Which is safer to hold your Bitcoin in wallet or Exchanges?

[owlest]

Why use a hardware wallet?

Can I ask you:

• Why are you against hardware wallets?
• Just note: Hardware wallets can be close source or open source. Choosing an open source hardware wallets to use is better. Ledger is not open source.

Electrum can provide similar security through cold or multi-signature options, it is free, unlike a hardware wallet which comes at a cost. When it comes to storage, it is better to keep everything in your own wallet rather than on an exchange.

Electrum wallet is an open source, non custodial wallet and is a good wallet to use. It also allows you to create

• Creating a multisig wallet
• Creating a cold storage wallet
• Standard wallet and 2FA wallet.
• See Electrum wallet types

But Electrum is not a hardware wallet.

If you want to earn interest, you can stake some of your funds on an exchange or deposit them in a pool, but this cannot be considered storage.

Don't chase small profit and lose something bigger.

While I do not oppose hardware wallets, I fail to see how they are superior to software wallets. If an individual is proficient in using software wallets, they are unlikely to lose their funds. Conversely, if someone is not familiar with wallet storage, a hardware wallet will not be of much assistance. It is worth noting that Ledger, a popular hardware wallet, recently experienced a vulnerability that affected many users, causing them to lose faith in the product due to its cloud storage of seed phrases.

[therozaq]

The reason why I brought this topic up is that most people buy and store their Btc on centralized exchanges, To I don't think  it that safe even when some benefits are attached to it While wallet is not also safe concerning the way you store your security seed phrase. But when come to hacking to me I think wallet is safer though

What you guys think?

If you want to hold  bitcoin , I think wallet is safer than you  hold in exchange.
There is several consideration, if you want to hold in exchange.
I think If you're trading, you can do it
But if you're a holder .
wallet is the best choice.
We know about several wallets, I personally prefer hold my coins in myetherwallet or sometime in my metamask wallet.
I think It's suitable and safe.
But it depends on your confidence.
You can use another wallet

[tranthidung]

While I do not oppose hardware wallets, I fail to see how they are superior to software wallets. If an individual is proficient in using software wallets, they are unlikely to lose their funds.

The best wallet depends on each person, from knowledge, budget, technical practice and even more. There is no same best wallet for you and for me.

Cold wallets are safer than hot wallets and hardware wallets are cold wallets.

With software wallets like Electrum, you can create multi-sign, cold storage or air-gapped wallets and they are safer than single signature wallet (hot wallet).

Conversely, if someone is not familiar with wallet storage, a hardware wallet will not be of much assistance. It is worth noting that Ledger, a popular hardware wallet, recently experienced a vulnerability that affected many users, causing them to lose faith in the product due to its cloud storage of seed phrases.

Ledger is a close source hardware wallet as I noted in my previous post.

I knew what you want to say here, Ledger messed up and even destroyed the idea of hardware wallet by launching their Ledger Recovery service.

The fragments are securely distributed using end-to-end encrypted and authenticated channels to the Hardware Security Modules (HSMs) of three independent companies – Ledger, Coincover, and EscrowTech. Each fragment on its own is a useless set of random numbers.

Three entities will have three pieces of your wallet seed phrase, it is not good and safe.

• Bitcoin Q&A: Why is Seed Splitting a Bad Idea?
• How to back up a seed phrase?

If I want to have best safety for my bitcoin, I want to own my private key (or wallet seed phrase). Because Not your keys, not your coins. Relying on two other entities, Ledger and Coincover for backups and recovery is very bad idea.

[owlest]

While I do not oppose hardware wallets, I fail to see how they are superior to software wallets. If an individual is proficient in using software wallets, they are unlikely to lose their funds.

The best wallet depends on each person, from knowledge, budget, technical practice and even more. There is no same best wallet for you and for me.

Cold wallets are safer than hot wallets and hardware wallets are cold wallets.

With software wallets like Electrum, you can create multi-sign, cold storage or air-gapped wallets and they are safer than single signature wallet (hot wallet).

Conversely, if someone is not familiar with wallet storage, a hardware wallet will not be of much assistance. It is worth noting that Ledger, a popular hardware wallet, recently experienced a vulnerability that affected many users, causing them to lose faith in the product due to its cloud storage of seed phrases.

Ledger is a close source hardware wallet as I noted in my previous post.

I knew what you want to say here, Ledger messed up and even destroyed the idea of hardware wallet by launching their Ledger Recovery service.

The fragments are securely distributed using end-to-end encrypted and authenticated channels to the Hardware Security Modules (HSMs) of three independent companies – Ledger, Coincover, and EscrowTech. Each fragment on its own is a useless set of random numbers.

