Topic: Why it's very risky to leave your coin in an exchange (Read 316 times)

Holding cryptocurrency for exchange dey very easy for trading but e get security wahala. If hacking happen, security breach, business issues, or dem no fit manage money well, e fit cause you to lose your property. For example, hackers fit thief cryptocurrency from plenty accounts if dem fit breach security, or the exchange fit crumble, wey fit make users lose their cryptocurrencies.

Unlike government-regulated money, the legal system no dey protect cryptocurrencies well. E no too sure say you go fit recover your crypto money if exchange dey hacked or declare bankrupt. So, the best way na to store most of your crypto property for hardware wallet and use exchange platform to keep the amount of cryptocurrency wey you need for transactions.

One major reason why them dey always advise person not to keep him or her coin for exchange na because of hackers and scammers. some exchange na scammers build am ooh inorder not to look like scammers wey dem be them go just try make everything legal then one day when them get plenty trust and people don up to billions of assets for the exchange them go just claim say person don hack them and so them go close the exchange with your coin. so like play like play your money don go.

So as soon as you get any asset wey reach at least money wey dey significant to you like $500 or 200 self na to find wallet wey go dey reliable like electrum etc then move your coin go there for am to dey self. as for me no na to buy hardware wallet like trezor to hold my assets. So the same advise go for every body make dey careful with out money for crypto because scammers them no fey give up.

Just because it has not happened to you before no mean say u no go fall victim, na wetin I dy tell some people be this. I remember that time when one of my guy they show me how people were unable to withdraw their coins from the exchange and they have to watch their coin dump on the exchange, my heart was bleeding even when I wasn't a victim of what happened on the exchange. Till date, those people have not been able to have access to their money, they are putting money together to pay back victim, might take more years to accomplish the distribution because MT.gox that happened years ago are yet to distribute to the users.

If you are done with using exchange. Withdraw your coin to your personal wallet, na the only place wey you get mouth be that, nobody can have access to your wallet except you, nobody can touch your coins except you and nobody can spend your coin expect you that have the private keys.

Anyone that is still living his coins in the exchange market, this information is for you and, he or she is taking a big risk because that place is made for exchange but if you want to live your coins there for future use, I think the place is not safe for your coins and, if something happen to your coins you will find yourself blame.

I know newbies always fall victim to such risk in the community because, they always feel they are doing the right thing by living their coins on the exchange until something strange happen to their coins before they will know that they have been taken a big risk.

This na weting they worry some people,  with everything wey don happen to some exchange in the past wey people lose their money some people never still learn but them dey wait to experience thus mistake by themselves instead of them to learn from other people's mistake. Exchange can never be trusted to be safe because it is centralized in nature . The past experience of how exchanges end up should be a lesson people needs to learn from when making decision about wallet to use.

Experience naim be really the best teacher, while learning from other people mistake is you being wise. So e dey wise if you learn from other people make the same mistake no go knack you join. We don hear of exchanges wey Dem don hack and steal people money so if you still dey keep money for exchange na you sabi, or be like you just dey wait for your own experience before you go learn. Just as baba sokani talk na self custodian wallet naim be the best especially when you dey hold long term project. Just last year the amount of hack wey we hear about too much for people to still dey loose guard keep better money for exchange, just as the name talk exchange we suppose use am for exchange alone and not for holding our coins.

Make we no let bad thing happen to us before we wise oo, na why we get elders and experienced men wey don dey this crypto network for long so that we fit ask them question and I believe say them dey deliver, something e fit no even be say na guru naim go even give you wattin you dey find, something na newbie or lower rank member, that na why we nor supposed look down on anybody and learn from them they most get something to offer wey fit solve one or two of your problems.

Dem talk say experience na the best teacher but the real best teacher na to learn from oda persons mistake. Wen you keep your assets for exchange, e no dey your hand again, na the exchange na hin dey in charge of your coins. And na because of the heartbreaking news wey we dey hear about exchange everyday like the freezing of customers funds, hacks, bankruptcy, shutdown by government na bring about dis popular slogan "Not your keys, not your coins." So like dis na self custody na hin be the koko, make we wise up.

