Storing your Crypto in Exchanges is better than using Cold Wallets!

[abuya55]

Not all people can afford buying a hardware wallet, but there is another option, non-custodial mobile wallets. So you don't have to keep coins on exchanges.

[Emitdama]

Exchanges are good for storing crypto, but people are just trying to be careful and avoid losing their coins. When your assets are stored on exchange you will be taking huge risks since the private keys are not in your possession. And another thing is that not all exchanges are really secure and not all of them gives return on investment.

Coinbase is a very good exchange , they have a really good security system, and a huge part of the customers’ assets are kept in a cold storage, and they also have insurance. I am very sure that they are good, but the problem is that they don’t give returns on investment. The crypto.com you have mentioned, I don’t know the level of security they have on their platform.

[michellee]

Not all people can afford buying a hardware wallet, but there is another option, non-custodial mobile wallets. So you don't have to keep coins on exchanges.

Using a non-custodial mobile wallet will be enough for them who can not buy a hardware wallet, and as long as they can know how to protect their wallet, their funds will not be in danger. But storing coins on the exchanges will give you risk from the hack or other things because the exchanges will not always secure. But if people still want to store their coins at the exchanges, they need to remember the risk and don't store in a big amount to prevent it.

[grabpopcorn536]

Not all people can afford buying a hardware wallet, but there is another option, non-custodial mobile wallets. So you don't have to keep coins on exchanges.

Using a non-custodial mobile wallet will be enough for them who can not buy a hardware wallet, and as long as they can know how to protect their wallet, their funds will not be in danger. But storing coins on the exchanges will give you risk from the hack or other things because the exchanges will not always secure. But if people still want to store their coins at the exchanges, they need to remember the risk and don't store in a big amount to prevent it.

Backing up money on electronic exchanges can be good but big crashes like MTGOX, BTC-E can happen even though we have found ways to bind many layers of security above.
Mobile storage forces people to update their software more frequently for both the phone and the wallet app. Older equipment may not be safe.

[Saisher]

this is what others are also pointing out.  its true that binance experienced to get hacked before but is it they paid the hack funds ? but im not sure to other top exchanges . scam exchange are not part of this because they are scam and not been hacked .

 he also said that exchange provides interest , i know this is only applicable to some but this isnt easy because they also require some things before your account recieved some interest .

Binance being the number one exchange can pay, but we don't know if majority of their assets get hacked will they still pay, and it will take months or even years like what happened to Cryptopia and Mt Got and what if you need money for emergency, you are always on the mercy of the exchange, I still and always believe that you should always responsible for your key when you are investing in Cryptocurrency, this is the true essence of decentralization.

[isaac_clarke22]

It's still risky but you have moved me from generalizing the dangers of holding money in an exchanges, because I really don't do that.
8% APY is still kind of "not really yet" worth the risk, taking note that even reputated exchanges like Binance got hacked just like last year.
It's up to anyone's decision in the end anyway. I wouldn't mind leaving the minimums of my deposits there because I'll extract the profits to a separate wallet anyway.

[Timelord2067]

Not all people can afford buying a hardware wallet, but there is another option, non-custodial mobile wallets. So you don't have to keep coins on exchanges.

You can set up a non custodial wallet (12 or 24 key word seed), send funds to that wallet, then delete the wallet (ensuring the seed words are safe) then re-access the mobile device wallet at a later date.  You could even set up a time locked transaction to send funds to that wallet address at a predetermined date into the future.

[yhiaali3]

this is what others are also pointing out.  its true that binance experienced to get hacked before but is it they paid the hack funds ? but im not sure to other top exchanges . scam exchange are not part of this because they are scam and not been hacked .

 he also said that exchange provides interest , i know this is only applicable to some but this isnt easy because they also require some things before your account recieved some interest .

Yes, it is true, Binance compensated the users for the stolen money and may be the only exchange that did so, as for the rest of the exchanges, they refused to compensate the users.
As for the  interest rate that he talked about, you cannot get it by simply putting your currencies in the exchange, but you can get it only by staking your currencies, and this requires activating the KYC verification as I think and freezing your currencies for several months or a year.

