Topic: CEX is not the best platform in regards to holding Bitcoin for a long term (Read 180 times)

In as much as I don't encourage storing a huge amount of our holdings in exchanges, but let's tell ourselves the truth, cex won't just lock your account for doing nothing that goes against their terms and conditions of use and services. That person wey they cry like that, did he state what led to his account being locked? Most people use their accounts for cex dey carry out illegal activities. So to limit ourselves from these set of things happening to us, let's avoid using our accounts with cex to aid or carry out fraudulent activities, terrorism funding and other things that we can't try with banks. That you and I are using cex in for legal activities, does not mean that everyone out there are doing the same thing.

Another reminder which is always needed and can never be overemphasized. By now people in the community already know this however there may be beginner who may register on this forum tomorrow and may not know this therefore this information is both provider and useful for future reference. Binance, ByBit, Kucoin and all the other exchanges cannot be trusted. They have proven time and again that everyone of us must take our crypto destiny into own hands.

You see this debate of centralized exchanges, many Nigerians are very guilty of this and they don't want to hear you out. I will say out of every 10 Nigerian crypto person, only 1 of them store their coin on their personal wallet, they used centralized exchanges most especially Bybit since it's the only best place with P2P where Nigerians currently trade, and the ignorance of centralized exchanges continue to circulate because that's what they believe in.

Sadly, some of them have become victims f these centralized exchanges. I was following one particular thread one crypto influencer was crying about to Bybit, he tagged them and begged other influencers to called Bybit out for locking his $7k for months now and he can't access his account. I have similar other complaints on X platform due to these exchangem. Assuming the coin were save on their personal wallet, this problems for no dy affect them right now, sy no to CEX storage.

Just saw this now and will like to draw attention to it the In case anyone is going for an hardware wallet I think your suggestion of a ledger hardware wallet isn’t the best at the moment, ledger is a closed source wallet which all know is not advice for use, also ledger doesn’t regard the privacy it’s customers not to mention the numerous breaches of the wallet and their mode of seed phrase backup so if anyone is interested in buying hardware wallet then it should be others like Trezor or passport or even set up an airgap device with electrum wallet.


To me the only difference between DEX is non KYC protocol that they possess and as such i don’t think anyone should treat it otherwise, store coins off any exchange.

Why you go use CEX to hodl your Bitcoin in the first place. You dey run from banks still dey trust another bank as na wetin all the CEX be. Them get the same ideology as banks and want to control you all the time so you no suppose dey trust them. If government give them order to hold your coins, dem go follow without hesitation.


Exchange should only be for trading irrespective of which one dem be so make you no dey think say DEX better pass CEX for holding your coins/tokens. Trade your crypto for them exchange and trade your Naira for other places wey no get all this government wahala. E get some CEX wey still dey offer Naira P2P. You fit still use them if you no too trust the DEX P2P trading platforms them as many scams can be in a disguise to scam traders.

No be lie way you talk but still on still the truth about the matter be say some person go still keep their funds for exchange and that's just the basic truth. You can even take trading and gambling for example, I mean despite the fact say it's never advisable to jump into trade as a newbie but many people still play ignorant to the advice and do and then later regret all their actions.

well done in your efforts putting together this piece, a constant reminder of what we already know is not much of a bad idea and the new ones like you rightly spelt out can benefit from it too.

Next time, pay more attention to formatting your topic to be more readable, if you watch the first contributor, he couldn't read it through to the end because your manner of presentation was not encouraging, try learning the spacing patterns of good posters so you can get better in your presentation.

Here you changed the topic totally, from advising people not to store their assets in CEX to validating CEX importance and advising people to go for reputable ones. Try being consistent in your delivery so you don't contradict yourself.

