When should you move crypto to a wallet?
While you can technically store crypto directly on the exchange, it is not advisable to do so unless in small amounts or if you plan to trade them frequently. For larger amounts, it's recommended that you withdraw the majority to a crypto wallet, whether that be a hot wallet or a cold one.
Should I put my crypto in a wallet?
As mentioned previously, it is not wise to keep large amounts of cryptocurrency in any hot wallet, especially an exchange account. Instead, it is suggested that you withdraw the majority of funds to your own personal "cold" wallet (explained below). Exchange accounts include Coinbase, Gemini, Binance, and many others.
What happens to your crypto when you put it in a wallet?
Unlike a normal wallet, which can hold actual cash, crypto wallets technically don't store your crypto. Your holdings live on the blockchain, but can only be accessed using a private key.
When should I use a cold wallet for crypto?
These are usually free, and some pay interest on stored crypto. These require the purchase of an external device, around $50 to $250. Hot wallets are convenient to access and use for trading. Cold wallets are better suited for long-term storage.