
For most people, the preferred way to store their bitcoins and other cryptocurrencies is the exchange wallet, i.e. the wallet of the same exchange from where they originally purchased the coin.
This is okay as long as you are not investing a huge amount in cryptocurrencies. Otherwise, cold crypto storage is a better and more secure way of storing your cryptocurrencies.
Unless you are investing heavily in cryptocurrencies or have a huge amount of bitcoins or other valuable coins, you can keep storing them in the default exchange wallet or any other digital crypto wallet. The reason I am saying this is that the exchange-based or standard crypto wallets are not very secure.
They employ only the bare minimum security mechanisms, including password protection, 2FA, etc. These wallets can be hacked. In fact, there are many cases where exchange wallets were hacked and cryptos were installed.
Cold storage comes as a much more secure alternative to digital crypto wallets.
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