When to Move Crypto Off an Exchange?

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TU research of 1,250 crypto investors finds that exchanges remain the most common place to store crypto, although comfort declines as holdings grow. 48% keep most of their crypto on the exchange where they bought it, while 54% would not feel comfortable keeping more than $10,000 on an exchange. Security incidents are the strongest trigger for moving to self-custody, cited by 27%, followed by withdrawal restrictions at 21%. Convenience is the main reason for staying on exchanges, while losing recovery credentials is the top self-custody concern. Only 58% correctly identify who controls the private keys to crypto held on an exchange.

Crypto investors can keep assets on centralized exchanges or move them to personal wallets. Exchanges offer convenience and account support, while self-custody provides direct control but makes investors responsible for securing their assets.

Although keeping crypto on exchanges remains common, less is known about how much investors are willing to leave there, what makes them move to self-custody, and how well they understand custody.

To examine this, we surveyed 1,250 crypto investors worldwide about their storage choices, exchange limits, reasons for moving or staying, and understanding of crypto custody.

The research aims to answer key questions:

Where do crypto investors currently store their assets?
How much cryptocurrency are investors comfortable keeping on an exchange?
What makes investors move crypto off an exchange?
Why do investors prefer to keep crypto on exchanges?
What concerns investors most about self-custody?
Who do crypto investors trust most to keep their assets safe?
Do investors understand who controls their private keys when crypto is held on an exchange?

Findings

Based on TU Research, several important patterns emerge regarding how retail investors store cryptocurrency.

Exchange custody remains the most common storage choice. 48% of respondents keep most of their cryptocurrency on the exchange where they bought it, while another 12% primarily use another crypto exchange. Hardware or cold wallets are the primary storage method for 14%.
More than half would not be comfortable keeping over $10,000 on an exchange. 54% either would not keep crypto on an exchange at all or set their maximum comfortable exchange balance below $10,000. Only 13% would be comfortable keeping $50,000 or more.
Security problems are the strongest trigger for moving crypto off an exchange. 27% said a hack or security incident would be most likely to make them move their assets, while 21% selected suspended or delayed withdrawals.
Convenience is the main reason investors keep crypto on exchanges. 27% selected ease and convenience as their primary reason, while another 17% valued faster access to selling or trading.
Investors see losing access credentials as the biggest self-custody risk. 25% identified losing a recovery phrase or private key as their main concern, ahead of sending crypto to the wrong address or network at 18%.
Investors are divided between self-custody and institutional custody. 29% most trust themselves using a hardware wallet, while 22% prefer a large regulated crypto exchange. Another 16% would divide their assets across several storage methods.
Understanding of exchange custody is far from universal. 58% correctly identified the exchange or its custody provider as normally controlling private keys in a standard custodial account. 19% incorrectly believed the investor controls the keys.

Risk warning: Cryptocurrency markets are highly volatile, with sharp price swings and regulatory uncertainties. Research indicates that 75-90% of traders face losses. Only invest discretionary funds and consult an experienced financial advisor.

Institutional validation

Recent institutional research suggests that crypto custody is becoming an increasingly important issue as ownership broadens and the value of retail crypto holdings increases. Investors must decide not only which cryptoassets to buy but whether to rely on an intermediary for custody or assume responsibility for managing the credentials needed to control the assets themselves.

The UK Financial Conduct Authority's Cryptoassets Consumer Research 2025 provides one of the clearest recent benchmarks for retail crypto storage behavior. The research was conducted by YouGov on behalf of the FCA in August and September 2025 and included a boost sample of 1,053 people who owned or had previously owned cryptoassets.

The FCA found that 74% of cryptoasset users stored cryptocurrency on the exchange where they bought it in 2025. This share has increased substantially over time, from 59% in 2021 to 69% in 2022, 72% in 2024 and 74% in 2025. Cold storage was used by 13% of cryptoasset users, while 10% reported moving cryptocurrency elsewhere, such as another exchange or wallet provider.

The same FCA research note found that safety and security was the leading consideration when choosing where to store cryptoassets, cited by 47% of users. The importance of security increased with portfolio size: 57% of people reporting crypto holdings above £1,000 considered safety and security, compared with 40% among those holding £1,000 or less. Ease of access was considered by 21%, while 12% said they did not consider where their cryptoassets were being stored.

