Wallets vs. Exchanges: Understand The Difference

[nomad]

A lot of people are confused between crypto wallets and exchanges. Crypto wallets and exchanges are entirely different things even though you can do similar things on these platforms. For instance, you store your assets, convert your assets, and even buy assets on exchanges as well as wallets. However, both wallets and exchanges cater to different needs. Wallets are basically for holding your crypto assets, for secure storage and self-custody. Whereas exchanges function as trading platforms. What should you choose depends on your purpose, whether you want to store or trade.

 

[Stardom22]

For me l would like to store my crypto currency and trade them in one place. I think the crypto exchanges is a great fit for me as it multitask the whole thing.

 

[Suba]

I use both, both private wallets and crypto exchanges, I also keep a certain amount on the exchange mainly for trading. Meanwhile, for crypto stores, for daily and long-term transactions, I use a crypto wallet.

 

[timewo]

In some countries the government agencies are blocking only the urls of the exchanges like Binance, they are not blocking urls of the wallets and less popular exchanges in the country.

 

[Stardom22]

For me l am very skeptical about the
whole thing about the Crypto currency.
Although this seems very simply to simple understand , that is the exchange for selling or buying crypto coins while the other one deals with the storing for crypto currency.

 

[Nite]

Wallets are like digital safes where you can securely store your cryptocurrencies, while exchanges are like online marketplaces where you can buy, sell, and trade different cryptocurrencies. It's important for people to understand the differences and choose the platform that best suits their needs and preferences.

 

[Etini Willie]

It is not always advisable to keep too much crypto coins in exchanges apart from the amount you are actively using to trade. But wallets are more secure.

 

[Suba]

Although currently storing crypto on exchanges is increasingly safe, because many well-known exchanges such as Coinbase, Binance, etc., have insured user funds, so that if a hack occurs it will be safer, unless you lose your crypto as a result of your mistake.

 

[saoussen5765]

It is not always advisable to keep too much crypto coins in exchanges apart from the amount you are actively using to trade. But wallets are more secure.

It depends, if you are P2P trader on this platform you could leave your money there as you are doing P2P trading and exchanges on the platform for example.

 

[Suba]

When we store crypto on an exchange, selling/buying transactions with local fiat money will be faster and more efficient, but storing large amounts for the long term is not a good idea, because it is easy to find out and the government can also block user accounts. Meanwhile, if we store large amounts of crypto in a private wallet, no other person or party can access it.

 

[Nite]

Storing large amounts of crypto in a private wallet is generally safe. By holding your own private keys, you have full control over your funds and aren't reliant on a third party to keep them safe.

 

[saoussen5765]

Storing large amounts of crypto in a private wallet is generally safe. By holding your own private keys, you have full control over your funds and aren't reliant on a third party to keep them safe.

It is not true since the keylogger could compromise it because the internet is full of hackers and bad people who could scam you in the middleware.