Topic: Know why the exchange wallet are not safe (Read 511 times)

The main difference between centralized exchanges and centralized exchanges is mainly the custody of our Bitcoin and our privacy.
centralized exchanges demand for our privacy in form of KYC to be able to completely protect your coin in the exchange while decentralized exchanges didn’t require KYC, as such DEX did not require your personal information, but leaving your Bitcoin in any of them is not advisable because they will be controlling your Bitcoin for you and you did not have full control over your Bitcoin.

To have control over your Bitcoin, use an open source wallet to hold your Bitcoin to avoid any form of scam or exchange hacks.
Learn how to keep your seed phrase or private keys safe.
Avoid using closed source wallets.

A high fee is just an excuse given by the people when they can't accept the fact they are ignorant. The Bitcoin mempool is indeed congested but the clog is clear now compared to what we had in a couple of months back and paying a $3 fee is still worth the security of our assets.

Another fact is exchanges never let the users to withdraw by only paying a transaction fee, they always add top off and call it as withdrawal fee even when the fee is 1sat/vb the exchange used to charge $20 to $25 for a withdrawal but good thing is now many exchanges also supports LN withdrawal so it is far cheaper compared to withdrawal using on-chain transaction.

ain't no way you got a coldwallet separately and your seedphrase gets endangered... If you haven't even had no plans of opening such, then what do you learn in here??

---

centralization isn't the sole purpose of Bitcoin creation - anything else you get involved is prolly gonna scam you or expose your personal details for money laundering acts, cyber fraud etc... " I can remember the day i slept off, leaving my campaign rewards on binance..."

Sandra 🧑‍🦰

Why can't learn from other people's experience? I think it is possible, many people do it as well. But we don't need to follow put money on stock, we have crypto market and we can put money on crypto coins. Anyway, people put the money on exchanges, mostly they use top exchanges. If there is a guarantee for the exchanges, it is no problem to put the coins exchanges. But if there is no guarantee, the best option is to put on private wallets.

Who suggest to store coins on the centralized exchanges? I think they only suggest to store small amount of the coins and it won't be a long time to put the coins there. I also put coins on centralized exchanges when I want to trade them. But I send again to private wallets if I want to keep them for a long time.

These is what many crypto enthusiast doesn't know, they can't even differentiate between a custodial wallet and non custodial wallet. They trusted centralized exchanges with anything because all they think is mail and password is what they need to protect their money, they don't even think about what will happen to their wallet if the exchange doesn't exist again.

I was reading a reddit post about the reason why people love centralized exchanges and the guy said his reasons is the fees. He doesn't have much bitcoin and he bought it from the exchange using P2P and if he want to withdraw out the Bitcoin, the charges will be much and that's why he left the Bitcoin on the exchange and will sell, he is going to sell easily because the exchange withdrawal fees is much and to deposit again is high due to mempool congestion. His has a point but it's worth if the exchange disappear one day. No thing sweet like personal wallet because not your keys not coins.

This is not true. There are some persons that have thousands of dollars stored on exchange, so high transaction fee cannot be the reason why they've their assets on exchanges because they can actually afford the fees. They're completely ignorant of the of the dangers of having their funds stored on CEXs. The screenshot below shows the account of an FTX user who lost millions of dollars when it went bankrupt.



https://twitter.com/Travis_Kling/status/1721985690496291064?t=YhdQh2BlccOC-BOmEk50DA&s=19

I think you just summarized it, "not your keys, not your coins". This is just the best definition of storing coins in exchange because with this definition, anyone storing coins in exchange should be able to know that it is not their coin as they are not in custody of the key.

High transaction fee is the reason many people have resorted to using exchanges for storing their coins. Little do they know that the risk associated with this style is high as everything could just be lost. It is better to pay the high fees than to lose the entire assets.

Some exchanges and platforms do reimburse their users for the funds they've lost if there is a breach in the overall system or database which means that if the hackers access the database and then access certain user accounts through that, the platform might reimburse the users for the lost funds because it's not from the users' end and it's a lack of security from the exchange or the platform itself and it needs to take full responsibility of what happened.