Yes oh, this one Don happen to person wey I know although no be exchange, en own be say en go put en seed phrase for one online platform like that and now all en asset Don vamous, abeg for real make everybody dey try do the right thing, for this our crypto verse, scammers and many unpredictability fit occur, like when famous mt.gox exchange  crash, many people lose their asset, even till now many people have not been Compensated from that incident. So please make we try dey use hard wallet dey store our money, instead of to dey keep am for online exchange.

One of di first lessons wey I learn for dis forum na "not your keys not your coins", and since dem I don memorize am for my mind, hacks and scams plenty for crypto matters, and exchanges no de immune to hacks so anybody wey de for dis forum wey still de leave dem coin for exchanges, dem name na OYO. I thank the OP for resurrecting dis topic, evendo say we don hear am many times, e still no bad to de start am as reminder topic, so newbies wey just de enter di forum new go learn and take note.

Make we use wetin happen to FTX victims learn lesson and not wait until we experience am before we take protective measures, no matter how secure even the most secured exchange out there fit be, learn your lesson from the FTX saga because anything fit happen, And if you are a trader, ensure that you always withdraw your funds immediately after the end of trading day, do not because of the withdrawal fees that you will be charged and leave your coins over, it's better you get charged the small amount than you lose everything with the aim of trying to save withdrawal fees. Always remember, Not your keys, not your crypto.

PP you yan well but we have to consider some factors around the bitcoin network now. Example when someone wants to transfer 0.00043 to an exchange from an Electrum wallet and the transaction fee is about 0.00023 then how much is left for the person to receive to the exchange but if that amount or the unit of bitcoin is Electrum, the person has nothing to pay before he sell them off. Yes we all know the clause that says "Not you key not your bitcoin" but that is statement is not for the time like this because I can't be paying high transaction fee but a small amount of unit of bitcoin that I want to sell to solve small problem.

Even though we are not keeping the large of bitcoin in exchange, we can keep small unit which can be selling to solve issues at hand. But before you do that make sure you know the exchange very well. And if possible it is only for the top 5 exchanges.

Exchange wallets no be where investor go hold e money, that exchange wallet na place of selling, na make them call am exchange wallet, the buyers go credit you to your bank account, you go also fit swap your coins, you go still fit buy Bitcoin and other things but no be place to hold, Bitcoin, person fit try am with shitcoins or altcoins but make person no eventually use exchange wallet take hold em coins because one day be one day when the exchange go close down and em coins go lose finish, e just also dey like when people dey use microfinance bank dey save money until one day the microfinance banks them short down, were the person won go find them?
So, na very simple thing to do, when we just use safer wallets go hold our coins instead of to go dey use exchanges way one day then fit run away and our coins we no go see.
The more we dey they aware of all this things the more we dey know them all,  but some people go still prove stubborn even when na the truth you dey tell them but one day them go use one person as a very big example to all of them, but we do not pray for that.

Senior man you see this matter ehnn i swear na like all those Ponzi schemes wey we Dey see around, them go scam People today and plenty people go lament and regret am, then tomorrow another of this thing go come and same people go go put money. The other day I hear person Dey talk say binance get SAFU and because of that your money no fit lose, even if you advice this kind people Omo them no  go listen oo sometimes he better make them learn the hard way. Another thing weh I notice with exchange’s now na that separate wallet wey them get and people Dey treat am too as wallet because them provide them seedphrase.


Na better advice be this boss man but i Dey feel say sometimes this airgap device go hard to set up for some newbies or some of them fit even go make mistake come carry am go online. So better for newbies na to buy hardware wallet because the amount an the same with getting new gadget now.

E don tay we don dey yan this matter still on still some people nor won hear word. Them believe say all this exchange nor go fit carry their money run. If you try explain give them make them fit understand, them go clear you say this their exchange na US based and nothing dey hapun. I go just weak when I hear people talk like this, I go come dey wonder how them take get bitcoin.

