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

[shuvenker999]

Cryptocurrency exchanges and wallets each offer unique security features, benefits, and drawbacks. However, crypto wallets are typically thought to be safer than exchanges.

Crypto wallets are software or hardware-based storage systems that allow you to store, receive, and send cryptocurrencies. They are generally considered to be more secure than exchanges, as they give you full control over your private keys, which are required to access your funds. This means that your funds are protected by your own secure password and are not at risk of being stolen by hackers or other malicious actors.

[Fivestar4everMVP]

Well, I would say goes in two ways, and they are..

• It's EASIER to hold you bitcoin on the centralized exchanges, since you just by and leave it there, no struggles of withdrawal and keeping wallet your wallet safe from hacks and scammers.
• But it's SAFER to hold your bitcoin on your own private wallet because doing this gives you full custody of your bitcoin, that is, you are in total control of your bitcoin, as you can at any chosen time, move it to another exchange to sell, or do whatever you want with it.

But here is the thing, if you decide to hold you bitcoin on the centralized exchanges, it simply means that you are sacrificing your coins safety for easier way of holding.
But if you are holding in a non-custodial wallet, you are sacrificing the easier way to hold for your coin's safety.

In all, it is important to know that holding bitcoin on our non-custodial wallets comes with great responsibilities, but it's safer, on-like holding them on centralized exchanges that are prone to hacking at point in time, if they are not hacked, they may shut down and make customers be at their mercy in terms of getting their deposits back.

So, always choose wisely where to hold your bitcoin.

[PX-Z]

What you guys think?

It's a question of your priorities. With all the previous things that happened to exchanges like FTX, it's an obvious way to say that you may lose your funds on exchanges overnight. Of course, people trade, so you need to hold such an amount on your exchange account, so as long your not keeping it like an alternative to wallets, it's fine.

About keeping your funds in your wallet, this one is the right thing to say.

it is important to know that holding bitcoin on our non-custodial wallets comes with great responsibilities.

A secured device, good practice of using your wallet, having the knowledge to prevent getting hacked from spam emails or from all kinds of phishing, etc. plus securing your back up in safe place too.

[vs2014]

Especially holding any token in the exchange wallet is dangerous because hacking problems can occur at any time. So you should choose hardware wallet because it is more popular for security. If you expect the best security from an exchange like FTX, then it is foolish because money can be lost overnight from these exchanges. There are many exchanges that have run away with investors' money so make sure your money is safe before you trade anywhere.

[MVL~$]

You can store Bitcoins in either an exchange or a wallet. But there is definitely some risk in keeping it in the wallet. You must ensure your own safety when holding Bitcoins. How you manage your own wealth is entirely up to you. And if it gets stolen or hacked for any reason, you are fully responsible for it. Because many lose wealth due to their own mistakes. At the end of the day I'd say it's up to you.

[Sim_card]

This is something that bitcoin was created for so that people can be their own bank because bitcoin is decentralized and it shouldn't be stored in a centralized way. Bitcoin should be used for the purpose that it was created for which is to get rid of a third party. Keeping your bitcoin in an exchange is like you have kept you bitcoin in a market place where it will be vulnerable to attack. Just take note that the moment your coins gets into the exchange, it is no longer yours, and the figure that you are seeing means that the exchange is owing you that amount. For instance is you keep 0.5btc in an exchange, the exchange is owing you that amount because your coins have been borrowed out. The risk in storing your coins in an exchange is higher than you being your own bank, when you use a self custody wallet like electrum, blue wallet as they are easy for beginners. The exchange can sell out your information to the government and your account can get frozen. The exchange can get hacked, bankrupt or go on exit scam, but when you are your own bank, if you take proper precautions on the safety of your wallet, you will be safe.

