I have been keeping my cryptocurrencies (I still don't have many, unfortunately) on the Binance exchange.
What type of virtual wallet do you use? And what are the best ways for me to keep my cryptocurrencies safe?
Sorry if it seems like a stupid question, but even though I reasonably understand crypto, I'm still taking my first steps with bitcoin.
Binance is a centralized exchange in which you do not have full control of your asset, should anything happen to the platform your funds will be lost, there are also other restrictions that exchanges have. Using an exchange to keep funds is like leaving your stuffs in a marketplace.
The best form of holding or storing your coins is to be your own bank that’s keeping your funds in self custodial wallet, there you have your wallet keys to yourself; not your keys not your coins.
Now there are many type of custodial wallets but the best is the open source wallets and also an offline wallet like an hardware wallet or an airgapped wallet set with any software wallet.
Here is break down of wallets and categories you can choose from
For privacy: use bitcoin core and run your own node.
For cold wallet; you can use hardware wallet (Trezor or passport) or an airgapped device with electrum as the wallet
For hot wallet: use electrum, BlueWallet and Sparrow (they have both mobile and desktop versions)