Do not store your wallet on the exchange, store it on your crypto wallet.

[pixie85]

I feel like these warnings are becoming something like "don't cross the road when it's a red light ", everyone is giving the advice but at least once or twice a year when there is no car in sight everyone does it.

With the avalanche of newbies, people that associate exchanges with banks, with less educated investors the exact opposite is happening:
Five mega exchanges hold 10% of Bitcoin's entire supply

Nope, people are just too lazy or afraid of being responsible alone for their coins so they would rather trust an exchange than their own laptop or knowledge.
I don't like what's happening but I also don't believe in miracles, the percentage of people doing exactly the opposite will only grow in the near future.

I have a feeling at least 1/4 of the ones saying it's not right to keep coins in exchanges have some right now as they type stored on binance or another one.

Wise words. I have to come clean that although 90% of my money is in a hardware wallet I still held some ofit on exchanges ffor various reasons that included:
-trading
-laziness - I used my exchange address as my master campaign address and just kept it like that.
-laziness 2 - I had some altcoins and just did not had time to install wallets for them. Itw as easier to keep them on exchanges. I lost like $200 by doing it but when you're lazy you usually have to pay the price
-laziness 3 - I preferred the exchanges to formk my coins for me because I did not trust some wallet providers like when bsv had forked

guilty as charged

[Dedewahyu]

What you said is absolutely right and this is what I have been advising to everybody I communicate with but the thing is that holding bitcoins in wallet/exchange differs from person to person.
If the person is an investor then he should definitely hold it an a secure wallet but if the person is a trader then he won't be able to hold all the amount in a wallet.
A trader can't keep on transferring funds from his wallet to the exchange.
A trader should keep some amount on the exchange as well to trade on coins so that he doesn't miss the opportunity when the time arrives.
So I think that should be mentioned clearly in OP so that the traders know this difference.

P.S : Your title should be more like : Do not store your coins on an exchange, store it in your wallet.

I am a trader and it is a very hard fact that I do not have my own private wallet on the exchange which makes it easier for hackers to get my privatekey on the exchanger via the user database
I hope that in the future there will be a solution for this because I will not be able to store my assets in a personal wallet if I do not play long term

[Boov]

What you said is absolutely right and this is what I have been advising to everybody I communicate with but the thing is that holding bitcoins in wallet/exchange differs from person to person.
If the person is an investor then he should definitely hold it an a secure wallet but if the person is a trader then he won't be able to hold all the amount in a wallet.
A trader can't keep on transferring funds from his wallet to the exchange.
A trader should keep some amount on the exchange as well to trade on coins so that he doesn't miss the opportunity when the time arrives.
So I think that should be mentioned clearly in OP so that the traders know this difference.

P.S : Your title should be more like : Do not store your coins on an exchange, store it in your wallet.

I am a trader and it is a very hard fact that I do not have my own private wallet on the exchange which makes it easier for hackers to get my privatekey on the exchanger via the user database
I hope that in the future there will be a solution for this because I will not be able to store my assets in a personal wallet if I do not play long term

I am storing all of my coins in an exchange wallet because  I have tried, proven and tested that it is one hundred percent safe unless you are in a safe exchange wallet. I have been a miner and a trader here for years and I don't have any experience yet to lose my coins in an exchange wallet. My advice is you should observe and do some research before you trust in an exhange wallet in order for you to avoid scam.

[adzino]

You can't store your wallet on an exchange. But yeah, based on your post, you mean the funds. True, one should not be using an exchange as a crypto wallet. We have already seen a lot of cases where the exchange gets hacked or they scam people. Still people don't learn anything from those unfortunate events. They still store their coins in an exchange. Its not only exchanges which are safe to use as a wallet, any kind of online webwallets aren't safe at all! If an online wallet doesn't provide you with your private keys (or they have access to your private keys), don't use them!

[ShowOff]

Some people stored their funds on a crypto exchange, which is not a good thing to do like a good bitcoin. Some people believe that their cryptocurrency is much safer in exchange than their crypto wallet, this concept is a big no for me, well, in fact, I always read some articles about a hacked exchange every week or months. It is much safer to store our money in our crypto wallet but the problem with it is that it is also vulnerable to being stolen by hackers.

