Topic: Don't be fool to keep on exchange, look my name - page 5. (Read 642 times)

Although OP might have put it out harshly but it is not far from the truth. Storing funds on them should be avoided, because if actually you lose funds due to the service or platform been hacked then the chance of getting back this funds are slim(many exchanges that have been hacked are yet to return users funds). The ones that get back their funds are mostly platforms that are closing down and they inform their users to take off their funds. But this shouldn’t be depended on because you don’t when it will be hacked.


We can’t just stop warning people because of the newbies coming into cryptocurrency aren’t aware of its danger, it is even fact that many of them even get into cryptocurrency through this exchanges. The clear warning to the ignorant ones Should be treat centralized exchanges as a marketplace, trade on them and take your funds back to your wallets.

I think everyone is just trying to portray this popular saying which says prevention is better than cure. Yeah its true that  these cases of exchanges closing down and people losing their assets in them are few but the facts still remains and that there is the possibility of these things repeating them selves. So calling the action of someone trying to have the keys to his own assets isn't a negative action at all.

I agree with you that the bitcoins you put on exchanges is indeed not yours in the scenarios when an exchange goes offline or ran away with the bitcoins or stops withdrawals without any notice. Other than those reasons the bitcoins that you hold on an exchange is as much yours as the ones you keep in a wallet. For example: The money that you keep in a bank is also yours as long as the bank is not bankrupted, or hasn't flew away with the money. The scenario is same with the exchanges, as long as they are working normally your coins are totally yours.

It's always better choice to keep your bitcoins in your personal cold wallets rather than relying on those exchanges. But, if someone is into trading then the only option for the person is to let the money on exchanges. We have no other option than trusting those exchanges because that's the only possible way to trade your coins and earn from trading activity. For a investor the scenario is quite different, the best option for an investor is to create their own cold software wallets and keep their bitcoins on those cold wallets.

It basically depends on the needs of the users, and I must say that the exchanges are doing a great job to help their users even though people still prefer cold software wallets for the security purposes. I have kept my coins on Bitfinex for more than 3 years and let them on that exchange without any precautions, and when I needed to withdraw the coins it took me less than 5 minutes and the coins were in my own wallet.

It's indeed a reality that few well-known exchanges are doing a great job for the customers, but still I would prefer to go with cold software wallets for security purposes because an exchange can flew away with your money without any prior notices. It's better to use the exchanges for trading purpose because they are most suited for that thing, and it's always a better choice to keep your coins in your possession for security and safety purposes.

It's all good to say that we need to be careful with our funds, but I just understood that you can't be always careful with cryptocurrency. Some people see open source wallets as the best, but we have to wait months for a developer to make a new update before we can download, just to be sure, especially for non developers. Hardware wallets also pose some vulnerabilities, the chips they use in building them can be compromised by hackers or even when a person gains access to the hardware they can take your funds. These are vulnerabilities in the cryptocurrency niche, but in all means keeping our keys is a good practice but avoiding exchanges as a way of keeping bitcoin doesn't absent us entirely from risks of losing money.

Is this a serious problem in the process of using cryptocurrency or bitcoin, I think not. Because of the few stories some organizations or individuals have problems in managing their assets, and we can all manage it ourselves and don't put too much weight on bad luck in the journey of using it. I don't want to talk much about negative action when it's not common and depends on the user himself, every tool has features or risks to use.

It's a warning for everyone. If people think that it's ease to let their keys be on that recover feature of Ledger or any other type of service, you're wrong. As said by OP, you hold only your keys and not any cloud storage, and even the government can take it if they subpoena it as per the CEO of Ledger. Can we imagine that we like decentralization and then these companies are starting to make it look like we need these centralized systems for keeping our money, no way! We've been there once before and wouldn't allow them to hold our funds and wealth.

