The advantage is that an exchange going bankrupt or freezing withdrawals cannot touch the holding. In exchange, losing the key or having it generated by flawed software leaves no way back. The two arrangements are not a safe option and a risky one; they carry different kinds of risk.
Bear 1
Predictions & track record (1)
Awaiting gradingWhat took $89 million in bitcoin was not a break-in on the walletsScore a hit if the number of addresses drained through this defect rises above 4,585 by the end of September 2026, meaning vulnerable seeds are still in use, and a miss if it does not.