Does anyone still stores their crypto in any exchange - page 4.

acroman08

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Quote from: CypherMonk on June 07, 2023, 03:10:50 AM

Does anyone here still stores their crypto in exchanges?

pretty sure there are some and it is one of the dumbest things to do, crypto exchange sites should only be used for their purpose(at least that is what I think), which is exchanging cryptocurrencies.

Quote from: CypherMonk on June 07, 2023, 03:10:50 AM

I think the best choice would be to move a higher value of funds to a hardware wallet while leaving a small amount that's less than 5K in an exchange.

or leave none at all? I have been using exchange sites for a long time now, and I have made it a habit of withdrawing everything that I put there. storing money on an exchange site for a long period of time, may it be FIAT or cryptocurrency is just too risky.

Inwestour

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Quote from: CypherMonk on June 07, 2023, 03:10:50 AM

Does anyone here still stores their crypto in exchanges? I think the best choice would be to move a higher value of funds to a hardware wallet while leaving a small amount that's less than 5K in an exchange.

Exchanges have proven time and time again that they can disappoint their users at any time. Let's not talk about the FTX issue. but for instance, Atomic Wallet just let its users' funds vanish into thin air a few days ago with no reasonable explanation.

So, why would anyone in their right mind take the risk of storing your crypto on exchange? When it usually means that the exchange retains control (or 'custody') of your assets without giving you access to the private keys. Also, they can disappoint you at any time.

Are you talking about $5,000? I would definitely not keep such amounts on the exchange, why these risks? By the way, Atomic Wallet is not an exchange, but a wallet, but anyway, as we see, even such storage methods do not guarantee security for your funds, so a hardware wallet will be more secure.

The worst thing about the Atomic Wallet situation is that they have never determined how the hackers stole the funds and I suspect that they will not return the lost funds to users.

The exchange can be used to buy or sell coins, but I would not use it to store any amount of coins, I would rather withdraw even a small amount to a cold wallet, so I will be calmer.

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Quote from: CypherMonk on June 07, 2023, 03:10:50 AM

Does anyone here still stores their crypto in exchanges? I think the best choice would be to move a higher value of funds to a hardware wallet while leaving a small amount that's less than 5K in an exchange.

Leaving less than $5k in a centralized exchange is bad advice. No fund should even be left on a centralized exchange because you don't know what challenges the exchange might be facing in next minute. An example is the period when Bitcoin transaction fees were very high and the Binance exchange disabled Bitcoin withdrawal for some days, which was very bad because someone could have any urgent use for their coins. That's why the user @o_e_l_e_o would really advise against even interacting with CEX because of their KYC verification and because they can also track and save users IP addresses. CEX and KYC are all attacks on Bitcoin. Bitcoiners should get used to using a DEX platform to exchange their Bitcoin because CEX is just like the bank where we keep our local currencies; there are laws and authorities that govern their operation, and Bitcoin was not created to be governed or controlled by any authority.

Alpha Marine

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No matter how much I see this kind of topic on this forum and on any other platform, I always feel it's not been said enough. You'd be surprised at the number of people who still use exchanges, especially CEXs as their wallets. They just comfortably leave coins worth a very huge amount of money in exchanges. What borders me more is the fact that these guys are not newbies, they are people who have been in the industry for quite a while.
Just recently I heard about a guy that was a big gun among traders in my country who left over $80k worth of coins in his finance account and used his Binance account to receive coins that were gotten through fraud unknown to him.
The fraud was traced to his account. Binance reported him to his home authority where he was arrested and taken to court and his account was frozen by finance along with all the money in it.
That placed him in a very difficult situation because most of the money where money from investors and he had to pay it back. It placed him in so much debt.

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Yes people still store their asset on the hands of centralized exchanges, and most of them are traders bit I except them to understand that one day the exchange might tuck up and this could make them lose their money.

Keeping your assets on closed source wallet are even better than leaving them on exchanges, before you talk about what happened with Atomic wallet, well, centralized exchanges fail more than crypto wallets, although I will never advise a fellow human being to store funds on a closed source wallet.

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Quote from: Queentoshi on June 08, 2023, 03:48:46 AM

Quote from: CypherMonk on June 07, 2023, 03:10:50 AM

Does anyone here still stores their crypto in exchanges? I think the best choice would be to move a higher value of funds to a hardware wallet while leaving a small amount that's less than 5K in an exchange.

If there was really a way to check you'll find out that some people regardless of how many times that they have been warned not to keep money in exchanges still keep money in exchanges. Some people have procrastinated moving their bitcoin to safer places where they have more control away from the exchanges and even if something were to happen to an exchange now say like binance that is currently having some legal issues some people will still be affected by it. Newbies to Cryptocurrency and people who were not into Cryptocurrency at the time when exchanges have crashed need to reminded and told too that they are not safe.

What you have said is not different from the truth mate. Most people keep procrastinating which has led to most fortunes gone down as a result of this. Many people too are just too lousy to do the needful. Some often times blame it to being busy why in the real sense they are not ready to do anything about it. Some are even having the mindset that if an exchange closes or being hacked, they would get a refund which I see as stupid.

