Season 1Episode 32:06
Where are my coins? Exchange vs wallet
Your next step
Fees, minimum orders and withdrawal routes differ between exchanges. Compare them side by side before you choose.
Key takeaways
On an exchange account, the platform mainly manages the assets and keys.
In a self-custody wallet you control the credentials, and the recovery duty is yours.
Ask who controls the permission to move the assets before you choose.
Quick check
You lose the recovery phrase of a standard self-custody wallet and have no other recovery method. What happens?
Try it yourself
Match two scenarios: an exchange login account, and a standard recovery-phrase self-custody wallet.
Show the answer
They differ in who has control and how recovery works. Self-custody does not mean automatically safe.
Transcript
- Sam
My phone broke. Are my coins smashed too?
- Nexubo
Your coins aren't inside your phone. A wallet lets you see assets on the blockchain and uses keys to approve actions. Whether you can recover depends on the wallet type and the recovery options you kept.
- Narrator
With a custodial exchange account, the platform mainly manages the assets and keys, and you act through your account. With a self-custody wallet, you control the credentials. Convenience and responsibility are split differently.
- Sam
Forget your password on either one, and you just call support?
- Nexubo
Don't think of it that way. With a standard recovery-phrase wallet, if you lose the phrase and have no other valid recovery method, support can't get it back for you.
- Nexubo
Keeping assets on a platform carries platform risk. Holding them yourself can go wrong through a leaked key or a bad approval. Today, just understand the difference. You don't need to move everything right now.
- Narrator
Who controls the permission to move the assets? Answer that first. Then decide which account or wallet you need.
- Narrator
Two doors look the same. One is fake. Next episode: how to spot the real one.
- Narrator
Understand first, then act.