These results suggest an important distinction between observed storage behavior and investors' underlying risk tolerance. Exchanges remain the dominant storage location, but security becomes more salient as the value of holdings increases. The FCA data do not establish a specific monetary point at which investors become uncomfortable with exchange custody. The TU study extends this question by estimating how much investors are willing to keep on an exchange and identifying the factors most likely to make them move their assets.

Digital financial literacy creates another important dimension. The OECD's 2025 policy brief Improving the Digital Financial Literacy of Crypto-Asset Users found substantial gaps in digital financial knowledge. Across 39 economies in the underlying 2023 data, only 29% of adults reached the minimum target digital financial literacy score. Among cryptoasset holders, only 55% understood that cryptoassets are not legal tender in their jurisdiction.

The full OECD report specifically identifies risks associated with retail users not understanding how to access and safely manage cryptoassets through wallets and private keys. It also highlights the irreversibility of blockchain transactions: funds transferred incorrectly may not be recoverable in cases involving mistakes, scams or fraud.

FINRA provides further institutional guidance on the distinction between custody models. Its investor resource Storing Crypto Assets explains that a crypto wallet does not literally contain the cryptoasset itself. Ownership is recorded on the blockchain, while wallets provide the means to manage the keys needed to access and transfer those assets.

FINRA also distinguishes between hot and cold storage. Hot wallets offer convenience and easier access but can be exposed to online attacks. Cold wallets are generally disconnected from the internet and can reduce some online risks, but hardware can be lost, stolen or damaged. Losing or compromising a private key or recovery credentials can also result in loss of access.

FINRA's broader Crypto Assets investor guidance makes the custody distinction explicit: some investors use custodians to hold the private keys controlling their cryptoassets, while self-custody investors hold the relevant private keys themselves.

European regulators have also emphasized custody and provider risk. In October 2025, ESMA, EBA and EIOPA issued the joint warning EU Supervisory Authorities Warn Consumers of Risks and Limited Protection for Certain Crypto-Assets and Providers. The authorities warned that legal protection may be limited depending on the cryptoasset and service used. They advised consumers to check whether providers are authorized in the EU and to ensure that wallets used to store cryptoassets are sufficiently secured.

Institutional evidence therefore does not support treating exchange custody and self-custody as a simple choice between an unsafe and a safe option. Exchange custody introduces dependence on an intermediary, while self-custody transfers operational and security responsibilities to the investor. The TU study examines how retail investors perceive this trade-off and where they draw the line between convenience, control and risk.

Theoretical research

The decision to keep cryptocurrency on an exchange or move it into a personal wallet can be understood through several concepts involving risk, control and convenience.

One relevant concept is custodial risk. When cryptocurrency is held through a custodial exchange account, the investor depends on a third party to safeguard the private keys and maintain access to the assets. Operational failures, cybersecurity incidents, withdrawal restrictions or financial problems at the provider can therefore affect the investor even when the underlying blockchain continues operating normally.

Self-custody changes rather than eliminates this risk. Investors controlling their own wallets reduce their dependence on an intermediary but assume greater operational responsibility. Losing recovery credentials, exposing a seed phrase, interacting with fraudulent software or transferring assets incorrectly can create losses that may be difficult or impossible to reverse.

A second relevant concept is the security-convenience trade-off. Centralized exchanges can make cryptocurrency easier to buy, sell and access while providing familiar features such as account recovery and customer support. Self-custody can provide greater direct control but may require investors to understand wallet software, private keys, recovery phrases and transaction procedures.

The size of an investor's holdings can also influence the perceived balance between these risks. A storage method considered reasonable for a small speculative position may no longer feel appropriate when the same portfolio grows substantially in value. Investors may therefore have an implicit exchange custody threshold at which the perceived consequences of relying on one intermediary become large enough to justify another storage arrangement.

Survey data

To understand how retail investors make crypto custody decisions, we conducted a proprietary quantitative study examining current storage methods, acceptable exchange balances, triggers for moving assets, reasons for remaining with exchanges, perceived self-custody risks, trust in different custody arrangements and basic understanding of private-key control.

While institutional research primarily documents how consumers currently store cryptoassets and the risks associated with different custody models, this study focuses on the decision point itself: when investors believe an exchange is no longer the right place to keep their cryptocurrency and what determines that judgment.

Methodology

The study was conducted using a structured online survey based on the CAWI methodology.