That's right, if we save on an exchange of our assets then it's not ours but there is a third party who handles it with this it will be vulnerable to our assets that might be held by their side, it's better to write in your seed phrase paper and pull it BTC from exchange store in the cold wallet will be safer.

Centralized exchanges will never end because this is a place where many people trade any coin, including we send BTC to a centralized exchange only to be exchanged to fiat while doing P2P is still very difficult to do directly unless the centralized exchange is the largest container his.
Another one keeps assets longer so it's better to use cold wallet, if there is another need then you can send to exchange to convert to another one that becomes easy to exchange.

They are too comfortable keeping assets on the exchange so they don't think about the risk of how the exchange collapses even though there have been many incidents in this regard, it's just that they don't care about it and it's better to keep it there practically maybe that's their thinking.

Meanwhile, I personally prefer a secure hardware wallet for all the assets we have that can be stored there.

I already know how to store private keys safely of course don't store them online or in any cloud because it will be vulnerable to hacking, we also won't be stupid about the assets stored there of course have prepared in a much more secure hardware wallet.

I don't think it's all that bad holding assets on exchanges but this is highly not recommended and it is better to stay away from holding exchange assets if you are investing long term, unless it is only trading then it will be fine and maybe they will be more attractive from exchanges if profitable then the capital can be turned back.

It remains for the long term that we ourselves hold the private key offline.

I am probably going to stop warning people about their wallets and the dangers of reporting their Bitcoin on a exchange because they just don't care, after FTX's cruel fate I thought centralized exchanges are going to go out of business because the majority of people will stop using centralized exchanges and move out all their funds.

When Binance exchange witnessed a huge amount of withdrawal, I was one of those people that believe that it's over for centralized exchanges, until a few month later where people start moving their funds back into Binance.

This shows that they just don't care, like whatever happens to FTX and those using the exchange have happened, it's like they are saying "it's not me but those using FTX that have a bad fate" what they failed to understand is it can happen to anyone. People really like learning the hard way.

I guess OP is trying to pass a message that instead of keeping your coins in an exchange,it is better that you donate it to those he mentioned above because your generosity will be noticed and you will touch the lives of some many people in need.  When your coins is in an exchange, it isn't safe and if the exchange crashes or comes up with doing away with users funds...You have just enriched the CEO of the exchange and you become a fool for that because you might leave to regret your silly action. You wouldn't know the next online service that will come up with cock and bull stories to scam their users. OP means all online service are not safe to keep your coins because your coins belongs to them not you anymore,if they don't want to give you access to your coins,they wouldn't and there is nothing that you can do about it.

Maybe not an executioner, because that means you have nothing to lose because you are bound. There is no chance to escape it is just you wait for your sentence. Then in the exchange even if you put bitcoin there, you can still transfer it to another non-custodial wallet.
Unless it's an unknown exchange here, it can be said that you're giving your neck to the executioner, but if it's like Binance, I can also say that I'm a little complacent and at ease.

This is misleading, when you're hold your coins on online service, it doesn't mean you will completely lose all of your money and can't get it back when a bad thing happen. If you're give your wealth to social institutions, war victims etc, it's donation and you don't have any access to claim back your money. The bad thing of online service is prone of hack and they will ask you many questions or KYC, but you still can access your money as long as the service isn't scam or hacked.

Not saying holding on online service is good, but your comparison aren't make sense.

I guess everyone is well aware of this old adage, not just in the cloud but in exchanges as well. We have seen a lot of exchange rug pulling and there are some rare cases that the owner himself died together with the exchange himself (QuadrigaX).

Company loses $190 million in cryptocurrency as CEO dies with sole password.

But with addition though, you should also learn how to practice security with your keys, not to save it online, emails or backup in the clouds.

Not your key, not your BTC

If you save it in the cloud, exchange, or any service online, you don't own your key. It's the same as giving your neck to the executioner. Better to give your wealth to social institutions, war victims, and people who are undernourished than give your wealth to rich people who own the cloud and exchange.