Actually things like this may go back to their respective perspectives but indeed when talking about security I think everyone will agree that a cold wallet will be much more worth it than a wallet that has been provided by an online exchange considering that at least we don't have to worry that the assets we have are controlled or can be supervised by the exchange unless you want to try trading so the exchange will definitely be an option but when it is an investment then it will indeed be more worth it if it is stored in a cold wallet in the end.
But that does not mean that cold wallets will also directly avoid some fraud syndicates or hacks because after all about security issues in the end it is always a problem that is always discussed where we must realize that security problems depend on our foresight because even if it is stored in a hard wallet, cold wallet or exchange wallet even as long as you are negligent then it could endanger your assets.
Topic: Are cold wallets safer than online exchanges? - page 4. (Read 598 times)
The answer is that, it depends. It depends on what your intentions are with the assets. If you want the asset to be readily available when you need it without the need to access the wallet, acquire some other BTC / or gas if EVM to send out the asset in question, then it's an online exchange. But if you simply want to keep it and hold, then you should really opt for a cold wallet. The biggest drawdown with storing it directly on an exchange is that the exchange could close up at any time and there is nothing you can do about it. Nada. But with a cold wallet, you have full control and access to it at any time possible.
So here's my TLDR version.
So here's my TLDR version.
- If you want it to be readily available and on demand, then store on an exchange.
- But if you're just going to hold it for a long time and not move it around a lot, definitely recommend a cold wallet
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.
Choosing wallets must be done carefully and precisely, because this is related to the security of our assets and is also related to the possible fees that we will incur.Both have pros and cons.
I'm interested to hear the thoughts of others.
Well, if the condition is that I have a lot of assets and it is for long-term investment, then I would much prefer cold wallets or offline wallets to hot wallets. Because this is related to the security system and also control of our assets. In Cold wallet, we store our own exchange and it is offline so it will be much safer than holding them in any exchange. which means that online swallows or exchanges can cause various types of cyber crimes, which of course has also become one of the things to be wary of.
See and read or learn the following source taken to add more knowledge about hot wallets vs cold wallets.
More information about hot vs cold wallets can be read here:
https://thegww.com/hot-wallet-vs-cold-wallet-which-is-right-for-you/
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I'm interested to hear the thoughts of others.
I'm interested to hear the thoughts of others.
I noticed you just joined our forum - welcome! With a fresh set of eyes, you likely havent had the chance yet to poke around previous threads on securing your crypto holdings. So let me drop some wisdom real quick.
Cold storage wallets? Definitely the move for stacking sats long-term. Exchanges make sense for active trading because convenience. But for hodling? Nuhuh. Not your keys, not your cheese!
If you are just dipping your toe into crypto, Id take a scroll through old threads about cold storage and hot versus cold wallets. Plenty of handy know-how already up in here to help a newcomer.
Stay curious my friend!
If you had a large amount of cryptocurrency would you prefer to keep it on an offline cold wallet or an online cryptocurrency exchange?
It has been said multiple times on the forum here that coins shouldn’t be stored on exchange. If you store a coin on exchange, then it means you are not totally in control of your money and you can lose your coin at any moment, because no matter how reputable an exchange is, anything can happen to it at any moment. We have all seen different exchanges fail us in the past, and we should be expecting more in the future, so people will be losing money. The only time I do recommend that people leave their money on exchange is when they are trading with the money, but if you are not trading, then your funds should be in an offline wallet.
With a cold wallet, you have full control over your cryptocurrency, eliminating the need to rely on a third party for security. In contrast, online exchanges act as custodians, holding your cryptocurrency on your behalf.
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.
Just a simple answer "NOT YOUR KEYS, NOT YOUR COIN", it is always better to keep your crypto in a wallet that you have full control.Both have pros and cons.
I'm interested to hear the thoughts of others.
