Exchange or hardware wallet ? - page 6.

Ultegra134

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

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

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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.

smartaction

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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 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

mm2543363580

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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 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.

Swordsoffreedom

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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.

Ultegra134

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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.

Quidat

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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?

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.

riskarcher

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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.

LittleBitFunny

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Quote from: savetheFORUM on November 28, 2021, 10:54:54 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?

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,

qwertyup23

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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?

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.

savetheFORUM

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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?

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.

shushu9977

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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.

KaliLinux

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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?

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.

ChiBitCTy

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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 !

noah tall

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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.

Doell

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exchange is not secure ,it is very clear I will choose hardware wallet ! I wouldn't take more risk for my funds going forward if it was on an exchange ,have a lot of experience and some great guys also recommend hardware wallets over than exchange

goldkingcoiner

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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?

It all depends on if you trust yourself more than trusting an exchange like, say binance. There are ups and downs for both. For example, if you trust yourself to keep your own funds, nobody will be able to freeze your wallet or put withdrawal restrictions on you. You can do as you like. However you are responsible for keeping your wallet safe out of the hands of thieves. If someone gets your seed phrase, thats it. your funds will be gone.

On the other hand, if you have done KYC with an exchange and THEY get hacked, then they MIGHT BE legally responsible for paying you back for their mistake. This however does not count if someone accesses your account because you gave away your login information. That being said, if the exchange itself scams you and runs away with your funds, thats too bad.

I prefer keeping funds out of exchange wallets as much as possible.

o_e_l_e_o

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Quote from: Davidvictorson on November 27, 2021, 09:47:57 AM

My question is if the coins are currently on an exchange like Coinbase or with a broker like Voyager, earning interest; does a hardware wallet "remove" them from that account? Or do they stay there still able to earn interest, but are only able to be sent from that account with access to the hardware wallet?

A hardware wallet will "remove" the coins from that account. In reality what happens is that the coins are transferred out of the exchange or broker and to an address generated by your hardware wallet. After that, the coins are no longer in your exchange account but are instead stored at an address which is protected by your hardware wallet.

Your coins cannot be in two places at once, and so if you want to withdraw them to your hardware wallet then they cannot also be in your account earning interest. If you want to leave them on your account to earn interest, then they cannot be protected by your hardware wallet. This is one of the risks to all these shady places offering interest and staking rewards and everything else - you must leave your coins in complete control of a third party, who could lose them in a hack or scam you at any time without warning and there is nothing you can do about it.

dkbit98

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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?

It's like if I am asking you what are the advantages off bananas and potatoes? Roll Eyes

Exchanges are used only for trading Bitcoins with other coins or with fiat currencies and should not be used for storing and keeping coins, unless you want to have Mt.Gox 2 scenario.
Hardware wallets are used for keeping private keys safe and offline, not connected to internet or other network, they are usually not meant for any real trading.
You can use both of them for different purpose and you can lose coins in both ways if you are not careful.

Davidvictorson

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Quote from: UmerIdrees on November 27, 2021, 04:09:27 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?

Storing your coins on an exchanges can be super risky as you do not have complete control over your funds in the exchanges. By complete control i mean that you should have access to your private key which exchanges do not give you. In case, the site is closed or hacked all your funds are lost.
Hardware wallets are the best way to store your crypto although you need to spend some money in buying a hardware wallet.

Great. My question is if the coins are currently on an exchange like Coinbase or with a broker like Voyager, earning interest; does a hardware wallet "remove" them from that account? Or do they stay there still able to earn interest, but are only able to be sent from that account with access to the hardware wallet?

dansus021

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use exchange for trading use other wallet for play defi and daily transaction and buy hardware wallet for HODLING long term i think simple as that

using exchange only for trading and withdraw your money #notyourkeysnotyourcoin use HW wallet for hodl #KEEPHODL Cool

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