Bitcoin Forum

I feel like this is a new trend where exchanges are trying to make users feel like holding coins on their own devices is risky.

https://i.imgur.com/T8LFnmP.png

This and what CZ said about the 99% of people and self-custody are lies. I have an opposite claim. 99% of people who lost cryptocurrency are people who willingly sent it to a scammer, either an exchange, a cloud mining service, a bitcoin doubler or a fake mixer.
Your crypto is not safe in the hands of someone else!

Yup, but these exchanges are a business and you can’t blame them for trying to promote their company. Even with FTX scam, there are still people that are willing to keep their bitcoins in exchanges. It seems self-custody is a burden to some people, they prefer a third party controls their money for them. Another is people who choose close source wallets, to me it’s practically the same as leaving your crypto in exchanges. Trust wallet was open source until Binance purchased it, now it’s completely closed source. Anything can go wrong and users wouldn’t know about it until it’s too late. This is exactly the reason I distrust exchanges and closed-source wallets.

Who would have thought large companies lie to get your money!

It is their way of promoting their products, and in fact, for the continuity of the work of these platforms, they need the money of the users, just like the banks, as they need the money of the users to continue to work, the only difference is that the legislative systems force the state to force the banks to return your money (even if it has lost its value) and this feature is not found in the platforms central.
An additional problem is how they use depositors' money.

How about Paxful CEO as an example for promoting self custody and delisted ether, saying ether is more centralized as its blockchain is now using PoS.

An organization do not have to lie, it is better to make use of the right word and to be truthful which their users will still respect about them. Or they should not say anything instead of lying.

What I think is that most people that store their coins on exchanges are not able to differentiate between custodial and noncustodial wallets and also unable to know the use of noncustodial wallet if compared to exchanges.

Both are not recommendable but they are no the same thing. With noncustodial wallet, dangerous because you do not see the code used for the wallet makeup but you still have your keys and have full control, but having a bug can make me wrong. With  exchange you do not have the full control because it is not your coins on blockchain.

Accepted, both are not recommendable.

The consequences of not lying brings less money, if you are running a centralized exchange what would you have done in this case? 😂😂😂

People, especially newbies just need to know the difference between centralized exchanges and dex, the safer option is not hard to see here but some times people won't learn until they learn costly lessons.

People can believe anything they are told, if a pastor can confuse people to eat the grass as a means of getting blessed how much more of confusing people to store their assets in a exchange for better protections from cats 😂😂.

Firms are always like that. Of course they will tell you its safe until the danger arrives already. Im not saying all, but the concept of decentralized are bypass with the cex, yes they could make it safe but the security will always be vulnerable to attacks no matter what.

Then maybe this is a sign that more and more ordinary people who invest in cryptocurrencies are starting to realize that CEX are ordinary exchanges, and not at all what their owners promote them to be, i.e. that they are some kind of crypto banks. However, as much as I think it is wrong to store cryptocurrencies on CEX, for some investors it is still the simplest thing, considering that all they need is to create an ordinary account, which is no different from, say, creating an e-mail or something similar.

It would be ideal if people understood what they are investing in, and if they don't, then they are easy targets for fake crypto wallets, seed stealers or clipboard malware. We've all seen how big the risk of storing coins on CEX is recently, but it's still the method that many use because of its simplicity.

However, people need to be educated to understand the risks that threaten them, and how they can safely be their own bank, which is actually one of the ideas that came with Bitcoin.

While I'll give props to Coinbase for remaining to be unhacked for a long time knowing they're one of the earliest crypto exchanges, I'm still not a fan of this statement. Though what the safest place to store your crypto is debatable, they could've used something slightly more acceptable like "a safe place to store your crypto" instead.

There needs to be a way to educate newbies though. Exchanges don’t do it do they, their business model relies on naive newbies storing their crypto on their exchanges.

People who aren’t tech minded or taught are not going to know how to use Bitcoin Core or a Trezor, Ledger, Cold card, paper wallet etc. These are the people we need to send crypto mainstream. Unfortunately this is most people. How do we educate them on self custody is the million dollar question.

Is this an ad popup on the coinbase wallet?

This reminds me of a time where after going to bitcoin.com you would get a buy bitcoin button and it would redirect you to buying bitcoin cash. I remember that they changed it after the community got vocal about it.

There's so many ways to store cryptocurrency and choosing to hold it on a platform that doesn't show you private keys is the worst. There's so much that can go wrong.
If their login server goes down you won't be able to take your coins out even when the company is ok and they haven't been hacked or anything.

We are all human. If you're wondering whether your coins are safer in your hands or in the hands of these "professionals" know that they also make mistakes, they get greedy, they get into trouble with law, they get sick. They can have an IQ of 180 and make a dumb mistake one day because they were tired or distracted.

People who trusted brokers working in the World Trade Center with their money didn't take into account that one day a plane will crash into it.

It was on their site on the right of your user panel.
It may also be in the wallet, I don't use it. I don't also use coinbase much but I have an account there.

They are using the FTX drama to get people scared and send them more money.

