What should I do now? Should I move the coins to their DeFi wallet? They are terming the old wallet as "private key wallet". I have the private key for this wallet with me. Should I just keep my coins in the old wallet? Which one is safer?
If they could move your coins without your knowledge to a different wallet that they basically created for you then they still have access to those bitcoins and can move it to any wallet they want without your consent again. Safety is primarily based on you having total control of the wallet.
Thanks. These are really helpful. I am still thinking about my options here. May need a few days or even a few weeks to think about them and finally make a choice.
I am seriously thinking about going for a hardware wallet. But not finalized as of yet.
It shouldn’t be something you delay further, go for the non-custodial wallet. For a long term choice it should be cold storage. Either hardware wallet or any hot wallet like electrum on an airgapped device. To me if you don’t have an airgapped device or know how to set the offline wallet up, go for hardware wallet which is open source