Topic: Storing your Crypto in Exchanges is better than using Cold Wallets! - page 3. (Read 1230 times)

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.

Totally disagree with you OP...

All hardware wallets come with a Seed and this seed can be used to recover your coins/tokens onto other wallets, in the event that something goes wrong. (So you not going to lose your coins, if something happens with Ledger or any other hardware wallet company)

Hardware wallets are VERY secure, compared to Exchanges and Wallet providers that gets hacked every other day. (Even the big companies, like Mt Gox)

Exchanges have employees working for them and these employees can be forced by criminals to help them to get to your coins. The hardware wallet manufacturing process takes the "human" element out of the scenario and this helps to protect your "Private Key".  

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 .

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.

This comment is underrated.

So are you saying you don't want to take responsibility for your own funds anymore?

Another question, what if you wanted to move your funds from exchange A to exchange B since volume and price is better there? Your funds will be stuck in exchange A because it takes an hour or two before they can process your withdrawal and it's probably too late by the time it's completed. If you had kept them in your cold wallet all along, you could have transferred and sold in minutes.

I agree, the top 10-30 cryptocurrencies always have good volume and some of them can either perform a savings function or place a bet to make an annual profit. If you keep them in large exchanges then rest assured you have KYC and multiple layers of security for it.
I used to save my money in Ledger but after my Ledger was lost, I had to spend another money to keep buying another device. They are quite troublesome so I choose to save in exchanges. It is also easier to trade when the market goes up and down than to open the device and connect.

choose both and share assets for both exchange wallets and cold wallets is the right choice. Saving on the exchange is not always safe because you don't have full control over the assets we have, but it will provide several benefits such as saving assets and getting some interest like the one on Binance today. then can trade very easily.
Whereas when storing in a cold wallet provides better security and complete control because we hold the keys ourselves. no increase in profits but good for safe long term investment.

Both wallets have their own advantages and disadvantages, but the most important thing is to choose the best and most trusted exchange with high priority security such as binance and use cold wallets such as the nanos S ledger and the like and must be kept properly. Asset security also depends on vigilance owner of the asset itself.

I'm not sure about that, I would agree that people are storing their assets on an exchanges, but for trading purposes only and I don't think that they are going to let their coins sit there for a long time just for 8% APY.


Yes, exchanges are being regulated, but the risk is still far greater if it's getting hacked, data shows that hackers are still actively pursuing exchanges because of the potential of a 'one big hit'. And then we have state sponsored hackers which makes exchanges very dangerous. Again, exchanges replacing banks? or making them obsolete? nah, the old and traditional banking system won't allow that.

The last time I checked, only few exchange site offer this kind interest, mostly exchange site that offer lending service are those that pay interest to their user according to the they have have coin.

It sad I wasted some minutes of my time surfing the link you provided in other read the remaining opinion you have but I dont see anything that seem to be information about the reason why saving crypto on exchange site is better than cold storage.

It is true that storing our coins on exchanges is much profitable, because we can earn interest on these exchanges. But it must be admitted
that storing coins on exchanges is much riskier than storing on cold wallets. Lots of data shows that exchanges are often hacked. Especially
for whales who have a large number of coins, will not take the risk of storing all the coins held on exchanges. My advice is why not use both
exchanges and cold wallets, it would be much better. We can store some of our coins on exchanges for trading purposes only, the rest is stored
on cold wallets.

Although I agree with you on some of the points that you mentioned, but you only mention the good aspects of hot wallets or exchanges, but you do not mention the bad sides, you did not mention for example that many exchanges, including famous exchanges like Binance, have been hacked before, and there Exchanges did not compensate investors for their losses, this is in addition to the exchanges that became SCAM such as IDAX and others....

That's the way of saying exchanges that they aren't that really safe compare to cold storage but we can give you incentives for storing your assets to our platform. And yes, it may vary on the exchanges, some are offering 1% annually. If you really prefer having this, than safe storing then you can go with Binance, they are really the ones who made it first I think.

Okay let's stop this which is which comparison, just weigh it personally, if you want your asset to have an interest like annual interest then go with exchanges that offers it, if you want to keep your asset on your own leave yourself a cold storage, these two have advantage and disadvantage and to be honest the security is in our own hands.

