When you store your cryptocurrency on a crypto exchange, you are trusting the exchange to keep your assets safe. Unfortunately, if the exchange is hacked or stolen, your cryptocurrency could be gone forever. Furthermore, leaving your cryptocurrency on an exchange does not give you full control over your private keys and therefore leaves you vulnerable. Better options are to use a custodial wallet or a self-hosted wallet, such as a paper wallet, active wallet, cold wallet, or hardware wallet.

Storing cryptocurrencies on an exchange is convenient for trading but outside of this everything else is a danger. The most common risks when storing your cryptocurrency on an exchange are bankruptcy of the exchanges and hacking attempts. It is well known and there are countless examples that exchanges are a popular target for hackers and if the exchange is hacked you could lose all of your digital assets. It's also important to note that you don't actually own the private keys to the coins you store on an exchange. This means that if something happens to the exchange, you may not be able to access or recover your crypto assets without the help of a third party.

Source: https://metaverso247.com

Cold storage wallets are the most secure method of storing cryptocurrency and allow you to store larger amounts of cryptocurrency than exchange wallets. Storing your cryptocurrency on an exchange wallet is blindly trusting a provider that can take your cryptocurrency if it becomes insolvent or hacked, so it's best to store smaller amounts on them and keep most of your holdings in a more secure wallet. Trading on exchanges, although necessary and essential, also has its "dark side" by exposing traders to greater risks than if they keep their cryptocurrencies in cold storage. Exchange wallets do not provide enough security (that's for sure) and high frequency traders can quickly lose money if their funds are held on an exchange for too long.

The exchange that is responsible for the wallet will never be able to offer the same level of security as hardware and paper wallets that are specifically designed to store cryptocurrencies with a high level of security. Self-custodial investors who store their cryptocurrency offline are less prone to the risk associated with exchange-based wallets. Offline storage methods such as hardware wallets, flash drives, and paper wallets offer an added degree of security by keeping cryptocurrencies away from hackers who may target exchanges. The most secure method is to use a combination of these devices and paper wallet methods.

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Storing your cryptocurrency funds on an exchange puts you in a position of insecurity, since you are entrusting your money to a third-party business. If the exchange's servers get hacked or the wrong person gains access to your account, it could lead to the theft of your digital wallet. Another risk is that you may lose access to your funds if you forget or lose your password and cannot recover it or are banned from trading. Also, when sending cryptocurrency from an online exchange, there is no guarantee that the funds will end up in the correct wallet address; once sent, there is no way to get them back and they could end up in the wrong wallet.

With all the events that have occurred recently, it is more than proven that users are exposed to great dangers associated with storing cryptocurrencies in an exchange wallet, using a cold storage wallet or a hardware wallet to protect crypto assets is the solution, in my opinion, more commendable.

Tools, Platforms & Applications:

• Ledger | BixBox02 | Ellipal Titan | Keystone - Some of the best Hardware Wallet or Cold Wallet you can buy.  🔐💰 Protect your crypto assets 
• CoinMarketCap - The world's most recognized website for monitoring crypto asset prices with several very interesting sections (Indispensable tool for traders).
• TradingView - Charting platform and social network (Indispensable tool for traders).
• StormGain - Cryptocurrency Exchange - Very useful especially for beginners because they can start without investment and without risking their own money. The capital is acquired with the Bitcoin Cloud Miner. Go to the Bitcoin Cloud Miner section, click the green Activate button to get your first mining reward, repeat the operation every 4 hours, withdraw when you reach $10 (in BTC). The capital obtained in mining will be used only to invest in the platform, the profits obtained by the operations if they are withdrawable to the portfolio of your choice.
• QuantFury - Cryptocurrency Exchange - After registering, you receive free cryptocurrencies or a share of a company (such as American Airlines, Uber, Apple or directly Bitcoin or Ethereum) worth up to $250. Use Invitation code: JRRU2593
• CoinInn - Cryptocurrency Exchange - Upon registration you receive a bonus between $500-$750, non-withdrawable, only for trading, valid for 6 days, profits are withdrawable to the portfolio of your choice.
• KuCoin | BingX | CoinEX | MoonXBT | BiBox - Cryptocurrency Exchanges (After registering on the platforms you begin to receive different types of bonuses).

Note: The bonuses offered by different platforms tend to vary over time, I recommend doing your own research.

"You will ask yourself: And if I take a risk and lose...? I will ask you: AND IF YOU RISK AND WIN? Success begins with thought, because sooner or later the man who wins is the one who believes he can do it. Do not be afraid of mistakes or failure, winners are not afraid of losing, losers are, in most cases the risk comes from not knowing what you are doing, so trust yourself, learn, be patient, manage your emotions and above all, enjoy the journey, what the wise man does at the beginning, the fool does at the end" - Anonymous.

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Author's Note: The opinion expressed here is not investment advice, is provided for informational purposes only, and reflects the opinion of the author only. I do not promote, endorse or recommend any particular investment. Investments may not be right for everyone. Every investment in the market and every trade you make involves risk, so you should always do your own research before making any decision. I do not recommend investing money that you cannot afford to chair, as you could lose the entire amount invested.