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Author: Admin | 2025-04-27
To your own cryptocurrency wallet. This essentially means that the exchange is responsible for security. If the exchange is ever hacked or compromised, your crypto could be at risk. At the same time, reputable exchanges have top-notch security and pour millions of dollars into preventing hacks and exploits. As long as you choose a trusted exchange, your crypto will be safe.However, if you go this route, make sure to set a very strong password for your exchange account. If someone gains access to your account, they can transfer out all your crypto assets. Storing crypto with your own walletThe alternative to storing crypto on an exchange is to transfer it out to your own crypto wallet. In most cases, you will still buy the crypto through an exchange, but you’ll then transfer it to a separate dedicated wallet. This essentially shifts the security burden from the exchange on to you. For this reason, this is mostly recommended for experienced crypto holders and those with large amounts of capital invested in crypto. There are a few different types of cryptocurrency wallets:Hardware wallets: These are devices that store cryptocurrency offline. They often look like small USB thumb drives and can cost around $100 — but they are widely considered to be the most secure way to store crypto. These are considered “cold wallets” because they are not connected to the internet. Software wallets: These are services, apps, or websites that store cryptocurrency online. They can be web-based (browser extensions such as MetaMask), desktop applications (such as Electrum), or mobile apps (such as Blockchain.com’s app). These are often called “hot wallets” or “online wallets” because they are connected to the internet and so may be more at risk of certain exploits or hacks. Paper wallets: These are an old-school solution to a very
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