In our last Bitcoin meetup we discussed this as one of the proposed topics. Would you risk losing all your coins by storing it in one storage method or would you risk losing less coins more frequently by storing it in multiple methods.
That's not a good question/pitch IMO, as who in the world would want to lose their coins in a regular basis/frequently anyway? Perhaps it would be better if no coins would be lost
at all.
I think it is not wise storing coins with 3rd party services, so I avoid them at all cost. Some scenarios like buying and selling coins on an exchange, would necessitate a scenario where you have to leave coins on their platform to execute a buy or sell order, so it is unavoidable. <I usually avoid selling large amounts of coins on exchanges>
Storing on a third-party service/platform already negates the fact that you own those coins. Not your private key? Not your bitcoin. They can literally screw you in any way possible and they'll just take jail time, serve their sentence and enjoy the rewards they have reaped after they got out. Perhaps a little bit of trading money would be okay, but large amounts? No, just no.
I would rather split my storage into long-term and short-term storage and store large amount of coins in hardware wallets and paper wallets for the long-term and then having small amounts of coins stored on online wallets or exchanges for daily use.
How are you spreading your coins to reduce the risk of losing coins and still being able to use it daily?
I only have my old laptop and an old phone to use as my backups/storage for spending money and long-term investment money. It has been doing so well for me, though the security risks on an old phone is, of course, somewhat high, considering that support against malware, viruses and whatnot have since stopped--not unless you're a conservative user that religiously avoids things that may have some malware on them, that is.