Yes using an exchange or trading site would cut the transaction fee and time when you want to convert, sell or trade your crypto, but you don't have full control of the wallet and there are so many events before that trading or exchange got hacked.
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
An exchange is a place to buy and sell, not a place to store assets.Both have pros and cons.
I'm interested to hear the thoughts of others
It's not really a matter of pros and cons, but about the security of the assets. If you store assets on an exchange, then the assets are not yours, but theirs. How is that possible? Because the address obtained from the exchange to receive and send is not controlled by us. We only have a password for access to the exchange that is registered using an active email.
This has been repeated because there have been many questions like this that have been asked.
Both have pros and cons.
Its not even a matter of weather it's safe or not. Just don't forget this not your keys not your coins. Yes you might feel like because you see the amount of funds displayed on your exchange account, you literally own the funds in that account but the truth is that you as an exchange users, creating an account with them is like giving them your funds to keep and do what ever they want with it.
For large amounts of funds, make sure to store them in cold storages. The risk of losing funds using cold storage is very low compared to another form of storage. As long as you keep your keys safe.
People who store their funds on exchanges account are mostly short term traders who performs daily transactions. But as a normal holder, short term or long term, you should avoid keeping funds in exchanges.
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, both has it's merits and demerits, but on a general scale, when it comes to safety and security of funds, I think cold wallets are more safer than crypto exchanges, because it offers you the access to have full control over your funds and its private key. However, there are several factors that will warrant one to choose which option, such as;Both have pros and cons.
I'm interested to hear the thoughts of others.
1. If you are a trader, and needs funds/coin for your daily trade, then keeping them in your exchange wallet is far better, as it saves you the stress of transferring funds too and fro using high fees.
2. If you are just an ordinary investor who wishes to just buy coin and hold for very long period of time, then storing it on a cold wallets is far better, as it grants you the full control over it.
The exchange themselves in which people are keeping their funds in, are using cold storage wallet to keep their SAFU to prevent it from hackers.
So why are the exchanges gotten hacked? A Japanese exchange was hacked few days ago and it will not be the last exchange that would be hacked. Also many exchanges have been hacked before.For faster withdrawal, exchanges have some or most of their coins on hot wallets. But some exchanges make use of multisig. I noticed OKX makes use of multisig wallet.
What would be the pros of storing bitcoin on exchanges? Convenience? Maybe easier trading? But for large amounts, security trumps all that.
Cold storage is the way if security matters. Exchanges get hacked like every other week. Poof - there goes your life savings in Bitcoin. Not a good feeling, and convenience ain't worth that stress. But with cold storage, you control the keys. Only keep on exchanges what you're cool with losing.
Cold storage is the way if security matters. Exchanges get hacked like every other week. Poof - there goes your life savings in Bitcoin. Not a good feeling, and convenience ain't worth that stress. But with cold storage, you control the keys. Only keep on exchanges what you're cool with losing.
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.
Cold wallets or cold storage is the best wallets to keep large amount of funds. There are hardware wallets that are airgapped, or electrum airgapped cold storage wallets are good.Both have pros and cons.
I'm interested to hear the thoughts of others.
The exchange themselves in which people are keeping their funds in, are using cold storage wallet to keep their SAFU to prevent it from hackers.
Only traders should keep their coins in which they are using to trade in an exchange, apart from them nobody should think that an exchange is safe to keep funds. Exchanges are vulnerable to attack and they are in charge of your keys which means that your coins is not yet yours until you have withdrawn it from the exchange.
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.
#Offline/Hardware wallet/Non-custodial would be the best - Or something that you do possess the PK of that walletBoth have pros and cons.
I'm interested to hear the thoughts of others.
#NOT YOUR KEYS NOT YOUR COINS- This has always been the primary rule when it comes to crypto possession.
