Bitcoin Forum

Hi Everyone!

Is was wondering if holding a website cryptocurrency account is a type of cryptocurrency wallet?

Or is it not classed as such because the funds are held under a third party?

Thanks. tbnz :)

Yes, it's definitely considered a wallet. But not a very safe one. Cryptocurency Exchange also have security measures but is not advisable to store a large amount of Crytocurrencies. Hackers are tirelessly working to steal BTC's in an Exchange. Convenience is one of the common reasons why people are always storing their money in an Exchange. Also in real life, most people are not storing their money in bank because it also has the possibilities to be robbed, more likely in an exchange which is Digital

Thanks for that roofer. Could you please clarify the last sentence for me?

Most exchanges have limits on withdrawals, so I wouldn't classify it as full-featured wallets as you'll have to do several withdrawals to a classic wallet if you want to buy something expensive (Lambo for example). There are exceptions though. A good one is https://openledger.io, which is a decentralized exchange with full capabilities of a multi-wallet.

I wouldn't simply regard all exchange websites as wallets.

A wallet allows you to send/receive cryptocurrency to/from anyone; an exchange website needs to have the exact same feature in order to be a wallet.