Is it safer to keep coins on an exchange or in a wallet?

Whether it is safer to keep coins on an exchange or in a wallet has always been a topic of great concern.

From the perspective of exchanges, putting coins on an exchange is like depositing money in a bank. In the exchange's wallet, transactions are convenient and quick, allowing for buying and selling operations at any time. However, exchanges carry many risks. Taking FTX as an example, once an exchange goes bankrupt, coins may incur losses. Exchanges may fail to ensure the security of users' assets due to poor internal management, technical vulnerabilities, financial chain breaks, and other issues.

Looking at wallets, whether cold or hot, assets are stored on the blockchain network. Through mnemonic phrases, users can control their virtual currency. In this way, users have more direct control over their coins, avoiding risks that may arise from exchanges. However, wallets are not foolproof either. Poor password management, network security threats, etc., can lead to wallet theft.

So is it safer to keep coins on an exchange or in a wallet? This requires considering multiple factors. The advantage of exchanges lies in ease of operation and strong market liquidity, while wallets focus more on user autonomy and security.

For ordinary users, choosing between an exchange and a wallet requires caution. If choosing an exchange, select a reputable and reliable one, such as Binance, and pay attention to its dynamics. If choosing a wallet, strengthen password management and ensure the security of mnemonic phrases. It is still advisable to choose an exchange, as major exchanges are now regulated, and even in the event of a crisis, compensation will be provided. Avoid choosing unreliable exchanges.