Exchange or hardware wallet ? - page 5.

Fatunad

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Quote from: TinaK on November 29, 2021, 05:57:12 PM

Quote from: macson on November 29, 2021, 10:59:10 AM

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?

@mk4 has given you a very precise explanation....if you put your assets on the exchange then it is very vulnerable, many suggest that you use a hardware wallet if you have a lot of assets to avoid the worst that could happen, especially since hackers have 1000 ways to get prey.

When your assets are on exchange, isn't about the hackers because I believed that hackers are not easy to compromise exchange.
I have doubt that the scam that happened on exchange was an inside job and this is what I have worried about when my coin is on an exchange, there is no way to protect us from that scenario. But how about the exchange that offers SAFU? They promised that your fund is safe.
To have peace in your mind, much better to choose a hardware wallet and they are right.

Wont be easy to compromise but the probability or chance would be always there and you shouldnt really cross out into those chances which would really be a regretful thing once it do happen and this is where you do learn up things on unfortunate conditions.
So its neither you would make use of hardware wallet depending or according into your needs so its would really vary honestly.
If you do all sort of security of your account then its what matter most.

TinaK

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Quote from: macson on November 29, 2021, 10:59:10 AM

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?

@mk4 has given you a very precise explanation....if you put your assets on the exchange then it is very vulnerable, many suggest that you use a hardware wallet if you have a lot of assets to avoid the worst that could happen, especially since hackers have 1000 ways to get prey.

When your assets are on exchange, isn't about the hackers because I believed that hackers are not easy to compromise exchange.
I have doubt that the scam that happened on exchange was an inside job and this is what I have worried about when my coin is on an exchange, there is no way to protect us from that scenario. But how about the exchange that offers SAFU? They promised that your fund is safe.
To have peace in your mind, much better to choose a hardware wallet and they are right.

taufik123

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Hardware wallets are the main wallets that are used to store crypto assets more securely and have full control over the assets we have.
While the use of Exchange is only as a trading mode, and some large exchanges like Binance can still be trusted to store our crypto assets.
Nonetheless, exchanges are still vulnerable to break-ins. Both wallets have their own advantages and disadvantages.

Mahiyammahi

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Exchange is a centralized system. Where a admin or a group of member control everything. They can monitize your coins or transfer if they wants to as security perpose. Then what's the matter if you have a house but it's key is in house developer's hand. What do you say? Is there any security left for you?

A hardware wallet is a fully decentralized system for storing. It has no internet access so hackers can't reached it. You can transfer you asset anytime .

You should use hardware wallet if you are really concern about you security.

wajik-tempe

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Quote from: Theones on November 29, 2021, 11:00:16 AM

Quote from: Quidat on November 28, 2021, 12:46:06 PM

Cons
3. They could anytime shutdown or run away

I think that wont be the case with recognized exchanges like binance since they have bank accounts in different countries and its impossible for run them. As governments have tight control over them.

Quote from: Quidat on November 28, 2021, 12:46:06 PM

Cons?
1. Losing HW or Break it.

With hardware or software wallets thats the biggest issue and IMO it overpowers all the advantages offered by the hardware/software wallets. Once you loss it, you get it back at any cost.

Nothing is impossible in crypto, cex is cex and our money is held by them, nothing we could do if they are doing scam, i know if the exchanges is already famous and their leaders are known by the people. But if the run away happen, they will just wanted by the police and going to jail if got catch, but our assts will not return.

And yeah, hardware wallet could be broke but if you have more than 1 mils USD worth coin in your wallet, it's easier to keep the hardware wallet safe compared to aimed by the pro hackers which aiming large amount of money in crypto wallet.

Theones

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Quote from: Quidat on November 28, 2021, 12:46:06 PM

Cons
3. They could anytime shutdown or run away

I think that wont be the case with recognized exchanges like binance since they have bank accounts in different countries and its impossible for run them. As governments have tight control over them.

Quote from: Quidat on November 28, 2021, 12:46:06 PM

Cons?
1. Losing HW or Break it.

With hardware or software wallets thats the biggest issue and IMO it overpowers all the advantages offered by the hardware/software wallets. Once you loss it, you get it back at any cost.

macson

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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?

@mk4 has given you a very precise explanation....if you put your assets on the exchange then it is very vulnerable, many suggest that you use a hardware wallet if you have a lot of assets to avoid the worst that could happen, especially since hackers have 1000 ways to get prey.

lenovop-70

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Exchange wallet is not secure, but flexible and you will have more speed to do transaction because its inside the market. For your own security use hardware wallet, with it you can control anything yourself. So i suggest you use them both for two different purpose, exchange wallet for your moving assets, and hardware wallet for your long and saving investment.

sheenshane

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Quote from: irsykes on November 29, 2021, 08:58:14 AM

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?