However, if a user account is breached individually, like an hacker or a breacher manages to gain access to a specific user account either through phishing or any other method, the exchange or the platform would never reimburse the user for the funds stolen because it's user's fault and they are the one responsible for what has happened.

I have never seen an exchange giving out seed phrase to it's wallet holders so I think this information you gave out isn't correct but as it regards a Bitcoin wallet, it's normal you are given your private key seed phrase and it's your duty to protect them because protecting them means protecting your assets and exposing them also means putting out your assets there in the public which keeps you at risk of loosing them. For a Bitcoin wallet that's not on an exchange, to the best of my knowledge the most security attached to it has to be your seed phrase both for an online and a cold wallet the only way to access them will be through your seed phrase except for the online wallet that can be broken into via certain malware but basically your seed phrase is your first line of security.

Seed phrases can be recovered if lost or misplaced neither can they be changed or request for a new one so it has become very vital that you protect it's s much as possible because loosing it may means loosing your whole assets in your wallet so always make sure to safeguard your seed phrase.

Exchange does not give you full authorization with your money and it's not a wallet. This topic discussed many times. Exchange is only used to change your coins into different coins they are supporting wallet balance for people actively making a trade to their platform. Users become confident with their exchange because they think their assets are safe inside it so it the convenient to make a quick flip of the market but the cons of it once the exchange has maintenance, bankruptcy, and other forms considering of losing money.
Instead use a hot or cold wallet so you can have your wallet transfer anytime, you can adjust the fees and of course you don't worry if those exchange gets gone because you are safe with your wallet at.

Maybe they are talking about binance since there are times that exchange got hack and they flaunt about the wallet is safe all the time regarding on that incident happen. And I guess people should not believe always with that since even if they say guarantee returning of their funds once there's hacking issue occur still there's a chance that they can't recover then totally they could possibly lost everything they have once this incident happen.

That's why they should learn from those other big exchange hacking where there's a lot of people crying for help to get their money back and they should never fully trust their favorite exchange since anything negative could possibly happen there.

In the first place, we know what we are trying to do whether for storing or trading.
Exchange wallets are just intended for trading purposes only, not storage wallets. Sometimes, we can store our funds especially when we are waiting for the right time to trade but it is just a small amount.

Ever since, we have been aware of the safety of our funds with these exchanges and they can't give us assurance which simply means that whatever happens to them, it also happens to our money. If they got hacked, it possibly included our money. We take responsibility for our funds, not by letting others do it as they don't care.

Hilarious,  from where the exchange will reimburse him if any hacking happens? Maybe the guy is not used to using wallets. And we know exchange always has a nice user experience. This is nothing but laziness. Once he falls into this he can understand and can not find them (exchange) anymore.

The problem is that no one is able to learn from someone else's experience. Almost every user on this forum knows that storing money on the stock exchange is dangerous, but not everyone understands that this can happen to anyone too. Nobody thinks about bad things until it happens to them, I don’t know why this happens, but people actually store their coins on the exchange.

I even saw a guy who wrote that the exchange is the safest method of storage, because the exchange is his guarantor of safety, if something happens, hacking or something else, then the exchange will reimburse him for everything, and he really believes in it.

Exchanges wallets doesn't belong to you even when you created account on the exchange,  it's not a non-custodial wallet like Electrum and Trezor, the exchange is holding the key of those addresses and this makes it a wrong practice for crypto investors, till today some people still trust exchanges more than non-custodial crypto wallets for stupid reasons I guess.

You shouldn't entrust your crypto assets into the hands of any crypto exchanges, even if they are the biggest exchanges in crypto space anything can still happen to them, they can fold up or get hacked, but I get it, I am probably wasting my time saying this yet again, as many people trust exchanges more than anything.

Even right after the collapse of FTX many people still find alternatives, they moved funds out of Binance exchange too, but later they start doing the same old thing again, I won't advice them to stop storing coins on any exchange, if you are never a victim of something you probably won't understand how it feels.

Your exchange wallet is actually just a temporary repository for coins to enable you to buy & sell (trade) on exchanges. It is in no way a long-term wallet for Crypto currencies.

