Altcoins Talks - Cryptocurrency Forum
Learning & News => For Beginners => Basic Questions about Cryptos => Topic started by: Doovla on April 26, 2024, 12:04:16 AM
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I come to the question when I have to make such an important decision, should I choose the first or the second option, which is better and safer for you people? How long do you leave it on that option?
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For long run keeping then container of money i.e if it means holding in a non custodial wallet and for easy convertion of holdings then CEX. It all depends on your goals.
If this isn't what you meant you could try and elaborate but a wallet should be as private and have only your access like your normal Pocket wallet.
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I come to the question when I have to make such an important decision, should I choose the first or the second option, which is better and safer for you people? How long do you leave it on that option?
Every platform serves a different purpose. If you are looking to store your assets, you should go for a wallet because an exchange provides trading and related services and isn't a place to store or keep your assets, you should buy and sell cryptocurrencies, buy and withdraw assets that you want to hold for the long term, and do other related services such as using P2P platforms, etc.
People who use exchanges to keep their assets are doing a mistake because you never know when things might go wrong and an exchange might close down or even get hacked or something, so always use non-custodial and decentralized wallets to store your assets to keep them safe.
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If you plan to do long-term holding, it is safer to hold it in a non-custodial wallet. Don't ever decide on holding your assets in any exchange as you are not the one holding your money, but the exchange. Compared to a non-custodial wallet, you are the only one who has access to your private key, and no one can ever touch those assets aside from you.
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I come to the question when I have to make such an important decision, should I choose the first or the second option, which is better and safer for you people? How long do you leave it on that option?
The first thing anyone who wants to interact with cryptocurrencies should do is to set up his own wallet. This is very basic, and this information can be found in basically any guide in the internet about buying bitcoin.
Exchanges should only be used, well, to exchange. You shouldn't hold your assets there, unless you are willing to sell them in very short term.
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I come to the question when I have to make such an important decision, should I choose the first or the second option, which is better and safer for you people? How long do you leave it on that option?
The first thing anyone who wants to interact with cryptocurrencies should do is to set up his own wallet. This is very basic, and this information can be found in basically any guide in the internet about buying bitcoin.
Exchanges should only be used, well, to exchange. You shouldn't hold your assets there, unless you are willing to sell them in very short term.
Regarding security, can you find free wallets and on which sites, enough to not be stolen during transactions, for example?
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Regarding security, can you find free wallets and on which sites, enough to not be stolen during transactions, for example?
Practically all desktop/mobile wallets are free, and if you want something even more secure, then you will choose a hardware wallet that you will have to pay for. When you wonder which wallet is the best, then everyone will tell you their opinion - but it all boils down to the fact that the wallet is open source and non-custodial, which means that only you have control over your private keys (seed words).
Hacking of any wallet is mainly the fault of those people who use them in the wrong way, whether it is about becoming victims of clipboard malware, fake wallets or entering their seed on a fake website or wallet. If you do everything the way you should, it's hard for anything bad to happen to you.
To start with, I have a good link for you -> Let's help you find a bitcoin wallet. (https://bitcoin.org/en/choose-your-wallet)
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Regarding security, can you find free wallets and on which sites, enough to not be stolen during transactions, for example?
Let me give some names,
Electrum for Bitcoin
Metamask for altcoins and tokens
For Android and iOS Unstoppable wallet
These all are most secured wallet cause the source code is open and anyone is free to verify their actions.
Every wallet which are legit is designed to keep the funds but as long as we use them in right way there is no chance for the funds to be stolen.
Prefer Hardware wallet or an Airgapped wallet setup if you expect utmost security.
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I come to the question when I have to make such an important decision, should I choose the first or the second option, which is better and safer for you people? How long do you leave it on that option?
If you are not a trader, you don't have any business leaving your coins on any exchange whether it's a small amount or big, it doesn't matter. Your primary concern is to make sure that those coins get out of yhe exchange successfully to an external wallet which nobody controls but only you, always remember that a coin that you don't control the private keys doesn't belongs to you.
You can used any wallet that are open source and simple to used but if you can get a hardware wallet then cool, it's more preferable and more safe when it comes to security of your assets and it never connected to the internet.
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The first thing anyone who wants to interact with cryptocurrencies should do is to set up his own wallet. This is very basic, and this information can be found in basically any guide in the internet about buying bitcoin.
