People always wonder which blockchain to use while sending their coins / tokens to a hardware or hot wallet for holding long-term. The confusion arises as many native chains have higher transaction fee i.e. ETH on its native chain (erc20) can cost around $6 but sending it through BSC(Bep20) may cost under $2, which making people question “Which chain should be used while storing cryptocurrency on their non-custodial wallets”.
Prefer Using Native Blockchain
Whenever you plan on holding your cryptocurrency always store them in their native chain. Some Factors to back my argument : –
Reduced Risk: As mentioned before, holding on the native chain minimizes reliance on third-party platforms, reducing the risk of hacks, platform failures, or unexpected restrictions.
Full Control: You retain complete ownership and control over your assets, free from the limitations that might be imposed by centralized platforms if the cross chain is owned by a CEX.
Enhanced Security: Native blockchains often boast robust security features, providing a higher level of protection for your crypto holdings.
Liquidity Concerns: Cross-chain swaps rely on liquidity pools. If a particular token has low liquidity on a specific chain, it might become difficult or even impossible to swap it back to the native chain in the future.
Price Volatility: During periods of extreme price volatility, cross-chain swaps can be the first to suffer. This is because the algorithms that power these swaps often rely on stable price feeds, which can become unreliable during volatile market conditions. Holding on the native chain provides greater flexibility and potentially faster exit options during such events.
