There are very few people that keep their coin on exchange for trading, most of the newbie keep their coins on exchange for holding and some old users also do this. We have many people staking their coins on exchanges which is why exchange have so many coins in their wallets. For traders, using exchange to store their trading capital, they already know that they're risking their coins.
But for individuals thinking exchange are the best place to hold their coins, they're the individual this post is focused on because they would regret choosing exchange over personal wallets when the exchange disappears with their coins or collapse due to hacks.
You are 100% correct, buddy. Saving or storing coins in exchanges is acceptable particularly in highly regarded and safe exchanges like Binance and Coinbase.
It is acceptable until you find the exchange got hacked and you are unable to recover your fund due to the severity of the exchange losses. It is still wise to keep our funds away from third-party control. We never know when the things gets rough so better to have a full control of our funds.
I maintain my money in exchanges for a number of reasons.
- I have to engage in active trading across various coin pairs.
- On occasion I must purchase a coin quickly and send it from my savings wallet to the exchange which could take some time.
This is a good reason to keep our funds in exchange since we have our funds on them due to trading. At least there is a good reason and that is for trading.
- Recently, there have been problems with withdrawal fees especially with Bitcoin.
We can always convert our funds temporarily to other established cryptocurrency just to make sure that we have full control of our funds, then we can just convert it again when the fee gets lower.