If you own and trade in crypto, where you store it matters. While crypto exchanges like Mybitstore provide an easy way to buy and sell crypto, storing your crypto assets on an exchange long-term is not always the safest option. Instead, using an external wallet such as a hardware or software wallet gives you more control and security over your digital assets.
Security Risks of Keeping Crypto on Exchanges
Crypto exchanges are convenient, but they are also prime targets for hackers. Over the years, several major exchanges have been hacked, resulting in millions of dollars in lost funds. Unlike a bank, crypto exchanges do not always offer insurance or refunds for stolen assets. If an exchange goes bankrupt or gets hacked, you risk losing everything.
Additionally, when you store your crypto on an exchange, you don’t fully own your assets—the exchange holds the private keys, meaning they have ultimate control over your funds, not you. This centralization contradicts the very purpose of cryptocurrency, which is designed to give individuals financial independence.
Benefits of Using an External Wallet
An external wallet, whether hardware-based (like Ledger or Trezor) or software-based (like Trust Wallet or MetaMask), provides full control of your private keys. Only you can access your crypto, reducing the risk of exchange failures or hacks. Additionally, hardware wallets store your keys offline, making them immune to online threats like malware or phishing attacks.
Not Your Keys, Not Your Coins
A popular saying in the crypto community is, “Not your keys, not your coins.” By moving your funds to an external wallet, you gain complete ownership of your assets, ensuring they remain safe and accessible at all times.
While Mybitstore is great for trading and transactions, the best way to protect your digital wealth and have full control over your investments is to store your crypto securely in an external wallet.
