Topic: storing BTC at exchange wallet long term - page 2. (Read 737 times)
I think this is best answered with a question; If you store your Bitcoin on an exchange or any online platform, and the exchange or online platform gets hacked, what will you do? We have seen a lot of exchanges that were hacked and assets worth millions of dollars stolen and that's it, so this means that, you shouldn't play with your Bitcoin and its security, that is to say, you need to adopt every possible means to ensure they are secured and keeping it on an exchange is far from it. Your Bitcoin needs to stay in your private wallet with a private key, this private key in question is what gives you the power to own and control your Bitcoin the way you want; anything short than keeping your Bitcoin in your wallet, means your Bitcoin could be at risk of theft. I don't know about those platforms mentioned like the Celsius etc, but keeping on an online platform and/or interest earning accounts is not a good idea and keeping on any exchange is not good as well.
the risk is indeed the same. the problem arise since even this a business profitable (exchange crypto currencies and fiat) there are several risks inside the activity. We have seen both DeFi or exchange get exploited or hacked so there is always the same risks.
and probably this is also the reason behind some high yearly return that some programs are able to provide.
normally some western countries offer a protection for their funds deposited in a third party, but this obviously not applied to bitcoin !!!
and probably this is also the reason behind some high yearly return that some programs are able to provide.
normally some western countries offer a protection for their funds deposited in a third party, but this obviously not applied to bitcoin !!!
Not recommended at all because you don't have the full control of your asset. Anything can happen from getting your account hacked to the exchange wallet getting hacked, your account get suspended for unknown reason, forgotting your password and the means to recover the account, etc. If you are not going to use the bitcoin for a long time then send it to another wallet where the private key is in your hand.
I agree with your opinion that it is better to save your BTC in an account that you hold a private key, if it is stored in a place that you do not hold private keys, you may lose your assets by reason of being hacked. Everywhere I read tells me it is not a good idea to leave BTC long term at an exchange wallet. However, the same people who say that recommend crypto interest earning accounts such as BlockFi or Celsious. Doesn't make sense to me. So I should not trust Coinbase or Gemini yet I can trust BlockFi or Celsius to keep my crypto safe? What?
If you try the staking feature in some exchanges, indeed, you will flower from the staking you plant. The problem is, we don't know how strong and long those exchanges last? because we know some exchanges even high-class exchanges have also experienced a breach of funds attack which is certainly very dangerous for us to save it. Unlike personal wallets , especially if we use them in hardware wallets, such as trezor. It must be perfectly safe.
Not recommended at all because you don't have the full control of your asset. Anything can happen from getting your account hacked to the exchange wallet getting hacked, your account get suspended for unknown reason, forgotting your password and the means to recover the account, etc. If you are not going to use the bitcoin for a long time then send it to another wallet where the private key is in your hand.
The fact is that if you keep your cryptocurrency on the exchange for a long time, you can lose it, for example, due to hacking, since after all, your cryptocurrency is not with you, but with the exchange.
Everywhere I read tells me it is not a good idea to leave BTC long term at an exchange wallet. However, the same people who say that recommend crypto interest earning accounts such as BlockFi or Celsious. Doesn't make sense to me. So I should not trust Coinbase or Gemini yet I can trust BlockFi or Celsius to keep my crypto safe? What?
For me do not store your bitcoin in any exchange wallet, no matter how many times they will say that their exchange is secure but there is some news that they encounter some attacks from hacker of course but they will recover it in a short period of time depending on the security team skills, better to save it in hardware wallet but be careful not to lose it nor broke it because it will be hard to fix that. 
storing crypto in exchange is never safe except their exchange have ability to give you private key for each coin/token
Some exchange is safe.
But, From my opinion, It’s better to store BTC an decentralized wallet.
I don't like any 3rd party in long term.
But, From my opinion, It’s better to store BTC an decentralized wallet.
I don't like any 3rd party in long term.
Why you want to use exchange for hodling? There are a lot of good non-custody wallets like trust or ownr and people still want to use somey custody service instead...
Well, I think he wants to earn profit from holding his coin on that exchange.He can do that, but he must remember that he does not use too big money to hold in the exchange because it is too risky as we do not know how the interest can give them profit.
It is better to save the coin in the wallet that you have full control over your coins, so if something happens to the exchange, you will not be a worry.
The only interest that I know is if you use your balance to lend to the traders who need more money to trade.
Why you want to use exchange for hodling? There are a lot of good non-custody wallets like trust or ownr and people still want to use somey custody service instead...
However, the same people who say that recommend crypto interest earning accounts such as BlockFi or Celsious.