Exchanges should only be used, well, to exchange. You shouldn't hold your assets there, unless you are willing to sell them in very short term.
Regarding security, can you find free wallets and on which sites, enough to not be stolen during transactions, for example?
The most secure is always a hardware wallet. I would buy a trezor.
Id you are not using a hardware wallet, I would keep only small amounts
That being said, I would recommend Electrum desktop for bitcoin.
For altcoins, I use Exodus and Aqua (mobile, bitcoin and usdt)
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I come to the question when I have to make such an important decision, should I choose the first or the second option, which is better and safer for you people? How long do you leave it on that option?
Hmm, your way of asking the question is not so right, I suggest you to write the question into the post as well. As asking it in the title is a thing but you should also write it in the post body as well for some clearance. Well, I will choose the first option, as if I want to exchange of the funds I am holding in my wallet, why would I give the wallet to another person what if I have other tokens in it as well? I would still prefer to send him/her the funds over the blockchain technology I won't be giving them access to my wallet and in return get access to there's. I find this method unreliable.
And if you are making an exchange with a trust worthy person, and you have only one token in your wallet which you want to exchange with the other one, then I will say exchanging the wallet will do the work, but still scam can be happened even among trusted parties. But still wallets are not made for the exchange purposes, you have the option to send and receive the funds for exchanging purpose.
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The wallet is only used as your main storage, but when the wallet has many features for exchange then it can be an alternative.
A better exchange may be on the top exchange and the cost will also be cheaper.
But now with WEB3 you can exchange and connect wallets with supported Exchanges, but remember this is a high risk, always use a new wallet and not your main wallet to connect with other exchanges or Dapps.
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I come to the question when I have to make such an important decision, should I choose the first or the second option, which is better and safer for you people? How long do you leave it on that option?
Wallets started existing before exchanges, and exchanges only incorporated wallets in their services to allow people move their cryptocurrency from wallets to their exchanges for temporary reasons, not to make it a permanent store. The Genesis wallet, which is the first bitcoin wallet, was created before the "bitcoin market," which was the first crypto exchange.
Wallets will always remain safer than exchanges, but not all wallets, because care has to be taken when choosing a wallet to store your investments.
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Why would you keep your money where you do not have control over it, where it can be confiscated at anytime or lost in fractional reserve scam, know that not your keys is not your coins. Get a recommended, well reviewed and open source wallet to store your funds, and if you are storing a large amount, use an offline wallet, that is either a hardware wallet or an airgapped wallet.
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I personally never store a lot of funds on the exchange, because there have been many incidents of losing funds on the exchange, so the exchange wallet is only for exchange not storage, for storage it is better to use an offline wallet, that is either a hardware wallet or an airgapped wallet.
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For long run keeping then container of money i.e if it means holding in a non custodial wallet and for easy convertion of holdings then CEX. It all depends on your goals.
If this isn't what you meant you could try and elaborate but a wallet should be as private and have only your access like your normal Pocket wallet.
Inasmuch as self custodial wallets are considered to be the safest when it comes to bitcoin storage, let's also consider what what happens when someone loses his private key, that means only one thing, all your funds are gone and can never be retrieved.
But a reputable exchange on the other hand could also offer strong security measures to protect your funds, and are also very easy to use too.
Plus, some of these exchanges also have insurances to cover for any losses, just incase something eventually goes wrong and you end up incurring some losses. And being government regulated adds some sort of an extra layer of security on it, even though it wouldn't be the best option for those who value anonymity and privacy, it's still worth considering when looking at safety even though you might argue this.
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I come to the question when I have to make such an important decision, should I choose the first or the second option, which is better and safer for you people? How long do you leave it on that option?
Personal wallet, the non-custodial wallet becomes much better than custodial wallet managed by third-party, for example as any exchange.
Yes, if you look at how more suitable it is, yes indeed in this case it will definitely also depend on its use too. If you use it for active trading, I personally would choose custodial or on the exchange to save on transfer fees.
However, if it is used for holding, it will definitely be more of a non-custodial wallet, especially if it is for the long term. That would be much safer. We have access to the wallet and only we can access and manage it. So, as long as we are careful and alert to all cyber crime and human errors, then it would be much better to have a non-custodial wallet, or what you think is a wallet like container of your assets.