Those tokens/coins are actually just a digital entry into a centralized database and not actual coins on the Blockchain. Only coins that are deposited and withdrawn from the exchange are transaction that are reflected on the Blockchain... all other trades that are done are reflected on the internal database of the exchange. 

Your coins are stored in a hot and cold wallet, that are 100% controlled by the exchange. (They control the private keys to those coins)

 

There's alot of contradictions in your advice. It is either English words are failing you to express yourself or you do not understand so well what you are advising.
First, it will just be fine to say that I shouldn't keep my coins on exchanges and not exchange wallet.
Secondly, you said alot of people thinks after protecting their seed phrase, their coins are secured. How is this related to the exchanges under discussion. Exchanges do not issue seed phrases.
Also in number 1, you advise that we should keep safe oor seed phrase and in number 2, you went ahead to discourage us from number one. It all, I believe advise is gotten but I don't know if people will use it although.

Don't be naive mate. Aside losing your funds when the exchange goes bankrupt, when it gets hacked or when government shuts it down. I'm surprised you didn't learn anything from the ugly experience some forum members went through when the exchange froze their wallets because they received their weekly signature payment from an address under surveillance by the authorities. Don't make your experience your teacher, learn from other person's mistake.

This advice is not to keep coins in exchange wallets. Although everyone mentions it and praises its importance, you find that some do not give it importance. The answer to the question you mentioned is sufficient to make any beginner reconsider again before deciding to keep his holdings on exchange platforms. In the event that these exchanges collapse or are hacked, or their official email is hacked through a third-party email provider, their clients will inevitably be exposed to considerable risks. They may lose their capital and may not receive compensation in the end. In addition to the CEX platforms, they are attacked by regulatory bodies to comply with international regulations. These platforms may impose strict policies, restrict a country from using their services, or confiscate and freeze funds, so CEX should not be a wallet for any long-term investor. There are more safe decentralized alternatives for BTC that do not expose users' privacy and KYC documents.

Are users responsible to hold their seed phrases in any exchanges? I doubt it. It is not advisable for us to keep our coins in any exchanges wallet because exchanges are responsible for holding our seed phrases and you can be scammed at any time. Keeping your coins in an exchange wallet is equivalent to giving a stranger your house key, and you can be 100% sure that your mind will never at ease. The only time in which I believe I can advise you should use an exchange wallet is if you are the kind of person who transacts frequently, But you should never keep your coins in any custodial wallet.

Exchange wallets are generally not considered safe for keeping our own money, yet we have to keep money in all these exchange accounts when needed. There are enough reasons to consider exchange wallets risky, exchange wallets are completely under others so if ever there is an exchange scam then our money will be completely lost there. There have been many times in the past that users have deposited all their money into what they call their trusted exchange and lost that money while depositing. Keeping money in an exchange wallet certainly offers some benefits that are not available in mobile wallets. 

Although keeping money in exchange is somewhat risky, we need to keep money in exchange wallet to manage our trading investment and other tasks properly. Some exchanges have cheated users in the past but not all exchanges will cheat users. We have to trust some exchange. If an exchange cannot be trusted then we will never be able to use the exchange properly.

I think the hacking problem may be more present because many top exchanges have faced hacking problem and there are many investors lost money so you should deposit short time money in exchange wallet. Those who have big funds do not like exchange wallets and most of the time they collect hardware wallets.

Not keeping your assets on the crypto exchange is absolutely an old, unwritten rule that has been echoed by almost all of the people in crypto communities. "Not your keys, not your crypto" is a slogan that makes me want to invest in a new project that claims to be a solution to how we trade nowadays. Both CEX and DEX have their own weaknesses, and these projects claim themselves as "the first shariah-compliant hybrid exchange," offering new ways to trade by keeping our assets and holding them in our own wallets (non-custodial) while trading in the CEX efficiencies. I hope it truly could solve the current issues since we've lost our money by trading in either CEXs or DEXs in the last few years. I hope HEXs will be popular in the next couple of years. 

😂 You do have a way of describing things. I'm laughing my head off here while envisaging the scenario with a tambourine.

