Topic: Are cold wallets safer than online exchanges? - page 3. (Read 525 times)
if i have a lot of cryptocurrency i will choose a cold wallet over an online exchange, that's because cold wallets have good security and i don't have to worry about losing my assets when the online exchange goes bankrupt. because cold wallets are designed to provide extra security to users who don't want their assets to be lost and buying it when you have a lot of assets is the best investment.
If you had a large amount of cryptocurrency would you prefer to keep it on an offline cold wallet or an online cryptocurrency exchange?
Both have pros and cons.
I'm interested to hear the thoughts of others.
A cold storage wallet is by far safer than a hot on online wallet as we know and for large investments, it is much more safer and lesser to be attacked by scammers or hackers wanting to steal ones funds without their prior notice. Both have pros and cons.
I'm interested to hear the thoughts of others.
Unless you are a trader who does so frequently, an offline or cold wallet is best suited for long term holdings and with the keys or seed phrases, it makes it easier to be etched on steel on stored on hard drives where no one can easily detect it and steal it.
I choose cold wallet over online exchanges, if not for anything Security reason and against Fraud or hacking of my wallet because you do not really control it as anything can happen while in exchange. I have seen cases, People's wallet are hacked, compromised in exchanges and the exchange give silly excuses, if we really understand the necessity of Self-Custody then, Cold wallet is the right option to choose from OP.
Cold wallet over exchanges, so you have your seed phrase with you and take charge of your wallet, not entrusting it to any external factor which is also one of the fundamental reasons Bitcoin was created.
Cold wallet over exchanges, so you have your seed phrase with you and take charge of your wallet, not entrusting it to any external factor which is also one of the fundamental reasons Bitcoin was created.
If you had a large amount of cryptocurrency would you prefer to keep it on an offline cold wallet or an online cryptocurrency exchange?
Both have pros and cons.
I'm interested to hear the thoughts of others.
Both have pros and cons.
I'm interested to hear the thoughts of others.
I hope you understand that there is a difference between Hardware wallet, cold wallet and exchange wallet/custodial wallet. The least place you want to keep your money is an exchange wallet because you don't have the private keys to that wallet and that means you can't authorize a transaction from the wallet since you don't own the private keys or seed phrase, this is why it's not advisable to store your coins on online exchange.
Cold wallets or hardware wallets are considered the best wallet to keep your coins because they are both offline and all your keys are managed offline but because hardware wallets sometimes are used to interact with Defi such as the web3, there is high possibility of your wallet been comprised with some malicious things that can make you lose your coins, not necessarily your private keys but somethings can make you sign some transactions which can make your wallet zero, this is why cold storage are the best since you don't sign anything on web3 or have to interact with a smart contract that will steal your coins, it's strictly offline.
I believe that individuals who prioritize the secure storage of their digital currencies often opt for cold wallets. However, in the case of traders, it is common practice to allocate approximately one-third of their assets to a reputable exchange, while keeping the remainder in a cold wallet for added security.
Essentially, cold wallets are much more secure than centralized exchanges, and storing assets on cold wallets is in line with the cryptocurrency industry's criteria for decentralization. But that depends on each person because as you said. If we want to make money by being traders then we need to leave our money on exchanges because that is the only option we have so far. But if we are long-term holders, cold wallets will definitely always be the choice because the exchange is too risky and we do not have full control over our assets when stored on it.In addition, the safety of our assets will depend largely on us and not entirely on cold wallets. I mean even if we use cold wallets, if we don't know how to store the seed phrase safely then our assets will not be safe.
Cold storage is 100% safer than storing your Bitcoin on an online exchange. Look what has happened in the past with Mtgox, Celsius, FTX plus many more. It’s boring & it gets repeated all the time but in crypto nothing is everas true as ‘Not your keys, not your coins.’
People who intend to store cryptocurrency on centralized exchange account and consider it as their storage wallet, might change their minds after knowing about stories of Mt.Gox, Celcius, FTX and more stories in Exchange graveyard.These exchanges rest in peace but people, their customers, who lost money by storing it on these RIP exchanges, would surely not have had peaceful and comfortable experience. It's painful experience for them.
If you had a large amount of cryptocurrency would you prefer to keep it on an offline cold wallet or an online cryptocurrency exchange?
Certainly an option to store it in offline wallets because the online crypto currency exchange is not a wallet.
People try to be safe for their assets, so choosing to save in an offline wallet is an obligation rather than submitting assets to those owners of the Exchange.
