Exchange or hardware wallet ?

[noah tall]

Exchange is good but i prefer and recommend you to use hardware Wallet.
There are so many reasons behind this as below.


In the exchanges they control your Seed.
They will in most cases not sign your Bitcoin address.
if it is needed for proof of ownership.
They can block transfers to and from your account.
You are forced to abide by strict Terms of agreements to use their service.
You are forced to link your true identity to your Bitcoin address.

But in the hardware wallet you can see difference as below.


You are in control of your own Seed.
You can sign your own Bitcoin address for verification purposes and if you want to put a message on the Blockchain.
-No centralized entity can block your coins.
No ToS requirements to use your coins.

[ChiBitCTy]

This is something that is truly not up for debate. Keeping your coins off an exchange and in a hardware wallet, air-gapped pc or a paper wallet are all more secure ways of storing your coins over leaving them on exchange. Don’t be lazy !

[KaliLinux]

What are the advantages and disadvantages of these two methods to store your coins?

This shouldn't even be a question. If you are not trading your cryptocurrency assets, and say you have quite some quantity of them, I don't think the Exchange wallets are a better place for you to store your cryptocurrencies be it CEX or DEX. There are many reasons why this shouldn't be your option to save your crypto in an exchange wallet which has been pointed out in the previous post above, so using a hardware wallet or any other wallet you have the KEYS to. 

[shushu9977]

Exchange and hardware wallet are really important for a trader. If we trade, we should go to exchange and trade our tokens. Otherwise, If we have huge coins, we should put in our hardware wallet, because it is safe rather than the exchange site. Sometimes, few coins are omission from exchange, it happens to me.

[savetheFORUM]

What are the advantages and disadvantages of these two methods to store your coins?

People fear making use of exchanges because they are usually the targets. (I don’t know if you have heard of MtGox before?). Exchanges can get hacked, and if that should happen to an exchange you are making use of, then you might lose your coins and won’t be able to get it back again.

So, imagine when you are storing all your coins on an exchange and it happens that the exchange gets hacked, then what are you going to do about that? Hardware wallets are more secure than when you are making use of a hot wallet (exchanges).  There are two very popular hardware wallets that people make use of common and that’s Nano and Trezor wallets.

[qwertyup23]

What are the advantages and disadvantages of these two methods to store your coins?

For exchanges, the convenience it provides is what makes it the general wallet that most people use. There are dozens of exchanges in the market which are available to our respective mobile phones and there are also local exchanges which are hosted per country. The downside is, the security of these exchanges are risky, given the fact that all of your stored BTCs are kept online which can be susceptible to hacking.

Hardware wallets are the go-to wallets when storing large amounts of BTCs. Most veterans here in the forum transfer their BTCs to this wallet for maximum security. Though the only downside that I can think of is the cost of acquiring such wallet. Other than that, this is the valid and safest choice if you were to transfer your BTCs.

[LittleBitFunny]

What are the advantages and disadvantages of these two methods to store your coins?

People fear making use of exchanges because they are usually the targets. (I don’t know if you have heard of MtGox before?). Exchanges can get hacked, and if that should happen to an exchange you are making use of, then you might lose your coins and won’t be able to get it back again.
So, imagine when you are storing all your coins on an exchange and it happens that the exchange gets hacked, then what are you going to do about that? Hardware wallets are more secure than when you are making use of a hot wallet (exchanges).  There are two very popular hardware wallets that people make use of common and that’s Nano and Trezor wallets.

It's true that crypto exchanges are too much risky cause it is regulated by 3rd party service provider. You may know recently a popular exchange "Bilaxy" got hacked and forced to stop their service. This centralized exchange was operated by the Republic of Seychelles and till now they are in frozen condition and seized thousands of people's cryptos.
Though it is very risky but we have to use exchanges regularly to buy/sell coins. In my opinion, we shouldn't store cryptos to exchange, after finishing any deal we should withdraw the funds to our hardware wallet as soon as possible,

[riskarcher]

Exchanges don't have as much security as hardware wallets. as we know Hardware wallets are programmed to be used as coin storage which has a security level of 90% and has been tested by whales because it is not easy to hack, unlike the exchange used for traders, not for storage that is easily accessed by hackers because stored can acces on application.

