What is safest: Binance/exchanges or online software wallets?

Mkmanik

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But if I'll leave some coins in a "software", what is the safest option? Leave it in an exchange like Binance or trust a hot wallet like Samourai?

Exchange is not a good option to store your coin. It's very risky, anytime exchange can get hacked. we all know Binance got hacked several times: Binance exchange hackers steal bitcoins worth $41m

So don't try to hold your altcoin at any exchange, just use those exchanges to buy or sell your coin. I would suggest you hold any coin use Trust wallet, Myetherewallet, etc. Dont store your private key online, Try to store those keys on paper. I am holding my altcoin at Trust wallet and MEW. I feel safe there.

santiPOGI

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Quote from: meanwords on March 29, 2021, 05:45:45 AM

Take note, Binance has been hacked multiple times already and that's already a red flag if you want to treat Binance as your main wallet. I don't know about Samourai but people's vouching for it so it's probably a good wallet. Just don't even consider storing your asset in an exchange, especially when you aren't a trader.

But even Binance had several times that has been hacked before, still a lot the community in this field of business industry are continuously suing the platform to trade their assets for believing that they can grow it more and more using this exchange. I wouldn't choose online software wallets in my own opinion.

Findingnemo

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Quote from: wendy sy on March 29, 2021, 04:33:12 AM

Yes, I know hardware wallets are the safest options, "not your keys not your coins" etc...
But if I'll leave some coins in a "software", what is the safest option? Leave it in an exchange like Binance or trust a hot wallet like Samourai?
The reason I'm skeptical about about other software wallets like Exodus/Samourai etc is because I'll have to trust that their software wont be hacked, nor my mobile phone. While in Binance/other exchanges, they have a whole team dedicated to that.
Why is it harder to hack/attack a software/hot wallet than it is to hack Binance/exchanges?

If you want to keep your funds in the exchange itself because you are afraid that your device might get hacked then you are just doubling the risk when holding it on exchange because normally you used to save the email and password in your device which is also used for registering on exchange then having the authentications apps installed on phone then your are going to lose the money now as well because simply the hacker can access funds and withdraw to their wallets.

pooya87

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It is ridiculous to limit yourself to a bunch of options and then force yourself to choose bad instead of worse.
Bitcoin is not like other currencies which you are limited to what wallet you can use for example because of jurisdictions limits in PayPal.
You can choose any wallet type that you like and there are already secure options such as paper wallets (the cheapest), self made cold storage using Linux (still cheap but more flexible), hardware wallets (have to buy), desktop wallets,... You can also always use multiple options for multiple purposes each wallet with a different amount in it.

Darker45

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Between Binance and Samourai, I'd easily choose Samourai.

I'm more than sure that right at this very moment there is an ongoing plan or even attempt to break Binance's security. There is indeed a whole team dedicated to protect Binance but there are also a lot of teams trying to get into it. It's always a race. And a lot of times, attackers gain the upper hand and billions are lost from exchanges. Binance have had its share of this. Tens of millions were lost when Binance was successfully hacked a couple of years ago.

Furthermore, there is the fact that Binance might suddenly freeze your funds. Other than that, they might also ask for your personal information all of a sudden. Moreover, regulations might suddenly go very strict against the company making its future uncertain. But most of all, your funds in Binance is not yours.

At least with Samourai, you've got your 12-word seed and a significant amount of privacy.

The Sceptical Chymist

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Quote from: Yaunfitda on March 29, 2021, 05:28:30 AM

But when you store your coins in Binance, they manage your private keys, and in a event of hack just like I mentioned above, your coins are in jeopardy of being stolen.

Binance has survived a huge hack before, but there are other reasons why an exchange may not let you have access to your funds--they could get caught up in a sting or some law enforcement agency might freeze everyone's coins or some crap like that--you just never know with any of these exchanges. Not your keys, not your coins. Learn that.

The question being asked in the title here is kind of a ridiculous one. Both options are too risky to be seriously considered when there are much safer alternatives out there. Don't store your coins on an exchange and don't use online wallets where the website owner is the custodian of them. It's just not worth the risk when you could use Electrum or a hardware wallet and sleep easy at night knowing your crypto is safe.