People should just use cash and a bank account if they are not going to bother to hold their own crypto.
I mean what's the point if you are are not going to hold it yourself?

Exchanges are just exchanges, you exchange your coins and you get the fuck out, the sooner people learn that the better!

Large corporations always give misleading or small white lies in most of their advertisements.
In this case, people may have gotten spooked with ftx going under and coinbase may have lost some of their clients and have released that ad in an effort to woo unsuspecting and new clients.
If that’s the case, then I’m glad. The ad is misleading and someone who’s ready to take them at their word would most likely get disappointed sooner or later on.

We have learn to stay focus and not to trust anyone or any exchange because any one can be hacked as well as exchanges too.

Exchanges will give their customers the hope of begin reliable in terms of security, but once any case of security bridge or security compromise happen, they will not be there,Therefore, trust no interms of Bitcoin investment.

Exchanges can be hacked and funds can be stolen but it is not different problem.

Coolcoinz shared that Coinbase lied their customers about technical traits of their wallets. Their wallets are not open source so they lied to call their wallets are safest.

I'm not totally sure, but as far as I know both Binance and Coinbase has articles on wallet security and self-custody. It's just that they don't promote/share these articles actively, for obvious reasons.

They don't always need newbies, the biggest part of their funds come from people who get used to certain things like storing their coins on an exchange conveniently being able to sell them in a blinking of an eye or even having open orders with those coins they lock inside an exchange.
So they need to lie and tell these traders that their funds are safe.

A centralized exchange is the exit that you must go through to convert to fiat. Whether you want to use a centralized exchange service or not is also the user's choice. But currently the number of users on centralized exchanges like Binance or Coinbase is still quite high. It's still risky, but it's even more dangerous if you have to use fake mining clusters or fake mixers, which are clearly scammers.

At this time, crypto will not be completely safe in its own hands, there will be some risk of loss due to user carelessness, not securing their wallet from malware and other attacks. actually there is no safe place to store crypto as long as the user's carelessness and negligence are still not realized.

This is just a fabrication of possible trust in third-party service, as you have said, self-custody is the secured way to hold your assets, and exchange can never be a better alternative to self-custody.

If anyone said they lose their asset in self-custody,  then there is possible personal involvement, and approval if not there is no way you can lose your coins in the self-custody wallet when you didn't send it out or grant another person access to your wallet.

Not your coins, not your keys.
When depositing funds on a centralized exchange, it means that we have relinquished full control of our funds so that if one day the exchange stops all withdrawals, there is nothing we can do with our assets other than accept the loss.

Hasn't the advent of bitcoin taught us not to trust anyone other than ourselves personally for our funds but since the emergence of centralized exchanges many people have simply ignored this risk.

Lies is the foundation of many companies in crypto and outside of crypto space, they just have to lie to maintain their growth, it's left for consumers or users to wise up, imagine someone who is new to crypto reading online that coinbase is the safest place to store your crypto, why won't they believe?

I was a victim of coinbase in 2017 and also other centralised platforms but I end up learning the hard way, I lost money and made the money back, no one to teach me about crypto but myself, but here I am today, I finally know the difference.

I'm sure you mixed things up, because it would be correct to say "Not your keys, not your coins" ;) It is essential that people understand how important this is and not fall under the influence of those who tell them the opposite - the only correct way to own Bitcoin is for everyone to be their own bank.

Right now it's better to consider not fully trusting those exchanges and practicing to secure our crypto funds in our personal wallets is more than recommended. It's no doubt that they helped us to convert our crypto conveniently but some of them take advantage of that by fooling their users about protecting their funds which is not really the case because in reality they just using those funds for their personal interest and when things are messed up, they pretended to be hacked and lost the funds of their users.

This exchanges uses their influence and reputation to deceive investors into using them because they have the fame and enough money to run a big company as such exchange, they are known globally and people believe that all they said is to the investor's interest forgetting that wr are all humans bond to lies, they do so to keep getting users, money and more money in other to promote their exchange or organizations to say, but if you know what you want, believe me you can't be deceived by any of their propagandas.

I guess that's why the statement, they are in dire need of one  :P

---

While I agree that self custody comes with it's own share of risks, putting funds in exchanges just doubles it up, so ofc not worth the risk. BUT, People should stop pretending as if self custody is magical wand.

Just look at this, even tech savvy people get hacked: https://mobile.twitter.com/LukeDashjr/status/1609613748364509184

for noobs storing your funds in binance is safer. you have backup of email to restore your pass and also 2fa.

binance take care of people.

This is exactly what they want you all to beleive and if you consider it safe for newbies then good you and other users might be the next victim of any such scam on Binance.If you are not in actual possession if your keys and they are with exchange how come you feel safe under such circumstances also? But we have many who don't understand these things until it happens to them.

Exactly they are just setting up this whole thing and people become accustomed to store their coins over exchange completely ignoring the fact these Centralised platforms are risky not for loss of funds but also affecting their privacy but as you say they have been under false dilemma that CEX are safe.