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Inasmuch as self custodial wallets are considered to be the safest when it comes to bitcoin storage, let's also consider what what happens when someone loses his private key, that means only one thing, all your funds are gone and can never be retrieved.
But a reputable exchange on the other hand could also offer strong security measures to protect your funds, and are also very easy to use too.
This is what a lot of people thought, before they lost all their money in a collapsed centralized exchange, if you are using BTC, you have a responsibility to protect your seed phrase and your funds, and if you are serious about it, you won't lose it. Many reputable exchanges have collapsed in the past, so how do you trust one with your funds, it is a stupid thing to do.
Plus, some of these exchanges also have insurances to cover for any losses, just incase something eventually goes wrong and you end up incurring some losses.
Mt.Gox's creditors are yet to get anything back, not that they are even waiting to get 100%, but they haven't even gotten anything at all. That's all i can say about what you just said.
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Regarding security, can you find free wallets and on which sites, enough to not be stolen during transactions, for example?
The fact that you’re asking this type of question means you need to do more reading about wallet and know the difference between wallet and exchanges, which one to go for and also what to look out for when choosing a wallet or an exchange. The dos and donts, etc.
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I come to the question when I have to make such an important decision, should I choose the first or the second option, which is better and safer for you people? How long do you leave it on that option?
I have always prefer a wallet for storage especially when it has to do with long term hodling of cryptocurrency. Due to the security fixtures of wallets and the authoritative power over ones personal funds, then you should look no further to anything outside this.
But in a case where you happen to be a crypto trader or someone who swaps crypto often for profitable reasons, then storing your trading assets on exchanges should be a better option so as to help reduce regular transaction charges. Though using this method has it's own disadvantage. There is a general term in crypto that says: "not your keys, not your coin". In such case, you would want to consider checking your trading assets regularly.
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I have always prefer a wallet for storage especially when it has to do with long term hodling of cryptocurrency.
Take note that you should not use just any wallet, especially when you want to store BTC's for the long term and if the coin is worth a lot of money. For long term storage, your wallet should be a cold storage set up, that is either a hardware wallet or airgapped wallet, in addition to the fact that any wallet you use should be open source and self custodial.
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Of course, private wallets have better advantages at the moment, because perhaps this is my personal opinion, that the private key that we control sounds more secure than entrusting the private key to someone else (exchanger). However, this also depends on our goal of saving money, whether we want to hold it for a long time, or just focus on daily trading. Considering that blockchain networks always require transaction fees, and bitcoin transaction fees are quite fluctuating, so choosing a wallet really depends on conditions and needs.
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I come to the question when I have to make such an important decision, should I choose the first or the second option, which is better and safer for you people? How long do you leave it on that option?
Your decision will have to depends on any of the condition am going to mention here.
1. if you're considering making a long time investment in bitcoin and wanted to safely hold your asset in a more secured means, then make use of a non custodial wallet.
2. If you're more interested on making trades, on a short time basis or daily, then you may consider the use of an exchange and never forget that they are centralized, your information is not safe with them, they can be attacked and your wallet private keys are with them as well because they are custodial means.
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I come to the question when I have to make such an important decision, should I choose the first or the second option, which is better and safer for you people? How long do you leave it on that option?
For me the best option would be a non-custodial wallet as you have control over your money on when to convert to fiat and if you are into holding long term then non-custodial wallet is the way to go.
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But a reputable exchange on the other hand could also offer strong security measures to protect your funds, and are also very easy to use too.
Plus, some of these exchanges also have insurances to cover for any losses, just incase something eventually goes wrong and you end up incurring some losses.
Have you ever read about an exchange that managed to recover stolen funds or do something similar and get better soon after that? I can only remember Binance, and even that the amount of funds lost is small, while in other cases most of them are lost or take a very long time to recover (sometimes get reduced too). I dunno, I wouldn't call these "strong security measures".
Just look at this list (while I can't guarantee the accuracy of the numbers, you should be able to read the case further if you want to research them)[1].
[1] https://cointelegraph.com/magazine/crypto-exchange-hacks/
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I come to the question when I have to make such an important decision, should I choose the first or the second option, which is better and safer for you people? How long do you leave it on that option?
