Exchange vs Cold WalletGuide

Exchange custody

When crypto is held on an exchange, you are using an account with that platform. The exchange controls the custody flow, while you control account access through your login, 2FA, and security settings.

Cold wallet custody

A cold wallet is used so private keys are not exposed like a normal website login. It can be useful for long-term storage, but you must secure your backup and understand the recovery process.

A balanced mindset

• Use exchanges as tools, not as a full security plan.
• Protect exchange accounts with strong 2FA.
• Verify withdrawal addresses carefully.
• Learn self-custody before moving meaningful amounts.

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