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.

[taufik123]

-snip-
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.

[DabsPoorVersion]

-snip-
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.

[bayu7adi]

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.

[taufik123]

-snip-
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.

-snip-
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.

[armanda90]

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.

[joniboini]

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.

[Dr.Bitcoin_Strange]

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.