For me the best option would be a non-custodial wallet as you have control over your money on when to convert to fiat and if you are into holding long term then non-custodial wallet is the way to go.
It's true that Non custodial or self custody wallets have proven to be quite viable options when considering full autonomy and control over one's assets.
With the availability or presence of a self custodial wallet, you've possess absolute responsibility as well as ownership over your private keys, that simply means that you have total control when it comes to managing your assets without relying on or needing the help of any third-party custodian like exchanges.
But a reputable exchange on the other hand could also offer strong security measures to protect your funds, and are also very easy to use too.
Plus, some of these exchanges also have insurances to cover for any losses, just incase something eventually goes wrong and you end up incurring some losses.
Have you ever read about an exchange that managed to recover stolen funds or do something similar and get better soon after that? I can only remember Binance, and even that the amount of funds lost is small, while in other cases most of them are lost or take a very long time to recover (sometimes get reduced too). I dunno, I wouldn't call these "strong security measures".
Just look at this list (while I can't guarantee the accuracy of the numbers, you should be able to read the case further if you want to research them)[1].
[1] https://cointelegraph.com/magazine/crypto-exchange-hacks/
You're right, I'm not saying all exchanges possess the same quality or all of them can be trusted, if you check well, you'll see that I'm referring to only reputable exchanges and not all exchanges in general so don't get me wrong.
I'm fully much aware that there are so many exchanges that have crashed with people's funds which haven't been able to be recovered till today and that's why I said trusted and reputable exchanges.
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Reserved
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You're right, I'm not saying all exchanges possess the same quality or all of them can be trusted, if you check well, you'll see that I'm referring to only reputable exchanges and not all exchanges in general so don't get me wrong.
I'm fully much aware that there are so many exchanges that have crashed with people's funds which haven't been able to be recovered till today and that's why I said trusted and reputable exchanges.
Exchanges with a good reputation and have security that continues to be improved can indeed be an option,
but not to be used as a storage of main assets.
It can only be an option to trade safely on some of the assets traded.
Reputable tier 1 exchanges also include fund security reserves for users, such as Binance-owned SAFU and some other tier 1 exchanges.
But will it be completely safe? Certainly not because security holes will definitely exist and it is always updated.
Learn from the events of FTX and other major exchanges that have been hacked or manipulated,
and do not put all the money into centralized exchanges.
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I come to the question when I have to make such an important decision, should I choose the first or the second option, which is better and safer for you people? How long do you leave it on that option?
Better and safer will always be choosing a non-custodial wallet rather than relying on an exchange (no matter how good, big or solid an exchange is) in storing your digital assets. This topic is always discussed whenever cryptocurrency is involved and newbies should understand the key concept of "not your keys, not your coins" well in connection with this subject matter. As far exchanges is concerned, they are good for "exchanging" or converting your assets into cash like using a P2P option...and that is why it is called as an "exchange" and not a storage. Right now, we already have good non-custodial wallets around and you just have to take a choice. Now, the next question should be: What can be the best non-custodial wallets one can choose from? Just look for that matter within this forum and I an sure you can be guided accordingly.
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Exchanges do not offer 100% security, that I'm very much aware of, reputable or not, especially when it's a Centralized Exchange. They may have a level of security, but it doesn't mean that it's 100% secure.
And yeah, you're absolutely right that it's not advisable to HODL your assets on exchanges regardless the security promised by the exchange, one should always apply extreme caution when dealing with matters that concerns finance.
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I come to the question when I have to make such an important decision, should I choose the first or the second option, which is better and safer for you people? How long do you leave it on that option?
The title of your thread makes it difficult to comprehend. But you should know that wallets is safer since you have full control over your keys. Storing funds on exchanges is like giving these third party your keys and funds to hold. Anything might happen and your funds will be gone so it's better to store your money using good wallets and not exchange wallets.
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Exchanges do not offer 100% security, that I'm very much aware of, reputable or not, especially when it's a Centralized Exchange. They may have a level of security, but it doesn't mean that it's 100% secure.
And yeah, you're absolutely right that it's not advisable to HODL your assets on exchanges regardless the security promised by the exchange, one should always apply extreme caution when dealing with matters that concerns finance.
Must learn from many events that have happened, how a lot of top exchange users' money was lost due to the actions of his own CEO who manipulated and used user money.
