What is the Difference Between a Wallet and an Exchange?

An exchange is where you buy or sell cryptocurrencies, while a wallet is where you keep cryptocurrencies that you have bought or have received. Do take note that some exchanges may offer wallets or online storage services.

It’s ideally much safer to store your digital currencies in a wallet where you personally and physically can access the private keys rather than on an exchange. The risks are higher if you entrust your private keys with an exchange as this could potentially be lost or hacked if the company goes out of business or cease operations.

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