Quote from: HelliumZ on Today at 01:53:01 PM

Quote from: MarvinHagler on June 13, 2024, 04:52:23 PM

If you had a large amount of cryptocurrency would you prefer to keep it on an offline cold wallet or an online cryptocurrency exchange?

Both have pros and cons.

I'm interested to hear the thoughts of others.

Undoubtedly, exchange wallets are much more risky than cold wallets. In particular, the access to the cold wallet can only be taken by the owner of the wallet, no other third party can take access to the cold wallet. So there is no risk in keeping Cryptocurrency in cold wallet. But if you keep cryptocurrency in the exchange wallet, the exchange authority can take access to that wallet apart from the user, so the cryptocurrency remains at risk for the user. So I am currently more interested in using cold wallets than exchange wallets.

Cold wallets also have risks. Your cryptocurrency can still be attacked by hackers if you don't know how to preserve your cold wallet's private key/seed phrase. If your seed phrase is leaked, someone will also have access to your cold wallet, or worse, you will lose access to your assets if you lose your seed phrase. Everything has its own risks and the safety of your assets is up to you, not just using a cold wallet means your assets become inviolable.

But using cold wallets will be a more perfect choice because we have full control over our assets, whereas if we store them on centralized exchanges, we will lose some authority over our assets making it unsafe.