To decide whether you should choose your cryptocurrency wallet or exchanges as your cryptocurrency deposit place. Let's review and make a decision.

Cryptocurrency wallets

According to Wikipedia, a cryptocurrency wallet is a device, physical means, or a service where there are a pair of keys a public key, and a private key for trading cryptocurrencies. We can understand simply that the cryptocurrency wallet is the same as the lock of a house, where it consists of only one lock and one key that can match with each other. Their function is to protect the property in the house. The house is the property on the blockchain network, only the right private key can open the appropriate lock and transfer the property in the house to another location.
Source: https://en.wikipedia.org/wiki/Cryptocurrency_wallet

Cryptocurrency wallets of two types

• Simple-signature wallet

A wallet containing a pair of keys, a public key, and a private key. A public key, also known as a wallet address, only allows receiving cryptocurrency from another address. A private key, also known as a passcode that allows tracking transactions, receiving, or transferring cryptocurrency, has more control than a public key.

• Multi-signature wallet

It Is a type of wallet where there is a public key and several pieces of the private key, which requires many parties to confirm the transaction. Multi-signature wallets are designed to add more security and voting in a transaction.

Cryptocurrency Exchanges

Cryptocurrency exchanges are an organized market that allows buyers and sellers to meet to exchange mainly cryptocurrencies, futures contracts through the internet network.

Most common cryptocurrency exchanges today

• Centralized cryptocurrency exchanges

It is an organized and closely monitored market that uses cryptocurrency wallets as a basis for storing cryptocurrencies or, in other words, depositing cryptocurrencies on behalf of customers. The exchange allows buyers and sellers to exchange cryptocurrency with fiat currency obeying laws in each country and territory. Examples of some centralized exchanges such as Binance, Coinbase, Bittrex, Huobi Global, KuCoin, etc.

• Decentralized Cryptocurrency Exchanges

As a blockchain-based market, it is not dependent on intermediaries such as agencies, traditional exchanges, and banking systems to provide financial services. Instead, the market uses smart contracts on the blockchain network to confirm peer-to-peer transactions between buyers and sellers.

Some decentralized cryptocurrency exchanges are widely used today such as Uniswap, PancakeSwap, Sushiswap, etc.

Should you deposit your cryptocurrency assets in your wallets or cryptocurrency exchanges?

According to the above reviews, we realize that basically cryptocurrency exchanges and cryptocurrency wallets all work together on the blockchain network. The biggest difference between using a cryptocurrency wallet and an exchange to deposit assets is the owner of that asset. You should deposit your cryptocurrency assets in a safe place, where you have absolute trust. It's best that you have control over your assets.

The transaction of cryptocurrency assets in wallets or exchanges is the same in essence that transactions on the blockchain are not changed in any way. This means that if we make an incorrect transaction or the smart contract code is faulty or being hacked, we are at high risk of losing assets.

It's common for hackers to get cyberattacks. Most centralized and decentralized cryptocurrency exchanges are attacked by hackers and cause serious damage to customers depositing their assets there.

Source: https://pixabay.com/photos/anonymous-hacktivist-hacker-2755365/

With the cryptocurrency market growing, the individuals or organizations behind for-profit exchanges have disappeared along with the money of investors. Investors have a higher risk of losing money when using centralized cryptocurrency exchanges that lack transparency or decentralized crypto exchanges because the process of interacting with these platforms is quite complicated and takes a long time. These exchanges are also not insurance companies, so it is difficult to refund assets to customers.

Source: https://twitter.com/TheDaoMaker/status/1245624446347436032

According to what I have learned and experienced, I choose to deposit my cryptocurrency assets in a personal wallet, or a single signature wallet, where I own my private key, and only I have control. I choose to save my private key in offline-mode in which helps me a lot to avoid network attacks.

Hopefully, this article helps you have an overview of the deposit of cryptocurrency assets safely and securely. Thanks for taking the time to read this article.