet allows you to store cryptocurrency. An exchange lets you convert your fiat currencies, like dollars and euros, into bitcoin. In other words, you can buy, sell, and trade currencies.
Which is Recommended
It is highly recommended that you only utilize cryptocurrency exchanges for trading and not storing your holdings.
Industry experts contend that it is far more practical and safe for you to store your crypto funds in a web-based wallet. This immensely diminishes the odds of becoming a victim of theft and fraud.
Exchange Maintained Wallets
While it is true that exchanges maintain wallets, but critics warn that you do not have full control of these wallets. An exchange wallet is risky because the organization has your private key on the platform. Should the exchange disappear in a blink of an eye, you would lose access to your crypto without any possibility of retrieving your money.
In the End
It is always best to keep a certain percentage on an exchange and in a wallet. This allows you to buy the dips and to shield your profits from a broad array of incidents.