Now enough people are aware of the security of their own assets and no longer trust a centralized Exchange completely.
Personal wallets are better for storage, and the Exchange is only for trading and the funds used have also been determined according to the amount you want to trade, then withdraw slowly when it is profitable.
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Must learn from many events that have happened, how a lot of top exchange users' money was lost due to the actions of his own CEO who manipulated and used user money.
Now enough people are aware of the security of their own assets and no longer trust a centralized Exchange completely.
Personal wallets are better for storage, and the Exchange is only for trading and the funds used have also been determined according to the amount you want to trade, then withdraw slowly when it is profitable.
Indeed, a lot of people talk about the wallet weaknesses of the exchange, but in fact, Binance currently holds tens of millions of USD in assets and is trusted by many people around the world. I actually also don't recommend exchange wallets as the main wallet for storing most assets, so I agree with you that exchange wallets are only suitable for storing assets that will be traded.
It should be an additional note that each personal wallet requires its own way to keep our assets safe. Securing private keys in the best way is the key to the security of the assets we store in our personal wallet. Yes, at least by securing assets in our personal wallets we can all have a process for developing techniques to secure assets in our personal wallets.
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I come to the question when I have to make such an important decision, should I choose the first or the second option, which is better and safer for you people? How long do you leave it on that option?
Anything about this depend on your own purpose why you need to make use of a particular wallet, it may have to be that you desire the use for a wallet for bitcoin investment only, other crypto investments, exchanges and long term assets of investment as the case may applies for the use, and from the title, i don't think its a bad idea if we make use of our wallet for serving the two different purpose.
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It should be an additional note that each personal wallet requires its own way to keep our assets safe. Securing private keys in the best way is the key to the security of the assets we store in our personal wallet. Yes, at least by securing assets in our personal wallets we can all have a process for developing techniques to secure assets in our personal wallets.
Yes, the security of the Hardwallet wallet depends on how users secure their Seed Phrase.
Where they store, whether safe or not, how the media used is resistant to all kinds of damage, it needs to be considered.
I have a hardware wallet and I keep the seeds in a safe place and of course use media that is safe and resistant to all damage.
There are many ways that can be done and that definitely must be completely safe for the long term.
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The title of your thread makes it difficult to comprehend. But you should know that wallets is safer since you have full control over your keys. Storing funds on exchanges is like giving these third party your keys and funds to hold. Anything might happen and your funds will be gone so it's better to store your money using good wallets and not exchange wallets.
Despite the safety factor, an exchange isn't to be used as a storage because it provides trading and related services, and you are only supposed to use an exchange to buy and sell your assets if you want to hold a certain asset for long term, you should create a wallet and transfer the funds to that wallet so that you don't face problems if there are any issues with the exchange.
Traders should only keep the trading capital that they use on a daily basis in their exchange accounts and keep all other assets outside of it in a non-custodial wallet to keep them safe from attacks and exploits. It is not wise using an exchange platform as a wallet in any case.
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I come to the question when I have to make such an important decision, should I choose the first or the second option, which is better and safer for you people? How long do you leave it on that option?
If you only want to keep your money safe and don't want to use that money much, I suggest you to use different crypto wallets to store your money. But if you want to use your money to do different things or buy or sell different coins then you must use exchange. Most investors don't deposit their money so they keep their money in different exchange wallets. You can also deposit your money in different exchange accounts like them but before depositing you must be sure that the exchange you are depositing money in is safe.
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If you only want to keep your money safe and don't want to use that money much, I suggest you to use different crypto wallets to store your money. But if you want to use your money to do different things or buy or sell different coins then you must use exchange. Most investors don't deposit their money so they keep their money in different exchange wallets. You can also deposit your money in different exchange accounts like them but before depositing you must be sure that the exchange you are depositing money in is safe.
Yeah, many investors are storing their crypto assets on CEXs to participate in saving + staking + IEO, which is not as safe as self-custodying crypto in a personal wallet but it is very popular. Everyone wants to earn income while holding crypto, including stablecoins, and CEXs all have proof of reserves and are quite secure. Binance even has SAFU to be ready to compensate users for losses in many cases.
The only problem is that investors should choose the most reputable CEXs and spread the risk by using multiple CEXs. The collapse of Mt.Gox and FTX is the best warning for all users, after all, CEXs are just a place to trade, not a place to store too many assets.
