Will You Keep Your Crypto Assets in a Wallet or on an Exchange? Homework task 2 from @gbenga by @barh3line set at 100% powered up

Hello everyone, welcome to my blog, today I will be completing the homework task by professor @gbenga on the topic Where is best to store crypto assets in a wallet or an exchange?

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Before I go further I will like to give the definition of Crypto Wallet and Exchange.

What is Crypto Wallet?

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A wallet is essentially a program that allows you to store all of your Crypto assets. You can have a cold wallet or a hot wallet.
Cold wallets remain offline, while a hot wallet will stay online. There are a lot of benefits to cold wallets, with the main being less security and hacking risks,

What Is an Exchange?

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An exchange is a service or website where you can:

• Buy and sell crypto

• Convert fiat currency into crypto

There are also market rates for each currency that fluctuate much like the stock market does.

Now my answer to the question

I will prefer to store or keep my asset in a wallet rather than exchanges.

The reason why I will store all my assets in a crypto wallet is because a crypto wallet gives me full control over my private key. Those keys are the only way to access my assets, so having full control makes it inherently safer in terms of storing my currency. Unlike an exchanges who have access to my private key. In a case whereby the security hole is found or the exchange doesn’t take proper measures to hide my keys, and someone else probably an hacker hacked the system and have access to the key and transfer all of my crypto coins to themselves. That means I lost all my asset and the highest thing an exhange can do is to compensate me.

But if the crypto are stored in a crypto wallet and since am the only one that have access to the keys, it will be difficult for an hacker to hacked it cause I will back it up offline. And if to say I mistkenly gaves does keys out then the blames and loss will be on me. And very sure I will never give my keys out no matter what.

Conclusion

I didn't say an exchange is a bad place to keep your assests but personally I prefer to keep my own assets in a wallet rather than an exhange.

Thank you for taking your time to read.

To the attention of @gbenga this is my homework task

Special mention:

Cc: @steemcurator01
Cc: @steemcurator02