Keeping Bitcoin on an exchange may pose risks of the exchange being hacked, bankrupt, or having its account frozen. Therefore, holding a private key and withdrawing coins to a personal cold wallet (such as a hardware wallet) can effectively reduce these risks and ensure asset security.

Keeping Bitcoin on an exchange may pose risks of the exchange being hacked, bankrupt, or having its account frozen. Therefore, holding a private key and withdrawing coins to a personal cold wallet (such as a hardware wallet) can effectively reduce these risks and ensure asset security.