Three entities will have three pieces of your wallet seed phrase, it is not good and safe.

• Bitcoin Q&A: Why is Seed Splitting a Bad Idea?
• How to back up a seed phrase?

If I want to have best safety for my bitcoin, I want to own my private key (or wallet seed phrase). Because Not your keys, not your coins. Relying on two other entities, Ledger and Coincover for backups and recovery is very bad idea.

Ordinary users with little experience in cryptocurrency often rush to buy hardware wallets, believing that they are completely safe and that their coins will be secure no matter what. While this is their decision, it may not be the most financially sound one.  They may not consider the cost of the wallet, which can sometimes be several times the value of the stored coins. Personally, I have created two wallets for myself: a cold wallet and a multi-signature wallet, both of which I am very satisfied with.

[Gormicsta]

Owning Bitcoin is one thing, Storing and securing your Bitcoin is another, inasmuch as the safety of your asset completely depends on you, your ability to choose amongst the several means of storing Bitcoin has a vital role to play. Some people choose to store their Bitcoin in centralized exchanges which is a very wrong and risky way to decide to store your Bitcoin, centralized exchanges are not really the safest method, because Bitcoin is mant to be completed decentralized, so storing a decentralized asset in a centralized exchange isn't just right.

[DabsPoorVersion]

The reason why I brought this topic up is that most people buy and store their Btc on centralized exchanges, To I don't think  it that safe even when some benefits are attached to it While wallet is not also safe concerning the way you store your security seed phrase. But when come to hacking to me I think wallet is safer though

What you guys think?

It is not recommended to hold your Bitcoin on a centralized exchange. Exchanges are the primary target of hackers due to the fact that they hold a large number of different cryptocurrencies from users, which can be accessed by hackers if they successfully breach the exchange. No exchange is completely safe from hacking. As a holder or investor, it is advisable to keep your Bitcoin in a hot wallet or invest in a cold wallet for better security. 

[Master107]

Considering the capacity and abilities of holders, I could say it depends. Why? Big whales will not put all their Bitcoin in a single wallet either it is centralized exchange or decentralized. They are keen to care their investment. If somehow is capable to buy hard wallet, they I think he/she will store his Bitcoin into it. What is safer? I think the safer is not compromised wallet.

[owlest]

The reason why I brought this topic up is that most people buy and store their Btc on centralized exchanges, To I don't think  it that safe even when some benefits are attached to it While wallet is not also safe concerning the way you store your security seed phrase. But when come to hacking to me I think wallet is safer though

What you guys think?

It is not recommended to hold your Bitcoin on a centralized exchange. Exchanges are the primary target of hackers due to the fact that they hold a large number of different cryptocurrencies from users, which can be accessed by hackers if they successfully breach the exchange. No exchange is completely safe from hacking. As a holder or investor, it is advisable to keep your Bitcoin in a hot wallet or invest in a cold wallet for better security.

It is important to consider not only the risk of hacking but also the possibility of an exchange being blocked. An exchange can be blocked for various reasons, including the fact that the country is under sanctions or the cryptocurrency has a dubious history. Therefore, it is recommended to keep your cryptocurrency in a wallet. If you earn cryptocurrency, do so in the DeFi sphere. It is not recommended to leave your bitcoins on centralised exchanges.

[pealr12]

"Not your keys Not your money" is a popular saying in the btc and the entire crypto community about safe keeping our asset. There is no secured way of keeping your asset than your personal wallet and most preferably a hardware wallet.
Exchange is not the right place to keep your btc, it is only good for temporary if you are a trader and must access your funds regularly to trade.
We have seen many cases where exchanges got hacked or go bankrupt as a result of misappropriation of funds and funds are stolen, many users becomes victims because they have all their funds stored in the exchange.
Even though those victims will be compensated for their lose, there is always a negative effect on the victim, it is better to be safe than sorry.

[Renampun]

The reason why I brought this topic up is that most people buy and store their Btc on centralized exchanges, To I don't think  it that safe even when some benefits are attached to it While wallet is not also safe concerning the way you store your security seed phrase. But when come to hacking to me I think wallet is safer though

What you guys think?

holding bitcoin in an exchange account is really high risk, do you still remember FTX, I have some mbtc in my FTX account, actually I don't hold my bitcoin there, I only use it there for trading but when there are problems related to security there FTX, FTX was subject to seize by the government and in the end all the funds I had there just disappeared, storing bitcoin in a wallet is much safer than storing it on an exchange, especially CEX.

[DabsPoorVersion]

The reason why I brought this topic up is that most people buy and store their Btc on centralized exchanges, To I don't think  it that safe even when some benefits are attached to it While wallet is not also safe concerning the way you store your security seed phrase. But when come to hacking to me I think wallet is safer though

What you guys think?