The fall of some big notable and recognized exchanges should see e as a lesson to all in the Crypto space not to trust their funds and assets with third party exchanges because they can never tell what could happen in the next miniut.

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Quote from: CypherMonk on June 07, 2023, 03:10:50 AM

Does anyone here still stores their crypto in exchanges? I think the best choice would be to move a higher value of funds to a hardware wallet while leaving a small amount that's less than 5K in an exchange.

If there was really a way to check you'll find out that some people regardless of how many times that they have been warned not to keep money in exchanges still keep money in exchanges. Some people have procrastinated moving their bitcoin to safer places where they have more control away from the exchanges and even if something were to happen to an exchange now say like binance that is currently having some legal issues some people will still be affected by it. Newbies to Cryptocurrency and people who were not into Cryptocurrency at the time when exchanges have crashed need to reminded and told too that they are not safe.

CypherMonk

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Quote from: Accardo on June 07, 2023, 04:18:46 PM

Exchanges was never made to store crypto, but to trade or swap cryptocurrency. For people who trade often they'll have to leave some funds in the exchange, for easy transaction.

you are right, there's no reason to keep your coin on exchanges if you don't trade or want to swap your crypto for another coin. Exchanges are not ideal for storing your crypto assets.

Quote from: coupable on June 07, 2023, 06:40:17 PM

Maybe after a succession of bankruptcies and the collapse of some of the reliable platforms, as happened last November 2022 with the Ftx Stock Exchange, awareness of the risks of using that platform for long-term storage will rise.

People that aren't familiar with the risks of using an exchange to store their crypto are now becoming aware of it. But sadly, some people are born to take risks and even when they know it's going to happen at any time. They will still continue to store huge sums of money on an exchange until it all vanishes into thin air. They will be the first to keep lamenting everywhere.

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In short, it is a culture that people acquired through their use of banks that they are not qualified to take responsibility for their own money and to have their own banks. Of course, the banks are responsible for spreading this culture, since it is directly in their interest.
Following the same logic, most users use trading platforms as they deal with banks in terms of keeping their savings. In the first place, it is difficult to convince them of the seriousness of this and that a private wallet is safer. This may also be one of the reasons for their reluctance to use decentralized platforms. Maybe after a succession of bankruptcies and the collapse of some of the reliable platforms, as happened last November 2022 with the Ftx Stock Exchange, awareness of the risks of using that platform for long-term storage will rise.

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Quote from: CypherMonk on June 07, 2023, 03:10:50 AM

Does anyone here still stores their crypto in exchanges? I think the best choice would be to move a higher value of funds to a hardware wallet while leaving a small amount that's less than 5K in an exchange.

Actually yes.
I am sure that many people are still doing this.
I am personally also doing so because of some reasons. But, not all of the cryptos are stored in exchanges, some are in personal wallets. What makes me still storing in some exchanges is because I am sometimes still using them for trading or short term holding, so this is better to make it in exchanges to decrease transfer fees. But exactly, I will withdraw the profits of svae some Bitcoin again not in exchanges.
We notify that it is risky, but this is what still happening right now.

CryptSafe

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Hello no mate. I will never dare do such no matter how small such fund is. I only trade and after trading, I transfer all funds to my private or self custodial wallet where I have the private keys myself. So far third party exchanges have proven to be not reliable and dependable to be able to secure funds and assets of her clients. There have been hacks and misappropriation of funds by CEOs of exchanges so far and all swept under the carpet. Just of recent, there have been a news circulating that the ftx founder been granted bail after misappropriation of funds kept under his custody. There are also other big names that are good players in the industry but today are no more, some have crumbled as a result of their recklessness with customers funds.
You see OP there are lots to say about third party exchanges here but as it is I do not think or dream or holding my funds with any third party exchanges.
I see that as an unsafe act.

nakamura12

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I don't know if there are people who store theor crypto in an exchange but I think there's someone who are using an exchange to store their crypto. Most people doesn't want to store their crypto in an exchange because you are not the one who owned the seed phrase, private key or mnemonic phrase. That's why they prefer using a wallet where they can access it anytime like electrum wallet.

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Quote from: CypherMonk on June 07, 2023, 03:10:50 AM

Does anyone here still stores their crypto in exchanges? I think the best choice would be to move a higher value of funds to a hardware wallet while leaving a small amount that's less than 5K in an exchange.

Well, I did but not that much. I keep $100-$200 in Binance as my capital for trading. If you are in trading, you don't need to withdraw it all and then deposit again, you'll double your transaction cost so instead, leave some money enough for trading and that is what I did for several months and I have no problem.

Quote

So, why would anyone in their right mind take the risk of storing your crypto on exchange? When it usually means that the exchange retains control (or 'custody') of your assets without giving you access to the private keys. Also, they can disappoint you at any time.

As I consider leaving money for trading, well, that is a different story for those who keep their money as storage wallets. That is not a good idea because even using reputable exchanges still remains not advisable.

