Tag: Crypto wallet

While there are other ways to purchase crypto, many people acquire crypto on cryptocurrency exchanges. Upon making a purchase, the cryptocurrency you acquired is automatically stored in your exchange-hosted wallet, which is typically custodial, meaning the exchange has control of your private keys .

Definition. A cryptocurrency wallet refers to a program that allows an investor to store all their cryptocurrency. On the other hand, a cryptocurrency exchange refers to a website or service where one can sell or buy digital currency or convert fiat currency into digital currency.

Exchanges are considered the least secure venue to store cryptocurrency , while offline wallets are the safest. But there’s a trade-off between the ease of entering and exiting positions and the security of your holdings.

Store Your Assets in an Exchange Some exchanges will store your cryptocurrency within their infrastructure, essentially making them a hot wallet provider .

As mentioned previously, it is not wise to keep large amounts of cryptocurrency in any hot wallet, especially an exchange account . Instead, it is suggested that you withdraw the majority of funds to your own personal “cold” wallet (explained below). Exchange accounts include Coinbase, Gemini, Binance, and many others.