[semobo]

It's still risky but you have moved me from generalizing the dangers of holding money in an exchanges, because I really don't do that.
8% APY is still kind of "not really yet" worth the risk, taking note that even reputated exchanges like Binance got hacked just like last year.
It's up to anyone's decision in the end anyway. I wouldn't mind leaving the minimums of my deposits there because I'll extract the profits to a separate wallet anyway.

8% return is still a decent amount for just storing our funds but the security is the biggest concern when we are in exchanges, I won't do that personally but lot of people think smart and store their cryptos in exchanges but they should be careful with the hacks and there is no exchange is exception to these hackers.

[Inkdatar]

8% return is still a decent amount for just storing our funds but the security is the biggest concern when we are in exchanges, I won't do that personally but lot of people think smart and store their cryptos in exchanges but they should be careful with the hacks and there is no exchange is exception to these hackers.

Indeed this is the main issues we can store our crypto in the exchange, in fact there some also offer interest that catch those users to join and registered in their exchange or wallet. The best thing that we can do in this matter is we shouldn't trust fully as we all know there some exchange invades by hackers and also best is use exchange that is proven and reputable one in this industry.

[LogitechMouse]

Instead of debating which is better, it would be better if you will just put your Bitcoin in your Cold Wallet and at the same time put it in exchanges.

I can say that holding your Bitcoin in an exchange is better in terms of profitability but in terms of security, they are the worst as we saw many exchanges getting hacked overtime. Binance, Bithumb, Cryptopia in the past and I know that more and more hacks will come in the future.

No need to explain in Cold wallets since we knew it as one of the safest wallets we have right now but if you want your Bitcoins to have some profits then maybe you can risk it by putting and holding in an exchange.

[Yogee]

So are you saying you don't want to take responsibility for your own funds anymore?
Another question, what if you wanted to move your funds from exchange A to exchange B since volume and price is better there? Your funds will be stuck in exchange A because it takes an hour or two before they can process your withdrawal and it's probably too late by the time it's completed. If you had kept them in your cold wallet all along, you could have transferred and sold in minutes.

Dude, the big exchanges rarely have delayed withdrawals. I have tried it many times with Houbi, Binance, Okex and I trust in using them.
Next, cryptocurrencies in the top 10-30 have no high slippage, they only fluctuate in 0-0.5%, I have no intention of making such low profits.

Okay, good for you. Can you guarantee that it will always be the case? Are you 100% sure that they will never shutdown their service permanently or temporarily due to hacking attacks or scaling issues? No? That's exactly the point of having your own funds in your control. You don't have to put your trust to the services provided by these central exchanges. You can move your funds anytime you want.

[michellee]

Not all people can afford buying a hardware wallet, but there is another option, non-custodial mobile wallets. So you don't have to keep coins on exchanges.

Using a non-custodial mobile wallet will be enough for them who can not buy a hardware wallet, and as long as they can know how to protect their wallet, their funds will not be in danger. But storing coins on the exchanges will give you risk from the hack or other things because the exchanges will not always secure. But if people still want to store their coins at the exchanges, they need to remember the risk and don't store in a big amount to prevent it.

Backing up money on electronic exchanges can be good but big crashes like MTGOX, BTC-E can happen even though we have found ways to bind many layers of security above.
Mobile storage forces people to update their software more frequently for both the phone and the wallet app. Older equipment may not be safe.

That crash at the exchanges is not something that we expect, and I guess people were not expecting it too. But that really happens, and people could only regret it without having a chance to get their money back.
If you store in the mobile storage, and you don't have to install too many apps. I think you don't have to update your mobile phone too often because if you just install the mobile phone wallet, the wallet developer itself will not release the update too often.

[gabbie2010]

Instead of debating which is better, it would be better if you will just put your Bitcoin in your Cold Wallet and at the same time put it in exchanges.

I can say that holding your Bitcoin in an exchange is better in terms of profitability but in terms of security, they are the worst as we saw many exchanges getting hacked overtime. Binance, Bithumb, Cryptopia in the past and I know that more and more hacks will come in the future.

No need to explain in Cold wallets since we knew it as one of the safest wallets we have right now but if you want your Bitcoins to have some profits then maybe you can risk it by putting and holding in an exchange.

