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.
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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.
Yes. Unfortunately, exchanges disable withdrawals very often, especially when there is too much movement and during network congestion. Moreover, if you change your password or update anything security-related, they block withdrawals of an account for more than 48 hours. I also do not recommend exchanging coins for storage. If someone wants to hold their money for a long time, they should always use either a hardware wallet or a self-custodial wallet like Electrum and Unstoppable. But that wasn't my point. I was pointing why people still using centralized exchanges and how these exchanges attract people with their promotional offers.
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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.
you are correct. my post is about crypto holdings.
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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.
I am interested in knowing what you do as a miner. Especially after halving. Do you really plan to sell some of your earnings to pay electricity bills? Are you guys mining at a profit at this moment? Do you keep your money on exchanges just as you described here? If these are not too personal questions, I guess the answers will be interesting.
Even though it is not recommended to keep money on exchanges, sometimes we have to move funds due to the network congestion and the fees. Maybe you don't have this problem because you can add your transactions as a miner ;)
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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.
Exactly why it's not advisable to keep your funds in an exchange, not 20%, not even 10%, no matter how reputable you feep the exchange is (except of course it's a DEX), 100% of your crypto asset should always be in your wallet, except maybe you have short-term needs for that asset on that exchange, maybe you're a trader or something, other than that, an exchange is never an advisable storage option.
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But that wasn't my point. I was pointing why people still using centralized exchanges and how these exchanges attract people with their promotional offers.
Offers and some promotions that are given make people interested in using it, but it is not recommended as storage.
I won't be hypocritical because I also use Binance as my trading venue, but the storage of key assets is certainly in the safest Hardware wallet.
Some exchanges provide protection to their consumers when there is indeed a hack or something like that with appropriate refunds.
Like the SAFU implemented by binance, with these funds Binance will guarantee the user's balance will be guaranteed.
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Offers and some promotions that are given make people interested in using it, but it is not recommended as storage.
I won't be hypocritical because I also use Binance as my trading venue, but the storage of key assets is certainly in the safest Hardware wallet.
I agree with that, and I also use Binance and a couple more exchanges to trade. I also use a wallet like the electrum to hold my BTC for a long time. However, I also use CEX if the amount is not significant. I wasn't talking about storage but why people are still using centralized exchanges even though they know that exchanges are not safe.
As you know, very lately I started doing airdrops and fortunately, I have started making some money doing airdrops. Exchanges also offering web3 wallets these days and I am using those exchanges to farm web3 airdrops as well.
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As you know, very lately I started doing airdrops and fortunately, I have started making some money doing airdrops. Exchanges also offering web3 wallets these days and I am using those exchanges to farm web3 airdrops as well.
Are you referring to wallets like Binance Web3 wallet? I used them once, don't remember whether I can export my seed or not. Even if I can, I don't feel comfortable with the risk of them storing my seeds on their end. Why not use a wallet like MetaMask if you plan to hunt for airdrops? Is it because of the airdrop requirement? I installed multiple web3 wallets on my browser and I can use them to hunt airdrop just fine.
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As you know, very lately I started doing airdrops and fortunately, I have started making some money doing airdrops. Exchanges also offering web3 wallets these days and I am using those exchanges to farm web3 airdrops as well.
Are you referring to wallets like Binance Web3 wallet? I used them once, don't remember whether I can export my seed or not. Even if I can, I don't feel comfortable with the risk of them storing my seeds on their end. Why not use a wallet like MetaMask if you plan to hunt for airdrops? Is it because of the airdrop requirement? I installed multiple web3 wallets on my browser and I can use them to hunt airdrop just fine.
Some airdrops do suggest using a designated Web3 exchange wallet.
like OKX or Bitget who have a lot of airdrop events for their Web3 Wallets.
But to hunt for other airdrops, I myself don't just use web3 wallets generated from exchanges because of security concerns and private keys they might also hold.
it is safer to generate your own Multichain wallet using Metamask or other wallets or using a Hardware wallet which is certainly safer.
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But to hunt for other airdrops, I myself don't just use web3 wallets generated from exchanges because of security concerns and private keys they might also hold.
it is safer to generate your own Multichain wallet using Metamask or other wallets or using a Hardware wallet which is certainly safer.
