Difference between Wallet and Exchange

[starwill 456]

What is a wallet?
Wallet, Spanish "Wallet", as well as "digital wallet", is the place where we are going to store our Cryptocurrencies, they have no other function than to store them.

There are Wallets where you can store a single type of Cryptocurrencies (for example: Bitcoin) and in turn there are other wallets where you can store different types of Cryptocurrencies (For example: Bitcoin, Ethereum, Litecoin, among others.)

It is necessary to clarify that there are different types of wallets (Physical, In the cloud, for PC, for Smartphone, paper, among others)

What is an Exchange?

Exchange is an online platform, where different types of Cryptocurrencies can be exchanged, bought and sold, at a free market price, where the value of each one is established by its own buyers and sellers, according to the market movement.

We can see the exchange as a financial market, which is governed by the principle of free supply and demand, people exchange their different cryptocurrencies, seeking to obtain the highest possible return.

Clarified both terms we can differentiate

A wallet or Digital wallet, allows us to keep and have control of our Cryptocurrencies, and an exchange allows us to exchange, buy and sell our Cryptocurrencies.

[cryptokram 102]

6 minutes ago, Silvinator said:

Good post. Many people use the addresses given by exchanges as a wallet and that seems like a serious mistake for security reasons. Some have lost money that way.

Yes, many people often make mistakes. So this content can be a great help in making it clear to other people, especially newbies, to know what to do.

 

5 hours ago, starwill said:

Clarified both terms we can differentiate

A wallet or Digital wallet, allows us to keep and have control of our Cryptocurrencies, and an exchange allows us to exchange, buy and sell our Cryptocurrencies.

Good summary, I will show it to my friends to understand what wallet and exchange wallet are.

[spyaquino 907]

Excellent post. It is always good to emphasize that in an exchange the cryptocurrencies are left whenever it is going to trade, that is, it is not advisable to keep the assets stored in an exchange, because the risk of loss still exists even with every protection mechanism offered by it. In your wallet you have control of your private keys, but even so we must keep in mind that the place where you keep your coins or your wallet always has to be protected, only you have to have access, it is always good to keep a backup and be careful in handling it even being on your personal pc !!

[cheewy 271]

4 hours ago, cryptolover said:

You can always put your money on exchanges but what if they go away ? You should choose betweeen wallets and You should choose walllets like ledger.They are in your control and they can't be going anywhere without your permission 😉

true. but sometimes, the reason some people keep their fund on exhange wallet is because transaction time, and fees, especially when you hold your fund on btc. that suck when you want buy a coin, but still waiting confirmation because high traffic.

[Retno 163]

Thank you for your explanation. Save money in exchange is very risk, we don't know when they will run and close their site. I only use Trust wallet and blockchain app for personal wallets. I don't have money to buy hardware wallet 😥

[M Aqeel 59]

You have created a very good informative post. In simple words, a wallet is a software where one keep/store ones coins or digital currency. Whereas in an exchange you can convert your currency into other currency.

[MDSulaisaf 2]

Nice post. A lot people use the addresses given by exchanges as a wallet and that seems a serious mistake for security reasons. 

[Bitcrypto 87]

both, between wallet and exchange sites are at risk of losing your assets.

Your risk if storing assets in the wallet is that if your computer is damaged your assets will disappear suddenly, so we must always back up, minimizing unwanted events. then if you keep your assets in your wallet, like your blockchain site you are at risk too, which is rampant pishing sites.

if you save on an exchange site, you are also at risk of losing your assets. exchange sites can just disappear. my advice if you store assets in exchange, please save them on reputable sites, such as Binance and others. saving assets in exchange you can withdraw it at any time, no need to wait long, so also changing your assets is very easy.

[speedxp 111]

Jika Anda menyimpan koin / token Anda lebih baik menyimpannya di dompet Anda. Dibandingkan dengan Anda harus menyimpan aset Anda di dompet pertukaran, itu tidak dianjurkan. Karena ada banyak kasus, seseorang telah kehilangan asetnya karena disimpan dalam dompet pertukaran.

[maricans 401]

will said and explained topics about wallet and exchange, nice sharing this information and thoughts that will be helpful to others,

this forum is really informative,

[Corrado25 9442]

Basically nothing new. That's what we knew. The exchange can also be used as a wallet. There are also wallets where we can both hold and exchange coins. Although the exchange rate on such wallets is higher than on the exchanges and not always profitable.

[Phash 143]

Thanks for sharing this post. Some People always think an exchange can serve the purpose of a wallet but they don't know it's risky to put their funds there with no reason. The purpose of putting funds in an exchange is to buy coins with it and you withdraw the coin to a supported wallet or you trade your coin as a trader. 

[bliznec 22267]

As far as I know, if an investor has lost the private keys to keep his portfolio, it is very difficult to recover if the investor did not save before writing the keys to his note. Wallets adhere to this online, that you can go in and check the balance regardless of where you are at any time, the main thing is the confidentiality of the service.