Like previously CZ has convinced people that 99% of people can't handle their fund in cold storage but in reality it was tricky indirectly stating that use Binance which is more safe for you and make him earn more dollars.But people don't realise this and you will see many believing his fake talks and rest we all know how CEX are trying to scam you of your funds.

I see exchanges as scam,because they lie and deceive customers with fake information about their platform to enable them make customers to feel secure in keeping their coins in an exchange. It means that they have a bad plan in the later run to do away with customers funds of to misuse it for their own personal benefits.

We only need an exchange to trade, after that you don't need them anymore,they are not banks that you can go to if there is a problem with your funds to lay complain. Now I see the reason why so many investors are falling for them.

Its just a sample of what banks did to us in the past now we are in the position of accepting what bank says but they're making money from our money whereas the customer looted in lot of ways like hidden fee, monthly/yearly charge, late payment fee, transfer fee, convenience fee and the list is endless.

The decentralized monetary system is really build to fight against this but on the go people forget the real vision and just focusing on the returns alone but especially the message mentioned in OP is sent to every users at the time of collapse to stop people from withdrawing and again they never afraid to lie to us.

Using a closed source code wallet is never same as using exchanges. You have your key to the wallet and you control your funds. There are no much things to be afraid of in the open and closed source codes. The closed source don't want you to know or contribute to the codes. They code and maintain it themselves and also fix their bug unlike open source who makes the code system public.

Closed source doesn't mean anything can go wrong. And open source doesn't mean everything is safe.

So did Binance go about saying rubbish that those who who are carrying out self custody will loss their coins

All that said you won't believe awas a good strategy for people who removed the bitcoin holding they have with Binance immediately the FTX hack and collapse happened. If is doesn't have to do with you as your own CEO, forget it

In my opinion funds under 1000$ is safe platform like binance where you have higher security options then a wallet eg 2fa ,google auth , if you have high portfolio then i suggest users to keep their funds in hardware wallet keep them offline your keys also ,

Because in crypto there are so many phishing sites that tricks us and get into our computer or mobile so we need to not keep our funds and important data on our primary device because we are based on crypto so we are a easy target .

Any exchange listing which promises doubling of fund is already too good to be true..

Lost of fund mostly like you said are commonly cost by holders mistake and sometimes greed..

Lots of crypto holders are Lossing their funds because of greed they want to make more out of what they are holding in a very fast means.. how can someone convenience you to send your assets to an address which you totally will not have control over it, and as a holder you agree to send for doubling.. why didn't they use their own fund for such trade and double it or they don't want to make profit them self?

Exchanges are their to make profit because security alone is not cheap.
But let us not be deceived and be advice why using exchanges especially the centralized ones which have full control over our assets.

Now big exchanges are holding and freezing deposits for a day or two. I was a fool trusting exchanges back in my early days dealing with bitcoins and cryptos. Now I don't trust them and can't even hold anything into their system unless I have to.

They label their scamming with so many legal words and keep scamming the users. Unless they unmasked like FTX. 

That sounds interesting to me. Do you recognize why? Because you stated that 99% of people send their funds to the scammer on their own. And I experienced it. This was also my belief. Nobody will help us unless we help ourselves to protect our funds from scammers. So we are literally sending our money to the scammer's wallet. They are unable to steal from our wallet. And we can't say we have any wallet if we don't have the private keys or the seed phrase. Of course, private keys or seed should not be compromised or given to scammers.

I don't know why but I totally agree with you Exchange hack or like FTX case is big since they are centralized so the news will say "Billion of dollar lose" and its true but there is no survey or something like that that provide data that Ponzi scheme and scammer industry is way bigger than this. (It just opinion)

I appreciate it with you but here he doesn't blame the reputed company. It's the algorithm of Bitcoin. Sometimes reach the pick and sometimes fall down the bottom.

Truth is.  Your Wallet is less likely to be someone's target than Coinbase's Wallet is.  I wonder how their statement of being the safest place to store Cryptocurrencies is going to work in court if they ever end up being hacked too.

To create a properly stored Cryptocurrency wallet, you already have most if not all the things you need.  All you need is a little bit of research and you can do it by yourself.  Prevention is important too.  But if one does not care about properly storing their Coins, then I expect them to lose very easily even the money they store on Coinbase.  Being careless comes with its own very big consequences.

-
Regards,
PrivacyG

I guess they're also thinking about compensation in case their storage wallet gets hacked. But for whatever reason, I think it's always better to have custody of our own crypto assets instead of entrusting them to other parties including exchanges. I don't 100% believe any exchange will compensate all the loss of its customers in the event of a hack, even if it does, it will have to go through a long process.

I don't remember or may have missed it, is there any exchange other than Mt.Gox that actually compensates their customers' funds?

They want people to believe that they are the safest platform to store your crypto funds so that they can get a good impression or curiosity to those people seek for good platforms to stay. They are using also there years of existence so we can say that all of that words is just for marketing antics only.

Maybe we should take those message seriously and always use the wallet where you hold your keys since this is more recommended.