Topic: More exchanges shutting down, Hold your Asset with You - page 2. (Read 520 times)

These might be for non forum users or those who aren't routed into cryptocurrency entirely because I as believe almost the reputable users here are already aware of the implications of what centralized exchange could capable of doing if your assets are being stored over there without moving them to a self custodian wallet.
It's a pity for one not to know read to the problems associated with centralized exchange even upon the recent happening.
Shutting down those exchange was as a result of illegal activities if you read from the headlines.

Well, I don't have huge amount of money to store in my hardware wallet yet but if I have such big money it will be store in hardware wallet which is very safe for investors to store their assets for future purpose. I heard how many people fell victim to scammer to have access to their centralized exchange to withdraw their money without their notice because the centralized exchange is not too safe like hardware assets which is the best for long investment. I believe, many people will take this information serious to withdraw all their money and store them for hardware wallet which is more secure and reliable for future use.

It is even more expensive than the priority fees that now need to be paid for confirmation in the next block, of course for transactions of standard size. Of course, every service has a price, and CEXs charge it really expensively or try to trick users into using some of their alternatives.


Every miner (mining pool) who finds a block is rewarded with 6.25 BTC, so it's quite enough initiative for what they do - and the fees are just extra profit. We cannot blame the miners for all these unconfirmed transactions, they are doing what they have always done, and the current high fees are the result of someone else's stupidity, because I have no other expression for what is happening.

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for long-term investment it is not recommended to store it in CEX or DEX, it is highly recommended to store your crypto assets in a personal wallet where only you and your trusted people know the password and the phrase. at the moment only hardware wallets are very very secure but there are also some personal wallets that are quite recommended.

(just vent) until now, I still really regret that I saved some mbtc in my FTX wallet, if I wasn't stupid to save there I would still holding that btc right now. That incident really hit me hard and gave me more faith that the exchange is not a safe place.

With the type of thing that FTX company have caused many to investors this year I did not expect anybody to leave their cryptocurrencies on any crypto exchange again but if they are still doing the same thing and they failed to see it as a red flag then it is their problem.

I will not feel pity for such people because they have been warned several times not to leave their coins on any crypto exchange, especially centralized exchanges that are not very popular, they can fold up at any time and not all of them will pay for the mess they have created.

FTX bring tears to the eye of many investors and there is a rumor that few people can't digest the loss and they took their lives, you don't need to be told that you should remove your crypto assets from ant exchanges.  

Exchange shoudn't be used as wallets so you shouldn't be holding your coins on them especially as there's no signed agreement between you and the exchange that they'll refund you fully if anything was to happen to your coins on their exchange. Centralized exchange can be hacked at any moment and it doesn't matter how secured they claim their exchange is. It mightn't be hacking that puts the exchange in financial problems but maybe they made some mistakes by gambling with users funds like investing in new projects and when they fail, they lose billions to that investment and now they can't hadn't withdrawal request and this causes the exchange to lose trust in their customers and stop getting patronage which causes the exchange to collapse.

There's so many reasons why we shouldn't store our coins on exchanges, if you're an active trader, you can keep some money on exchanges but it should be just for trading purpose as such you won't miss the pumps or opportunity to sell before a dump as you're asking about. Apart from this instance, don't use exchanges as wallets. Centralized exchange aren't the only option to sell your Bitcoin, you can trade using P2P exchanges and I'm not referring to the P2P on centralized exchange ls but those that are actually decentralized like https://bisq.network

The miners can still make money through mining Bitcoin and get a reward during halving season, not only through Bitcoin we paid to broadcast the transaction. It will be different if Bitcoin has been mined all, this will happen in 2140, still long to go.

The high fees is caused by Bitcoin ordinals which is NFT run in Bitcoin network, those people don't care how high the fees is and that's make us e.g. the Bitcoin holders get an impact as we need to pay what they have paid.

A software wallet is only safe if it runs in an offline environment. Bitcoin Core and Electrum aren't that safe if they are used on internet-connected computers that are used for all sorts of activities. If you want better security but can't keep your keys offline, better use a hardware wallet.

It goes without saying. Exchanges (CEXs) don't give you control over your private keys. Hence, they are custodial, not non-custodial services. 

Those two suggestions shouldn't be in the same sentence as they aren't even equally as good. I would never use mobile wallets for any serious money, especially not as a long-term holding. 

You don't have to use a CEX to sell your crypto. You can buy and sell on a DEX like Bisq or do face-to-face deals if you live somewhere where bitcoin is traded a lot.

It can happen, but it wouldn't affect as many people as a CEX hack would. Take Bisq as an example. Your Bisq wallet is completely different from mine. If mine gets hacked because of a mistake I made, it has no consequences on your holdings. Bisq being decentralized and non-custodial means there is no central infrastructure to attack to steal coins. That's completely different to how a CEX operates. A CEX like Binance has hot and cold wallets where they pool the funds from everyone. Attack and steal from there and millions of people lose their crypto.

This is what I was afraid of when I put my money on the Exchange, the Binance hack of $570 in October 2022 became one of the most famous attacks in Cryptocurrency history and the bankruptcy that befell FTX became a valuable lesson for crypto users to be more careful in keeping their assets safe.
Store assets in a wallet that you can control the private key, besides that it is very important to use secure passwords and support for 2FA features on each account. Don't let the assets that you have collected bit by bit be taken away by hackers as a result of choosing the wrong place to store assets.
Cryptocurrency exchanges are one of the main targets for hackers, this is Report on Crypto
2011-2020 Exchange Hacks and The Largest Cryptocurrency Hacks So Far
ever happened.

