If you have purchased cryptocurrency, you are ready to move on to learning about cryptocurrency wallets!
Where you ultimately store your Bitcoin or other cryptocurrencies will depend on a variety of factors and an individual’s unique needs and tastes.
If the plan is to simply buy and hold cryptocurrencies for the long-haul, the safest and most highly recommended storage method is via a cold storage hardware wallet.
A web-based hot wallet located at a reliable exchange may be sufficient for this type of user, depending on the total value of cryptocurrency held.
If the plan is to trade crypto assets on an exchange for profit, then the only option is storing assets directly on the platform itself.
However, there is added exposure to the risk of hacks or other issues associated with storing assets on an exchange. Ensuring any platform is trustworthy and secure is paramount to crypto storage safety.
As a general rule, if the private keys aren’t yours, then the assets technically aren’t either. Bitcoin and other cryptocurrencies are about individual ownership and decentralization.
Storing assets at centralized exchanges leaves them susceptible to seizure by the jurisdictions these exchanges operate within.
It is this rule as to why cold storage wallets are considered the safest and most secure options.