I've encountered something of such, though on another exchange that wasn't Binance. Withdrawal commission skyrocketed immediately it became an emergency. It was a sad experience for me. It's the same thing when tokens are locked perpetually and you can't withdraw from a platform, though you can see their value rise. Frankly, like we say in our local parlance, we've seen "shege" in this industry. It remains "banza".

Many crypto users keep their funds on exchanges and many of them are well aware that keeping funds on exchanges is not safe but they keep funds on exchanges for trading purposes. In recent times we have seen many crypto exchanges crash resulting in many people losing their hard earned money just because of holding funds in those exchanges. In fact, if a crypto user does not have control over their funds and their funds are controlled by someone else, then this is by no means a safe way to hold funds. So crypto users must learn how to use a wallet and gain experience in how to keep funds secure.

Most people don’t know the risk involved in leaving coins on exchange, most people just think about the positive aspects, they believe their coin can easily be accessible whenever they want, some of them think their coin is more secure in their exchange account than in their own wallet, but they don’t know that if anything happens to the exchange, their all the money which they are having in the wallet will be gone also, exchange is the worst place we’re a coin Should be stored, any money you leave on exchange, just know that you are not the one in control of the money.

Normally, knowing to store coins on an exchange wallet isn't a good idea, was common sense already for a long time.
But after what happened to FTX, where an mostly unregulated exchange collapsed due to passing customer funds undisclosedly to shady yield farming nonsense, it's surprising for me, how someone still can sleep calmly when his coins are stored on an exchange wallet.
It's abhorrently risky.
We need always to know "not your keys, not your coins" is crucial to know about.

Good reminder, @OP!

People of your type always think that nothing will happen to them since you are the most ordinary client of the exchange, and it should not let you down. But accidents are never accidental; one day the exchange will discover that your bitcoins have not passed the AML check (their robot will simply choose you), and you will have to dance with a tambourine to prove to it where you got your bitcoins from.
I’m already silent about the fact that suddenly your country will become inconvenient for Binance, and they will ask you to urgently withdraw all your funds, and the commissions will become unimaginably high.
Accidents are not accidental. Don't wait for them.

I think everyone are all aware of this as they dont have private keys to accoutn for all their asset. There are people who holds asset there it doesnt mean they dont know that. Of course they are trading some assets and possibly got some set limits for some tokens. Also there are other features on exchange they are fond or using thats why they still have asset there. As a bitcoiner I know the risk of the issue and also holding majority of my asset on a non custodial one but sometime do cex activity like on Binance when theres an launchpool or launchpad.

Getting your points right, it should be without the seed phrase we can no longer access our bitcoins. The seed phrase are the entry way to access our bitcoins and if anyone should have access to it then we are at the risk of losing our bitcoins, with the seed phrase anyone anywhere would have access to our bitcoins that is why securing if is very important but we should not secure it too much that we forget where we save them.

Securing the seed phrase can be very challenging for some people especially beginners, they might not know the risk of losing it or exposing it that's why they may get careless when saving it. Seed phrase needs to be saved with caution, it should be saved in a place where no one else can reach them except people you wish to. Duplicate of the seed phrase should be made as back up and stored in a separate location just incase of unfortunate circumstance. Writing the seeds phrase on a paper is not ideal as paper can easily be damaged so it is best to write them on metal or an object that cannot be damaged easily.


Storing your coins in an exchange wallet is just like giving money to someone else to hold for you, the person can do whatever they pleases with your coin because you are not in control of your wallet. The cryptocurrency world is very dangerous world and no one can be trusted that is why it is advised to never keep your assets in an exchange wallet. An exchange wallet is a custodial wallet which does not give you access to the seed phrase and private keys and keeping your assets there means you are keeping your assets in someone else’s wallet. Always remember “Not your keys not your bitcoins”.

The dangers of using an exchange wallet is that anything can happen, the exchange can get hacked by scammers or the exchange can scam it's customers and run away with their funds. It is advisable to always use a Non custodial wallet where your wallet keys and assets will bee in your possession and the only risk will be how efficient you are in securing your private keys and seed phrase.