One should know that it is not a good idea to store large amount of crypto asset on an exchange. It's good you reminded him again.

However, there are still quite a number of people who keep their asset on the market because it make it easier for them to trade and so on. It doesn't matter if the amount is not large even though it is risky, but in large quantities is not recommended at all. Some of the exchange that have been hacked before are proof that hacker can do anything to get fresh money from the exchange and they won't stop until they do.

To date, I have never kept any asset on the exchange even though the amount is small. But it will feel better and safer if we don't leave our money with other people even though they have a very good reputation. Good thing if the exchange is willing to take responsibility, but if not what will happen to these people.

[pawanjain]

What you said is absolutely right and this is what I have been advising to everybody I communicate with but the thing is that holding bitcoins in wallet/exchange differs from person to person.
If the person is an investor then he should definitely hold it an a secure wallet but if the person is a trader then he won't be able to hold all the amount in a wallet.
A trader can't keep on transferring funds from his wallet to the exchange.
A trader should keep some amount on the exchange as well to trade on coins so that he doesn't miss the opportunity when the time arrives.
So I think that should be mentioned clearly in OP so that the traders know this difference.

P.S : Your title should be more like : Do not store your coins on an exchange, store it in your wallet.

I am a trader and it is a very hard fact that I do not have my own private wallet on the exchange which makes it easier for hackers to get my privatekey on the exchanger via the user database
I hope that in the future there will be a solution for this because I will not be able to store my assets in a personal wallet if I do not play long term

I am storing all of my coins in an exchange wallet because  I have tried, proven and tested that it is one hundred percent safe unless you are in a safe exchange wallet. I have been a miner and a trader here for years and I don't have any experience yet to lose my coins in an exchange wallet. My advice is you should observe and do some research before you trust in an exhange wallet in order for you to avoid scam.

Yes that is absolutely correct. Being a trader you guys should try to keep the minimum amount on an exchange from which you can actively trade while keeping the rest in a secure crypto wallet whose privatekey you can hold. Also, the exchange you keep your coins on should be the most reputed one such as binance. Now this doesn't mean it cannot be hacked since it was already hacked few months ago. Binance could have simply escaped from the situation by not giving the coins to their users but since it was reputed enough and cared about their users they decided to use their recovery funds to give their users the lost funds. This doesn't happen with every exchange as most of them just state that they cannot do anything about it.

[royalfestus]

I  can say this topic has been discussed multiple times on the forum. It should be basic practice for cryptocurrency holders. But sadly we have a lack of technical knowledge about bitcoin and wallets. Even a few users don't know about noncustodial wallets and they think web wallets and exchange is the wallet where they could receive and spend funds. I always prefer a hardware wallet if it's affordable. Otherwise at least should store funds into a open-source noncustodial wallet like Electrum. Storing funds into exchanges is the worst decision, exchange would be hacked or shut down at any time.

the topic can also be rephrased or rather corrected; Do not store your coin on the exchange, store it on your crypto wallet.

[ethereumhunter]

I am storing all of my coins in an exchange wallet because  I have tried, proven and tested that it is one hundred percent safe unless you are in a safe exchange wallet. I have been a miner and a trader here for years and I don't have any experience yet to lose my coins in an exchange wallet. My advice is you should observe and do some research before you trust in an exhange wallet in order for you to avoid scam.

Even if that exchange is a recommended exchange, you don't need to store all of your coins in that exchange because we don't know if the exchange can always protect their site from hackers. It will be better to save the coin in our wallet so that we can manage our funds, and if we want to trade, we can transfer it into the exchanges. But I think each person will decide to store their coins in the exchange or their wallet.

[Genemind]

Some people stored their funds on a crypto exchange, which is not a good thing to do like a good bitcoin. Some people believe that their cryptocurrency is much safer in exchange than their crypto wallet, this concept is a big no for me, well, in fact, I always read some articles about a hacked exchange every week or months. It is much safer to store our money in our crypto wallet but the problem with it is that it is also vulnerable to being stolen by hackers.

