Never Leave Your Cryptos On A Centralized Exchange Long-term

Never Leave Your Cryptos On A Centralized Exchange Long-term
Published: 
March 27, 2019
Cryptocurrency exchanges play a very important part in the world of crypto that we see today. It is for that very reason, that we must interact with them very carefully when our coins and tokens are in question.


Without some type of exchange. It would be very difficult for some people to accomplish the goal of trading their crypto assets. So it is clear to see why they are so significant.


Although exchanges are great for fast day-to-day trading. They should only be used for that purpose, and not as a place for the storage of your assets over a long period of time. You may on some occasions, need to leave your crypto on an exchange for some types of trading, but this should only be on a short-term basis.


Leaving your crypto assets on centralized exchanges such as Coinbase, Binance, KuCoin and OKEx long-term, is not a good idea for some of the following reasons:

1. You do not really owner your assets outright, since you do not have the private keys.

2. At anytime a centralized exchange could close down, cutting off all access to your investments.

3. Centralized exchanges will have rules and regulations that you must follow at all times, if you intend to keep your cryptos on them.



Kucoin


OKEx

So now that we have established that centralized exchanges are not the best place to store your crypto assets long-term. We must now find a solution to this storage problem.


The best solution at present are Crypto Wallets. These come in many forms, such as the following:

Web Wallets

Mobile Wallets

Desktop Wallets

Hardware Wallets


Web Wallets such as MyEtherWallet, are hot non-hosted wallets that allow the user to store and access their crypto assets online.

Mobile Wallets such as the Ethos Universal Wallet, are very popular since they are mobile based so you can take them anywhere very easily.

Desktop Wallet such as Exodus are wallets that can be installed on your computer. Many cryptocurrency companies such as EOS and Cardano also have a version of their own desktop wallet.


Exodus Wallet


Now we come to the best solution for storing your cryptos. This comes in the form of what is known as a Hardware Wallet. Hardware Wallet such as Ledger Nano S and Trezor, are off-line devices made especially for managing private keys and public addresses.

These devices resemble a USB and normally have an on screen display interface with navigation buttons. That allows the user to manage their cryptos by means of desktop Apps. A Hardware Wallet is the most expensive solution but is also the most secure. They are normally priced between $70-$330, but if security is your main concern then this will be money will spent.