Well, I already have my metamask wallet which I use to participate in various airdrops. But, as you know, the exchanges we were talking about also offer airdrops in their web3 sections these days, which is the reason we have to use a web3 wallet generated on exchanges. I don't know if exchanges keep the private keys or not. I don't think they are going to do that because if they get exposed keeping users web3 wallet's private keys or seed phrases, they are going to bankrupt bro! Anyway, did you participated in BWB launchpad today?
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Well, I already have my metamask wallet which I use to participate in various airdrops. But, as you know, the exchanges we were talking about also offer airdrops in their web3 sections these days, which is the reason we have to use a web3 wallet generated on exchanges. I don't know if exchanges keep the private keys or not. I don't think they are going to do that because if they get exposed keeping users web3 wallet's private keys or seed phrases, they are going to bankrupt bro! Anyway, did you participated in BWB launchpad today?
Let's hope not, some pretty big exchanges like OKX and Bitget won't do such dirty acts.
I didn't participate in the BWB launchpad, I was late and also forgot.
But it is quite potential for BWB tokens because it is the official token of Bitget Wallet
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Let's hope not, some pretty big exchanges like OKX and Bitget won't do such dirty acts.
I didn't participate in the BWB launchpad, I was late and also forgot.
But it is quite potential for BWB tokens because it is the official token of Bitget Wallet
I participated in their launchpad and committed 500 USDC which was also the maximum amount for a wallet. The launchpad ran only for 20 minutes even though the event was designed to run 24 hours. They have reached a max capacity of 1.275 Million in just twenty minutes. Unfortunately, I got only 300+ BWB tokens and they took 32 USDC. After claiming the tokens, they returned me the rest 468 USDC.
The pre-sell price for BWB toke was only $0.1. But most people expect a good listing price. If it lists above 0.2, I am okay with that. Have you joined any of the Blast airdrops apart from D1?
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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 think it's more like a wallet as a money container because basically the use of a wallet is for storing, not for exchange,
If I want to exchange, I usually send to the exchange and use a special wallet if I want to connect to the exchange platform
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I participated in their launchpad and committed 500 USDC which was also the maximum amount for a wallet. The launchpad ran only for 20 minutes even though the event was designed to run 24 hours. They have reached a max capacity of 1.275 Million in just twenty minutes. Unfortunately, I got only 300+ BWB tokens and they took 32 USDC. After claiming the tokens, they returned me the rest 468 USDC.
The pre-sell price for BWB toke was only $0.1. But most people expect a good listing price. If it lists above 0.2, I am okay with that. Have you joined any of the Blast airdrops apart from D1?
Some of my friends also participated in BWB Launchpad, but they did not get the allocation because maybe they were late because of the large number of users who wanted to participate.
You get 300++ BWB already lucky enough, despite the pre-sale price of $0.1 I'm sure it will be 3x-5x when the listing is done.
Just need to see how the hype will be.
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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?
It depends on your long-term and short-term goals. If you are going to HODL it's better to use a noncustodial wallet or a hardware wallet.
If you're going to use your coin to make a profit from trading then you can use an exchange but be sure that you are fully aware of the risk when storing your coins on exchange because even if the exchange is popular and reputable hacking still happens, and it will take time before you regain your assets.
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..even if the exchange is popular and reputable hacking still happens, and it will take time before you regain your assets.
That's the point and the reason we shouldn't let our coins sleep on exchange or any wallet that we don't have full control.
It's either a long-term or short-term term we should always have this practice to keep our coins safe. Put it on an exchange wallet when you want to trade only, when the transaction is done, pull them all out and store them in the wallet that you have full control of.
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..even if the exchange is popular and reputable hacking still happens, and it will take time before you regain your assets.
That's the point and the reason we shouldn't let our coins sleep on exchange or any wallet that we don't have full control.
It's either a long-term or short-term term we should always have this practice to keep our coins safe. Put it on an exchange wallet when you want to trade only, when the transaction is done, pull them all out and store them in the wallet that you have full control of.
There may be a predetermined period of time or just put coins or a certain amount of Fiat to trade and when the trade is profitable then return the initial capital to the main wallet, it is a good way to do it.
Someone who is actively trading should be good at managing or managing their assets will be safer.
I use Binance and several other exchanges to trade, but I don't put all my assets in one CEX, the hardware wallet is my main wallet that is very secure.
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It is more safe for us to make use of a personal or non custodial wallet in keeping our money because we are going o have full control over the wallet unlike when we are using exchanges like the centralized ones in keeping our money for us in their custody, except if we are going for a daily short time trades which can make us uses them, if not, then a non custodial wallet is the perfect means of keeping our crypto assets safe.
