Exchange or hardware wallet ? | Bitcointalksearch.org

witcher_sense

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Quote from: CDC AP on December 18, 2021, 12:06:06 PM

Exchanges don't have as much security as hardware wallets.

Good exchanges keep most of their cryptocurrency reserves on cold wallets which makes them as safe as hardware wallets, in some cases even more secure because they will use multisignature setups where several hardware wallets are required to send crypto, and often provide additional insurance for your coins. I haven't heard of the cases where hackers managed to access the cold storage of an exchange.

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as we know Hardware wallets are programmed to be used as coin storage which has a security level of 90%

Hardware wallets are special purpose electronic devices that can operate offline, with which you can store, generate your keys and sign transactions. The level of their security cannot be accurately estimated because it will depend on many factors including how experienced the actual user.

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and has been tested by whales because it is not easy to hack,

I think you are confusing whales with security experts.

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unlike the exchange used for traders, not for storage that is easily accessed by hackers because stored can acces on application.

Unlike cold storage, an exchange's hot wallets are connected to the Internet, which makes them vulnerable to hacks and greatly increases the attack surface. But this is also true for ordinary users, which is why it is not recommended to hold huge amounts of money on mobile and desktop wallets.

kucritt

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hardware wallet is more secure than exchanger, because exchanger save all your asset, by online, there are possibility that hacked by hacker, but if you use hardware wallet you save all of your asset on hardware wallet, and it will never hacked by hacker, but the consequence you should save it on a safest place

dbc23

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You should ask your self this having your coin in your full custody or handing it over to a centralized institution which is more preferred. I guess you would go for the former. Everyone wants to have full control of their assets and this is what the hardware wallet offers you at no cost or expense but going by exchange your will be asked to provide series of documents to proof your authenticity through KYC verification.

lepbagong

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Quote from: CDC AP on December 18, 2021, 12:06:06 PM

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.

true, exchangers obviously always have loopholes that can make hacking happen by irresponsible people, but experienced exchangers can always take responsibility for mistakes made by replacing all participants who have funds there, actually there is protection too if we use a good exchanger, but when compared to security, it is clear that the hardware is very well tested and good. but obviously it is for those who are active in trading and need very high privacy so that the funds cannot be taken, if only on a small scale it is enough in a wallet which is also good to use.

CDC AP

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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.

syedzakir

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Exchange provide us with the facility that we can place our money there and without any barrier we could withdraw it any time. It also helps us to buy different currencies with our assets . But the most dangerous thing is that the hackers are now trying to hack account having more assets so they are having Access to all the exchanges as they connected through internet.
In the case hardware wallet would be better because it is not accessible to hackers and you can carry it in your wallet anywhere and can use it anytime by connecting it with your own device. But the difficulty we are facing with it is that these wallets are actually electronic devices and any damage to them can result in a great loss.

Imran232

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Quote from: himmeltau on November 26, 2021, 11:05:01 PM

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

If you can buy a hardware wallet, then definitely a hardware wallet is recommended. There are lots of reasons, but if I want to say it in short, it will be like this: Exchange is controlling your funds. You didn't hold your funds in exchange. You held your funds in the company wallet and they have full control of your money. But in a hardware wallet, you create your own account where you hold your money in your own wallet. As a result, you are the sole owner of your money.But remember, do not share your seed. If you pass, both hardware and exchange are safe to use, but always use the best exchange like Binance, Ftx, etc. And, if you're looking for a hardware wallet, don't buy from a third-party website just to save a few dollars; it could be dangerous.It might come with a virus. Always buy from the official website. That's it. Thank you.

Dump3er

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Quote from: Minor Miner on December 03, 2021, 02:12:56 PM

Quote from: Dump3er on December 03, 2021, 01:50:20 PM

I would add that it really depends on the exchange and the amount we are talking about relative to your overall wealth. I am not giving an arbitrary number now as 100 dollars could mean something very different to someone poor than to someone rich.

