Cryptocurrency storage: Wallet vs. Exchange, a trade-off between security and convenience
Control and security:
Exchange: Private key custody, vulnerable to hackers and internal problems. Wallet: Private key self-management, high security, especially hardware/cold wallets have almost no risk of cyber attacks.
Privacy protection:
Exchange: Identity verification is required, and privacy is easily leaked. Wallet: Transactions are anonymous, especially decentralized wallets, which protect privacy.
Transaction convenience:
Exchange: One-click buying and selling, suitable for frequent traders. Wallet: The operation is cumbersome and requires manual confirmation, but it is safer.
Backup and recovery:
Exchange: No need for users to worry about, there is customer service support. Wallet: Private key self-management, need to back up by yourself, and assets are difficult to find if lost.
Summary:
The key to choosing a wallet or an exchange lies in your needs. If you value transaction convenience, choose an exchange; if you seek security and privacy, a wallet is better. No matter which one, understand the risks, take safety measures, and let the cryptocurrency increase in value safely.