It is not recommended to hold your Bitcoin on a centralized exchange. Exchanges are the primary target of hackers due to the fact that they hold a large number of different cryptocurrencies from users, which can be accessed by hackers if they successfully breach the exchange. No exchange is completely safe from hacking. As a holder or investor, it is advisable to keep your Bitcoin in a hot wallet or invest in a cold wallet for better security.

It is important to consider not only the risk of hacking but also the possibility of an exchange being blocked. An exchange can be blocked for various reasons, including the fact that the country is under sanctions or the cryptocurrency has a dubious history. Therefore, it is recommended to keep your cryptocurrency in a wallet. If you earn cryptocurrency, do so in the DeFi sphere. It is not recommended to leave your bitcoins on centralised exchanges.

I agree, which is the same as what might be possible to happen to Binance in our country. There's an announcement that the Binance and any other unregistered Centralized Exchange that is accessible in our country is possible to be blocked unless they comply with the regulations of our country. These scenarios can be avoided by using a hot and cold wallet, there's no reason to hold Bitcoin on some exchange if you're planning to do long-term holding.

[gandame]

The reason why I brought this topic up is that most people buy and store their Btc on centralized exchanges, To I don't think  it that safe even when some benefits are attached to it While wallet is not also safe concerning the way you store your security seed phrase. But when come to hacking to me I think wallet is safer though

What you guys think?

holding bitcoin in an exchange account is really high risk, do you still remember FTX, I have some mbtc in my FTX account, actually I don't hold my bitcoin there, I only use it there for trading but when there are problems related to security there FTX, FTX was subject to seize by the government and in the end all the funds I had there just disappeared, storing bitcoin in a wallet is much safer than storing it on an exchange, especially CEX.

I remember this issue, a lot of users are affected by what FTX did. We should really avoid using the exchange to store our holdings not only our Bitcoin but the same with our altcoins. Every crypto we are holding should be taken care of and if possible, we can do the same with other people who spend money to buy hardware wallets for the safety of their investments.

[tranthidung]

Ordinary users with little experience in cryptocurrency often rush to buy hardware wallets, believing that they are completely safe and that their coins will be secure no matter what. While this is their decision, it may not be the most financially sound one.  They may not consider the cost of the wallet, which can sometimes be several times the value of the stored coins. Personally, I have created two wallets for myself: a cold wallet and a multi-signature wallet, both of which I am very satisfied with.

They must to start from somewhere and if they are careful people, they will do research on how to store bitcoin safely. They will have to consider about free open source wallets like Electrum, that I like too, and other wallets like Hardware wallets.

Nothing is wrong if they choose a good open source hardware wallets to use, with spending for those wallets.

Newbies can make a terrible mistake like

• They trust that hardware wallets are most secured and safest.
• They don't want to spend too much money for purchases, then they look for second-hand hardware wallets. When they do so, they can buy firmwared-hardware wallets and lose their bitcoins.

My advice is: use Electrum (or other free open source non custodial wallets). If they want to spend money for hardware wallets, buy it a complete new wallet, from an official store.

Considering the capacity and abilities of holders, I could say it depends. Why? Big whales will not put all their Bitcoin in a single wallet either it is centralized exchange or decentralized. They are keen to care their investment. If somehow is capable to buy hard wallet, they I think he/she will store his Bitcoin into it. What is safer? I think the safer is not compromised wallet.

Big whales will diversify their bitcoins in different wallets and even more diversification to some different wallet softwares/ brands. If one wallet software, one wallet brand is compromised, they will not lose all their bitcoins.

[Yamzakid]

The reason why I brought this topic up is that most people buy and store their Btc on centralized exchanges, To I don't think  it that safe even when some benefits are attached to it While wallet is not also safe concerning the way you store your security seed phrase. But when come to hacking to me I think wallet is safer though

What you guys think?

If you hold your bitcoins in any exchange, it's like giving your room key to an unknown person. Would you think your belongings are safe or that your mind will be at ease if you did that? That's just the simple example for you.
You can use exchanges for frequent transactions, but it is not advisable to hold your bitcoin in any exchange. Because not all exchanges are reliable, you should conduct thorough research before using any exchange.

[Publictalk792]

When ever a person who bought a handsome amount of Bitcoin. So always he/s think it should be saved and which way is better to safe investment. When we see to the exchanges so we have seen that these exchanges have too much risks. And when we see to the online wallets so we will say that these are risky but not much. But there is the one option which we can choose that is hardware wallet. These wallets are more safer as compare to others so I will recommend these wallets.