A wallet as a container of money or exchange?

[lepbagong]

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.

[philipma1957]

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

[Hridoy7788]

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!

[bhadz]

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.

[Sim_card]

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.

[Gurujebs]

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.

[Ricardo11]

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.

[ABCbits]

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.

[Crypto Library]

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.

[TomPluz]

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.

[philipma1957]

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

[Crypto Library]

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.

[Z-tight]

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.

[taufik123]

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.

[Sim_card]

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.