But when you have a rather small amount and you store that on an exchange like Coinbase, the chance that you are going to lose that crypto due to a hack is really small in my opinion. I guess Coinbase even has something like a deposit insurance required by regulators. There are often times limits though as per individual, but that's why I said it also depends on the amount.

So people use Hardware Wallets only to escape from the hands of hackers? Hackers are also able to steal your funds from HW if you are not aware of it. Coinbase is regulated by the regulatory body does that mean your money is safe there? If Coinbase stopped its service today, and seize your funds, would you be able to withdraw your Bitcoins from Coinbase? Did they give you a private key? Listen, people use HW not only to avoid hacking but also to get rid of control of the regulatory body.

You argue in a way that allows for either black or white only. That's nonsense. I deliberately pointed out the difference between small amounts of investors who want to get in but have no idea about dealing with cryptos in a secure way and people who got some more money on the line. When you are playing around with a 100 bucks as a US citizen, you might be alright keeping it on Coinbase as I do indeed deem chances for Coinbase to collapse very low. There are people who want to get in with just a little amount of money, but are not eager to deal with hardware wallets or paper wallets and stuff. That doesn't mean I would not prefer a hardware wallet over leaving my coins on an exchange, I do indeed use hardware wallets. But I get where some people are coming from when they deem it too much of a hassle to secure their 100 bucks in crypto with a hardware wallet.

Chrystora123

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Quote from: himmeltau on November 26, 2021, 11:05:01 PM

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

if you store your crypto assets on an exchange then prepare yourself for possible losses that may befall you. the safest place to store assets for the long term is a hardware wallet and then secure it in a vault..

Marvell1

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Quote from: rmhuntley on December 14, 2021, 08:36:52 PM

Better hold on exchange because you can sell when coin suddenly pump, hard ware wallet need time more than few minute to access and sending to market take few minutes for deposit process. We don't know when coin suddenly pump and not just few while only coin raise higher price before dump, saving on hard ware wallet you waste moment for selling on higher price when got chance to sell with higher value.

Holding assets on exchanges isn't all that bad. That is for day traders, holding an exchange is very risky for the holder. Hold assets on exchange as the exchange is controlling your money, you are not the real owner. In contrast, holding assets on a hardware wallet you have full control of all your assets, as long as you do not reveal your secret seeds to others.

wajik-tempe

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Quote from: rmhuntley on December 14, 2021, 08:36:52 PM

Better hold on exchange because you can sell when coin suddenly pump, hard ware wallet need time more than few minute to access and sending to market take few minutes for deposit process. We don't know when coin suddenly pump and not just few while only coin raise higher price before dump, saving on hard ware wallet you waste moment for selling on higher price when got chance to sell with higher value.

even though, we should seperate our investment assets and the trading assets in case of security and also for holding back our emotion when we are taking quick decision about selling or buying a sudden pump coin.
When we all placing our assets to exchange, we have a desire to go all in with it when we are really confident with our decision and sometime ended up loss.

molsewid

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Quote from: rmhuntley on December 14, 2021, 08:36:52 PM

Better hold on exchange because you can sell when coin suddenly pump, hard ware wallet need time more than few minute to access and sending to market take few minutes for deposit process. We don't know when coin suddenly pump and not just few while only coin raise higher price before dump, saving on hard ware wallet you waste moment for selling on higher price when got chance to sell with higher value.

If you are an active day trader or spot trader then holding your asset in exchange is better but I think if you have had a number of assets or crypto that you're in a hold and let's say you have a bitcoin and ethereum token then might be good if you have also a hard wallet at the same time. Investors or traders are investing in hard wallets to protect their assets. In my case, I do use both hard wallet and exchange but leave only those tokens that I am actively using in my day trade and putting some token in my hard wallet.

rmhuntley

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Better hold on exchange because you can sell when coin suddenly pump, hard ware wallet need time more than few minute to access and sending to market take few minutes for deposit process. We don't know when coin suddenly pump and not just few while only coin raise higher price before dump, saving on hard ware wallet you waste moment for selling on higher price when got chance to sell with higher value.

