Should you leave crypto on an exchange?
- In short, no. If you leave your cryptocurrency on an exchange, the private keys to your coins are with the exchange which means your coins can be stolen in a hack. Conversely, if you keep your private keys, your coins can't be stolen if an exchange is compromised.
So where should you store cryptocurrency?
- The best place to store cryptocurrency is in a cold storage wallet like Ledger, which is like a flash drive that is specifically designed for the encrypted storage of cryptocurrencies.
Are you still invested if you move your cryptocurrency from an exchange to cold storage?
- Yes, you are still invested! You have complete ownership of that cryptocurrency because you removed that asset from a centralized exchange to your own wallet. Your own cold storage wallet allows you to have control of the keys, without the middleman.
- Just remember, with great power comes great responsibility. If you take your private keys off an exchange, you’ll be responsible for keeping your coins secure. If you store your crypto on a hardware wallet, your crypto is safe from hacking attempts but you’ll still need to keep the wallet itself secure so that it doesn’t fall into the wrong hands.
