Cryptocurrencies are all the rage right now. Everyone is talking about Bitcoin, Ethereum, and Litecoin. If you’re like most people, you’ve probably invested in a few cryptocurrencies yourself. But what do you do with them? Do you keep them on exchanges? Or do you put them in a wallet? This blog post will discuss the pros and cons of keeping your cryptos in a wallet vs. on an exchange.
Benefits of keeping cryptos in a wallet
There are a few reasons why you might want to keep your cryptos in a wallet. First of all, it’s more secure. When you keep your cryptos on an exchange, you trust that the exchange will save your money safe. But exchanges have been hacked before, and people have lost their money. If you keep your cryptos in a wallet, only you can access them. They’re much less likely to be stolen.
Another reason to keep your cryptos in a wallet is that it gives you more control. With an exchange, you’re at the mercy of the exchange’s rules and regulations. But if you keep your cryptos in a wallet, no one can tell you what to do with them. You’re in complete control.
The final reason to keep your cryptos in a wallet is that it’s easier to use them. If you want to buy something with cryptocurrency, you usually have to go through an exchange. But if you have your cryptos in a wallet, you can send them directly to the person or merchant you’re trying to pay.
Disadvantages of keeping cryptos in a wallet
There are also a few reasons why you might not want to keep your cryptos in a wallet. First of all, it’s less convenient. You can leave your money there and forget about it with an exchange. But if you keep your cryptos in a wallet, you must remember to back up your wallet and keep it safe. Otherwise, you could lose your money.
Another reason to keep your cryptos on an exchange is that it’s more liquid. If you want to sell your cryptos, you can just put them up for sale on an exchange, and someone will buy them from you. But if you have them in a wallet, you need to find someone who wants to buy them from you. This can be difficult and time-consuming.
The final reason to keep your cryptos on an exchange is that exchanges usually offer more features than wallets. For example, most exchanges allow you to trade cryptocurrencies, whereas most wallets do not. Exchanges also usually have better customer support than wallets.
Best wallets to keep your crypto
Now that we’ve discussed the pros and cons of owning your cryptos in a wallet, you might be wondering what kind of wallet you should use. Here are a few of our favorite wallets:
- Coinbase Wallet: This is one of the most popular cryptocurrency wallets. It’s easy to use and supports a wide range of cryptocurrencies.
- Exodus: This is another popular option. It’s free to use, and it has a beautiful interface.
- Mycelium: This is an excellent option for more advanced users. It’s more technical than some other wallets but also very powerful.
No matter which wallet you choose, do your research before sending any money to it. There are many scams, and you don’t want to lose your hard-earned money.