[Quidat]

What are the advantages and disadvantages of these two methods to store your coins?

Exchange

Pros
1. You could easily make cashouts on the time you do like to do it
2. You can easily make out some buybacks whenever you do see some opportunities
3. Isnt hassle yet you do just need to access the site whenever you are

Cons
1. You dont own they keys of your wallet
2. Prone to sudden terms and condition change
3. They could anytime shutdown or run away


Hardware wallet

Pros
1. Secure and own wallet keys

Cons?
1. Losing HW or Break it.
2. Hassle if you do make active transacitons.

[Ultegra134]

Definitely don't store significant amounts of crypto on an exchange. Reputable or not, there's always a slim chance that it gets compromised/hacked. Unless you're planning yo trade on a daily basis, or want the option of turning them into fiat at any possible time.

 Hardware wallets are definitely the safest option, without costing too much. They are certainly worthy if you're holding large amounts of crypto.

[Swordsoffreedom]

~
Hardware wallets are definitely the safest option, without costing too much. They are certainly worthy if you're holding large amounts of crypto.

Whether the investment is large or small, if you want to hold for long term, you must use Hardware Wallet to ensure the safety of your investment, needless to say, today's small investment may turn into a giant asset in the future!. If hardware wallet is not available, then at least a good software wallet should be used. Of course, the wallet should be used in the offline environment. However, exchanges can be used for short-term trading, but it is better to use top-rated exchanges.

[mm2543363580]

What are the advantages and disadvantages of these two methods to store your coins?

On exchange, you have to compromise on the factor "not your coins, not your keys". But they are more secure then wallets since they have security mechanism like 2 factor authentication, KYC etc. So its difficult to steal your coins from exchange like binance then from your wallets. In wallets the biggest problem is once you lost the coin you wont get it back by any means. That's why I prefer to keep my coins on exchange.

[smartaction]

What are the advantages and disadvantages of these two methods to store your coins?

Hardware wallet is better then exchange In terms of safety. Coz a Hardware wallet It will be based on your control. But Exchange. The exchanger has an authority team. And they control everything you do.  And they have all the power. that's why Hardware wallet always better then Exchanger

[Ultegra134]

~
Hardware wallets are definitely the safest option, without costing too much. They are certainly worthy if you're holding large amounts of crypto.

Whether the investment is large or small, if you want to hold for long term, you must use Hardware Wallet to ensure the safety of your investment, needless to say, today's small investment may turn into a giant asset in the future!. If hardware wallet is not available, then at least a good software wallet should be used. Of course, the wallet should be used in the offline environment. However, exchanges can be used for short-term trading, but it is better to use top-rated exchanges.

Exchanges should only be used when you're actively trading, not for long term holding or generally storing crypto. I've seen hardware wallets start at approximately $120-150, if I am not mistaken, it's a petty amount if you're holding long term, large amounts of Bitcoin. I'm currently using a simple Electrum, offline wallet, stored on my daily usage laptop.

[tippytoes]

~
Hardware wallets are definitely the safest option, without costing too much. They are certainly worthy if you're holding large amounts of crypto.

Whether the investment is large or small, if you want to hold for long term, you must use Hardware Wallet to ensure the safety of your investment, needless to say, today's small investment may turn into a giant asset in the future!. If hardware wallet is not available, then at least a good software wallet should be used. Of course, the wallet should be used in the offline environment. However, exchanges can be used for short-term trading, but it is better to use top-rated exchanges.

Exchanges should only be used when you're actively trading, not for long term holding or generally storing crypto. I've seen hardware wallets start at approximately $120-150, if I am not mistaken, it's a petty amount if you're holding long term, large amounts of Bitcoin. I'm currently using a simple Electrum, offline wallet, stored on my daily usage laptop.

If one can't afford to buy hardware wallet, one can already use like electrum or bitcoin core for btc, metamask or trust wallet for decentralized wallet. As long as you are in full control of your keys, you are pretty secure with your portfolio. Yes, it is true, exchanges are only to be used when you are trading, after you finished, you need to transfer it back to your own wallet. Also, don't use third party wallets where you have no full control of your keys and funds.

