I've heard mentions in forums and youtube that people who trade prefer to store their crypto in wallets outside of an exchange for security reasons. If I'm understanding that right, that instead of storing their crypto in wallets that you can make on your coinbase account, they store it in a paper wallet or something. Am I understanding that right? And if so, what security risk am I taking by storying the crypto that I've invested in, in wallets that I created in my coinbase account?
Storing coins/assets outside of exchanges is not a new thing. People do it to avoid the problems that comes with storing your coins in an exchange , such as the exchange being hacked and issues like that. So, they stay clear from it and can go as far as buying the Trezor ledger to be store their coins in a safe place.
Although the Coinbase you say that you’re making use of has been really good at securing their website or platform, and they have not had issues like most of the exchange there is.
