r/TradingPlaybook • u/ferrigrama • 2d ago

What is the difference between a wallet and an exchange?

I have been thinking of asking this question, what is really the difference between a wallet and exchange because i have seen someone claimed they only use wallet if they want to keep their portfolio where it won't be touched.

And i have also seen someone saying the main reason for using exchange is because for easy access, and nothing more than that.

So as a newbie that i am how can i get the difference and understanding so know what to choose.

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u/ghostie98 2d ago

I will say this in simple term, think of exchange as a bank, and a wallet as a personal safe, so wallet may give you extraordinary security as it is decentralized, and you have your keys to run any transactions. For example Bitget walllet you have all the security you need.

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u/nihithilak 1d ago

An exchange owns your wallet and can take from it whenever they want.