Exchange is not just safe for people to leave their coin on it. Before now we saw how how many exchanges crashed down and no where to be found again. Because of how exchanges are easily hacked by hackers is the main reason why people should not use the exchange to store crypto.  Exchange is a centralized wallet and from it what people can easily manipulate to get access to it. It is better to have your in a non custodial wallet to secure them better.

I always used to tell crypto newbies that the security of their asset should be the most paramount thing to them; otherwise, their crypto investment might just be a labor in vain.

Since I joined the forum in 2022 until today, the Bitcoin investment rules of "Not your key, not your coin" It has always been sung like a song here, and it has been talked about many times to the extent that every Bitcoiner should now be wise enough to know that storing Bitcoin on a centralized exchange is not the right way to store their coin.

Well, OP, your idea is not bad, which is to always keep everyone on track to be conscious of their security and not store their coins on CEX.

We've been telling that to newbies that exchanges don't give us our private keys and it's still a good reminder to make those people that who likes to keep their funds in exchanges.

Many debacles have came and made people lost their deposits on those exchanges that have been hacked and closed. Why for the closed ones? It's because they were confident and kept there and missed the notices of their closure so with the given period of time to withdraw their assets, they've missed it due to forgetting it. A simple thing but a big mistake.

I don't know if there's still an exchange where you can get the private key although it was an eth wallet that's why I am not sure about in BTC and that was before anyway. By the way, reason number one should not be included instead it should be not your keys, not your coins. This is because exchange sites doesn't let you have full access to the wallet that is used in that exchange but only in sending and receiving and nothing else unlike the wallet where you have full access is you can import it in other wallet providers to manage your Bitcoin.

I just finished your post but I like your advice quite a bit. Here I am one of those people holding his coins in exchange. In fact I used my Binance exchange address instead of my own wallet due to the recent exorbitant increase in Bitcoin transaction fees. Currently my exchange is fully funded by the money I receive weekly. But some say it is safe and most people say it is not safe to save money in exchange. But I also know that one should not invest in any exchange because at any moment we can be in danger. But I will try to invest in my wallet soon.

Yes, you are absolutely right. But many people who use exchanges to store their cryptocurrencies dont even know what the seed phrase is for, let alone how to properly protect it.

Point of correction. Exchanges do not give users their seed phrase or private keys. The exchange holds full custody of your bitcoins. This is why we say “Not your keys, Not your coins”.

There are dozens of threads on why it’s not a good idea to store coins on exchanges;

Reminder: do not keep your money in online accounts
Binance & Nigerian; Most recent development on frozen funds without prior notice
Recent events should make everyone withdraw all their coins to their own wallets
Recent events should make everyone withdraw all their coins to their own wallets: Part 2
Recent events should make everyone withdraw all their coins to their own wallets: Part 3

To be honest, I don't think that's so simple. You can also keep your fiat cash money or gold at home. But how many people do that? They are afraid of being robbed or to lose their banknotes in a fire of their home, that's why they prefer to leave their money at banks even if they've to pay for that. For Bitcoin risks of losing funds are even higher, because thieves can steal your money from you remotely, and your seed doesn't need a fire to be lost or destroyed. So IMO when banks will accept cryptos or when exchanges will be older, you will see more people using their services to store their cryptos.

In essence, exchanges are not wallets for storing assets. The exchange does not provide seed phrases or private keys to asset owners.
Freedom is theirs and not ours. The assets stored on the exchange do not belong to us, but to them.
Why is it not safe, for the reasons I have mentioned.
To be safe, use a wallet that is controlled by the asset owner. Choose a wallet that is open source and has been tested.

Not just protecting your seed phrase to know how to use it when you want, also know that it is important to make sure no one have access to it. You can be hiding your seed phrase where someone will see, they might not steal it but it can be copied and that's all. Therefore, make sure you are the only that have access to your seed phrase by hiding them in a secrete place where only you will have access to.

Exchange wallets don't have seed phrase, your bitcoin will be in the exchange total control if you keep them in the exchange. Take exchanges as a market places where you will only buy and sell, keeping your bitcoin with them is very risky because you have no control of them.


In general.
Avoid clicking phishing links.
Not your keys, not your coins.

