Post
Topic
Board Bitcoin Discussion
Merits 1 from 1 user
Re: Storing your Crypto in Exchanges is better than using Cold Wallets!
by
Aveatrex
on 13/09/2020, 22:19:38 UTC
⭐ Merited by vapourminer (1)
For instance 8% APY on your USDT is something that is seriously worth more than just additional "security" which is not really a true security because you are relying on a centralized private company such as Ledger.com and people seem to forget that .... Netscape was also a great success in its early days but around 2003 it almost disappeared and today almost no one is using it.

Ledger users are relying on Ledger.com just to provide technical support, but it's not "centralized" in a sense that they don't hold user's private keys and thus coins. Anyone using a Ledger wallet have *100%* control over their coins, and even if there is technical problems on Ledger's side, the users can choose to switch their wallet to another one as long as they hold their private keys/mnemonic phrase. You can't do that with an exchange. If an exchange gets hacked, technical issues,bankrupt exit scams or whatnot chances of you losing completely your coins are high.

Netscape was also a great success in its early days but around 2003 it almost disappeared and today almost no one is using it.

That's really a bad comparison... Netscape almost disappeared today simply because there are better alternatives, without talking about the fact that it had major vulnerabilities..

The first main reason is that exchanges pay you an interest rate on your Crypto whilst cold wallets pay none.

In exchange, users have to provide their KYC information while cold wallets there is no personal information to provide. Is it worth it? Definitely.



To summarize, Storing your coins in an exchange is probably the worst thing you can do in the crypto world for these main reasons:

1- KYC/AML
2-Can we count how many exchanges got hacked and how much money have been lost?
3-No control over your coins
4-Outrageous withdrawal fees at times
5-Less security