Hardware we have full control to our coin, maybe pros that we save coins in exchange is we can sell it immediately if needed. Because if save in our own wallet, that means more fees that will be used for transaction especially if we are trade and must doing deposit and withdrawal coins.

If that is so just because of the fess, I won't hesitate to spend less $1-2 for the fess rather than your whole crypto earning will disappear once the exchangers are becomes compromised. It's been always good to store your coin in a hardware wallet or any wallet that you have full control over your private key, in that way your coins are safe.

It could be the advantage of an exchange is the quick trade into fiat if you need it but it's just a matter of an hour if you'll wait while using hardware wallets. The most important factor is the safeguard of your portfolio and avoiding possible scams or even exchange becomes compromised and your coin might be stuck.

irsykes

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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?

Hardware we have full control to our coin, maybe pros that we save coins in exchange is we can sell it immediately if needed. Because if save in our own wallet, that means more fees that will be used for transaction especially if we are trade and must doing deposit and withdrawal coins.

MIner1448

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In general, everyone recommends hardware wallets, because it is almost impossible to hack. I wrote "practically" impossible, because I am very surprised at inode hackers who hack everything that is possible and impossible, although there were no cases of hacking with a hardware wallet, but nevertheless, do not underestimate the scammers.

Pmalek

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Quote from: PhucS on November 29, 2021, 02:47:27 AM

However, its price is quite expensive, if you are a frequent trader, you will find it quite convenient.

Ask yourself, expensive compared to what? Compared to a web wallet or exchange? Yes, it is. Compared to the possibility of losing all your crypto because you got infected with malware and someone hacked your account to empty all your coins from it? The exchange could get hacked like we have seen with Mt Gox or Cryptopia and many others. In that case, the device is not expensive at all.

Most of us carry smartphones that cost around a grand or more. Those are expensive gadgets we could save money on.

Quote from: Alen098 on November 29, 2021, 06:31:33 AM

According to my perspective the best way to hold btc is to put it off over the Exchange like Biannce... Bcz we have seen A lot of cases of hardwallet get stolen... So I prefer Binance more there are very rare cases of loosing our funds.... And in case of get hacked... These kind of exchanges would pay their users back through Insurance soo they are much secure as compared to hardware wallet

That's a very bad strategy you are suggesting there Alen. Someone once said that exchanges can be divided in two groups: Those that got hacked and those that will get hacked. No idea who said it though. The question is, which of those two will be holding your coins when it happens?

There is absolutely no reason why you should use an exchange as a wallet for storing your crypto unless you are looking for trouble. If you think exchanges don't get hacked or are involved in various types of exit scams, make some research on the subject and see what you can find.

michellee

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Quote from: PhucS on November 29, 2021, 02:47:27 AM

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.

Yup. If we can use a hardware wallet or apps wallet, we can still convert to bitcoin, usdt or other coins so we do not have to worry about the hacker because we control our coins. I guess there will be advantages and disadvantages of using exchange or hardware wallets, especially if you want to store your coins or trade your coins for another coin. But if you want to store your coins, then a hardware wallet will be the best place to keep the coins because your coins are in your hand.

Alen098

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According to my perspective the best way to hold btc is to put it off over the Exchange like Biannce... Bcz we have seen A lot of cases of hardwallet get stolen... So I prefer Binance more there are very rare cases of loosing our funds.... And in case of get hacked... These kind of exchanges would pay their users back through Insurance soo they are much secure as compared to hardware wallet

PhucS

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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.

himmeltau

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Thanks for all the answers!

Ultegra134

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Quote from: tippytoes on November 28, 2021, 04:32:09 PM

Quote from: Ultegra134 on November 28, 2021, 03:26:01 PM

Quote from: Swordsoffreedom on November 28, 2021, 01:59:51 PM

Quote from: Ultegra134 on November 28, 2021, 01:10:27 PM

~
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.

Oilacris

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Quote from: tippytoes on November 28, 2021, 04:32:09 PM

Quote from: Ultegra134 on November 28, 2021, 03:26:01 PM

Quote from: Swordsoffreedom on November 28, 2021, 01:59:51 PM

Quote from: Ultegra134 on November 28, 2021, 01:10:27 PM

~
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.

TinaK

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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?

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.

tippytoes

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Quote from: Ultegra134 on November 28, 2021, 03:26:01 PM

Quote from: Swordsoffreedom on November 28, 2021, 01:59:51 PM

Quote from: Ultegra134 on November 28, 2021, 01:10:27 PM

~
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.

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