This topic has been discussed time and time again, and I don't see you making any contribution to the discussion since you are simply repeating what has been said a thousand times already. I don't say you are wrong, you are right that one should never keep their assets in an exchange, especially if they have a large value, and one should keep their seed phrase and private keys safe. However, this has been said many times already.
Safest way to keep your Bitcoins or cryptocurrencies in general is to buy and use a hardware wallet so that your wallet doesn't stay online because online wallets are mostly more vulnerable to hacks and exploits.

Yes, it is true that exchange wallet can be subjected to any government restrictions but you also need to understand some of the benefits that are attached to having a coin in an exchange wallet. You don't have to teach us some mere things everyone supposed to be aware of looking at the risks affiliated to it.
 If you want to buy a coin maybe the one that would soon launch soon, how are you going to go about it if the coin is not available on decentralized platform? How do you intend to trade and make some profits for yourself with selling your coins out? Maybe you should have a rethink and stop telling us things that are already known to every traders and investors. You can keep your coin to yourself and never send it out.

If you run your own node, you would no longer need to connect to servers run by third parties and you can protect your privacy, but if your purpose is only to hide your IP address, you can use TOR connection or VPN and still use SPV wallets and connect to servers run by third parties.

For someone using exchange as their wallet, the non-custodial wallets look like completely anonymous but it's true that we don't need to provide any identity to get our bitcoin wallets but then when we connect to third-party servers our IP address will be leaked to the connected server and its possible to track the real location even identity.

That is why when someone is thinking non custodial wallet is the best way to store their crypto then they also should consider running their own node.

storing assets in a wallet such as electrum or safepal is better than the wallet provided by the exchange. using a custodial wallet means that holders have full access to their bitcoins, where they can manage or transact their bitcoins easily and quickly.

but if holders use a wallet provided by the exchange they don't get the private key to access it and they can't fully manage the assets from their account. the risk is also that the exchange could collapse at any time and that would impact all the assets that users have and no one wants something like this.

and for this reason using a custodial wallet is more recommended for holders because they have full access to the assets they store in the wallet. even though users need to secure the private key and that is quite tricky, this should not be an obstacle for the user.

Holding assets in an exchange wallet means that you are giving away your money to someone else. But you should know how safe the one you have given money. Because we often hear various information about the hack of Exchange site. Major exchanges have also admitted to being hacked. So it cannot be completely trusted and is not possible.

When a holder places his assets in an exchange wallet, his assets are liable to a third party in case there is a possibility of losing his assets at any time. Moreover, if an exchange engages in fraud with its customer, the customer has nothing to do.

An exchange wallet may also be subject to various government restrictions. As a result, the customer's assets will be at risk there.

So one should definitely avoid using exchange wallets.

The truth of the entire matter is: don't trust any third-party provider; trust only yourself; don't give out access even to your personal wallet because that won't guarantee your wallet's safety. Exchanges are only meant for trading and exchanging of coins and not as storage; it's only those who are lazy that will consider using exchanges as a means of holding.
 
Even exchange wallets that they claim to be noncustodial wallets and some that have been proven to be safe, I don't trust them, as we never can tell what's behind their seed phrase generation and the level to which you have access to that wallet.
 
Self-custodial wallets, which are also open source and hardware, are publicly advisable for long-term storage, but those are just wallets. The level to which your funds are going to be safe mainly depends on how careful you are with securing your wallet. You can still have full control over your holdings and still lose them if you don't take security measures seriously.

Everything that you described in the long read in your post could have been stated briefly. All types of crypto storage are unsafe unless you have sole access to the wallet (seed phrase). That's why it's like this "the exchange wallet are not safe".

Completely anonymous? Not really.

You can't protect your anonymity and your privacy, just with using a non-custodial wallet.
When you use a non-custodial SPV wallet like electrum, you have to connect to a server for giving data from a node and broadcasting your transactions. With connecting to the server, you reveal your IP address to a third party.

Not being in total control of your coins is one reason to avoid CEX, but another reason is your privacy.
With a non-custodial wallet, you don't need any form of KYC. You don't need any personal information whatsoever. No one is even going to ask you for an email. That makes you completely anonymous.
Nobody has to decide how you spend your money or when.
Giving out your personal details to third parties is risky.