Sample composition: 1,250 crypto investors.
Coverage: North America, Europe, Asia, Latin America, Africa, and the Middle East.
Age: 18–60 years old.
Participation criteria: respondents who currently own cryptocurrency or independently bought or held cryptocurrency during the past three years.
Statistical confidence: 95%.
Estimated sampling deviation: ±2.8%.

Research team

The study was conducted by our experts:

Anastasiia Chabaniuk (Author, TU Research) – research design and interpretation.
Chinmay Soni (Fact-checker) – data validation and statistical verification.
Ciaran Ryan (Editor-in-Chief) – editorial and methodological supervision.
TU Research Team (Andrey Mastykin, Oleg Tkachenko) – data collection and analysis.

Where do crypto investors currently store their assets?

Crypto investors can keep their assets with the platform where they purchased them or transfer them to other custodial or self-custodial storage. Respondents were asked where they currently keep most of their cryptocurrency.

Primary crypto storage methods
Primary storage method	Share of investors
Exchange where I bought it	48%
Another crypto exchange	12%
Software/self-custody wallet	13%
Hardware/cold wallet	14%
Professional crypto custodian	3%
Several storage methods	8%
Not sure	2%

Insight: Exchanges remain the primary storage location for most surveyed investors. 48% keep most of their cryptocurrency on the exchange where they bought it and another 12% primarily use another exchange, meaning 60% rely mainly on exchange custody. Self-custody is less common as a primary storage method: 14% mainly use hardware or cold wallets and 13% use software wallets. Another 8% distribute their holdings across several storage methods.

How much cryptocurrency are investors comfortable keeping on an exchange?

The willingness to rely on an exchange may depend on how much money is at stake. Respondents were therefore asked for the maximum value of cryptocurrency they would personally feel comfortable keeping on an exchange.

Maximum comfortable value:

Less than $1,000 – 11%;
$1,000–$4,999 – 16%;
$5,000–$9,999 – 18%;
$10,000–$24,999 – 17%;
$25,000–$49,999 – 12%;
$50,000 or more – 13%;
I would not keep crypto on an exchange – 9%;
Any amount on a reputable exchange – 4%.

Insight: More than half of respondents place a relatively low ceiling on exchange custody. 54% would either avoid keeping cryptocurrency on an exchange altogether or would not feel comfortable once the amount reached $10,000. Only 13% were comfortable keeping $50,000 or more on an exchange, while 4% said they would be comfortable keeping any amount with a reputable provider.

What makes investors move crypto off an exchange?

Investors can reconsider exchange custody because their portfolio has grown or because new information changes how they perceive the exchange's safety. Respondents were asked which single factor would be most likely to make them transfer cryptocurrency from an exchange to a personal wallet.

Main triggers for moving crypto off an exchange
Trigger	Share of investors
My crypto holdings becoming large enough	14%
A hack or security incident	27%
Suspended or delayed withdrawals	21%
Financial problems or possible bankruptcy	16%
Regulatory warning or investigation	8%
Learning more about self-custody	5%
I would use a personal wallet regardless	6%
Nothing – I prefer exchange custody	3%

Insight: A hack or security incident is the strongest individual trigger for leaving an exchange, selected by 27% of respondents. Suspended or delayed withdrawals rank second at 21%, while another 16% would be most influenced by signs of financial problems or possible bankruptcy. Together, these exchange-specific operational and financial concerns account for 64% of responses, substantially outweighing portfolio growth alone at 14%.

Why do investors keep cryptocurrency on exchanges?

Leaving cryptocurrency on an exchange can reflect convenience, trust in the provider or concerns about managing a personal wallet. Respondents were asked for the main reason they would prefer exchange custody over a personal wallet.

Main reasons for keeping crypto on an exchange:

Easier and more convenient – 27%;
Faster access to selling or trading – 17%;
Trust in a reputable exchange – 16%;
Concern about losing recovery credentials – 14%;
Concern about making a transfer mistake – 9%;
Account recovery and customer support – 8%;
Holdings are too small to justify a wallet – 6%;
I would not prefer exchange custody – 3%.

Insight: Convenience is the strongest reason investors prefer exchange custody, selected by 27% of respondents. Another 17% prioritize immediate access to selling and trading, meaning 44% primarily choose exchanges for practical accessibility. Trust in a reputable exchange accounts for 16%, while 23% prefer exchange custody mainly because of concerns about losing recovery credentials or making a transfer mistake themselves.