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The only problem is that investors should choose the most reputable CEXs and spread the risk by using multiple CEXs. The collapse of Mt.Gox and FTX is the best warning for all users, after all, CEXs are just a place to trade, not a place to store too many assets.
I also use a lot of tier 1 CEXs and related to that risk depends on how each CEX provides security and compensation for its users.
But CEX is not recommended to be used as a storage place for main assets, because it is very risky.
Seeing how Mt.Gox and FTX are, as you said, it can be a lesson so that we as users are more careful and concerned about the assets we have.
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The only problem is that investors should choose the most reputable CEXs and spread the risk by using multiple CEXs. The collapse of Mt.Gox and FTX is the best warning for all users, after all, CEXs are just a place to trade, not a place to store too many assets.
I also use a lot of tier 1 CEXs and related to that risk depends on how each CEX provides security and compensation for its users.
But CEX is not recommended to be used as a storage place for main assets, because it is very risky.
Seeing how Mt.Gox and FTX are, as you said, it can be a lesson so that we as users are more careful and concerned about the assets we have.
That's right. It's still better to to think of the possible risk that might happen to our funds just like what happened to these two exchange. This is the issue that is unknown mostly to newbies which they should know and understand the great risk they might face if ever they plan to hold assets in exchanges.
Better to use a wallet than using CEX to store assets. By doing this, the only one who hold our fund is ourselves, not the exchange or anyone.
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Better to use a wallet than using CEX to store assets. By doing this, the only one who hold our fund is ourselves, not the exchange or anyone.
Exchanges can be hacked like previous big incidents, but personal wallets can also be hacked by ransomware embedded in our devices. In fact, nothing is 100% safe for storing our assets, even though we have carried out very high levels of security. As Mr @taufik said, we also need to spread the word to store our assets, so that if there is a wallet that is vulnerable to security, at least our assets don't collapse 100% because of this.
Choosing many different wallets and including exchange wallets too, I don't think is a big problem.
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Better to use a wallet than using CEX to store assets. By doing this, the only one who hold our fund is ourselves, not the exchange or anyone.
And for better security, then keep the seed phrase in the best place, and only you know so that it will remain safe for the backups you have.
Don't lose the key, People only care about where they store assets but don't care about their security.
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As Mr @taufik said, we also need to spread the word to store our assets, so that if there is a wallet that is vulnerable to security, at least our assets don't collapse 100% because of this.
Choosing many different wallets and including exchange wallets too, I don't think is a big problem.
Yes socialization is important, but not everyone can get it, sometimes we ourselves as wallet owners have to know what to do.
Learn how to secure valuable wallets and secure assets, so that they remain safe and only you can control them.
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Better to use a wallet than using CEX to store assets. By doing this, the only one who hold our fund is ourselves, not the exchange or anyone.
Exchanges can be hacked like previous big incidents, but personal wallets can also be hacked by ransomware embedded in our devices. In fact, nothing is 100% safe for storing our assets, even though we have carried out very high levels of security. As Mr @taufik said, we also need to spread the word to store our assets, so that if there is a wallet that is vulnerable to security, at least our assets don't collapse 100% because of this.
Choosing many different wallets and including exchange wallets too, I don't think is a big problem.
Both place for saving assets between exchange or wallet having potential to be hack but exchange get more security by adding 2FA and exchange reminder when accessing by difference IP. Most of exchange are requiring have to submit KYC when detecting with abnormal activities need reupload with the same document. Personally exchange ist the most secure from hacking but saving assets in wallet has own controlling about our fund. Your key is tour coins when saving assets in wallet but not in exchange wallet.
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get more security by adding 2FA and exchange reminder when accessing by difference IP. Most of exchange are requiring have to submit KYC when detecting with abnormal activities need reupload with the same document.
The bigger risk associated with exchange or any centralized party is stuff like bankruptcy, or terrible security practices where they got hacked and lost a lot of money, etc. Not to mention some 2FA or KYC processes can get hacked too, depending on which exchange you use. So this KYC process doesn't say much.
Personally exchange ist the most secure from hacking but saving assets in wallet has own controlling about our fund.
I'm surprised you can say this considering how many exchanges went bankrupt due to hacking in the last few years or so.
