A wallet as a container of money or exchange?

[Hatchy]

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.

[taufik123]

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.

[bayu7adi]

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.

[Aanuoluwatofunmi]

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.

[taufik123]

-snip-
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.

[Gladitorcomeback]

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.

[Litzki1990]

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.

[MrSpasybo]

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.