Is it safer to keep money in an exchange or a wallet? This is worth discussing!
You see, putting coins in an exchange is like depositing money in a bank; it's convenient and quick for trading, and buying and selling operations are smooth. But let's face it, exchanges are not impenetrable safes; they come with risks.
If one day the exchange collapses, your coins might just go down the drain with it. The reasons behind this could be internal management issues, technical vulnerabilities, or a strained financial chain. In short, the security of users' assets cannot be guaranteed 100%.
Now looking at wallets, whether it's a cold wallet or a hot wallet, your coins are securely resting on the blockchain network. With a mnemonic phrase, it's like having a powerful sword; the control over your coins is direct. This way, the risks associated with exchanges are kept at bay. However, wallets also have their own dangers; if the password isn't managed well, or if there's a network security issue, the wallet could potentially be hacked.
So, should you keep your assets in an exchange or a wallet? This is something to think carefully about. The advantage of exchanges is their convenience and good market liquidity; wallets, on the other hand, focus more on user autonomy and security.
For us ordinary users, whether to choose a wallet or an exchange, the key is stability. If you choose a wallet, you should pick one that has a good reputation and is reliable, like Binance, while keeping an eye on its activity. If you opt for a wallet, you must manage the password well and keep the mnemonic phrase safe to avoid attracting thieves.
Overall, I still think choosing a large exchange is more reliable. The four major exchanges are under regulatory oversight, so even if something goes wrong, there will be some explanation, and you won’t lose everything. We should keep our distance from those rogue exchanges to avoid being scammed!
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