[sampoerna]

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

You're right. It is not safe to keep our Bitcoin in CEX wallets although it will be easier whenever we want to trade them. One of the problem is about hacking, there were already many cases of hacking crypto assets in centralized exchanges. However, I saw some CEXs have the intention to compensate the hacking crypto assets in their exchange wallets. So, this means quite safe to keep our Bitcoin assets on the CEXs which guarantees the security and want to compensate the hacking cases.

Honestly, I also keep some of my crypto assets on CEX wallets. But surely not all my crypto assets to put on CEX wallets. For the long term holding like Bitcoin, I prefer to keep it on my private wallets or on hardware wallets. We need to divide our assets, don't put all our money in the long term holding.

[Cryptomultiplier]

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

You're right. It is not safe to keep our Bitcoin in CEX wallets although it will be easier whenever we want to trade them. One of the problem is about hacking, there were already many cases of hacking crypto assets in centralized exchanges. However, I saw some CEXs have the intention to compensate the hacking crypto assets in their exchange wallets. So, this means quite safe to keep our Bitcoin assets on the CEXs which guarantees the security and want to compensate the hacking cases.

Honestly, I also keep some of my crypto assets on CEX wallets. But surely not all my crypto assets to put on CEX wallets. For the long term holding like Bitcoin, I prefer to keep it on my private wallets or on hardware wallets. We need to divide our assets, don't put all our money in the long term holding.

The time where the kind of wallet to use matters most is when one is considering the option between HODLing long term or just trading or doing both while still deciding on the best investment practice to begin with.

A CEX wallet is way more susceptible to hacking and that's why it's always a good advice to use offline or hardware wallets depending on how safe one intends their asset to be, let's not add this bother to merchant traders or those who accept cryptocurrency as payments for transactions these days, else the idea would have been dead if it ain't innovative and can adapt to the economic needs at a go, that's in regions where it is legally acceptable.

[Bd officer]

What you guys think?

Exchange Bitcoin is risky to hold long-term. Storing bitcoins on an exchange means placing bitcoins under someone else's control. So if you want to hold long term then never store bitcoins in an exchanger. You can use Electrum wallet, hardware to hold bitcoins. I am currently using Electrum wallet to hold bitcoins.

[gunhell16]

If you're holding bitcoin for the long term, I think it's better to put it in your hardware, or if you don't have HW, you can just keep it in your electrum or sparrow wallet instead of a centralized platform.

But if you often carry out trading activity in CEX, I think it's fine as long as, when you get a profit, you take it out immediately so that at least you can maintain what you are doing, which is producing profit in bitcoin assets.

[owlest]

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.

You are correct. Starting somewhere is essential. I began by holding a small amount of money in custodial wallet. However, after reading the discussions of more experienced colleagues, I realised that this is not the optimal solution. I then considered "staking" on the exchange, but after the collapse of FTX, I decided to switch to wallets. It's better to be late than to suffer the first loss of coins.

[Primo1760]

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 keep your bitcoins in an exchange wallet, you can get scammed at any moment. The exchange is completely under someone else, it's never under you. It is always better to use one's own wallet. Own wallet It will always be under your control if you can keep your seed phrase in a safe place.

[James Anderson]

Holding in exchanges might be risky

[Muneeb22]

The best way to hold your bitcoin in your wallet because i invest a good amount of money in the crypto market and hold that in the exchange and when the coin price is goes to high that time the exchange will not give the withdraw of that coin, so the best way to hold the coins in the wallet and when the coin price go high send that exchange and withdraw your coins.

[surendertakyaan70]

Holding Bitcoin in a personal wallet is generally considered safer than keeping it on exchanges. Wallets, especially hardware or paper variants, provide greater security as users have sole control over their private keys. Exchanges, while convenient for trading, are susceptible to hacking and regulatory risks. Personal wallets enhance protection against cyber threats and offer users autonomy over their assets, reducing exposure to potential exchange vulnerabilities. Opting for a secure wallet aligns with the principle of "not your keys, not your coins," promoting a more resilient approach to Bitcoin storage.