This is why if you are trading up actively then you should really be just that putting on the amount that you would really be tending up to trade and not really that putting up all of your assets on an exchange
because you dont know on when shit things do happen. We've seen exchange hacks and other incidents on which it causes up for someone to lose up money and on the moment that you've been on such
condition then recovery would really be that so hard. This is why you should really be careful on where you would really be storing your coins with.
Always consider out on having that kind of securing your coins rather than on being that too confident with the current set up you do have. We wont know on when
unfortunate conditions do happen and this is why we should really be that careful.
I don't have large assets but I never keep them on exchanges, use cold wallets as more security because it is a safe way than exchanges are not so recommended.
Actually many people keep large amounts of assets on exchanges, there are several reasons behind it for them, trading becomes more instant as you can trade anytime, they can withdraw directly to fiat over exchanges and many more reasons.
If it is just for HODL it is better to use a cold wallet even if you spend more than $50 to buy a cold wallet but your assets will be safe as long as it can be a seed phrase.
Actually many people keep large amounts of assets on exchanges, there are several reasons behind it for them, trading becomes more instant as you can trade anytime, they can withdraw directly to fiat over exchanges and many more reasons.
If it is just for HODL it is better to use a cold wallet even if you spend more than $50 to buy a cold wallet but your assets will be safe as long as it can be a seed phrase.
I'm interested to hear the thoughts of others.
You would have easily gotten this information by doing a quick search. Keeping large amounts in an exchange is risky because you can lose your funds if the exchange is ceased, go bankrupt, or suffer a hack. The funds you keep on centralized exchanges are not your own because you can lose them at any time. But people have come up with several reasons why they use it which include the ability to recover passwords and the ease of exchanging or trading. It is advisable to keep only small funds in exchanges
Decentralized cold wallets are suitable for keeping large funds because they are more dependable. You also have total control of your funds which makes it recommendable for long-term hodling. But if you lose your password or seed phrase you might lose your money.
One of the features I admire about crypto is decentralization so why would I use crypto if I were just going to do pretty much the same thing I was doing before which was entrusting my money to centralized banks. I would prefer to hold my own coins and if there are already quite a lot then I would store it somewhere discreet in a cold wallet to reduce or completely eliminate the possibility of hacks.
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.
Do you want to store money your way and only you can access your funds or do you want to deposit them in the bank and depend on the bank? The bank can go bankrupt or freeze your assets at any time without prior notice to you while it is your money.
Similarly, using a cold wallet gives you full control over your assets, you are like your own bank, you will be responsible for the safety of your assets. Meanwhile, centralized exchanges are even riskier than banks. They can be attacked by hackers, go bankrupt, freeze your assets without notice or compensation to you. It will all depend on your preferences and choices.
Is their any benefit of keeping you coins in an exchange that could be compared with savings your coins in a cold storage wallet?.
Firstly I don't believe exchange wallets are really wallets infact they are classified as creating an account with an exchange which practically means you do not have power over you coins, that means exchange do not have wallet but an account which you register to keep your coins with them. "Not your keys not your coins".
Cold storage/offline wallets, I haven't seen anything that's better than having full control of your coins which this cold storages provides. cold storage/offline wallets are the best way to store you coins, maybe the safest for now since their is nothibg with has been provided thst is more safer
Firstly I don't believe exchange wallets are really wallets infact they are classified as creating an account with an exchange which practically means you do not have power over you coins, that means exchange do not have wallet but an account which you register to keep your coins with them. "Not your keys not your coins".
Cold storage/offline wallets, I haven't seen anything that's better than having full control of your coins which this cold storages provides. cold storage/offline wallets are the best way to store you coins, maybe the safest for now since their is nothibg with has been provided thst is more safer
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.
There is no pro in storing coins in a online exchange, it is a blunder.Both have pros and cons.
Aside from the coins that are on active orders, do not keep coins on exchanges because you do not hold their private keys and those coins can go into KYC-lockout/exchange hack and limbo and so on.
While coins on your own wallet are always ready to be accessed. Hence for storage, a wallet is always the best option.
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