Topic: Storing your Crypto in Exchanges is better than using Cold Wallets! - page 2. (Read 1230 times)

I do not keep my Bitcoin and crypto on exchanges for fear of security. It is true that these platforms are designing strategies so that users earn interest if they leave their funds in it.
I know the high level of security of Binance, Hotbit and KuCoin of their platforms but I have not yet dared to leave my funds and participate in these programs.

When you seriously come to think about it - storing your Crypto in exchanges is better than using cold wallets.

The first main reason is that exchanges pay you an interest rate on your Crypto whilst cold wallets pay none.

Secondly, we definitely believe that more and more users would move into hot wallets than using cold wallets, Ledger.com could become the next "Netscape" and then if your hardware device gets faulty and you would need support from Ledger.com - then you might find yourself in trouble. It's not a wild guess, this could seriously become the reality in the next few years.

We've just posted an article about this so if you wish to read our full opinion you're welcome to read this here:

https://freebitcoin.io/articles/free-bitcoin-wallet-and-investment-advice

But as mentioned above we've tried to point out here in this thread in short version the very few reasons why using an exchange is better than using a cold wallet in the long term. For instance 8% APY on your USDT is something that is seriously worth more than just additional "security" which is not really a true security because you are relying on a centralized private company such as Ledger.com and people seem to forget that .... Netscape was also a great success in its early days but around 2003 it almost disappeared and today almost no one is using it.

We definitely believe cold wallets are going to be history whilst hot wallets or exchanges such as Binance.com or Crypto.com are going to be the future - the listings and value of BNB and Crypto.com are just enough to indicate to you how they are growing fast .... whilst Ripple doesn't move for years between $0.20 and $0.30 - BNB and Crypto.com have already achieved massive gains.

We don't want to keep this thread too long but feel free to refer to our article to read more and let us know whether you agree or not with this stipulation.

Indeed this is the main issues we can store our crypto in the exchange, in fact there some also offer interest that catch those users to join and registered in their exchange or wallet. The best thing that we can do in this matter is we shouldn't trust fully as we all know there some exchange invades by hackers and also best is use exchange that is proven and reputable one in this industry.

Instead of debating which is better, it would be better if you will just put your Bitcoin in your Cold Wallet and at the same time put it in exchanges.

I can say that holding your Bitcoin in an exchange is better in terms of profitability but in terms of security, they are the worst as we saw many exchanges getting hacked overtime. Binance, Bithumb, Cryptopia in the past and I know that more and more hacks will come in the future.

No need to explain in Cold wallets since we knew it as one of the safest wallets we have right now but if you want your Bitcoins to have some profits then maybe you can risk it by putting and holding in an exchange.

Backing up money on electronic exchanges can be good but big crashes like MTGOX, BTC-E can happen even though we have found ways to bind many layers of security above.
Mobile storage forces people to update their software more frequently for both the phone and the wallet app. Older equipment may not be safe.

Dude, the big exchanges rarely have delayed withdrawals. I have tried it many times with Houbi, Binance, Okex and I trust in using them.
Next, cryptocurrencies in the top 10-30 have no high slippage, they only fluctuate in 0-0.5%, I have no intention of making such low profits.

8% return is still a decent amount for just storing our funds but the security is the biggest concern when we are in exchanges, I won't do that personally but lot of people think smart and store their cryptos in exchanges but they should be careful with the hacks and there is no exchange is exception to these hackers.

It's still risky but you have moved me from generalizing the dangers of holding money in an exchanges, because I really don't do that.
8% APY is still kind of "not really yet" worth the risk, taking note that even reputated exchanges like Binance got hacked just like last year.
It's up to anyone's decision in the end anyway. I wouldn't mind leaving the minimums of my deposits there because I'll extract the profits to a separate wallet anyway.

this is what others are also pointing out.  its true that binance experienced to get hacked before but is it they paid the hack funds ? but im not sure to other top exchanges . scam exchange are not part of this because they are scam and not been hacked .

 he also said that exchange provides interest , i know this is only applicable to some but this isnt easy because they also require some things before your account recieved some interest .

Not all people can afford buying a hardware wallet, but there is another option, non-custodial mobile wallets. So you don't have to keep coins on exchanges.

this is what others are also pointing out.  its true that binance experienced to get hacked before but is it they paid the hack funds ? but im not sure to other top exchanges . scam exchange are not part of this because they are scam and not been hacked .

 he also said that exchange provides interest , i know this is only applicable to some but this isnt easy because they also require some things before your account recieved some interest .

Using a non-custodial mobile wallet will be enough for them who can not buy a hardware wallet, and as long as they can know how to protect their wallet, their funds will not be in danger. But storing coins on the exchanges will give you risk from the hack or other things because the exchanges will not always secure. But if people still want to store their coins at the exchanges, they need to remember the risk and don't store in a big amount to prevent it.

Not all people can afford buying a hardware wallet, but there is another option, non-custodial mobile wallets. So you don't have to keep coins on exchanges.