Is it safer to keep coins on exchanges or in wallets?

The question of whether it's safer to keep coins on exchanges or in wallets has always been a topic of great concern.

From the perspective of exchanges, keeping 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 at any time. However, exchanges come with numerous risks. Take FTX as an example; once an exchange collapses, users may face losses. Exchanges may fail to protect user assets due to issues such as poor internal management, technical loopholes, or broken capital chains.

Now looking at wallets, whether cold or hot, assets are stored on the blockchain network. Through mnemonic phrases, users can have control over their virtual currencies. In this way, users have more direct control over their coins, avoiding risks that come with exchanges. However, wallets are not foolproof either. Poor password management and cybersecurity threats can lead to wallet theft.

So, is it safer to keep coins on exchanges or in wallets? This requires a comprehensive consideration of various factors. The advantage of exchanges is their convenience and strong market liquidity, while wallets emphasize user autonomy and security.

For ordinary users, choosing between an exchange and a wallet requires caution. If choosing an exchange, one should select a reputable and reliable exchange, such as Binance, and keep an eye on its updates. If choosing a wallet, it is important to strengthen password management and ensure the safety of mnemonic phrases. It is still advisable to choose an exchange, as major exchanges are now regulated; even in the event of a crash, they will compensate users, so avoid untrustworthy exchanges.

Click on the avatar to view the homepage and follow me. Join the free communication community where I share various potential coins daily, helping you find hidden gems that can yield substantial profits in this bull market.