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The bigger risk associated with exchange or any centralized party is stuff like bankruptcy, or terrible security practices where they got hacked and lost a lot of money, etc. Not to mention some 2FA or KYC processes can get hacked too, depending on which exchange you use. So this KYC process doesn't say much.
You forgot to mention risk of jeopardizing of user's privacy and identity, which is one of the most common risks attached with using Centralized Exchanges.
You can't boast of absolute anonymity because your personal data are being stored on the exchange's database and hence could be easily assessed by the government or authorities, which stands against what crypto really stands for, decentralization.
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That's true, privacy is an issue in any centralized service. I don't remember whether it has been discussed on this topic or not, but I'm pretty sure some members seem to think that privacy is not a crucial issue for them. Maybe that's why some people happily suggest or claim that an exchange or closed-source wallet is a good option to store your crypto for the long term. I remember discussing it with other members but they don't seem convinced that privacy is a key factor in selecting which apps/services they use in the future.
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That's true, privacy is an issue in any centralized service. I don't remember whether it has been discussed on this topic or not, but I'm pretty sure some members seem to think that privacy is not a crucial issue for them. Maybe that's why some people happily suggest or claim that an exchange or closed-source wallet is a good option to store your crypto for the long term. I remember discussing it with other members but they don't seem convinced that privacy is a key factor in selecting which apps/services they use in the future.
We should always give utmost importance when choosing a wallet. Some members have a misconception that they think exchange wallet is too risky and should not keep money in exchange wallet at all but we who are involved in investment or trading but must keep money in exchange account. There are many exchanges in the market out of which a user must select the best and safest exchange where he can keep his money as well as carry out all the activities. If your information can be kept hidden then I think exchange wallet keeps your money very safe.
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That's true, privacy is an issue in any centralized service. I don't remember whether it has been discussed on this topic or not, but I'm pretty sure some members seem to think that privacy is not a crucial issue for them. Maybe that's why some people happily suggest or claim that an exchange or closed-source wallet is a good option to store your crypto for the long term. I remember discussing it with other members but they don't seem convinced that privacy is a key factor in selecting which apps/services they use in the future.
When we say centralized exchange it was authorized by a government to run smoothly in a Country. We all know that government hates privacy, they really want to determine who is that person who have that big funds. They want to make sure that there are no fraudulent activities made by this person before they can withdraw. But that's not only the disadvantages of using centralized exchanges, you can't also own the private key meaning you can't fully own your account and they can do anything to your if they want to. So this is not a best place for holding an assets.
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That's true, privacy is an issue in any centralized service. I don't remember whether it has been discussed on this topic or not, but I'm pretty sure some members seem to think that privacy is not a crucial issue for them. Maybe that's why some people happily suggest or claim that an exchange or closed-source wallet is a good option to store your crypto for the long term. I remember discussing it with other members but they don't seem convinced that privacy is a key factor in selecting which apps/services they use in the future.
A lot of people sell their privacy over cool features exchange give them and they always feel relax by those things, but the day even the exchange will report you or flag your account, you wouldn't expect it.
I saw a complaint on X platform, the guy was making complaints that his account was restricted and he couldn't move his funds and the reply he got was that he should visit a nearby police station, that was one of the strangest reply I have seen from an exchange. This are one of the issues of using a centralized exchanges.
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I saw a complaint on X platform, the guy was making complaints that his account was restricted and he couldn't move his funds and the reply he got was that he should visit a nearby police station, that was one of the strangest reply I have seen from an exchange. This are one of the issues of using a centralized exchanges.
That's really odd. Are you sure the suggestion comes from the exchange representative? Maybe you can share the post so we can see the full context. I can see why they should report something to the police if he falls victim to phishing, scams, etc, but being blocked by an exchange is not one of them. I guess you can say he's using a terrible exchange if that's the reply he got from customer service.
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From the content there is no clear cut question but the question was seen from the topic the question is clear. So all depends on the place you using. Wallet is not for exchange but it is a place to keep your coins and save them for future use. And that should be either self custodial wallets or custodial wallets. And exchange is where you trade your coins. You swap, you convert, you buy or sell coins in exchange and it either centralized or decentralized exchange. Now with this all depends on the action you want to take at the moment. Do you want to save it for future use? Or you want to trade? Select the one that is suitable for you. And I advise you to use self custodial wallet then when you want to sell it then you can transfer it to the exchange and sell at once. It is not advisable to keep coins in exchange.
