Moneyweb Crypto Should you keep your crypto with your exchange?
Jul 3, 2024
Kriyan Singh, co-founder of CoinEd and project manager for distributed ledger technology at the CSIR, offers deep insights into cryptocurrency storage. He discusses the risks of keeping crypto on exchanges, using notable hacks as cautionary tales. Singh navigates the debate between self-custody and the pros and cons of various wallet types, from hot to cold. The conversation also covers the importance of managing private keys and the critical aspect of securing crypto inheritance, providing essential tips for responsible asset management.
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Self-Custody Advice
- Move crypto to self-custody for long-term investments.
- Consider costs; hardware wallets are expensive, so software wallets might be better for smaller amounts.
Risks of Self-Custody vs. Exchange
- Self-custody requires technical knowledge for security, like backing up recovery phrases.
- Exchanges offer better security for smaller, less critical amounts, especially for less tech-savvy users.
Hot vs. Cold Wallets
- Hot wallets (browser-based, mobile apps) are always online, posing higher risks.
- Cold wallets (hardware, paper) are mostly offline, offering better security.