Wallet or Exchange?

Where is the best place to store my ADA?

ADA Suisse clearly recommends that you keep your ADA in an official Cardano wallet.

On the other hand, it is a bad idea to keep your ADA on an exchange.

Why?

1. You don't actually have any coins
The exchange has them. ADA on an exchange / crypto wallet doesn't belong to you, it belongs to the exchange. You just sent money to a platform that says it sold you ADA.
If the exchange closes, your ADA are gone.
If the exchange gets hacked, your ADA are gone.
If the exchange is prohibited (by the government, for example) from giving you your ADA, your ADA are gone.
And these things happen. All the time and all the time.
2. You depress the price
In the long run, the most valuable project is the one that provides the most benefit, thus is decentralized. By keeping your ADA on an exchange, you centralize staking returns & voting power to that exchange, directly slowing down Cardano's success.
3. You contradict yourself
The core of cryptocurrencies is decentralization. So it's about making intermediaries (e.g. central organizations) redundant.  Investing in a decentralized product & then pushing it into the hands of a central organization makes little sense. Especially when, unlike your home bank, you don't even know where the entrance would be at the exchange.
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Basically, Blockchain projects like Cardano allow services that today depend on & are controlled by central organizations like states & companies to be decentralized in the future.
However, this also means that you are now responsible for your own assets & should secure them yourself accordingly.

There are also other wallets than the ones officially provided by Cardano.
Basically, the following points should be considered when choosing a suitable means of storage:

  • One has the keys to the wallet address
  • One can choose the stake pool oneself
  • One has control over the voting rights

 

This is important. For your money and for Cardano.
If you don’t understand this, ask yourself why you bought a decentralized coin and why you expect it to increase in value.

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Author
Author

I am Patrick, operator of the ADA Suisse Cardano Stake Pool.
My motivation is to make the world less unfair.

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About me:

I've been in the blockchain world for just under 10 years & started with ADA Suisse in August 2020.
More about me can be found here..

If you have any questions and/or uncertainties, please do not hesitate to contact me.

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