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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.
I am interested in knowing what you do as a miner. Especially after halving. Do you really plan to sell some of your earnings to pay electricity bills? Are you guys mining at a profit at this moment? Do you keep your money on exchanges just as you described here? If these are not too personal questions, I guess the answers will be interesting.
Even though it is not recommended to keep money on exchanges, sometimes we have to move funds due to the network congestion and the fees. Maybe you don't have this problem because you can add your transactions as a miner ;)
The mine finally ended. I have most of my money in my own wallets.
I still have 10% in exchanges. I am just stacking my signature coins and a tiny bit of home mining at a small loss.
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As you know, very lately I started doing airdrops and fortunately, I have started making some money doing airdrops. Exchanges also offering web3 wallets these days and I am using those exchanges to farm web3 airdrops as well.
Are you referring to wallets like Binance Web3 wallet? I used them once, don't remember whether I can export my seed or not. Even if I can, I don't feel comfortable with the risk of them storing my seeds on their end. Why not use a wallet like MetaMask if you plan to hunt for airdrops? Is it because of the airdrop requirement? I installed multiple web3 wallets on my browser and I can use them to hunt airdrop just fine.
Decentralized wallets are always better options compared to Centralized wallets or exchanges. When it comes to safety, anonymity and security, decentralized wallets are no.1.
Your wallet seeds are meant to be in your custody alone and not some company that make you believe that the safety of your assets are guaranteed with them.
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As you know, very lately I started doing airdrops and fortunately, I have started making some money doing airdrops. Exchanges also offering web3 wallets these days and I am using those exchanges to farm web3 airdrops as well.
Are you referring to wallets like Binance Web3 wallet? I used them once, don't remember whether I can export my seed or not. Even if I can, I don't feel comfortable with the risk of them storing my seeds on their end. Why not use a wallet like MetaMask if you plan to hunt for airdrops? Is it because of the airdrop requirement? I installed multiple web3 wallets on my browser and I can use them to hunt airdrop just fine.
Decentralized wallets are always better options compared to Centralized wallets or exchanges. When it comes to safety, anonymity and security, decentralized wallets are no.1.
Indeed,
With decentralized wallets, you have total control over your wallet keys and access to your wallet, which of course means that you're the only person who's in control of your wallet and whatever asset that the wallet holds.
All your assets are being stored on a decentralized network, which makes it nearly impossible for hackers to access your funds or steal them, except of course you grant them access by revealing your keys to them.
At any time and any day, decentralized wallets are far better options than Centralized wallets.
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Indeed,
With decentralized wallets, you have total control over your wallet keys and access to your wallet, which of course means that you're the only person who's in control of your wallet and whatever asset that the wallet holds.
All your assets are being stored on a decentralized network, which makes it nearly impossible for hackers to access your funds or steal them, except of course you grant them access by revealing your keys to them.
At any time and any day, decentralized wallets are far better options than Centralized wallets.
Its important thing when saving our assets in decentralized wallet we have own self controlling with our assets not depend on exchange wallet has third party could controlling our assets keep secure or not.
Decentralized wallet we have own self controlling key or seed phrase of our wallet its difference when centralized wallet or exchange wallet when the exchange got scam our assets loss learned what happen with many investor holding their assets in FTX exchange wallet account.
Always memorize, not your key is not your coins how trusted one exchange reputation has opportunity for us loss our assets and better hold it in decentralized wallet.
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Your wallet seeds are meant to be in your custody alone and not some company that make you believe that the safety of your assets are guaranteed with them.
If you are using centralized exchanges, you should know that most of them introduced web3 wallet options where you can create your own web3 wallets, just like Metamask, Rainbow, or Rabby wallet. They don't keep your seed phrases or anything. I don't think any company will ruin their reputation by keeping users ' wallets' seed phrases.
Or you could say you never know if they keep your seed phrases. Well, how do you know that Metamask isn't keeping your seed phrases as well? How do we know that Web3 wallets like Bitget wallet does not keep our seed phrases?
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How do we know that Web3 wallets like Bitget wallet does not keep our seed phrases?
Disconnect the internet on your router and yse Wireshark to inspect the packets going out from your device to your router while you use the wallet. If you see anything that resembles a seed phrase brig went out, then it saved a copy for sure:
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Losing funds from exchange has happened many times so i personally never store much funds in exchange wallet. Moreover exchange wallet is important to me only when i am in a situation like buying or trading currency. If you have a large amount of money then you should definitely use a hardware wallet. But top exchanges can give you some assurance. But i would suggest, if you have a lot of savings then use an offline 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?