At this point you defeated yourself and the efforts you put in organizing this little piece. You must learn to be confident in all you do because people would first see you as you see yourself before forming their own opinions of your works. You are growing in the forum, and you should allow others judje your works so you can learn better, and You should not form opinons for them or be afraid of criticism. Allow them, keep an open mind to learning and you would get better at what you do

Me myself I just tire, because this na song wey we done dy sing In this our own naija local board for some time now, and na only people wey no know, go still dy fall victim to this kind of mistake, though I fit still argue say this op  post wey this guy post now no too bad sha, because newbies dy sign up into the forum every day and sincerely speaking, no be all of them dy knowledgeable enough to know all this things, so this him post just be like a reminder to Dem wey be newbies.

One thing about storing your asset inside a centralized exchange wey make am terribly bad is that, anything wey happen to that exchange, just as FTX matter, your money don go, so no be bad idea to dy post something like this once in a while, so that our newbies wey no know, go also get the update, though some people go still think otherwise sha, but na my own opinion be this.

All the points that you noted about why it is not advisable to hodl our Bitcoin in centralized exchanges are very true, CEX are third parties that you don't have any power over your coins that is with them. Not your keys not your coins is a popular saying in this forum and it shows that anything that happens to the exchange where your coins is will affect it. We have heard about exchanges that have been hacked and have gone bankrupt, where many investors funds are gone, up till now most of them have not recovered their coins like in the case of FTX. You should only leave the Bitcoin that you you intend for p2p transactions or for crypto trading in your exchange account.

The best place to keep your coins is in a none custodial wallet that you have the keys and control of your Bitcoin, except for negligence on your part, your coins is safe in your custody. We have hot and cold wallets, for short term use and transactions you can use a hot wallet that is connected to the internet but for large amount of Bitcoin, it is safer to hodl it in a cold wallet that is not connected online.

I didn’t actually pay attention or take out time to read all you’ve written but I’m just making this writing from the topic and speaking from your topic, it’s no longer a topic that people shouldn’t hold their assets on centralized exchanges for several reasons except you’re willing to give out your personal details which can easily be used to track you, just incase the need be.

There are other very good noncustodial wallets we can use to hold our coins especially for long term sake and a ledger or hardware wallet is always advised for those that want to hold for long term sake.

Storing Bitcoin/crypto is one of the most important topic in the crypto space.However,most folks believe that CEXs are the best platform to hold Bitcoin for a long term but it's the worst storage method to hold for a long term.Holding Bitcoin in an exchange is like trusting/relying on a third party to protect your digital asset for a long period of time which you never can tell the future of the platform.Before I proceed let's look at the meaning of centralized exchanges.

Centralized exchanges are digital platform that provides the ease for bitcoiners/crypto enthusiasts to sell,buy and trade digital assets.Most CEXs have hosted wallet where they manage/hold the funds of their users.CEXs are owned by some set of individuals or companies,they act as third parties in execution of trades.Centralised exchange was introduced in 2010,and there was a reputable exchange back then that was hacked(MT GOX) and over 850000 BTC were lost.
Non custodial wallets are best in regards to holding for a long term because it's users have ownership and control over their digital assets in essence users of non custody wallets hold their private keys.Hot & cold wallet are example of non custodial wallets.

Reasons why CEXs is not recommended in regards to holding for a long term;
1.Centralized exchanges can be filed for bankruptcy.
2.Centralized exchanges have all it takes to freeze it users coins for a long period of time.
3.Centralized exchanges are always a target to online hack.
4.Not your keys,not your coins.

Conclusion
Centralized exchanges have promoted the adoption of Bitcoin/crypto due to it users friendly/interface and their high trading volume.It is important to note that not all exchanges are reputable in the crypto space it's similar to a statement that says not all that glitter is gold.Currently, Nigeria government and regulators have been implementing VAT tax on CEXs and most CEXs have delisted Naira,so it's also confusing to some folks in terms of choosing a reputable exchange.I know most users will say this is a common topic,it's common and at same time important to those newbies that use the word exchange and wallet interchangeably.