 Cryptocurrency Exchange  is a market place online which accepts users to buy, sell and trade cryptocurrency ,it is,like online brokerage in functioning as users can put in money like fiat currency and use the money to buy cryptocurency. Since cryptocurency exchange is a market  place ,you can not keep your  money in a market place because alot of things will happen to your money ,the same thing also to your coin.

   It is risky to leave your coin in an exchange because of the market risk like,

▪ You cannot get your money when you need it,no freedom of controlling your money, insecurity.
▪ Exchangers are easily been  attacked and hacked also opened to cyber criminals, counterparts risks e.c.t.
   A lot of people buying and miners lost their investment on exchanges . At times it is good for you to save your money in you personal wallet ,in other for you to have control over it

E get one illustration wey I see online one day, when you buy phone wetin be the first thing wey you dey do? Nobi to buy screen guard and phone cover to use secure you phone. If we fit do something like that for phone to protect am then wetin dey stop us from protecting our investment. Ignorance no be excuses oh, scammers and hackers no go use say you no know free you. You need to protect your investments and the best way to run that kind matter na to dey in charge. Nobody go fit guard your investment reach you so why you dey leave am in the hands of the centralized services providers.

Exchange oh whether na centralized ones or those decentralized one, no one safe to use hold your Bitcoin or other altcoins self (if you be person wey dey invest inside altcoins). This advice is always welcomed on the forum to enlighten people because alot of us still dey use exchange and all this centralized services providers without knowing the risk involved. For people wey know the risk and still dey use them that one na their own wahala but for people wey no know, E good to dey remind them always like this.

If you no get money to buy hardware wallets, you fit use electrum in an airgapped devices and you no get wahala provided say you fit secure your investments from hackers well for the electrum wallet. Same for altcoins, search for non custodial wallets them (decentralized wallets) wey you go use store and never use exchange wallets for storing of your cryptocurrency.

People make same mistakes even when they have full knowledge on how risky it is to hold their Bitcoin in Cex. Cexs are mainly made for trading and not actually holding for a long term due to many factors that may cause losing one's funds. Nevertheless little portion of Bitcoin can be held first during accumulation then later transfered to a non custodial wallet.

Op this your matter is very helpful, this is one mistake many make including me some time ago when join crypto as was trying to mined some coin and kept them in an exchange all of a sudden after a long time awaiting listen the coin disappeared I was imagining the course of it some exchange is not helpful in security your money  gather knowledge and experience from that event. Thanks for this greater exposure if this write up like the scripture he that have ear let him hear as many have emphasize on there experiences concerning keeping of coin in an exchange.

Not your keys, not your coins na one of the most used word or phrase for dis forum when it comes to security and privacy of your coins. Many people dey neglect dis warning and always dey feel day nothing to happen to their coins become dem trust the exchanges wey dem dey use save their money inside. But dem no know how big the exchanges wey don crash before dey, e dey least of expectations say something like dat fit happen to any exchange like dat. The earlier we pay heed to dis warnings the better for us and our savings in crypto for the future use of them.


Fire no dey burn person two times for d same location unless d person an mumu and him no go ever wise again. People west fall victim of FTX scam go be the least to think of leaving even a penny for any exchange now. E cost more of dem their life savings and had to become poor again. We no which for that kind scenario to happen for cryptocurrency world again but even as we dey pray, we suppose dey careful make we no allow us become scape goat first for this kind situation after the many warnings we don see for the forum.

Anyone using the centralized exchange to save his bitcoin is just gambling with his bitcoin because the person might wake up one morning to see that he or she can't access his fund because the centralized exchange has been hacked or the centralized exchange is bankrupt. Let's always learn to withdraw our bitcoin to a noncustodial wallet where only we will have access to it. Also, protect your seed phrase or private key so that someone will not get access to it, because if they do, you will lose your bitcoin.