What concerns investors most about self-custody?

Moving cryptocurrency away from an exchange transfers greater responsibility for storage and recovery to the investor. Respondents were asked which aspect of managing cryptocurrency in their own wallet would concern them most.

Top concerns about crypto self-custody
Concern	Share of investors
Losing recovery phrase or private key	25%
Sending crypto to wrong address or network	18%
Wallet being hacked or compromised	17%
Losing or damaging the wallet device	10%
Phishing or fake wallet	11%
No customer support or account recovery	8%
Making an irreversible technical mistake	7%
Nothing – comfortable with self-custody	4%

Insight: Losing a recovery phrase or private key is the largest perceived self-custody risk, cited by one-quarter of respondents. Sending cryptocurrency to an incorrect address or network ranks second at 18%, closely followed by wallet compromise at 17%. Only 4% said none of the listed self-custody risks would concern them, suggesting that direct control is accompanied by substantial concern about personal responsibility for securing and accessing the assets.

Who do crypto investors trust most to keep their assets safe?

Custody decisions ultimately depend partly on who investors trust to manage substantial crypto holdings over time. Respondents were asked who they would trust most to keep a significant amount of cryptocurrency safe for several years.

Preferred custody arrangement:

Myself using a hardware/cold wallet – 29%;
Large regulated crypto exchange – 22%;
Split across several storage methods – 16%;
Traditional bank offering crypto custody – 11%;
Myself using a software wallet – 10%;
Professional crypto custodian – 5%;
I would not fully trust any of these – 4%;
Not sure – 3%.

Insight: Hardware self-custody is the single most trusted option for significant long-term crypto holdings, selected by 29% of respondents. However, only 39% selected either form of personal wallet, while 38% preferred a regulated exchange, bank or professional custodian. Another 16% would split their holdings across multiple storage methods, suggesting that many investors view diversification of custody itself as a way to manage storage risk.

Do investors understand who controls crypto held on an exchange?

Custodial exchange accounts differ from self-custody primarily in who controls the private keys required to authorize transactions. Respondents were asked who normally controls those keys when cryptocurrency is held in a standard custodial account on a centralized exchange.

Investor understanding of private key control
Answer	Share of investors
The investor	19%
The exchange or its custody provider	58%
The blockchain network	7%
The investor's bank	2%
Both investor and exchange equally	6%
Nobody controls them	2%
Not sure	6%

Insight: 58% of respondents correctly identified the exchange or its custody provider as normally controlling the private keys in a standard custodial account. However, 19% believed the investor personally controls the keys, while another 17% selected another incorrect answer. Together with the 6% who were unsure, 42% did not correctly identify the basic custody arrangement.

Download the full PDF version of the TU research to access additional analysis, detailed survey data, and extended findings from our analytical team. The report includes complete methodology, charts, and behavioral insights referenced throughout the study.

Download PDF version

Practical implications for crypto investors

The research suggests that choosing between exchange custody and self-custody is less about finding one universally safer option and more about matching the storage method to an investor’s needs, experience and ability to manage risk.

Match storage to how you use crypto. Investors who trade frequently may value quick access to assets, while long-term holders may place greater emphasis on reducing reliance on a single platform. Storage choices should reflect how often funds need to be moved, traded or accessed.
Know what responsibility you are accepting. With custodial storage, investors depend on a third party for access, security and withdrawals. With self-custody, responsibility shifts to the investor. Before moving assets, it is important to understand what happens if a password, device or recovery phrase is lost.
Learn the basics before moving to self-custody. Using a personal wallet requires more than simply transferring crypto off an exchange. Investors should understand private keys, recovery phrases, wallet backups, address verification and network selection before making significant transfers.
Test unfamiliar storage methods with small amounts. Before transferring a large balance to a new wallet, investors can make a small test transaction and confirm that they can access, send and recover the assets correctly.
Plan for loss of access. A storage strategy should account for damaged devices, forgotten passwords and emergencies. Investors using self-custody should have a secure recovery process, while exchange users should understand the platform’s account recovery procedures.
Avoid creating a single point of failure. Larger holdings may justify using more than one storage method, but additional wallets and providers also increase complexity. Diversification is useful only when each account, wallet and recovery method can be managed securely.
Review custody arrangements periodically. The appropriate storage method can change as portfolio size, trading activity, technical knowledge or the status of a provider changes. Crypto storage should therefore be reviewed rather than treated as a one-time decision.