[BullRunBit 2773]

On 10/14/2019 at 12:46 PM, starwill said:

What is a wallet?
Wallet, Spanish "Wallet", as well as "digital wallet", is the place where we are going to store our Cryptocurrencies, they have no other function than to store them.

There are Wallets where you can store a single type of Cryptocurrencies (for example: Bitcoin) and in turn there are other wallets where you can store different types of Cryptocurrencies (For example: Bitcoin, Ethereum, Litecoin, among others.)

It is necessary to clarify that there are different types of wallets (Physical, In the cloud, for PC, for Smartphone, paper, among others)

What is an Exchange?

Exchange is an online platform, where different types of Cryptocurrencies can be exchanged, bought and sold, at a free market price, where the value of each one is established by its own buyers and sellers, according to the market movement.

We can see the exchange as a financial market, which is governed by the principle of free supply and demand, people exchange their different cryptocurrencies, seeking to obtain the highest possible return.

Clarified both terms we can differentiate

A wallet or Digital wallet, allows us to keep and have control of our Cryptocurrencies, and an exchange allows us to exchange, buy and sell our Cryptocurrencies.

Is this topic really necessary? Different between Wallet and Exchange the words themselves speak.

It's really simple, Wallet is not Exchange and Exchange is not Wallet, you dont hold all your coins on Exchange and if you want to trade send to Exchange only coins which you want to trade.

There are many closed exchange and if you hold all your coins on exchange you remember this:

"Not your keys, not your wallet/coin"

[1millionClub 494]

You can use the exchange as a wallet too but you won't own the private keys of the wallets which is essential if you want full control of your funds. If binance or whatever exchange you use decide to shut down their business, it will be tricky to get your money back. You don't worry for these stuff if you own your own private keys.

[wingfield 137]

This topic is very useful for beginners in the crypto market. I'm sure many people don't know and wanted to know the difference between wallet and exchange. Many choose to buy a long-term currency and keep it on the exchange until the profit will be considerable. I think it's a mistake. If you do not want to exchange your coins in other currencies, it would be good to store the coins in a wallet

[Corrado25 9442]

23 hours ago, Phash said:

Thanks for sharing this post. Some People always think an exchange can serve the purpose of a wallet but they don't know it's risky to put their funds there with no reason. The purpose of putting funds in an exchange is to buy coins with it and you withdraw the coin to a supported wallet or you trade your coin as a trader. 

You are right. But it is much easier to use the exchange. Not everyone wants to install wallets on their computer. It is not convenient and takes time. And on the exchange you can also trade and use as a wallet. Yes it is dangerous but many people do exactly that. Wallets can also have problems. It may not sync or you can simply lose it by forgetting your password and not saving the recovery file or seed

[Corrado25 9442]

1 minute ago, ayroz said:

It can be easier but if you want easy just use paypal. If you want to control your money and be safe, use bitcoin THE RIGHT way with an wallet that you own. thats my opinion

This is about bitcoin. If users want not only hold bitcoin but many different coins then what to do? He looks for options with either a multi-currency wallet or keeps his coins on the exchanges. Of course, if you own only bitcoin then it is not difficult to install the wallet on your computer and own all the private keys

[gerry 120]

Thumbsup this post very informative..exchange sometimes we think what if suddenly hack or close..so we are losing our coins..while in wallet we are the boss..we can do anything what we want...

[Corrado25 9442]

3 minutes ago, ayroz said:

its not hard.

there are many multi-coin wallets in the market. and the security is always better than the convenience of an exchange.

didnt you see how many exchanges got hacked this year? its crazy to think that any exchange could be the next one and boom, no more coins

Safety is always the best. I agree. I know how many exchanges were hacked and I was a user of one of those exchanges. There are a lot of multi-currency wallets. But where is the guarantee that they are safe and cannot be hacked.

[Bitxalt 452]

4 hours ago, alpayno said:

Nice content, this can help the newbies or beginners to distinguish what is the difference between the wallet and exchange and this can minimize the risk of errors because of lack of knowledge between the two

sometimes beginners enter a wallet that is on an exchange, and it is very risky, for example for erc20 wallet which is almost the same as eth wallet, because erc20 token is a smart contract that supports eth wallet, then erc20 token will not enter if sent to ETH wallet exchange

[ghazi1984 25]

Simply the wallet for collecting and storing currencies .. And the stock exchange to convert currency A to currency B .. Is this clear.

[starwill 456]

7 minutes ago, alexnambawan said:

Good post bro, this will help me to understand more about the difference of the two especially I'm new in the world of crypto and still learning and this post contribute to my learning. 

Excellent my friend that is the idea to help us with useful information that is relevant in this world of cryptocurrencies. We will continue to search for topics that help those who start. Regards

[iloveyobit 6599]

good information , thank you for it  and i will add :

• wallet is used to hodling your money or coin , the exchanges used to trade your coin and hold them if you want 
• wallet is more secure then exchange in some cases 

[jcarlo 206]

If we are traders and always do daily trading, storing coins in the wallet exchanger is an option but if we are only investors who want to hold coins for the long term, I think it's safer if we store them in a wallet that we control our own private key