We can prevent this thing from storing our private and public keys.
Just key terms to remember:
Transferring of funds
Public key - allows you to transfer funds into it
Private key - allows you to transfer funds out to it.

Exclusively
Public key - publicly known and important for identification
Private key - this should be secret, excluded only for two parties which are the receiver and the sender.

If you lose your public key, you can still access it using your private key and if you lose your private key you cannot access your fund anymore. Storing your private key is a really important thing to do whenever you want to secure your wallet. Do not store it on your device because any device ate prone to hackers. Use any strategies except online.

This is helpful advice, especially for newbies. I have learned from my experience when it comes to storing my crypto. I used to hold my funds in exchanges before but unexpected things happened where I lost most of my holdings and that's when I decided to store it in my crypto wallet. At least, I'm the one who is in control of it. We're the one who is responsible for storing funds so we better be careful because even reputable exchanges these days could get hacked.

[Alert31]

Some people stored their funds on a crypto exchange, which is not a good thing to do like a good bitcoin. Some people believe that their cryptocurrency is much safer in exchange than their crypto wallet, this concept is a big no for me, well, in fact, I always read some articles about a hacked exchange every week or months. It is much safer to store our money in our crypto wallet but the problem with it is that it is also vulnerable to being stolen by hackers.

We can prevent this thing from storing our private and public keys.
Just key terms to remember:
Transferring of funds
Public key - allows you to transfer funds into it
Private key - allows you to transfer funds out to it.

Exclusively
Public key - publicly known and important for identification
Private key - this should be secret, excluded only for two parties which are the receiver and the sender.

If you lose your public key, you can still access it using your private key and if you lose your private key you cannot access your fund anymore. Storing your private key is a really important thing to do whenever you want to secure your wallet. Do not store it on your device because any device ate prone to hackers. Use any strategies except online.

Exactly! Always take good care of your funds using your own private key in your own wallet and not storing it on a crypto exchange. But, I think if you do daily trading you still need to store your funds on exchange but it should be limited.

[cabron]

Unfortunately, those users who also store their tokens on the exchanges are also thinking the security and safety which is why it's stored on the exchanges. Secure that if the price is about to drop, they can sell it quickly without waiting for transactions to verify upon moving to an exchange wallet. Some will even think its secure to store it on Binance because they are big exchanges and will replace what is lost.  If a user is a long term holder, this not storing on the exchange will be the best for him.

[CasherUp]

Hello friend, how are you? I agree that the best way to store our assets is in a cold wallet and have our private keys in a very safe place, greetings

[DarkDays]

Unless you use a regulated exchange with deposit guarantee from a financial authority there is no reason to hold your crypto on a third party platform unless you are an active trader.

That's exactly right.
The issue does come into play when traders even if they're not regular want to have immediate access to their funds for a 'one-off' trading or some sporadic ones.

I suppose in these scenarios the risk is always calculated and leaving your crypto on exchanges you take on full responsibility. But it is hard to have to transfer your crypto around, specially when there are fees involved and even if these are somewhat reasonable.

There is definitely a lack of providers that guarantee protection against attacks - it is a great business model and I'm sure more exchanges will think about how to implement that. But yh, it is a difficult one to juggle.

[Reatim]

Some people stored their funds on a crypto exchange, which is not a good thing to do like a good bitcoin. Some people believe that their cryptocurrency is much safer in exchange than their crypto wallet, this concept is a big no for me, well, in fact, I always read some articles about a hacked exchange every week or months. It is much safer to store our money in our crypto wallet but the problem with it is that it is also vulnerable to being stolen by hackers.

We can prevent this thing from storing our private and public keys.
Just key terms to remember:
Transferring of funds
Public key - allows you to transfer funds into it
Private key - allows you to transfer funds out to it.

Exclusively
Public key - publicly known and important for identification
Private key - this should be secret, excluded only for two parties which are the receiver and the sender.