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Exchange wallet is good option if you trade frequently but don't store too much there as "not your keys not your money" and anything can happen to exchange loosing your funds forever. So always store your coins in your own wallet to be on safe side.
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Exchange wallet is good option if you trade frequently but don't store too much there as "not your keys not your money" and anything can happen to exchange loosing your funds forever. So always store your coins in your own wallet to be on safe side.
+1
Unfortunately, because of the lucrative promotions, we still use exchanges to store huge amounts of money. Exchanges like Bybit spend millions of dollars apologizing to their users, which is insane. They have been launching new campaigns everyday for the last couple of weeks which is one of the reason people join centralized exchanges.
I am one of the participants in the Notcoin airdrop, and I have withdrawn my Notcoin from Bybit. They had some issues with the Ton blockchain, which caused a delay in deposit. In compensation, Bybit distributed 26 Million dollars to customers' spot accounts. I used to be a centralized exchange hater, but I am using a couple of them.
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I come to the question when I have to make such an important decision, should I choose the first or the second option, which is better and safer for you people? How long do you leave it on that option?
If you are looking for options ideas then definitely I would say you stick with long term holdings. The more you engage in long-term holdings, the more you benefit, and keep your assets in noncustodial wallets. Wallets that are very strong and less likely to be hacked, if you keep the keys in a safe place, then no other person can transfer your assets to another wallet.
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I come to the question when I have to make such an important decision, should I choose the first or the second option, which is better and safer for you people? How long do you leave it on that option?
If you are looking for options ideas then definitely I would say you stick with long term holdings. The more you engage in long-term holdings, the more you benefit, and keep your assets in noncustodial wallets. Wallets that are very strong and less likely to be hacked, if you keep the keys in a safe place, then no other person can transfer your assets to another wallet.
HODLing for the long-term has indeed proven to be the best approach to making amazing profits, but this is only applicable to bitcoin as it is the safest asset to HODL, I don't know about other altcoins, because I consider them to be nothing more other than a ticking time bomb waiting for the right time to explode and you can never know or predict exactly when that is to occur...
And yeah choosing a non custodial wallet is indeed the safest way to HODL you bitcoin as it also secures and keeps your privacy safe, which is also very important when it comes to crypto.
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I am one of the participants in the Notcoin airdrop, and I have withdrawn my Notcoin from Bybit. They had some issues with the Ton blockchain, which caused a delay in deposit. In compensation, Bybit distributed 26 Million dollars to customers' spot accounts. I used to be a centralized exchange hater, but I am using a couple of them.
I also follow the news about Notcoin and indeed Bybit is quite problematic so there is a delay in deposits, But compensation worth $ 26 million is a big compensation and it's proof that Bybit cares about the problems that happen to its users.
But with regard to storing money on centralized exchanges it will have some risks, such as what happens to bybit or on other exchanges and Even I have experienced problems with some exchanges when I want to withdraw coins that I have, it was suspended and in the end had to contact CS then within 48 hours Coins can be withdrawn to my personal wallet.
Such risks make centralized Exchange a non-recommended place for long-term storage, because we do not have full control.
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I come to the question when I have to make such an important decision, should I choose the first or the second option, which is better and safer for you people? How long do you leave it on that option?
Both a wallet and an exchange.
80% in the wallet 20% in the exchange if you are not looking to sell.
60% in the wallet 40% in the exchange if you are looking to sell
if you do sell pull most of the cash out.
always fear exchanges many crash an burn or get hacked.
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Both a wallet and an exchange.
80% in the wallet 20% in the exchange if you are not looking to sell.
60% in the wallet 40% in the exchange if you are looking to sell
if you do sell pull most of the cash out.
always fear exchanges many crash an burn or get hacked.
I still think the portion you explained is at a reasonable level, I might want to help emphasize that this percentage is more likely to be appropriate for a budget that is allocated to cryptocurrency only, because I'm afraid there are still people who misunderstand this percentage. Never assume that 20% is from all your assets in savings, investments or in the form of assets, because it will be too unbalanced.
What we need to remember is, no exchange has perfect security, so all sorts of bad things could happen at any time, including hacking or other things that can cause loss of assets.