Your confusion is understandable. With the news headlines full of crypto-related hacks, the mistake can cost you a fortune. For example, during the first half of 2022, cryptocurrency worth $1.9 billion was stolen from various services as a result of hacks, 60% more than during the same period a year earlier.
And the figure has every chance to continue its growth. Where is the safest place to manage your crypto assets? Crypto wallets or exchanges?
Before answering, let’s start with the basics: what are crypto wallets and crypto exchanges?
Quick Take:
- Сryptocurrency wallets don’t store your crypto, only access to it.
- Centralized exchanges (CEX) are almost the same as banks, but there is the opposite — decentralized exchanges (DEX).
- Security is the most vulnerable point of crypto exchanges.
- The function of today’s crypto wallets goes far beyond just “storing keys”.
Crypto wallet is
A cryptocurrency wallet is a place in the form of a software (e.g., a mobile app) or portable device (e.g., a flash drive) in which your private and public keys are stored. They are used to access your funds on the blockchain. That is, wallets store ONLY keys, but NOT the funds.
How does it work?
A public key is an identifier for you: it lets…
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