Isn't it fascinating that we have an opportunity to send money directly to another person without any intermediary? Nobody has to know how much you have and how much you give to a person. All they'll see is an address sending Bitcoin to another address.

The problem is there are  some centralized exchanges that do have an in built wallet apart from the exchange platform it self this one gives you the seed phrase example is the OKX exchange and wallet. But the same thing still relates how do we know what happens to the seed phrase when the exchange itself is closed source we don’t know maybe they have copies of it and with the recent hacking issue then it would be possible to get access to those keys or seeds example is the use of TrustWallet which also closed source wallet.

Another thing is most Decentralized exchanges do not even allow to store your coins on the exchange most especially the swap exchanges they simply wants you to connect the wallet the coins are stored in with the exchange through the DApp of that wallet

Op after telling us  about making sure to secure our seed phrase I was expecting you were going to spelt out method's with which we can securely store our seed phrase but since you didn't maybe I should  give one for newbies that may be needing it.
Bitcoin metal seed storage

Leaving our coins in an exchange is similar to the risk of leaving our money in traditional banks, where they  have to dictate the term of how and when we can have access to our money. Any bankruptcy is a total loss to you. To have total financial freedom  and control of your asset making use of non-custodial wallets like electrum is what every bitcoin holder should  not compromise. Your seed phrase is equivalent to your coins and whoever holds it originally owns the coins in a wallet that is why it should be secured and known only to just you.
TUTORIAL: How to use Electrum (for beginners)

Don't keep your Bitcoin on an exchange.
Fix the typo.

If you want your fund to be completely secure, you should use an open source trustworthy wallet like electrum on an air-gapped device.
Take note that any online device is always prone to hacking. If you use electrum on an online device, there's still the chance that your device is infected with a malware and your wallet gets hacked.

I won't advice any one to keep their asset in cex account. Purchase your coin and send it to a Dex account asap, Holding your coins in a cex account is like given someone else to help you to hold your funds and not just that it can easily be a target for scammers to penetrate and run with your funds. Or the exchange may endup With bankruptcy ( like  FTX Due to mishandling of customer funds) and your funds will go down with them so is better to save your asset in a Dex account knowing that your funds is in your hands.

Cex account don't use seed phrases just keep as findingnemo said they only use password you input yourself, that one advantage about cex account whenever you lose your password you can go for forgotten password as long you still have that particular eMail you used in registration while Dex account uses seed phrase which you cannot retrieve back when you lose it. That why most users here keep on saying you should mind the way you keep your seed phrase and always keep it in location you can easily access

You are dragging too much for what you wanted to convey.

Exchanges don't give us private keys for the addresses and exchanges can be hacked or run away with our cryptos are the two primary reasons why you should not keep your coins in exchange.

P.S: Are these typos "we can no longer access our Bitcoin" and "Do Don't keep bitcoin in an exchange wallet"?

What if we discuss this important thing concerning crypto currencies, investors and social media platforms? However, some discussion might have been concerning this dissertation, but it will be good if we keep on talking about them so that we will know and not get involved in any of them.
Some of us might be running from crypto scams from scammers on social media platforms. Wow, that's good, but that's not all.
We can keep a safe distance from scammers when we have protected our coins first. We can only protect our coins through 2 means.

1. protecting our seed phrase: We can start protecting our coins the first day we protect our seed phrase. It is very important to do this, because with this seed phrase, we can no longer access our Bitcoin when we don't have any means to log in to our Bitcoin wallet.

2. Do  not keep bitcoin in an exchange wallet: This is also important to be aware of. A lot of people only think that after protecting their seed phrases, their coins are secured.

However, if you do so, it can be secured when you store it in a safe wallet like an electrum. A Bitcoiner might think that he can not get scammed if he did not click on suspicious links on social media, but that's not all. One thing is to keep your bitcoins in a good wallet and protect them. What if you keep your coins in an exchange wallet and you try to protect your coins and then the exchange collapses? There will be no way to get back your bitcoins. That's why I have said earlier that storing Bitcoin in a secured wallet and protecting your seed phrases are some good ways to protect your Bitcoin. Instead of keeping them in an exchange wallet.