Both have pros and cons.
For people who are pro, they think of the convenience obtained without the need for a complicated process rather than prioritizing the security and control of assets.
Online, the risk is big and needs to be avoided.
Cold storage is 100% safer than storing your Bitcoin on an online exchange. Look what has happened in the past with Mtgox, Celsius, FTX plus many more. It’s boring & it gets repeated all the time but in crypto nothing is everas true as ‘Not your keys, not your coins.’
I believe that individuals who prioritize the secure storage of their digital currencies often opt for cold wallets. However, in the case of traders, it is common practice to allocate approximately one-third of their assets to a reputable exchange, while keeping the remainder in a cold wallet for added security.
If you had a large amount of cryptocurrency would you prefer to keep it on an offline cold wallet or an online cryptocurrency exchange?
Both have pros and cons.
I'm interested to hear the thoughts of others.
Why would I keep it on exchange? I'm not a trader so basically I won't keep it there. For launchpools, airdrops? deposits and interests matters? Quite helpful but I don't want to entrust them with such amounts because they can just lock me there and delay my withdrawals if they want to. That's what happens to many huge depositors and remember that it is their money and the exchanges are giving them hard time when the time of withdrawal comes because they're asking for so much but they didn't do that upon deposits. Both have pros and cons.
I'm interested to hear the thoughts of others.
1. Transaction are off-chain, you don't have to pay fees for miner when you want to sell or move your coins.
If you store bitcoins on centralized exchanges, you won't have to pay on-chain transaction fee when you sell, buy, sell, buy, means trading with your bitcoin but it's different if you move your bitcoins from exchange to another exchange, it's withdrawal. Withdrawal requires on chain transaction fee and exchange will charge you expensive withdrawal fee that includes some fees like on chain transaction fee, their wallet maintenance fee, service fee and many hidden fees they don't name.Quote
2. Maximize your profit, holding 1 BTC for few years and sell it will make you earn a good amount of profit, but staking 1 BTC and give you like extra +0.1 BTC will make you to earn more.
People can think of it as it is attractive but there is risk like you said. Exchanges can stay next four years but they can bankrupt next year, we can not know their future.Quote
But, it doesn't mean I will suggest people to hold their coins in exchange. I'm just telling the truth, if there are no pros, most people will avoid it, but we know most people hold in exchange.
We only can trust ourselves by controlling our private keys, controlling our bitcoins without dependence and uncertainty of centralized exchanges. 
There's no pros when it comes to storing your bitcoin in an online exchange
Nah, there are:1. Transaction are off-chain, you don't have to pay fees for miner when you want to sell or move your coins.
2. Maximize your profit, holding 1 BTC for few years and sell it will make you earn a good amount of profit, but staking 1 BTC and give you like extra +0.1 BTC will make you to earn more.
But, it doesn't mean I will suggest people to hold their coins in exchange. I'm just telling the truth, if there are no pros, most people will avoid it, but we know most people hold in exchange.
There's no pros when it comes to storing your bitcoin in an online exchange, that will only beget you with nothing but misery because once you do that, it's not your bitcoin anymore, it's the exchange's bitcoin now and they've got the power to just quit the exchange and run away with all the cryptocurrencies that they have or they get hacked and your account becomes one of the victims of that hack. Just go for the safest which is the cold wallet, if you've got tons of money, you want to make sure that you're securing it in a way that is impenetrable and only a human error on your side could be the cause of losses.
If you had a large amount of cryptocurrency would you prefer to keep it on an offline cold wallet or an online cryptocurrency exchange?
Both have pros and cons.
Your fund safety should be your most concern, more than convenience when you store your bitcoins on centralized exchanges.Both have pros and cons.
Convenience is clear but does it worth to take risk of losing your bitcoins if that centralized exchange goes bankruptcy or scam?
Reminder: do not keep your money in online accounts
The vital point for your fund security is "It's not your private keys, it's not your bitcoins".
Bitcoin Q&A: Not your Keys, Not your Coins. This is a 15-minute video and watching it can help you to get answers for following important questions.
Quote
How is the public / private key pair stored in a wallet?
What is the difference between a mobile and web wallet?
What is the relationship between wallets and IP addresses?
Why are developers of Samourai and Wasabi wallet arguing?
Custodial surveillance wallets a bigger problem to avoid.
What is the difference between a mobile and web wallet?
What is the relationship between wallets and IP addresses?
Why are developers of Samourai and Wasabi wallet arguing?
