Should We Store the Cryptocurrency on Exchange Wallet?
Every trade has to go through an exchange, so is the case with digital cryptocurrency, as we head in an era of using the online way to book, transact and even make payments, there seems to be a lot going on in the internet space. Digital currency, tokens, even wallets to secure the cryptocurrency, from being hacked or wipe off the account. Using the wallet services form the crypto exchanges for a storing the cryptocurrency is subject to how often the traders use the wallets if they frequently trade every single day, exchange wallets are useful, however, there should be appropriate access controls and high-level password encryption.
In the event of large crypto exchanges being hacked and coins stolen, it is better to have a digital wallet of their own, that can be much safer. The wallets can be maintained in the exchanges or along with the trading account learn more from the repository of exchanges that trade in huge volumes in a centralized crypto exchange.
- there are digital wallets that the trader maintains in the software trading platform like Ethereum Code, where the digital wallets save the coins that is in the form of encrypted code form
- early days there were insufficient funds to serve up as reserves, hence the risk of currency being stolen was imperatively less, today, however, the phenomenal growth of crypto exchanges there is a lot of things happening with the help of the Blockchain technology
- single ledger storage has become trading as well as exchange hub for a decentralized distributed ledger that has been providing an open platform for hackers to access highly sensitive data
- there were a lot of currency wallets being hacked, stolen during the boom period of cryptocurrency, however, there seems to be a solution with every problem the technology has been made stronger to mitigate such node intercepting hackers and keep the wallets safe
- some exchanges have started operating on the basis of smart contracts under the decentralized platform, structured that is making a considerable impact
For most of the storage and trading, the centralized exchanges that are much safer to store the wallet currency used often, as there is small group controlling the exchange transactions. the token economy has made it possible only for the token holders having access to the wallets and transactions, the ownership basically is vested on a founding group.