This is very simple, brother. You can go to the non-custodial wallet. People use wallets normally when they want to store their assets for a long time and want to have control over their own assets and keep them safe. On the other side, exchanges don't provide those facilities. They store your assets for as long as you want, but the reason why people prefer non-custodial wallets is that exchanges are sometimes very vulnerable to hackers. They can easily hack the exchanges, and also, trust and guarantee sometimes come into question as exchanges may run away with your funds. That's why you can go for a non-custodial 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?
The Wallet's nature will tell us if we want to use it for holding money or want to use it for exchanging, by exchanging do you mean giving a wallet to the buyer or sending funds from the wallet to the buyer? I did not understand fully. The question is not right in the first place because it's up to you to decide which is best for you. If you want to hold money for a long time then using a wallet for the container is the option but you have to select a good one.
But if you want to send and receive crypto regularly then the nature of the wallet is also considered. Because you can't use a hardware wallet for exchange and a hot wallet for containing funds. You have to make up your mind first then choose the nature of the wallet and go for it.
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Losing funds from exchange has happened many times so i personally never store much funds in exchange wallet. Moreover exchange wallet is important to me only when i am in a situation like buying or trading currency. If you have a large amount of money then you should definitely use a hardware wallet. But top exchanges can give you some assurance. But i would suggest, if you have a lot of savings then use an offline wallet.
Exchange has never been a better choice for savings. There are various exchanges, where your savings are guaranteed to be safe. But it has hardly been seen implemented. All exchanges are centralized, meaning your portfolio information is stored by a single organization. Decentralized wallets or hardware wallets can be better choices when it comes to savings. But hardware wallets are my first choice when it comes to saving a lot of money. An exchange I use only when I need to buy or sell currency.
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Indeed,
With decentralized wallets, you have total control over your wallet keys and access to your wallet, which of course means that you're the only person who's in control of your wallet and whatever asset that the wallet holds.
All your assets are being stored on a decentralized network, which makes it nearly impossible for hackers to access your funds or steal them, except of course you grant them access by revealing your keys to them.
At any time and any day, decentralized wallets are far better options than Centralized wallets.
Its important thing when saving our assets in decentralized wallet we have own self controlling with our assets not depend on exchange wallet has third party could controlling our assets keep secure or not.
Decentralized wallet we have own self controlling key or seed phrase of our wallet its difference when centralized wallet or exchange wallet when the exchange got scam our assets loss learned what happen with many investor holding their assets in FTX exchange wallet account.
Always memorize, not your key is not your coins how trusted one exchange reputation has opportunity for us loss our assets and better hold it in decentralized wallet.
Yeah, you're totally right! In a decentralized wallet, you are in complete control of your assets and the keys – it’s like having a highly encrypted and secure safe. That way, you don’t have to throw your cryptocurrency into some third-party exchange of your choosing where it may be at risk, as we’ve seen with the FTX exchange. In other words, exchanges can be hacked, go bankrupt, or simply disappear taking your money with them.
“not your keys, not your coins” that statement can really not be overemphasized; if you do not possess the private key to the assets then you do not truly own the crypto. Actually, it is similar to having cash in your pocket and money deposited in a bank and you know that you can withdraw the money at any time but it is different from a bank where sometimes they fail to honor the cheque you make.
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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.
The first option is always the best. The risk in having your fund stored in the exchange is too vulnerable that you can loose it because you're not 100% charge of your Privacies unlike the wallets which your Privacies are at your privacy. So, it's always better to seek fund securities before tradings.
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First option is the best out of the two. You can keep it in there as long as you want without having problems compared to keeping it in an exchange where you may lose your money for something you didn't do that the exchange claimed that you did something that violates their rules. Keeping your crypto in an exchange is not bad but you shouldn't keep it in the exchange for too long. Keeping it in an exchange will help you exchange your crypto much faster.
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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.
The first option is always the best. The risk in having your fund stored in the exchange is too vulnerable that you can loose it because you're not 100% charge of your Privacies unlike the wallets which your Privacies are at your privacy. So, it's always better to seek fund securities before tradings.