Custodial surveillance wallets a bigger problem to avoid.
If you had a large amount of cryptocurrency would you prefer to keep it on an offline cold wallet or an online cryptocurrency exchange?
Nope I would never prefer to keep my funds on an online Exchange. Because I already know that keeping funds on Exchange is nothing more than losing them, it has an almost 99% risk of being stolen, whether in the term of Exchange bankruptcy or a hacker attack. In both scenarios, you will fall victim to the loss of his funds. In spite of an offline cold wallet, you have been able to get rid of these two problems, namely, that neither your fund can be stolen easily nor you can be a victim of any hack easily.Quote
Both have pros and cons.
I think there can be no pros except for taking trades. I mean That is, there is no other benefit to keeping funds on the exchange rather than trading. But keeping funds in exchange has too many consQuote
I'm interested to hear the thoughts of others.
My opinion is that you should keep your funds in offline cold-air-gap wallet. With which you can keep your fund under full control. When you are under the ownership of the exchanges, if he wants, he can steal your funds or even get stuck without asking you. 
For me, it's better to store your assets where no one can access them, and you can protect your assets from different scenarios. Meanwhile, if you store your assets in an exchange, there are some bad things that could happen. If you have been targeted by hackers, your assets can be stolen, or if an exchange malfunctions, you cannot access your assets. Yes, there are still advantages to storing your assets in an exchange, but when it comes to safety, cold wallets are the best option. You are the only one who has control over or access to it, as the wallet in which it will be stored has a physical body. You can bring it anywhere and anytime, but of course, as it is physical, you will need to keep it safe because your wallet can still be lost or stolen. So it's up to the owners, but for me, a cold wallet is the best option if you have the capability to purchase it.
If you had a large amount of cryptocurrency would you prefer to keep it on an offline cold wallet or an online cryptocurrency exchange?
Both have pros and cons.
I'm interested to hear the thoughts of others.
Both have pros and cons.
I'm interested to hear the thoughts of others.
It is actually much safer to put your assets into a cold wallet. Now, if you put your assets in a centralized exchange, just remember that you must also be prepared for the risk you may face because, in the first place, holding your assets is almost no different than putting money in the bank.
That's why sometimes it seems like we don't have a choice and others don't know either. That's why others always say, Be careful and do it at your own risk.
And be prepared.
Yes if I have large amount of assets such as bitcoin, I will rather store them on a hot wallet where I have total control of the wallet, most especially if I intend to keep them for a long term.
Sometimes one can buy bitcoin and keep it for let say 10 year without looking back to the wallet or how much it have generated, this way it a risk to save such bitcoin on an excahge wallet, so for long term holding, personal custodial wallet is the best choice.
Sometimes one can buy bitcoin and keep it for let say 10 year without looking back to the wallet or how much it have generated, this way it a risk to save such bitcoin on an excahge wallet, so for long term holding, personal custodial wallet is the best choice.
It is always advisable to store your coins in a wallet where you have full control of it. Hence, the question of the OP should be very easy to answer. It is not recommended in any way to store your coins in a crypto exchange, even if it is the top 1 exchange.
As most of crypto users know - "not your keys, not your coins." You will understand such phrase when you happen to lose your coins in an exchange hack or similar events.
If you had a large amount of cryptocurrency would you prefer to keep it on an offline cold wallet or an online cryptocurrency exchange?
Both have pros and cons.
I'm interested to hear the thoughts of others.
Yes if I have large amount of assets such as bitcoin, I will rather store them on a hot wallet where I have total control of the wallet, most especially if I intend to keep them for a long term.Both have pros and cons.
I'm interested to hear the thoughts of others.
Sometimes one can buy bitcoin and keep it for let say 10 year without looking back to the wallet or how much it have generated, this way it a risk to save such bitcoin on an excahge wallet, so for long term holding, personal custodial wallet is the best choice.
If you had a large amount of cryptocurrency would you prefer to keep it on an offline cold wallet or an online cryptocurrency exchange?
Both have pros and cons.
What are the cons of storing a large amount of your coins in cold storage, i do not know of any cons, but only pros. Your money is in your control, it is safe if you know what you are doing, it is off the internet and not vulnerable to online attacks, etc. It is recommended to store your funds in an offline wallet, and only hold funds for spending on the go in your online wallet. Both have pros and cons.
However, a crypto exchange should be used for trading only and shouldn't hold any of your funds for longer than the time you are trading.
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