I've used Kucoin and their transaction fee on BTC is about $14 and lesser when using their KCC network; $0.5 fees. It's one of the exchange with high fees, it's obvious they're doing this to promote their KCC network. And when using the kcc network to transact BTC the funds won't appear on a btc configured wallet except a bridge is used, and it's always hard to find a person that uses KCC network. Though, a method to follow through the kcc network to reduce fees exist, but it's stressful and may not worth it depending on the amount of btc you want to transact, so some trader will move ahead with the BTC assigned fee. https://coinmarketfees.com/exchange/kucoin



Aside from multiple uncomfirmed transactions, I'd say that miners are paying a lot on power fees and it could be a criterion that affects the high fees on bitcoin transaction. I mean how can Miners be supported if not through the fees?

Well, if we keep our money on exchanges, we just give our money to them and it is up to them if they will return it to us or scam us one day. Most of the centralized exchanges operate anonymously and in case of any mishap we can't do anything or take any legal action against them.

We should keep our money in our own wallets so that we have the private key of our wallet and we do not depend on exchanges to keep our funds.

Several cases that have occurred on centralized exchanges are enough to make us worry about storing bitcoins in particular and there are reasons why centralized exchanges are not a safe place to store the assets we have. Each of us has a responsibility for the security of the assets we own, I also keep some assets on centralized exchanges but not for long term and usually I use centralized exchanges which have operational license from the state.

Using a centralized exchange and after trading moving assets back to a safer place is much more complicated, because if we trade daily then transaction costs will be a constraint, except for those of us who hold bitcoin for the long term. Set the best possible time duration for multiple assets held in a centralized exchange and try not to store large amounts and determine when to transfer all owned assets.

The function and use of the Exchange is only for trading and exchanging crypto assets to fiat, it is highly not recommended to store assets on the Exchange because the risks are very large. Always avoid storing assets on the Exchange, Theymos warned of this message long ago

Always store assets in the wallet only you hold the private key, without the private key, it is not your asset. Asset security is the responsibility of each individual, you can choose any wallet that you think is safe to store assets there.

Maybe a stupid question, but I haven't used CEX for a long time (which is actually a good thing), so I'm wondering if their withdrawal services are more expensive now considering the situation, or is the fee fixed at some amount when it comes to Bitcoin?

I agree that some will be discouraged by the current situation considering that we are used to paying fees of $0.50 and less, and now they amount to a minimum of $2 and up to $6 per transaction. I was hoping that the situation would calm down a bit, but now I see that we have over 300k unconfirmed transactions, and more and more "concerned" people who wonder if there is an end to this.

More exchanges are going to shut down, while many more are going to be established. More cryptos will go extinct while many more will be created. Ups and Downs, Going and Coming. That's the reality and beauty of life. Yes, some people will sadly be caught up in the web of closure of any exchange just like some will also miraculously escape it. There's no fool proof how these things run.

For those who categorically condemn Cexs, I think they should review their condemnation and set it properly. There's no active trader who doesn't leave their cryptos on exchanges. One can't be withdrawing and depositing every now and then as a trader simply because one is adhering to the "Never leave your cryptos on centralized exchanges." It doesn't work that way, realistically.

Its name speaks for its intended use, we should only use CEX to exchange, should not and should not be a place for us to trust to deposit our assets on it. In case, you are not a trader but just a pure bitcoin investor, you should stay away from them completely. Only if you are a day or futures trader and you don't have a better option should you use exchanges. But keep in mind that it should only be used for trading purposes and should be withdrawn to your wallet at the end of the day. Never store too much or too long with an exchange wallet.

Can't this also happen to decentralized exchanges? Hackers attacks can even happen to our personal wallet if we are not careful. Therefore, we must be careful to protect all our personal data, especially those related to personal wallets and their various accesses.
Regarding the CEX above, those are indeed some of the weaknesses of exchanges that we cannot deny. But sometimes we have no other choice when we use these exchanges to trade, we automatically still put our assets there. But one thing is certain, to reduce various risks, we need to choose top exchanges that are already reputable, even though we know that this won't work. guarantee 100%, especially after what happened to FTX before. This is a siren for us to always be more vigilant.

When it comes to privacy, then you shouldn’t mention centralized exchanges, any information provided in centralized exchanges can be exposed at any moment. I don’t think their is difference between banks and centralized crypto exchanges, even if exchange is not hacked, the exchange officials can sell out our personal data to scammers, if you receive money from a suspicious source, the exchange can free your money and you might not have access to it again, if government needs your personal information’s, the exchange can be threatened and they will release your information to the government. I don’t just see difference between banks are centralized exchanges. Both of them are working for the government and when whenever you are making use of both centralized exchange and banks, then you should know that your informations are not safe.

This is the summary of the whole matter and not to be spreading FuD everywhere. Exchanges whether centealized or decentralized will remain with us in as much as cryptocurrency market remains.
They are going no where and it is better we stop the FuD because we also will lose at last.
The precaution is that you should use exchange for what it is and that will be fine.
Then select reliable exchanges atleast and not embrace scam sites in the name of exchange.

This has been warned many times, but the fact remains that many users still use centralized exchanges to store some or all of their assets in the long term. It is true that centralized exchanges are never secure for most of the assets held there, not to store fixed assets is the option to exchange or convert assets into other assets which then have to be withdrawn to the respective wallets.

In fact, I'm absolutely sure this isn't the last warning we'll tell anyone, but the truth is that person's mindset is very difficult to change as long as they don't want to change it themselves. It's all about the awareness of each user, but we can't force him to believe as long as each of them is responsible for the risks involved.