Chris Haroun explains why you should keep most crypto off exchanges in hot wallets like Coinbase. Cold storage wallets like Ledger Nano S or Trezor work offline and are far safer, similar to a savings account versus a checking account. Exchanges are increasingly going bankrupt.
I want you to be really, really careful with your cryptos. I don't want you to leave them on exchanges. Okay? Your cryptos, what I want you to do is I only want you to store them in, in cold storage wallets like a Trezor or a Ledger Nano for example, and not hot wallets like Coinbase for example, online. And the reason I say that is a lot of cryptocurrency exchanges and companies are now going bankrupt. And the only way to secure your cryptos is to keep them in cold storage wallets, which I talk about in a lot more detail in my MBA degree program. Really quickly I'll explain the difference between hot and cold wallets. Okay, so with your bank accounts, you have a checking account and a savings account. Your checkings account has a slightly lower interest rate, right? So you usually put a lot more money in your savings account. And so hot wallets, software based wallets in the cloud, like on Coinbase for example. Okay. And so think of your, your, your, your hot wallet as like your checking account. It might be cryptos you want to trade or hopefully not trade, but maybe, I don't know, buy products with or services. Okay. Your hot wallet is like your checking account. Your cold wallet is like your savings account. And it's called a cold wallet because it doesn't need electricity to store it. Right? Because you can take these USB terminal token wallets and put it in your pocket, not attach it to your computer at all. So the bottom line is this, please don't keep most of your cryptos online in hot storage wallets. Use cold storage wallets like Ledger Nano S and the Trezor is as well.