It's worth taking a closer look at just why it is such a bad idea to leave you coins in these platforms. Let's have a look at some quotes from their Terms of Services. Emphasis mine throughout.First BlockFi:
I don't understand why people are jumping into all this lending and DeFi crap.
For the same reason people jumped on the ICO train. The vast majority of users have zero knowledge regarding the technology (or lack thereof) which underlies such altcoins and projects, and have zero interest in acquiring such knowledge. They simply want profits, and the vast majority will end up holding bags of some worthless token in a year or two. If they had just bought and held bitcoin instead they would be touching all time highs, instead of holding some useless token which is down >95% from its all time high. Everywhere I read tells me it is not a good idea to leave BTC long term at an exchange wallet. However, the same people who say that recommend crypto interest earning accounts such as BlockFi or Celsious. Doesn't make sense to me. So I should not trust Coinbase or Gemini yet I can trust BlockFi or Celsius to keep my crypto safe? What?
If you are not doing regular trading then you should move the coins from exchanges to your own wallet. Although there are rare chance that exchange could get hack and all your coins get lost but still there is a risk. We have seen in the past how many small exchanges get hacked and people lose their hard earned money.
Everywhere I read tells me it is not a good idea to leave BTC long term at an exchange wallet. However, the same people who say that recommend crypto interest earning accounts such as BlockFi or Celsious. Doesn't make sense to me. So I should not trust Coinbase or Gemini yet I can trust BlockFi or Celsius to keep my crypto safe? What?
From all the hacks on exchanges that have happened over the years you should not keep more than you are willing to lose. If you are looking to trade a few thousand USD worth of stuff and leave it on an account that's probably pretty safe. Risking 10k+ because you want to earn interest is not something you would want to do unless you don't care about losing it.
Famous hacks were
MTGOX, BTCE, Cryptopia, many various others over the years. If the exchange exists it will probably be hacked at some point. MTGOX people barely got anything back.
Some of the best methods of storing your crypto are using the hardware wallets. If you are truly wanting to do stuff with interest earning that is all on Ethereum, some of their things like SushiSwap can earn you over 100% APR a year. I haven't looked into what kind of interest you can earn from BTC, have you seen something that is comparable? Might be possible to lock BTC in WBTC on Ethereum and stake with that, that way you always control your wallet.
Then you should just don't consider their recommendation.
But honestly, you should just find what suits you well. If you don't really feel secure of using centralized wallet just find desktop/mobile wallet or hardware wallet.
But if you think the centralized wallet is secure enough you can store there, it's you who decide whether you gonna take the risk or not simply because even if you used a wallet that's not centralized if you can't properly maintain your own security such as keeping away virus out of your computer then you still have the risk.
But honestly, you should just find what suits you well. If you don't really feel secure of using centralized wallet just find desktop/mobile wallet or hardware wallet.
But if you think the centralized wallet is secure enough you can store there, it's you who decide whether you gonna take the risk or not simply because even if you used a wallet that's not centralized if you can't properly maintain your own security such as keeping away virus out of your computer then you still have the risk.
Everywhere I read tells me it is not a good idea to leave BTC long term at an exchange wallet. However, the same people who say that recommend crypto interest earning accounts such as BlockFi or Celsious. Doesn't make sense to me. So I should not trust Coinbase or Gemini yet I can trust BlockFi or Celsius to keep my crypto safe? What?
I don't recommend keeping your coins in exchange wallets and at the same time I extend this advice for interest earning sites as well. it is very simple and straightforward - if you don't own the private keys, then it is not your crypto. I am not familiar with the revenue earning mechanism of these interest earning sites, but they look shady for me and resembles various Ponzi and pyramid schemes. Sooner or later, they will vanish taking all the coins with them.
And keeping your coins in an exchange wallet for the long term can be the worst decision you can make with regards to your cryptocurrency holdings. I am saying this out of my own experience, as I have lost huge amounts of coins by keeping them in exchanges.
Where do you suggest is safe to store coins?
Storing BTC on exchange wallets are not recommendable for the safety might be at stake specially talking about the recent issues that involves hacking of famous exchanges despite of tight security they do have as well as the bugs that is prohibiting users to access their accounts temporarily. Upon encountering such, you will be paranoid and frustrated on how you can regain access to your Bitcoins right? It will be fine to store your Bitcoin into your exchange wallet of your choice if you will be actively using or engaging it into stuffs and not to just store it because you are treating exchanges to be storage wallets. Exchanges and storage wallets have their own purpose and usages so better get stick into it.
How do you store your coin?
In my opinion storing your coin in legitimate wallet is safe but don't expect to make quick profit from holding as the value of BTC might drop because it's not always stable, I suggest investing in crypto trading and investment platform, a few I can recommend are hotfxm.com, fexcoinoptions.com and expertoptions.org
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