Where to Store Your Cryptocurrency – Exchanges or Wallets?

When it comes to deciding where to store your cryptocurrency, you have two main options: exchanges or wallets. Each option comes with advantages and disadvantages that you should consider if you want to make the right choice. Most exchanges offer a wallet service as part of their platform. In other words, they store your cryptocurrency for you. There are, however, some security risks involved in this approach. It’s always best to keep your digital currency in a personal wallet that you control. In that case, your funds will be safe even if the exchange is hacked. Demerits of Using Exchanges to Store Your Cryptocurrency While exchanges are a convenient way to buy and sell cryptocurrency, they are not the most secure option for storing your digital assets. Exchanges are often targets of hackers, and even when they are not, there is always the risk that the exchange could become insolvent and you would lose your funds. Another downside of using exchanges is that they typically charge fees for each transaction. Besides, these fees can add up over time and eat into your profits if you are a frequent trader. Additionally, many exchanges tend to restrict the amount of money you can withdraw from your account daily. It can be an issue if you need to access your funds right away. How Wallets Work to Secure Your Cryptocurrency When you store your cryptocurrencies in a digital wallet, you are essentially entrusting the security of your c...