StartupAnalyst

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You definitely can leave some your crypto on Binance/other exchange, but only if you want to trade with them (not for long time holding), but you should be ready that your exchange wallet can be hacked, all the assets moved and no one won't give you those crypto back. Digital wallets like Ledger/Trezor are the best for long-term holdings because no one can connect with that wallet remotely if it isn’t connected to your comp, but just laying somewhere.

sunsilk

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Quote from: abderrazak belkhir on March 29, 2021, 03:41:31 PM

Of course hardware is safest than any centralized exchange but exchanges offer many good deals like staking and i think its better to keep them in exchanges because some offers are limited and maybe you may miss one of them easily if you keep in hardware

If your purpose is to use their staking and interest earning feature then you really have to keep it to the exchanges. But it still applies that if you don't hold the keys, you don't own your coins.

What's with the small interest that you're going to earn yearly if your coins at risk. Even if you tell that it's from the most known exchanges, still, they're always vulnerable to attacks and might affect your funds if the unexpected comes.

Bitcoin_Arena

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Quote from: abderrazak belkhir on March 29, 2021, 03:41:31 PM

Of course hardware is safest than any centralized exchange but exchanges offer many good deals like staking and i think its better to keep them in exchanges because some offers are limited and maybe you may miss one of them easily if you keep in hardware

I would not even risk $10K in an exchange in the name of staking. it's not worth it.

For your information, we do have some hardware wallets that allow you to stake some coins like Tezos, Tron, Cosmos, Algorand and Polkadot while keeping them safely like ledger hardware wallets via Ledger Live - https://www.ledger.com/staking or even through an external wallet app.

abderrazak belkhir

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Of course hardware is safest than any centralized exchange but exchanges offer many good deals like staking and i think its better to keep them in exchanges because some offers are limited and maybe you may miss one of them easily if you keep in hardware

virasog

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Quote from: wendy sy on March 29, 2021, 04:33:12 AM

Yes, I know hardware wallets are the safest options, "not your keys not your coins" etc...
But if I'll leave some coins in a "software", what is the safest option? Leave it in an exchange like Binance or trust a hot wallet like Samourai?
The reason I'm skeptical about about other software wallets like Exodus/Samourai etc is because I'll have to trust that their software wont be hacked, nor my mobile phone. While in Binance/other exchanges, they have a whole team dedicated to that.
Why is it harder to hack/attack a software/hot wallet than it is to hack Binance/exchanges?

Keeping your funds in exchange is never ever safe. Even though binance have a good history and also they have SAFU funds to cover the loses in case of a hack but still you never know that some day any big hack may happen which binance is unable to recover the loss. So if you are not trading that there is no point keeping the funds in binance.

The Cryptovator

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If you decide to choose a noncustodial wallet, then any true noncustodial wallet would be safe to store your coins since you know better about the key quote. If you already decide to keep your assets in a centralized exchange, then you must choose a well-reputed exchange. And I agree Binance would be better than other web wallets. Because I notice during withdrawal that Binance requires me to input 3 step verification like mail, phone, and 2FA. So, it's quite impossible to hack all at the same time. But again, I will discourage you to use any custodial wallet service including exchange. Keep it mind, everything on the web is hackable.

Alucard1

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I have nothing to choose between Binance/exchange and software wallets for storing my bitcoin, both are prone to attacks or hackers because both can access online. You may still store in exchange but not all of your money just enough money only for buy and sell, when talking about storing our bitcoin or saving our money for the future then you may use Ledger Nano.

yhiaali3

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It is not difficult to hack Exodus / Samourai, and it is also not difficult to hack Binance, all wallets or online exchanges connected to the Internet are not 100% secure, there is always the possibility of hacking but for me if I had to choose I would choose to store my currencies on Binance for two reasons firstly that I can trade while I would like to do that, and the second thing is that Binance has a very strong protection and will compensate users for losing their money in the event of it being hacked, as happened in the past.

noorman0

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Adjust to your abilities. Please note that loss is not just about stolen funds, but about loss of access (perhaps due to forgetting, or damage/loss of data storage device).

