Let’s say you bought some crypto, and now you’re faced with a choice to store your assets within the exchange account or move it to a crypto wallet. Technically, you can leave your funds on an exchange and not use a personal wallet at all. After all, you won’t need to create another account, store or remember another password, and learn how to use another service, right? Partially. OneArt weighs some pros and cons and gives top reasons why you do need your personal wallet.
🗝 Not your keys, not your coins
Your crypto wallet grants you control over your assets via private keys. Not owning them means giving control to a third party, such as an exchange or a custodial wallet provider. Owning the key identifies you as the true owner of the assets.
❗️You should keep in mind two crucial points:
- The fact you can access your crypto on your custodial wallet or exchange doesn’t mean it’s truly yours. Technically, it’s the service provider that owns your assets, so they can withhold them, set restrictions and limits, block your account, go bankrupt, and so on.
It’s the same as with a bank account. You can’t be sure the bank won’t suspend it, or it won’t be robbed/fall under a sanction regime, etc.
- Since you own the key, you’re in charge of its safety. If you lose, forget, or reveal it to a 3rd party, no one will be able to retrieve your crypto.
🛡 Secure your crypto
This point follows directly from the previous one…
Continue reading on our new blog: https://oneart.digital/en/blog/why-you-need-crypto-wallet#secure-your-crypto