I fully appreciate your point of view on that! That is quite true; the first option is indeed the best. Storing money within an exchange may also prove to be dangerous since users do not possess complete control over key, and identification data. It means that you are an easy target for hackers, freezing of funds, and even exchange bankruptcies. Whereas, wallets are more secure and private because you manage your private keys and your money all by yourself. It’s always advisable to place emphasis on the safety of the funds and look for secure places to store them before engaging in trading. I appreciate that you urged the need to incorporate security as a feature
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But top exchanges can give you some assurance.
I don't even think so, i do not trust any centralized exchange or custodial service to store my funds for me, so many reputable exchanges have collpased, gone bankrupt or was hacked. Imagine victims who thought the exchange was a top one and safe, they would have lost their coins before they learnt their lesson.
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But top exchanges can give you some assurance.
I don't even think so, i do not trust any centralized exchange or custodial service to store my funds for me, so many reputable exchanges have collpased, gone bankrupt or was hacked. Imagine victims who thought the exchange was a top one and safe, they would have lost their coins before they learnt their lesson.
There is no guarantee, and I am as sure as you say, it is not recommended to store you funds in existing exchange, but it is wiser to use your wallet. It's true that Binance has provided a guarantee that everything we store there is well insured, so there is no fear like in the experience of many bankruptcies and hacks. So with this guarantee, at least fear cannot be a problem for saving there, but the best advice is to avoid it.
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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.
This is a good correction.
I have a few self custody wallets and I have a few exchanges
Lets say my full family wealth is 530x
200x is in 401k's and bank accounts, bonds
200x is in home
130x is in crypto.
of the 130x in crypto
80x is in wallets I control
30x is in gear to mine
20x is in 4 exchanges
oh I have some stamps and some silver in a safety box say 20x more
Would I ever have 100% of my crypto at an exchange no
Would I ever have 100% of my crypto at one wallet no
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I’ve faced similar decisions before and what worked for me was giving each option a trial run. I’d suggest trying each one out for a bit if you can and see which feels better and safer. For me, it often comes down to which one I feel more comfortable with in the long run. Trust your instincts and don’t rush it—take the time you need to figure out what’s best for you!
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Keeping your crypto holdings on an exchanges is a big no. Me as a newbie before, I thought that this is fine if the exchange is registered and globally known. But it doesn't matter anymore, we saw how FTX debacle took people's money and that's why if you have no plans of spending your crypto then exchanges are not the best place for you to keep. As a matter of fact, you should avoid them and never use as one, this is the reason why we've got hardware wallets and other non custodials.
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But top exchanges can give you some assurance.
I don't even think so, i do not trust any centralized exchange or custodial service to store my funds for me, so many reputable exchanges have collpased, gone bankrupt or was hacked. Imagine victims who thought the exchange was a top one and safe, they would have lost their coins before they learnt their lesson.
There is no guarantee, and I am as sure as you say, it is not recommended to store you funds in existing exchange, but it is wiser to use your wallet. It's true that Binance has provided a guarantee that everything we store there is well insured, so there is no fear like in the experience of many bankruptcies and hacks. So with this guarantee, at least fear cannot be a problem for saving there, but the best advice is to avoid it.
That is BIG talk from Binance and I will not accept that from anyone that Binance has 100% guarantee that your coins are safe with them. This is what all exchange will tell you, or should they tell you to panic for keeping your coins with them it means no one will use such exchange. Binance is not save just the way other exchanges are not safe because they are centralized entity. Not your keys, Not your coins. However, you can leave small amount of money that you can afford to lose in a centralized exchange.
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Keeping your crypto holdings on an exchanges is a big no. Me as a newbie before, I thought that this is fine if the exchange is registered and globally known. But it doesn't matter anymore, we saw how FTX debacle took people's money and that's why if you have no plans of spending your crypto then exchanges are not the best place for you to keep. As a matter of fact, you should avoid them and never use as one, this is the reason why we've got hardware wallets and other non custodials.
Sadly this is what majority of people are doing right now on exchanges. Most of the coins and reserves centralized exchanges show as proof of reserve on their hot wallets is not their money but customers money they keep on the exchange and I wonder if the advice and hint of "not your keys not your coins" is been heard by people that keep their coins on the centralized exchanges.
MT.GOX has started distribution of customers Bitcoin to the affected victim of people that trusted their Bitcoin on their hands while doing custodial service them. FTX is another example that can never be forgotten. Only God knows when there is going to be refund about the coins that were stolen from the FTX exchange.
