After the January 19 incident, when Peter Schiff, CEO of Euro Pacific Capital, claimed to have lost all the Bitcoins he owned in his wallet, some experts suggest and encourage users to keep their currencies in cryptocurrency exchanges instead of Store in wallets that require security phrases and private keys, which once lost, it is difficult to access the wallet tokens again.
According to Peter's tweet, his cryptocurrency wallet has been damaged, so his password is no longer valid; In addition, he did not have access to the words seed to help him recover the stored coins.
According to Binance co-founder and CEO, Changpeng Zhao, in a recent tweet. He argued that, since most people cannot store their keys securely, a reliable centralized exchange is the best solution and the most "SAFUer" (jargon used in the cryptocurrency community to refer to the safest).
Many hardcore crypto ogs advocate storing your own keys. But the truth is, today most people are not able to secure a key even from themselves (losing it). A trusted centralized exchange is #SAFUer for most people. The numbers speak for themselves.
Need to work on wallets. https://t.co/bsX3Ea5WCD
– CZ Binance (@cz_binance) January 19, 2020
According to finance experts, storing coins in cryptocurrency exchanges can be more advantageous for most uninformed investors than storing them in a cryptocurrency wallet. While this comes with strong criticism, there is nothing wrong with having an open mind when addressing blockchain technology. Depending on the type of investor, long-term trader or more frequently, storing your currencies in cryptocurrency exchanges has its advantages and disadvantages.
Blockchain security determines that in order for user currencies to be protected from hackers and scammers, it is advisable to ensure that certain measures are implemented. These measures include; a decentralized system for cryptocurrency exchanges instead of a centralized one, the use of smart contracts together with a decentralized system that will increase the security of user currencies.
Storing your digital currencies in cryptocurrency exchanges has an important benefit for the user, since there is less or no cost to transfer the coins stored during the trade. On the contrary, when an external wallet is used, the rates are associated with the transfer to access the currency exchange service, which, if accumulated, can add up to a large part of its currencies.