If you lose your public key, you can still access it using your private key and if you lose your private key you cannot access your fund anymore. Storing your private key is a really important thing to do whenever you want to secure your wallet. Do not store it on your device because any device ate prone to hackers. Use any strategies except online.

Actually i sometimes store my Coins in exchanges but only if i plan to make a trade specially when market is Moving forward or downward .

Those chances are limited and now since i stopped in trading so i chose not store my coins in my wallet and those for Holding is in my Ledger.

[Traderbtcc]

Storing our crypto on exchanges has always been a bad idea, since we don't have any private key to our exchange wallet, and exchanges are prone to hacks,if the hackers eventually find their way inside, there's little or no chance at all that we will be able to recover our funds if that happens, just take cryptopia exchange users for an example, so the best choice we can always make is to always store our crypto in our wallet since we have the private key to it, even if you are a day trader just make sure the amount of crypto you have in your exchange wallet is not much.

[nelson4lov]

Actually i sometimes store my Coins in exchanges but only if i plan to make a trade specially when market is Moving forward or downward .

Those chances are limited and now since i stopped in trading so i chose not store my coins in my wallet and those for Holding is in my Ledger.

That's the only instance where I would agree about keeping coins on exchange. But the story is different especially for those who only use exchange wallets as their primary wallet for storing their crypto as they don't want to take time to setup a wallet - stuffs like saving mnemonics and priv keys.

The exchange hacks we have had in the past are more than enough reasons not to use exchange to store cryptos. The primary purpose of using an exchange is to only do as the name implies - to exchange from one crypto to another.

[ghost424]

Some people stored their funds on a crypto exchange, which is not a good thing to do like a good bitcoin. Some people believe that their cryptocurrency is much safer in exchange than their crypto wallet, this concept is a big no for me, well, in fact, I always read some articles about a hacked exchange every week or months. It is much safer to store our money in our crypto wallet but the problem with it is that it is also vulnerable to being stolen by hackers.

We can prevent this thing from storing our private and public keys.
Just key terms to remember:
Transferring of funds
Public key - allows you to transfer funds into it
Private key - allows you to transfer funds out to it.

Exclusively
Public key - publicly known and important for identification
Private key - this should be secret, excluded only for two parties which are the receiver and the sender.

If you lose your public key, you can still access it using your private key and if you lose your private key you cannot access your fund anymore. Storing your private key is a really important thing to do whenever you want to secure your wallet. Do not store it on your device because any device ate prone to hackers. Use any strategies except online.

Storing Cryptocurrencies on exchanges will always come with different risks. I have this experience regarding my Alternate Cryptocurrencies that I forgot to withdraw within my own Crypto wallet, then suddenly Cryptopia (the exchange website) suddenly went dark. It went out of business and my Alternate Cryptocurrencies were lost. It was such a saddening experience since I was still a newbie and I was learning how to operate exchanges and Cryptopia was one of the easiest to learn exchanges.

[shoreno]

Some people believe that their cryptocurrency is much safer in exchange than their crypto wallet,

who said this ? they think that exchanges are big and store  big money because people are trading in it especially if its a popular exchange but they dont know that big exchanges are the one that are being targeted the most by hackers . while i never seen a wallet company that have been hacked but except maybe to some wallet users only that are careless and are holding big funds at the same time because they are giving a motive for the hackers to attack them .  your post are useful op especially for the newbies

[Yatsan]

I think I have already went through same concept or topic like this before. But, anyway, it is still essential to be repeated that exchanges are not to be treated as storage of your cryptos for that purpose and job is for the crypto wallets. The OP have a point and truly reading news and articles that recently, big exchanges are being attacked by hackers because some people are making such exchanges as good storage of their crypto thinking that it would be safe from hackers due to the exchange security wherein reality, such exchanges are still vulnerable to hacking. Better just to stick on using crypto wallets so you can track and monitor your funds on hand rather than putting it into an exchange where you are still not trying to trade such crypto coin.

[SiNeReiNZzz]

Old but Gold: Not your private key, not your Crypto!
Absolutely right!

And I think, we can't say it often enough.
For everyone to internalise it, especially the newbies here...