How is a cryptocurrency exchange different from a cryptocurrency wallet?
There is no difference since all wallets are hosted on exchanges.
Exchanges are only used to make transactions, not to store cryptocurrency.
Exchanges are offline whereas wallets are always connected to the internet.
An exchange controls your keys but you control your cryptocurrency.
How is a cryptocurrency exchange different from a cryptocurrency wallet?
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A cryptocurrency exchange is different from a cryptocurrency wallet in that exchanges are platforms for trading cryptocurrencies, while wallets are used to store and manage your cryptocurrencies.
To clarify:
– Exchange: It facilitates buying, selling, and trading of cryptocurrencies. When you store your crypto on an exchange, the exchange holds your private keys, meaning they control access to your assets.
– Wallet: A wallet allows you to store your cryptocurrencies securely and gives you control over your private keys, meaning you have full ownership of your assets.
So, the correct statement is: “Exchanges are only used to make transactions, not to store cryptocurrency.” However, it’s important to note that while exchanges can store cryptocurrency, it is safer to keep your assets in a personal wallet.