I will prefers the security feature of hodling my bitcoin to profitability feature of it, huge amount of coins were lost in those hacked exchanges the past years, Cold wallets safety is uncompromising and safe then why risking a huge amount of coin for a paltry interest? knowingly that any trader or investor fund in any exchange is at his or her own risk then why not keep it in where the hodler wouldn't worry about any hack,

[semobo]

8% return is still a decent amount for just storing our funds but the security is the biggest concern when we are in exchanges, I won't do that personally but lot of people think smart and store their cryptos in exchanges but they should be careful with the hacks and there is no exchange is exception to these hackers.

Indeed this is the main issues we can store our crypto in the exchange, in fact there some also offer interest that catch those users to join and registered in their exchange or wallet. The best thing that we can do in this matter is we shouldn't trust fully as we all know there some exchange invades by hackers and also best is use exchange that is proven and reputable one in this industry.

Its upto the investor's choice to choose security of their assets or profits from those assets plays priority in their investment.IMO those 8% can be earned even by holding in our wallets and sell them only when they see profits so they reduce the risk of hacks by this strategy.

[Max2140]

When you seriously come to think about it - storing your Crypto in exchanges is better than using cold wallets.

The first main reason is that exchanges pay you an interest rate on your Crypto whilst cold wallets pay none.

Secondly, we definitely believe that more and more users would move into hot wallets than using cold wallets, Ledger.com could become the next "Netscape" and then if your hardware device gets faulty and you would need support from Ledger.com - then you might find yourself in trouble. It's not a wild guess, this could seriously become the reality in the next few years.

We've just posted an article about this so if you wish to read our full opinion you're welcome to read this here:

https://freebitcoin.io/articles/free-bitcoin-wallet-and-investment-advice

But as mentioned above we've tried to point out here in this thread in short version the very few reasons why using an exchange is better than using a cold wallet in the long term. For instance 8% APY on your USDT is something that is seriously worth more than just additional "security" which is not really a true security because you are relying on a centralized private company such as Ledger.com and people seem to forget that .... Netscape was also a great success in its early days but around 2003 it almost disappeared and today almost no one is using it.

We definitely believe cold wallets are going to be history whilst hot wallets or exchanges such as Binance.com or Crypto.com are going to be the future - the listings and value of BNB and Crypto.com are just enough to indicate to you how they are growing fast .... whilst Ripple doesn't move for years between $0.20 and $0.30 - BNB and Crypto.com have already achieved massive gains.

We don't want to keep this thread too long but feel free to refer to our article to read more and let us know whether you agree or not with this stipulation.

Cold wallet is always better than a crypto exchange wallet as only you control your private key, however I trust some crypto exchanges such as Kraken and I'm fine to hold some cryptocurrency there, especially if you trade regularly.

[ololajulo]

The risk on every form of storage needs to analyzed very well. I have been scared of the outcome of careless holding a hard-wallet keys, the theft may never be noticed, just a visit to the storage could steal all. Asides theft, death, accident and natural disaster could deprive the owner the access to the asset forever. We have many exchanges and many hack but some exist after hack and users fund are safe, maybe we stay with many exchanges with reliable security.

[vapourminer]

if you want to keep a percentage or all of your coin with a 3rd party, even with interest, be my guest. advising others here to do so? wrong.

you should learn why bitcoin was created as you seem to have no idea.

that being said i leave a small amount parked on exchanges for convenience and to catch wild swings in price and have ladders set up for that. but thats a different animal. i know i could lose it all; exchange gets hacked,  my account could get compromised, exchange suddenly decides it doesnt like me, many other ways to lose ones coin, and now youre at the mercy of the exchange. good luck with that.

i lived through mtgox. did you?

[verita1]

I do not keep my Bitcoin and crypto on exchanges for fear of security. It is true that these platforms are designing strategies so that users earn interest if they leave their funds in it.
I know the high level of security of Binance, Hotbit and KuCoin of their platforms but I have not yet dared to leave my funds and participate in these programs.

[nasipadang]

All types of wallets have their own advantages and disadvantages as well. Many of the users have correct arguments, security, convenience, advantages and costs of the various wallets. So it's better not to look for justification here because for me the needs of each user are different and we just adjust the type of wallet according to our needs. Although regarding storage security I prefer a could wallet because we have the authority of our wallet and no other party, and also from this type of hacking and negligence it is lower.