Before choosing where to hold cryptocurrency, investors should compare not only fees and trading features but also withdrawal rules, custody structure, security controls and recovery procedures. For investors who prefer the convenience of exchange custody, the table below compares crypto exchanges on key factors that may matter when selecting a platform for buying, trading and storing cryptocurrency.

Top crypto exchanges
	OKX	Coinbase	Crypto.com	Cryptohopper	BTCC
Demo account
Min. Deposit, $	10	10	1		10
Coins Supported	600+	400+	400+	1000	399
Spot Taker fee, %	0.1	0.5	0.5	0	0.3
Spot Maker Fee, %	0.08	0.5	0.25	0	0.2
Alerts
Copy trading
TU overall score	8.48	7.84	7.8	7.76	7.6
Open an account	Go to broker Your capital is at risk.	Go to broker Your capital is at risk.	Go to broker Your capital is at risk.	Go to broker Your capital is at risk.	Go to broker Your capital is at risk.

Data sources and methodology

Financial Conduct Authority. Cryptoassets Consumer Research 2025, December 2025, updated June 2026.
Financial Conduct Authority. Cryptoassets Consumer Research 2025 – Wave 6 Research Note, 2025.
OECD. Improving the Digital Financial Literacy of Crypto-Asset Users, September 2025.
FINRA. Storing Crypto Assets.
FINRA. Crypto Assets.
ESMA, EBA and EIOPA. EU Supervisory Authorities Warn Consumers of Risks and Limited Protection for Certain Crypto-Assets and Providers, October 2025.
Traders Union. Wallet vs Exchange: What Traders Need To Know.
Traders Union. What Is A Crypto Wallet.
Traders Union. 12 Best Crypto Trading Platforms.
IdSurvey. CAWI Methodology.

Previous volumes in this series

Conclusion

The most powerful takeaway from this research is that the choice between exchange custody and self-custody in crypto investing is fundamentally a trade-off between convenience and control, rather than a simple decision about safety. While most retail investors continue to store their assets on exchanges for ease of access and faster trading, confidence sharply declines as holdings grow and events such as security breaches or withdrawal delays immediately trigger a switch to personal wallets. For example, 27 percent of investors said a hack would lead them to leave the exchange, while 25 percent fear losing access credentials in self-custody. Ultimately, investors must honestly assess their willingness to manage operational risks and periodically revisit their storage methods as their portfolios develop, since responsible risk management—not convenience alone—should drive long-term crypto storage decisions.

FAQs

What factors should investors consider before transferring large crypto holdings off an exchange?

Investors should evaluate their comfort with managing private keys, their digital financial knowledge, the security features of personal wallets, and plans for recovering access if credentials are lost. They should also understand the potential consequences of transferring assets incorrectly and consider testing new wallet methods with small amounts before moving significant holdings.

How does the value of a crypto portfolio influence where investors choose to store their assets?

As the value of a crypto portfolio increases, investors tend to place greater emphasis on security and are less likely to keep large amounts on exchanges. The research indicates that most investors feel uncomfortable keeping more than $10,000 on an exchange, with security and operational risks becoming more important as portfolio size grows.

What are the main differences between hot and cold wallet storage for self-custody?

Hot wallets are connected to the internet, offering greater convenience and easier access for trading or transfers, but they are more exposed to online threats. Cold wallets, such as hardware devices, store crypto offline, reducing online attack risks but introducing concerns about physical loss, theft, or hardware damage.

Why do some investors prefer diversifying their crypto storage across multiple methods?

Diversifying storage allows investors to reduce reliance on a single intermediary or method, helping manage operational and security risks. By splitting assets across exchanges, hardware wallets, and other means, they can mitigate the impact of any one point of failure, although this approach can also increase management complexity.

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Team that worked on the article

Anastasiia has 17 years of experience in finance and content marketing. She believes that the support of information and expert opinion is very important for the success of investors and new traders.

Learn about our editorial policies

Ciaran Ryan is a veteran financial journalist based in South Africa, where he covers cryptocurrency, mining, stock markets, and governance for Moneyweb. He also hosts the weekly Moneyweb Crypto Podcast.

Chinmay Soni is a financial analyst with more than 5 years of experience in working with stocks, Forex, derivatives, and other assets. As a founder of a boutique research firm and an active researcher, he covers various industries and fields, providing insights backed by statistical data.

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