Holding your cryptocurrencies on exchanges is a convenience that comes with significant risks. The phrase “not your keys, not your coins” is still relevant in 2025: your crypto isn’t yours unless you control your private keys to your wallet. Transitioning your digital assets to a cold wallet, a hardware device that stores your private key offline, is an excellent step in ensuring you keep what you’ve earned. Let’s go over a few reasons why.
What are the risks of Keeping Crypto on Exchanges?
- Custodial Risk: Storing your crypto on an exchange means you trust that platform to keep your assets safe. This creates a risk: if the exchange gets hacked, goes out of business, or faces legal issues, you could lose access to your funds. The failures of exchanges like FTX highlight this risk.
- Lack of Control: Exchanges hold your private keys, which means you don’t have complete control over your money. If the platform restricts withdrawals or sets limits during times of high market activity, you might not be able to act when it’s most important.
- Security Breaches: Online wallets and exchanges often face cyberattacks. Despite strong cybersecurity measures, any internet-connected system is at risk. Cold wallets address this issue by staying offline always.
- Regulatory Threats: Governments and regulatory bodies can place restrictions, freeze assets, or enforce unfair financial rules. Using centralized exchanges means you have to comply. A self-custodial cold wallet lets you maintain independence.
Why is Tangem the best cold wallet for you?
Cold wallets drastically reduce the risk of hacking or phishing attacks. But not all cold wallets are created equal. Tangem sets a new standard with its smartcard-based hardware wallet, designed for simplicity, resilience, and portability:
- Easy to Use: Tangem makes secure backups simple and safe, with no complicated setups or need to remember seed phrases.
- Portable and Tough: Designed to look like a credit card, Tangem wallets are easy to carry and resist water, dust, and physical damage.
- Supports Many Assets: Tangem works with over 16000 cryptocurrencies such as BTC, ETH, and Tron, perfect for a varied investment portfolio.
Conclusion
To stay longer and survive in the crypto space, moving your cryptocurrency from exchanges to a cold wallet like Tangem is essential. It keeps your wealth safe from outside problems and attacks. As more people use cryptocurrency, we must stay alert to protect it.