Storing your crypto in exchanges is by far risker than storing it in cold wallets.  Even if the exchanges are reputable and high profile the issue is that there's always a risk of them getting hacked. This is not the case with cold wallets but you do have to keep you private key safe.

It also depends on the reasons for keeping the crypto, like if its for easy access then obviously exchanges would be better than cold wallets. I think the matter is entirely dependent on 2 factors; accessibility & safety.

So you also keep your money on disreputable exchanges?

Why do you do it? To feel the thrill that they could run with tyour money?
Is the market not volatile enough for you?

Losing the device doesn't mean losing the coins. You talk like someone who never owned a hardware wallet.

This doesn't make them any less shady, on the contrary.
I said 1 because many exchanges don't pay anything. Usually the worst exchanges pay the most. Guess why.

Ah no.... What if the exchange disappears? If your crypto was legally protected then I would do it but only for the interest. If your ledger gets damaged or even lost you can still recover your coins, I'm not sure why you don't know that.


Yobit pay much more the 1% a year, do your research. There plenty other places as well where you can get 8% on your holdings.

Only some of them. Coinbase doesn't pay you anything. Some exchanges like yobit are really shady. Holding money on exchange in hope of earning 1% a year is really not my thing.

If my wallet breaks I'll still have the seed. Do you have the seed for your exchange wallet?

If I'm not mistaking I think I read somewhere that Satoshi was ok having 3rd party standing as escrow for bitcoin transaction although this isn't centralized to some extent since he emphasis on the transaction been peer 2 peer but seems that's what brought about the idea of centralized exchange since the founder itself was ok having escrow work with the technology he has created for trust to be built. I'm not against using centralized exchange (infact I'm a new if tger biggest fans) since they make investing in bitcoin a little bit easier especially as I don't have to stress myself about trusting the users I'm transacting with.

But where it becomes a big no is trusting my funds to their care when they're as valuable as a result of their centralized server can be attack at anytime and the scammer make way with our funds without leaving any trace. Join centralized exchange but don't trust them with keeping your coins safe. Only you can do that for yourself.

This is a bunch of nonsense if this was true then why many exchanges and casinos use cold wallets to store the majority of the funds of their clients? Because in the case of a hack they will only lose a small amount of money and not all the funds coming from their investors, second you are equating hardware wallets with cold wallets and they are not the same, you do not need a hardware wallet to get a cold wallet.

You could easily create a cold wallet by installing electrum in a Live CD, copy your seed words and creating a file with your public keys and then you can reset your computer, that way the wallet will be deleted and now you can only recover it with your seed words.

True u will never get an interest on your bitcoins stored in a hardware wallet. but the main priority for some one using a hardware wallet is not earning an interest rate but protecting your assets securely which an exchange by its very nature can never do.

Also just because someone offers you a high interest rate doesn't mean that you should so readily part with your assets. The reason an exchange offers you an interest is because they want to increase liquidity in their platform. And if an exchange offers you an unusually high interest that to me indicates that they are facing a liquid shortage and should be stayed away from. I mean if a bank offers you a 40% interest rate would you really trust them with keeping your money safe.


Yes Ledger could at some point get into legal issues/bankruptcy/ go out of business etc but as far as i am aware you are still the only one with your keys. So it would be fairly easy for anyone to recover their wallets using any other interface to the block chain. Your coins are never at risk of being lost due to ledger/ cold wallet provider going out of business  they are not custodial wallets.

Furthermore Hot wallets are always at risk of being hacked owing to the large number of coins they contain, which is why why even the exchanges themselves store most of their customers funds on a cold wallet. I.e The exchanges that you are so eagerly promoting don't deem them to be a safe from of storage.


What exactly is the relevance of BNB coin jumping in price or binance's growth as exchange have to do with wallet security.



Ahem isn't binance or any other exchange also a Centralized company and therefore just as much at risk of going under as Netscape. This has happened numerous times in the past( eg. Quadriga/Mt gox) and it is for this reason that a cold wallet ( is not custodial) is always recommended.

It is good see jokes coming around during troubled times, anyone with a bit of common sense could identify that none of the exchanges or wallets are secure as you could hear major hacks and then the end customers looses their funds and then they have to fight for the coins for years. Stick to the original concept of storing the coins without much hassle and why would you risk storing under someone else's authority when you do not need to spend much to hold he coins on your own. The interest rate you are talking about is meager and considering the risk reward no one with the right sense would risk .