BitTalk21

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Quote from: himmeltau on November 26, 2021, 11:05:01 PM

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

On exchange you are not owner of your funds.
you can get better prices on exchanges and almost most of coin's on exchanges & can have better trade experience.

On Hardware wallets you are only owner of your funds.
it provide security can be used with dex , dapps , Defi.

boyptc

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Quote from: MaDeidre on December 14, 2021, 02:37:41 AM

Many people will advise you to put your money on the exchange. But my suggestion is to put it in a hard wallet. Both have their own advantages. I prefer to put it in a hard wallet. I don't operate currency frequently, and I don't worry about exchanges being hacked.

Those people that are advising to put your money into exchanges are giving you a bad suggestion.

As you hold, the advantage is in the hardware wallet and if you don't have any intention to transfer it from time to time, hardware wallet is the best keep.

While in exchange, if you're going to use it to keep your assets, it's called an exchange and it has a different purpose and your funds are in risk if you keep it there.

Shasha80

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Quote from: milewilda on December 14, 2021, 02:12:01 PM

Quote from: K4C on December 08, 2021, 01:04:12 AM

Exchange is good if u want trading . and hardware is secure than any exchange because it is in your control and no one can get access to your hardware wallet.
Whenever you done some deposit or withdraw any thing . The exchange can control it .

When you do make out some active trades then it would be sensible if you would store up your coins on an exchange for fast executions of trades but if you
are minding about your coins security then hardware wallet would be the best choice.Always mind off that as long you dont possess the keys of a certain wallet which is mostly on custodial wallets like exchange then its not totally 100% your coin or simply it doesnt really belong to you.
You know the risk behind thats why when making out decisions then this is something would really vary.

If we look at the history where some of the major exchanges have been hacked, this should raise our awareness not to keep all our coins
on exchanges. It is better to store coins on exchanges only for trading, most of the coins we have can be stored in a hardware wallet which is
indeed the safest place in my opinion for now. Even if we trade on exchanges and manage to make a profit, I recommend that the profit
be immediately transferred to our hardware wallet. The conclusion is that it is not safe to store too many coins on exchanges, even though
the exchanges we use have sophisticated security systems, still there is no guarantee 100% safe. Because after all exchanges will always be
a target for hackers, because as we know the circulation of coins on exchanges is very large.

milewilda

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Quote from: K4C on December 08, 2021, 01:04:12 AM

Exchange is good if u want trading . and hardware is secure than any exchange because it is in your control and no one can get access to your hardware wallet.
Whenever you done some deposit or withdraw any thing . The exchange can control it .

When you do make out some active trades then it would be sensible if you would store up your coins on an exchange for fast executions of trades but if you
are minding about your coins security then hardware wallet would be the best choice.Always mind off that as long you dont possess the keys of a certain wallet which is mostly on custodial wallets like exchange then its not totally 100% your coin or simply it doesnt really belong to you.
You know the risk behind thats why when making out decisions then this is something would really vary.

dificanovi

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Quote from: mk4 on November 26, 2021, 11:06:50 PM

tl;dr

exchange gets hacked, you're screwed
if you use a hardware wallet and not store your wallet's seed phrase digitally, your funds getting hacked is near impossible unless you make a big mistake

yes hardware wallets are a great choice for storing cryptocurrencies. Hackers will definitely find it difficult to hack a hardware wallet because the wallet can only be accessed by the owner, the hardware wallet will remain safe as long as the wallet owner is not careless. Hardware wallets have a slight drawback, namely that the owner of the wallet has to carry it where he wants to go because if he doesn't take the hardware wallet with him then he will find it difficult to make transactions.

Obito

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Hardware wallet all the way, you know how many exchanges in the recent years have been hacked? I don't think that you would take a chance if you know how many. But you have to also be careful though as hardware wallet can be tampered with and there's also the possibility of forgetting the password after a long time of not using it.

Pejoh Asu

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80% of my crypto assets I store in a hardware wallet, I store assets in a hardware wallet of course for security reasons and I make cryptocurrencies a long-term investment that can change my life later, I hope there will be a significant price spike so I can sell some for venture capital .

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