[TinaK]

What are the advantages and disadvantages of these two methods to store your coins?

There are a lot and I think most are stated on users above the pros and cons.
My advice is don't store your coins on exchange because either the disadvantage or advantages are not good at all upon storing your coins. The best thing is a hardware wallet which is you have your own private key. In exchange, you can store of course but not in a long term, for me, I always being paranoid thinking my coins if it is on exchange because I don't know if one day they will collapse and shut down, possible your coin cant be recovered.

The best practice, we should have control over our private key.

[Oilacris]

~
Hardware wallets are definitely the safest option, without costing too much. They are certainly worthy if you're holding large amounts of crypto.

Whether the investment is large or small, if you want to hold for long term, you must use Hardware Wallet to ensure the safety of your investment, needless to say, today's small investment may turn into a giant asset in the future!. If hardware wallet is not available, then at least a good software wallet should be used. Of course, the wallet should be used in the offline environment. However, exchanges can be used for short-term trading, but it is better to use top-rated exchanges.

Exchanges should only be used when you're actively trading, not for long term holding or generally storing crypto. I've seen hardware wallets start at approximately $120-150, if I am not mistaken, it's a petty amount if you're holding long term, large amounts of Bitcoin. I'm currently using a simple Electrum, offline wallet, stored on my daily usage laptop.

If one can't afford to buy hardware wallet, one can already use like electrum or bitcoin core for btc, metamask or trust wallet for decentralized wallet. As long as you are in full control of your keys, you are pretty secure with your portfolio. Yes, it is true, exchanges are only to be used when you are trading, after you finished, you need to transfer it back to your own wallet. Also, don't use third party wallets where you have no full control of your keys and funds.

Hardware wallet arent that expensive if you do ask me yet it do only cost a couple of hundred bucks which if you do tend to hold some assets for long term then this would really be a worthy option or choice to make yet you can really secure your funds inside it as long those keys wont be expose.
Electrum would be enough though when you are using it on daily manner which it wont be a hassle for you to make up some switch and based on my own experience i have been only using these non custodial wallet which it is already enough as long you are that having
common sense towards security.

[Ultegra134]

~
Hardware wallets are definitely the safest option, without costing too much. They are certainly worthy if you're holding large amounts of crypto.

Whether the investment is large or small, if you want to hold for long term, you must use Hardware Wallet to ensure the safety of your investment, needless to say, today's small investment may turn into a giant asset in the future!. If hardware wallet is not available, then at least a good software wallet should be used. Of course, the wallet should be used in the offline environment. However, exchanges can be used for short-term trading, but it is better to use top-rated exchanges.

Exchanges should only be used when you're actively trading, not for long term holding or generally storing crypto. I've seen hardware wallets start at approximately $120-150, if I am not mistaken, it's a petty amount if you're holding long term, large amounts of Bitcoin. I'm currently using a simple Electrum, offline wallet, stored on my daily usage laptop.

If one can't afford to buy hardware wallet, one can already use like electrum or bitcoin core for btc, metamask or trust wallet for decentralized wallet. As long as you are in full control of your keys, you are pretty secure with your portfolio. Yes, it is true, exchanges are only to be used when you are trading, after you finished, you need to transfer it back to your own wallet. Also, don't use third party wallets where you have no full control of your keys and funds.

Metamask and Trustwallet might be decentralized, but I wouldn't trust them for long-term holding. On the one hand, there are plenty of instances of phising attempts, one of which almost got me. Also, it's fully online and directly connected to the internet, I don't have much knowledge or background about them, but I'm against using them for holding cryptocurrency.

I've only started using them because I'm staking cryptos on several platforms, through the Binance Smart Chain.

[himmeltau]

Thanks for all the answers!

[PhucS]

The first difference is that hardware wallets are almost always left offline, completely isolated. Only when it is necessary to make a money transfer/receipt transaction, the cold wallet is connected to the internet. All the information in the hardware wallet is very well secured, very difficult for hackers to steal. However, its price is quite expensive, if you are a frequent trader, you will find it quite convenient.