Comparison
Exchange account vs software wallet vs hardware wallet
These are three different jobs. An app can look the same while the failure mode is not. Nothing here is a recommendation to buy, sell, or hold.
| Feature | Exchange account | Software wallet | Hardware wallet |
|---|---|---|---|
| Who holds the keys | The company | You, on a phone or laptop | You, on a dedicated device |
| If you forget the password | Reset exists (they hold keys) | Seed phrase or nothing | Seed phrase or nothing |
| Typical failure | Insolvency, hack, or paused withdrawals | Malware, fake app, phishing | Confirming a bad address without looking |
| Phishing surface | Login pages and support impersonation | Fake wallets and airdrop sites | Fake firmware and “sync your phrase” mail |
| A reasonable fit when | You need an on-ramp and amounts you can survive at a company | Small amounts you will actually use | You will do the restore drill and read the screen |
Information only — not investment advice. Past performance is not a guide to future results. Crypto is risky.