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If you want to hold your money for a long time, then you should definitely hold the money in a wallet. Because you are in control of a wallet's private key, it has a much lower risk of being hacked. And your money is completely under your control.
But when you hold your money on an exchange, you run the risk of losing it, because you usually don't have control over the exchanges' private keys. As a result, the chances of your money being hacked on exchanges are high.
So if you want to hold for a long time then you should definitely use a cold wallet or hardware wallet, these will keep your money more secure.
And if you want to save money for trading or frequent transactions then you can use an exchange. Because the exchange offers more benefits in terms of trading or frequent transactions. However, you must use a reliable exchange.
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And if you want to save money for trading or frequent transactions then you can use an exchange. Because the exchange offers more benefits in terms of trading or frequent transactions. However, you must use a reliable exchange.
Using exchange to frequently perform transaction is bad idea. Exchange usually charge very high withdraw fee, compared with average TX fee of certain coins. For example, Binance charge 0.000068 BTC (about $3.91) while mempool.space suggest $0.56 (7 sat/vB) for high priority TX.
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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?
Remind this "Not your keys, not your coin". Now do the exchanger gave you any key? the answer will be no . And the centralized-exchanger means the assets has a control by central. And there are a big lists of terms and condition and I am sure that you, me and most of the people don't read the terms and condition and there will always a high probability of breaking their TOS by mistakenly and then your fund will be frigde by them and I think no one wants any control on their fund other 3rd arty.
So use decentralized wallet for holding assets buy hardware wallet for more safety but you can use exchange but that should be for only trade.
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So use decentralized wallet for holding assets buy hardware wallet for more safety but you can use exchange but that should be for only trade.
This is something that all of us should learn and do...most especially those who are just new to the business of cryptocurrency so they won't be making mistakes and be victimized by bad players whose only goal is to get as many money from others and from platforms who are not really working for their users but themselves first and foremost. Again, the thing is that if we don't have the keys then we don't have the control in term of ownership and that others can decide something bad for our assets. Centralized exchanges are playing a big role in the industry but we must not trust and use them as our storage facility...otherwise one can be exposing himself to more risks, unnecessarily.
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everyone should have two or more wallets. that only they control
everyone should have two or three exchanges very little on them.
say
wallet a 1.0 btc
wallet b 0.5 btc
exchange a. 0.010 btc
exchange b. 0.005 btc
ratio is 100 to 1 your wallets to the exchanges
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everyone should have two or more wallets. that only they control
everyone should have two or three exchanges very little on them.
say
wallet a 1.0 btc
wallet b 0.5 btc
exchange a. 0.010 btc
exchange b. 0.005 btc
ratio is 100 to 1 your wallets to the exchanges
You have really highlighted the fact that most of us no matter how much we say to only use hardware wallets but in reality we have to use an exchanger in addition to using hardware. And I am sure most of us use exchangers and keep handsome amount of funds there.
I myself have multiple accounts with many exchangers. Where there is a good amount of funds. Besides holding some other coins including Bitcoin in the decentralized wallet. And I think most people have the ability to use or control more than two wallets and I would also say that the more wallets a holder has, the more secure his funds will be because if the funds are spread, the losses will be less if hacked.
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It's true that Binance has provided a guarantee that everything we store there is well insured, so there is no fear like in the experience of many bankruptcies and hacks. So with this guarantee, at least fear cannot be a problem for saving there, but the best advice is to avoid it.
Who told you that funds you have in binance is insured, insured by who or by what agency?
How many centralized exchanges have collapsed and how many of them have their customers received 100% of their lost funds back. Mt.Gox is refunding customers this year, after more than 10 years the creditors lost their money. If you want your funds insured, keep them in the bank and not in a crypto exchange.
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Who told you that funds you have in binance is insured, insured by who or by what agency?
How many centralized exchanges have collapsed and how many of them have their customers received 100% of their lost funds back. Mt.Gox is refunding customers this year, after more than 10 years the creditors lost their money. If you want your funds insured, keep them in the bank and not in a crypto exchange.
There is no institution whatsoever, but you should read about the SAFU (Secure Asset Fund for Users) owned by binance and has raised around $1 Billion which has now been converted into a USDC stablecoin to maintain price stability.
So, Binance has a guarantee for their users in case of some incident that results in the loss of funds without cause or due to Binance's fault etc.
