In this article we will explain every type of factor that will help you to identify whether it is better to keep all the funds or crypto assets at trading Exchange or not.
Wallet Or Exchange Which Is Better?
To keep all the funds at one place, we have many options like cryptocurrency wallet, hardware cryptocurrency wallet, Exchange etc.
But most of the people like to put their funds or crypto assets at cryptocurrency exchange websites.
No doubt at exchange we can easily trade with our assets and can multiply our initial investment in the cryptocurrency field.
But beside this benefit there exists one risk, which is hacking.
In the present time security of trading Exchange is much secured but still we can’t wait for something bad for future.
Everyone in this world wants safety and security with their earnings.
So it always remains better to keep the funds in a wallet instead of trading cryptocurrency Exchange.
How Much Risky To Hold Fund At Exchange Wallet?
As already explained in the above paragraph that Cryptocurrency Wallets are more secure then Exchange Wallets. But still in many situations a condition arises for the traders to hold assets or crypto funds at Exchange.
So here we need to explain the risk % to hold funds in the Exchange wallet.
Most of the popular Cryptocurrency Exchanges have insurance under the SEC.
If hack or something went wrong with the fund at the Exchange than SEC will give compensation of that loss.
So it is not going to be very risky to hold crypto assets at crypto Exchange.
But still a main point that we should keep in our mind,that only a particular percent of the loss amount will be compensated by the insurance company not all.
So we always remain ready to face such a type of situation under fund loss.
In the cryptocurrency history the biggest hack was cryptopia Exchange, Since the team of Cryptopia Exchange claimed that they will give refund but it took around three year but no one received his money yet.
Manage Fund Between Exchange And Wallet
Since it is a boundation for small traders to keep funds at Exchange because transaction fees may reduce a big percentage of earnings.
But here big traders can manage their crypto assets between crypto Exchange and Crypto wallet easily.
Usually big buyers in this field of cryptocurrency hold funds for one to two years. So it remains better to keep their funds in the wallet. And a small amount of money they can put at the Exchange for day trade.
In actual practice, this is true that big whales always prefer to keep funds in official wallets for a long time. Because big whales always aim for big profit instead of 10-20%.
For small traders we always suggest that don’t go with multiple Exchange trade because transaction fees can reduce profit.
Best Exchanges That Have Insurance
The biggest and best Exchange in the present is BINANCE. Since BINANCE was hacked in 2018 but they refunded the balance to their users. But there are few chances in future, so we need to remain careful.
Beside all these things, we should not forget this fact that in the present time BINANCE is the most secure Exchange than any other Exchange.
Other best Exchanges that are secured and also have insurance are Bittrex ,Coinbase , Crypto.com, Coingecko etc
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