Accardo

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Exchanges was never made to store crypto, but to trade or swap cryptocurrency. For people who trade often they'll have to leave some funds in the exchange, for easy transaction. Hence, in my opinion, I don't have much funds saved in any exchange, because I don't need to swap coins often. No need leaving my funds in exchanges when I have a wallet. In addition, most people that keep funds in exchange don't want to take responsibility for holding their money, I talked with a friend he preferred keeping his crypto in exchange because he thinks the exchange will refund him if anything happens to his money, but if he losses crypto in his wallet maybe to hackers the money is gone without any hope of getting them back again. Different reasons for different people.

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Quote from: Venik on June 07, 2023, 03:33:53 AM

I never did. I was always using OWNR wallet. I think that if people didn't think about using something else besides exchanges after the FTX crash then nothing will help them.

OWNR wallet isn't open source, so whatever happened to Atomic wallet can happen to it without anyone knowing what the cause is or why people's funds is suddenly disappearing. The bad news that happened with Atomic wallet is enough for people using closed source wallets to move it to open source wallets; in closed source wallets you trust the devs, in centralized exchanges, you trust the exchange, thus they are somewhat similar.

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Quote from: CypherMonk on June 07, 2023, 03:10:50 AM

Does anyone here still stores their crypto in exchanges? I think the best choice would be to move a higher value of funds to a hardware wallet while leaving a small amount that's less than 5K in an exchange.

Exchanges have proven time and time again that they can disappoint their users at any time. Let's not talk about the FTX issue. but for instance, Atomic Wallet just let its users' funds vanish into thin air a few days ago with no reasonable explanation.

So, why would anyone in their right mind take the risk of storing your crypto on exchange? When it usually means that the exchange retains control (or 'custody') of your assets without giving you access to the private keys. Also, they can disappoint you at any time.

for now, i'm not actively trading so i keep the assets that i have in my personal wallet ^{(i keep my BTC in the software wallet)}. at the moment the SEC is actively moving even Binance is also under their attention so storing Bitcoin in the exchange wallet for now is very high risk, for active traders, it's better to save your assets to your personal wallet when you're done trading ^{(although there will be a fee, but your assets are safer)}, don't store them in exchange wallets.

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Quote from: CypherMonk on June 07, 2023, 03:10:50 AM

So, why would anyone in their right mind take the risk of storing your crypto on exchange? When it usually means that the exchange retains control (or 'custody') of your assets without giving you access to the private keys. Also, they can disappoint you at any time.

Just because wallets gives you your privacy key doesn't mean you'll be safe from hacks. Don't only rely on only what a wallet tells you about their service because Atomic wallet told their customers they were a decentralized Non custodial wallet then how did the hackers get access to customers private key to withdraw their coins without their approval. Atomic wallet is a closed source wallets so nothing can be verified and we still have to believe whatever explanation they come out with. As you use non custodial wallet, make sure they're open source like Electrum.

Exchanges shouldn't be used as a wallet neither should all wallet that are available are safe to be used for holding of your coins. If you don't know what wallet to trust, ask questions on the forum and you'll be enlightened because many users are yet to understand the disadvantage of using some wallets that's are vey popular at the moment. Not only centralized service are awful to use, we also have some services that's are decentralized yet not advisable to be used due to them been closed source.

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Quote from: CypherMonk on June 07, 2023, 03:10:50 AM

Does anyone here still stores their crypto in exchanges? I think the best choice would be to move a higher value of funds to a hardware wallet while leaving a small amount that's less than 5K in an exchange.

if you are not a day trader on a centralized exchange. better not leave any of your money there. whatever the amount is still a risk that you have to accept.
if you are a long term holder drag all your assets to the wallet. no reason to spare it. You've said it yourself, stay sane by keeping your assets in the safest place you can control yourself.

Woodie

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I know several people who store their crypto coins on exchanges like Binance because its part of their business which is peer 2 peer trading, and its understandable as its the only way to provide a convenient service, and not miss out on any potential business that relies on having coins stored their.
Before anybody says they are doing it wrongly or something, they too know the risk and its the price they are ready to pay to remain in business besides the "not your keys, not your coins!"

Quote from: lucifur on June 07, 2023, 03:39:31 AM

As someone who doesn't really have a lot of crypto, I admit that I have been using and will continuously use exchange wallet. I find it convinient since I mostly transfer it and trade it.

Atleast found someone telling the truth Roll Eyes

Having to Use the exchange wallet has its perks and this also means avoiding extra transaction fees and you can easily trade from one coin to another without losing much, unlike using your custodial/non-custodial wallet which means losing some coins along the way, waiting longer for confirmation and the alike before you make that trade happen.

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Quote from: CypherMonk on June 07, 2023, 03:10:50 AM

Does anyone here still stores their crypto in exchanges?

Yes... There are persons that still store their crypto assets on exchanges and the reason could be that they're newbies and are ignorant of the fact exchanges are not the most effective way of storing crypto assets. Also, there are another set of persons that are not new to crypto but their business requires them to have a good amount of crypto assets on exchanges, I'm talking about the crypto traders. If peradventure the exchange crashes, their funds will be gone as well. The most effective method of storing crypto assets still remain using non custodial hardware wallets such as Trezor, ledger, ellipal, safepal etc.

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