About MT. Gox, they didn't have that preparation in the past, but now Tier 1 exchanges like Binance, already have a clearer backup plan and will think about the safety and convenience of their customers.
But yes I also agree to keep your money only using the bank and not crypto, but that doesn't mean the bank won't commit fraudulent acts because some incidents of customer money suddenly disappearing and they are not responsible.
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Who told you that funds you have in binance is insured, insured by who or by what agency?
How many centralized exchanges have collapsed and how many of them have their customers received 100% of their lost funds back. Mt.Gox is refunding customers this year, after more than 10 years the creditors lost their money. If you want your funds insured, keep them in the bank and not in a crypto exchange.
There is no institution whatsoever, but you should read about the SAFU (Secure Asset Fund for Users) owned by binance and has raised around $1 Billion which has now been converted into a USDC stablecoin to maintain price stability.
So, Binance has a guarantee for their users in case of some incident that results in the loss of funds without cause or due to Binance's fault etc.
About MT. Gox, they didn't have that preparation in the past, but now Tier 1 exchanges like Binance, already have a clearer backup plan and will think about the safety and convenience of their customers.
But yes I also agree to keep your money only using the bank and not crypto, but that doesn't mean the bank won't commit fraudulent acts because some incidents of customer money suddenly disappearing and they are not responsible.
Binance SAFU funds is just a number and no one have verified it or confirmed that the funds is really there. What do you think they will tell you, it is the same thing that a bank will tell you that they have all customers funds available for withdrawal which is a lie because of all the customers of a bank choose to withdraw all their funds at once, the bank will not be able to pay them and they will come up with excuses that they have limited funds in their reach. If all customers in Binance place a withdrawal on all their funds, it w I'll l shock you that Binance will not give access to everyone for withdrawal. SAFU is just a name and nothing more. There is no guarantee that your funds is safe with Binance if the exchange got hacked and go bankrupt.
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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?
Storing your funds on exchanges will only leave you exposed to risk of loss. You can't tell what might happen any time. So many exchanges have shut down in the past and taken the funds if it's users along side. So to be on the safer side, always store your funds in a cold wallet or any wallet where you control the keys.
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There is no institution whatsoever, but you should read about the SAFU (Secure Asset Fund for Users) owned by binance and has raised around $1 Billion which has now been converted into a USDC stablecoin to maintain price stability.
So, Binance has a guarantee for their users in case of some incident that results in the loss of funds without cause or due to Binance's fault etc.
About MT. Gox, they didn't have that preparation in the past, but now Tier 1 exchanges like Binance, already have a clearer backup plan and will think about the safety and convenience of their customers.
But yes I also agree to keep your money only using the bank and not crypto, but that doesn't mean the bank won't commit fraudulent acts because some incidents of customer money suddenly disappearing and they are not responsible.
I haven’t read much about the SAFU but unless Binance keeps adding to it that amount is nowhere near the amount that would be able to settle it’s customers should incase an unexpected event occurs that leads to the exchange crashing.
They currently holds more than $100 billions worth of users crypto so having $1 billion reserve seems very unlikely to be able to handle issues like we mentioned, but it’s still better than having nothing though.
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There are variables to be considered when deciding on your funds storage which is termed on your investment plans.
For long term investment, hardware wallets as containers in decentralized motives are best safe and secure of your funds while for short term Investment, the centralized exchange is better to execute transactions.
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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?
Talking about the safety of your cryptocurrency, they should be in your custody than in any other person's custody.
The different between the two is very simple; exchanges are been controlled by the exchange owners, and as such, your crypto assets are in their custody, and if mistakenly the exchange got hacked, you will lose everything you hold with them unless if they decide to pay users back which is mostly reare.
If you hold your coin in a wallet you can control, which means you have the private key with you, it is safer than having them in an exchange, and you access them at anytime you wants.
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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?
Money is always safest to keep with yourself. Keeping money on the exchange is full of risks. It doesn't fully secure your money, since now money is more likely to be hacked. And it won't give you complete control over your money.
For long term holdings you must keep money in a wallet, not on an exchange. And always keep your wallet keys safe. Do not share your important keys with anyone.
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For long term investment, hardware wallets as containers in decentralized motives are best safe and secure of your funds while for short term Investment, the centralized exchange is better to execute transactions.
Even for the short term, i do not still recommend storing funds in an exchange, you can use an online wallet for short term needs or if you require a wallet for spending on the go, Electrum or BlueWallet is great for that purpose.