If you choose a hot wallet, then it is mostly at your own risk. What must be considered and ensured is the security of your device from viruses/hacking attacks, your caution in accessing the wallet and storing login data/files.
For exchange wallets, understand their reputation, history of security or hacking cases, and the account recovery methods they use if your account is locked or something similar.

Mahanton

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Quote from: wendy sy on March 29, 2021, 04:33:12 AM

Yes, I know hardware wallets are the safest options, "not your keys not your coins" etc...
But if I'll leave some coins in a "software", what is the safest option? Leave it in an exchange like Binance or trust a hot wallet like Samourai?
The reason I'm skeptical about about other software wallets like Exodus/Samourai etc is because I'll have to trust that their software wont be hacked, nor my mobile phone. While in Binance/other exchanges, they have a whole team dedicated to that.
Why is it harder to hack/attack a software/hot wallet than it is to hack Binance/exchanges?

As long it would be an non-custodial one then i would be consider to be a good option rather than on using up some online custodial wallet which you dont able to possess the keys of a certain wallet.
Yeah, that common "not your keys not your coins" line shouldnt really be that forgotten from time to time.When it comes to exchange matters or talks then you shouldnt really trust up
even if its Binance or other top exchangers specially if you do have big numbers of coins then i dont see for it to be safe nor ideal to store it up on an exchange platform.
There's no such thing about safe because as long you dont hold up the coins then theres no way back on retrieving those coins once it gets hacked.

Becky666

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Quote from: wendy sy on March 29, 2021, 04:33:12 AM

Yes, I know hardware wallets are the safest options, "not your keys not your coins" etc...
But if I'll leave some coins in a "software", what is the safest option? Leave it in an exchange like Binance or trust a hot wallet like Samourai?

Basically all these software's are good but the bulk of these security depends on the individual, so, you are solely responsible for what happen to your coins. In reality there is nothing safe on the internet sincerely speaking becasue nobody is above compromise, so, using software for coins storage should be ruin out of this context IMO. I could have suggest you with some noncustodial wallets but they're prone to hackers. Hardware wallet still remains the only best option to store your long-term coins and not any software wallet.

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The reason I'm skeptical about about other software wallets like Exodus/Samourai etc is because I'll have to trust that their software wont be hacked, nor my mobile phone.

That's the point, if these software are good then how good is your mobile/laptops safe from hackers most especially malwares?.

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While in Binance/other exchanges, they have a whole team dedicated to that.

It was within these dedicated team that their exchnage was compromise, when the right target come maybe they can find their ways through their software.

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Why is it harder to hack/attack a software/hot wallet than it is to hack Binance/exchanges?

Binance exchange was compromised severally, so, they might get through someday or continue slashing their security.

Trinx01

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Just remember how many times binance has been hacked, there is no safety for storing your money or bitcoin in Binance or any crypto exchanges, it is also not safe to store your bitcoin in an online software because that is also prime from hackers, both things you have mentioned are not advisable, it is better to choose a hardware wallet if you want to secure your money.

fiulpro

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If you are holding your coins on an online exchange that does mean that If in the future there is any attack on the exchange, the security of not 1 or 2 but all the people will be compromised. Whereas wallets like Samourai, it's more or so localized on your mobile and is more personal, which does make it even more prone to hacking. What do you think would be easier? Hacking a smartphone or hacking an already established company? Now, both of these options are not safe at all ! Literally AT ALL. I do think offline wallets would be a much safer option but at the same time nothing better than investing in a good hardware wallet. But I am not trying to put a negative impact on samourai itself , I have been using it since years when my campain manager told us about the new SegWit wallet and it has been wonderful since that. It's super anonymous and private so there are always a lot of points for that. But keep your Mobile secure , it's more important.

Vaskiy

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Hardware wallets are the best of all time to secure the Bitcoins and crypto holdings. Binance have gained good reputation through its service, and in some occasion it even gave back the funds to the users who lost funds through a hack thats happened with Binance. Exchange wallets are good for users who prioritise trading and for long term investment hardware wallets are the best choice.

Topic: What is safest: Binance/exchanges or online software wallets? (Read 288 times)