Exchanges store funds in their own wallets – around 90% in a cold (offline) wallet if they know what they’re doing. Like a bank, their own ledger keeps track of who owns what, so they don’t have to create a transaction on the blockchain whenever you make a trade.
Read moreWhat is an exchanger wallet?
The Exchange Controls the Wallet’s Private Keys In other words, it’s sort of like the exchange storing your Bitcoin in their own wallet and giving you access via an account . You don’t actually have the Bitcoin in your own wallet that you fully control, as you would with a traditional Bitcoin wallet.
Read moreHow do crypto exchanges manage wallets?
Exchange Wallet Security and Precautions
Read moreHow do wallets and exchanges work?
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.
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