Question and Answer, explaining the difference between keeping assets on trading platforms like Binance, and external storage in cold wallets:
❓Q/A: Should I leave my coins on the platform? Or transfer them to a cold wallet?
🔹 Question: If I buy cryptocurrencies on Binance, should I leave them on the platform? Or do I need to transfer them to a private wallet?
🔸 Answer: It depends on your goal and how aware you are of the importance of security.
📍 Storage on the platform (like Binance):
✅ Suitable for active traders
✅ You can buy and sell easily
✅ The platform offers strong protection (like 2FA, encryption, email verification…)
❗But:
❌ You may be vulnerable to hacks or freezes in rare cases
❌ You do not own the private keys of the coins
🧊 Storage in a cold wallet:
✅ The best option for long-term security
✅ Not connected to the internet, making it immune to hacks
✅ You own the private keys, and have full control over your funds
❗But:
❌ Requires caution in storage and not losing the recovery phrase
❌ Less convenient for daily trading
📌 Summary:
If you are trading continuously: Keep a portion on the platform
If you are investing for the long term: Use a cold wallet
The currency for which you do not hold the keys… is not fully yours.