Hello, from a crypto noob here! I am educating myself about this industry overall, how to buy and sell crypto on different platforms etc. One particular video I saw on YouTube demoed buying crypto on Binance website and transferring it to crypto wallet. Wondering what are the pros and cons of this approach. 1. Why should I transfer crypto from Binance to wallet? 2. What happens if I don’t transfer the crypto to wallet? In addition to being a platform to buy and sell crypto, can’t I store the crypto “in” Binance? (I think we can “buy” and “store” the crypto in Coinbase, right?) Also, as a side question, every now and then, I see a YouTuber claiming to have made $100,000 after writing Dapps or DeFi apps. Good for those folks, but is it really possible for a backend/full stack developer to learn these technologies (Don’t want to come as arrogant — I know it needs dedication to learn it, and by no means I am downplaying it), and make at least high 4-low 5 figures per month? (Told ya, I am a noob!) #blockchain #bitcoin #crypto
If you decide to leave your coins on an exchange (instead of withdrawing to a personal cold storage wallet) you accept the risk of potentially losing them all should your account (or the exchange) get hacked, or if the exchange were to go out of business. By withdrawing you, much like fiat currency, you have more control over the currency, and are free to use and store the coins in whatever way you see fit. Some exchanges do offer insurance and claim to hold their customers coins offline in cold storage, however, that does not guarantee that they are 100% safe, or the value of the coins be 100% replaceable. I’d highly recommend reading up about the Mt. Gox events that occurred a few years ago.
Thanks for the pointers. Will read about it.
I also heard about a case when someone was trying to transfer his crypto from exchange to his wallet, but his coins were lost because he supposedly provided wrong address. This sounds scary! How to safeguard against such blunders?