However, if you want to use Electrum for long term storage, then you have to run it in an airgapped device that will be completely disconnected from the internet and never connected to it.
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I think investors are now more cautious about this type of scam because it has been warned everywhere. Checking the link should be done multiple times before we connect our wallet or use information from them. Bookmarks also work effectively in this case to avoid unfortunate mistakes.
People's eye us already opening so they are extra careful in all the transactions they do, and that is the only way they can not be a victim to scam. For the past few years now a lot of people are falling victim to scams and have lost a lot of money because of scam so people that have gotten scammed are sharing experiences for people to be careful and not to be scammed. People are trying to aviod saving anything online, they are actually learning.
It would be terrible if investors had to put real money into the market, trying to spend time and effort to invest and generate profits but end up losing all their crypto assets due to connecting their wallet to a fake site. I usually trust the links provided on Coinmarketcap or Coingecko to avoid fake sites.
When you do a research their are lot off people that have give out their seed phrase just because they were convinced by a scammer, and they also wanted to try it put but now before anybody try anything out they would have ask questions since money is at stake losing money now in this economy is definitely going to be terrible. And their is a lot of fake websites we need to be careful of.
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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?
Exchanges aren't safe places to keep your money, their main function is to convert coins into fiat. All coin-related activities, like trading and P2P platform use, take place within the exchange, and they have access to your money and KYC. The issue is that you never know when something might go wrong and the exchange could be hacked or something else, which would mean you lose all your money. You should only keep coins in exchange for frequent transactions, so in my opinion, keep your assets in standard non-custodial containers (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?
The holder must use a secure wallet to store his assets. Any assets should never be stored long-term on an exchange platform, even a top ranked exchange can be susceptible to hacking. And if any such incident occurs, the responsibility will be assigned to the holder himself. Moreover, by leaving one's wealth to others, one's own authority is not right. A holder should never keep his wealth there if he cannot be 100% sure of keeping it in that particular platform. If there is a small amount of assets then it can be kept in any exchange platform but for long term holding it is better to avoid exchange platform and use a secure hardware wallet.
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Storing your funds on exchanges will only leave you exposed to risk of loss. You can't tell what might happen any time. So many exchanges have shut down in the past and taken the funds if it's users along side. So to be on the safer side, always store your funds in a cold wallet or any wallet where you control the keys.
Yes, indeed, if we talk about storing assets in exchange, it will definitely be very risky. Let alone small exchanges, even top exchanges still have high risks, because they are online. Likewise with other online wallets, the risks are actually the same. However, if we only store a few assets in the exchange and use them as trading assets, that's different. It doesn't matter because it is actively used for trading. But if the profit is getting bigger, it would be better to move some of the assets or withdraw them.
People's eye us already opening so they are extra careful in all the transactions they do, and that is the only way they can not be a victim to scam. For the past few years now a lot of people are falling victim to scams and have lost a lot of money because of scam
And scammers will never stop. Moreover, nowadays it is increasingly varied and seems very natural and original, scammers are getting smarter to attract the attention and trust of potential victims, especially for beginners. In must be very careful because if not, our assets can be lost immediately. Clicking phishing links is also very dangerous, so we have to be careful every time we want to click on a certain link.
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It is very important to keep your cryptocurrencies safe by controlling them by yourself. If you leave them on exchange so exchange can freeze your account and if exchange gets hacked you could lose your all money. But if you store your cryptocurrencies in personal wallet especially in a cold wallet or hardware wallet where only you have key you have complete control and can access your money anytime. This way you will have much less chances to lose your money because of something that goes wrong with exchange.
It is just like you are keeping your money safe at your home instead leaving to someone else. When you control your cryptocurrencies yourself you can really say they belong to you and are safe.
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Not your keys, not your coins. It's more secure to put your crypto in your own wallet. A lot of things can happen to exchanges, as most members have pointed out, and it's not advisable to leave a big chunk in them. It may be easier, but a lot riskier.
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Not your keys, not your coins. It's more secure to put your crypto in your own wallet. A lot of things can happen to exchanges, as most members have pointed out, and it's not advisable to leave a big chunk in them. It may be easier, but a lot riskier.
As long as you are not trading with your funds there is no need of leaving it in an exchange no matter how small it is, only if it is an amount that you can afford to lose. Exchange should be treated like a market place where you but and sell alone and not like a bank where you keep your funds. You private wallet is the best bank so far for storing your coins.