Crpyto Wallet vs. Crypto Exchange: What is the Difference?

INTRODUCTION

Cryptocurrency wallets and exchanges have proven to be vital tools for the digital industry to operate. Some use several wallets to store their assets while others leave their funds on a secure exchange. Since some wallets and exchanges are managed by the same companies, confusions of their differences arise. This guide will break it down for you

 KEY DIFFERENCE 

A cryptocurrency wallets’ main function is to keep and store your digital currencies whereas a cryptocurrency exchange facilitates trading from one one coin to another.

CONTROL OF FUNDS 

With a cryptocurrency wallet, you have complete control over your funds. This means that you can decide when and where to transfer your virtual currencies while keeping hold of all the required passwords and private keys. In comparison, when digital funds are kept in an exchange wallet, part of control is handed over to the platform.

ANALOGY 

Take a physical wallet and bank account as an example. When you have traditional cash in your wallet, you can choose if you want to spend it,  how much to spend and access it whenever you want. On the other hand, in a bank savings account, some control is lost. This is because certain limits are set on deposit and withdrawals to follow bank policies.

The same concept applies to cryptocurrency wallets. Just like how losing your physical wallet, would mean losing all your money, losing your private keys in the digital world would mean losing your cryptocurrencies as well. 

As for cryptocurrency exchanges, private keys are kept within the platform so if you were to forget passwords, they can be easily recovered from your accounts. However, this leaves investors open to risks as hacks on exchanges will in turn impact the finds and ability to use them. 

 CRYPTOCURRENCY EXCHANGE

Why do people still use exchange then? Convenience. Investors are able to quickly trade digital funds for other cryptocurrencies and fiat currency. Given the ease of use, major exchanges provide setting up of storage service for you as well.

BOTTOM LINE

If you are new to investing cryptocurrencies, it would be better to keep part of the funds in an exchange wallet as the process becomes much easier to manage and oversee. Once you learn how to trade bitcoins and other currencies, you may want to keep a reserve stored in an exchange wallet for daily transactions. However, the majority of digital finds should be stored securely in a cryptocurrency wallet due to its safety features.

NEED A SECURE CRYPTOCURRENCY WALLET?

Introducing LinqCash. LinqCash is a Payment Gateway Wallet, it offers a user-friendly interface that is easy to use even for beginners.  Its secure data encryption method ensures your data remains private. On top of the positive reviews online, LinqCash provides a competitive rate for cryptocurrency transactions. So, how do you get started using LinqCash? 

• Sign up at LinqCash so you can be assigned a cryptocurrency Wallet
• Once done, just transfer your Bitcoin to your LinqCash wallet address

In conclusion, for a fast, effective, and secure cryptocurrency transaction, sign with LinqCash and experience fast and secure cryptocurrency transactions today!

Disclaimer: The blog content above does not constitute financial advice in any way whatsoever. Nothing published by LinqCash constitutes an investment recommendation, nor should any data or Content published by LinqCash be relied upon for any investment activities.

LinqCash strongly recommends that you perform your own independent research and/or speak with a qualified investment professional before making any financial decisions.