Can we suffer at some exchange due to some of their services' breach?

[robelneo]

This shows that sometimes, even not being guilty, the place where we put our trust and money may get compromised due to the services it is using or attached to, same as in this case where Gemini was not at fault but the third party vendor got hacked and there was a huge data breach of that exchange. Should we worry on every small aspect now that we know that these places are also vulnerable to get attacked not directly but indirectly through the services or various other departments they are involved with?

There's always a domino effect because every project is interconnected to one or many projects and every negative issue will have an impact on the market, so check the platform where you store or invest your money, not only know who manages it, and where they are affiliated.
Take the case of FTX because of their collapse  Voyager Digia and Celsius become casualties not only these two there are many others check out this article
The FTX contagion: Which companies were affected by the FTX collapse?

[KingsDen]

What i always said is that as a smart user over here, if you are not trading or converting your to fiat or from fiat to cryptocurrency don't leave your funds on exchange. It's always says "Not your key not your money". Keep in mind that FTX and many other security breaching today are not just emanating recently so apply wisdom and know where to keep your funds.

And the funny part of this is that anyone that works in cryptocurrency industry I mean who earns a living in cryptocurrency will definitely need to convert bitcoin to Fiat or Fiat to bitcoin or from one coin to the other.
So I do not blame anyone keeping their money in exchanges. Exchanges are not what we can totally avoid. Exchanges are part of the cryptocurrency industry. Maybe we should tax the exchanges to always be reliable and avoid some shaddy deals and conspiracy.

Another great advice will be to tell bitcoiners not to leave a huge part of their money in exchanges. Leave only tradable coins and convertible coins. We shouldn't try to use the exchanges as our private wallet.

[Eternad]

There's always a domino effect because every project is interconnected to one or many projects and every negative issue will have an impact on the market, so check the platform where you store or invest your money, not only know who manages it, and where they are affiliated.
Take the case of FTX because of their collapse  Voyager Digia and Celsius become casualties not only these two there are many others check out this article
The FTX contagion: Which companies were affected by the FTX collapse?

This is correct. Crypto projects usually diversify investment on different crypto projects when there own project is already settled and working properly. And this investment will hurt companies that has exposure on money of fallen company since they will need to pull out there investment and liquidate it to fiat to gather funds for bankruptcy filing or restructuring of the company. This creates the chain effect on crypto space especially if the company funds is more on liabilities.

Tracing the company level of exposure is very hard to determine that’s why even a strong company can bankrupt instantly once there major investors pull out there shares because they will insufficient funds to cover there operation cost.

[Adbitco]

~snip~

And the funny part of this is that anyone that works in cryptocurrency industry I mean who earns a living in cryptocurrency will definitely need to convert bitcoin to Fiat or Fiat to bitcoin or from one coin to the other.
So I do not blame anyone keeping their money in exchanges. Exchanges are not what we can totally avoid. Exchanges are part of the cryptocurrency industry. Maybe we should tax the exchanges to always be reliable and avoid some shaddy deals and conspiracy.

Another great advice will be to tell bitcoiners not to leave a huge part of their money in exchanges. Leave only tradable coins and convertible coins. We shouldn't try to use the exchanges as our private wallet.

This is absolutely true mate but something should be put in places. Both DEX, CEX they are not reliable anymore.
The fact is we are too over confident with these exchanges so what is better of is after trade is carried out we should quickly move out our funds to a trusted and reliable wallet this is the only way i think those grammars could stop. I had a friend of mine who don't believe moving his money to a self costudian wallet and when the effects on FTX came up, he almost collapse and was rushed to hospital. So this is the disadvantages of keeping funds on exchanges.

[2double0]

~snip~

And the funny part of this is that anyone that works in cryptocurrency industry I mean who earns a living in cryptocurrency will definitely need to convert bitcoin to Fiat or Fiat to bitcoin or from one coin to the other.
So I do not blame anyone keeping their money in exchanges. Exchanges are not what we can totally avoid. Exchanges are part of the cryptocurrency industry. Maybe we should tax the exchanges to always be reliable and avoid some shaddy deals and conspiracy.

Another great advice will be to tell bitcoiners not to leave a huge part of their money in exchanges. Leave only tradable coins and convertible coins. We shouldn't try to use the exchanges as our private wallet.

This is absolutely true mate but something should be put in places. Both DEX, CEX they are not reliable anymore.
The fact is we are too over confident with these exchanges so what is better of is after trade is carried out we should quickly move out our funds to a trusted and reliable wallet this is the only way i think those grammars could stop. I had a friend of mine who don't believe moving his money to a self costudian wallet and when the effects on FTX came up, he almost collapse and was rushed to hospital. So this is the disadvantages of keeping funds on exchanges.

One consequence is also true that someone cannot or do not move their coins due to the fact that they have the money there due to their trading habits, and one major reason for which they do not move their coins out from the exchange is the fee they are charged every time, so they keep their money to fulfill their greedy habit of their everyday trading.

[sheenshane]

One consequence is also true that someone cannot or do not move their coins due to the fact that they have the money there due to their trading habits, and one major reason for which they do not move their coins out from the exchange is the fee they are charged every time, so they keep their money to fulfill their greedy habit of their everyday trading.

In this case, we should choose the right exchange where to entrust our money.
One of the reasons why they don't move their coin into non-custodial wallets is that there's a fee for every transaction they have, but isn't really a good idea to let your coins sleep on the exchange wallet.

I think that's not a greedy habit, looking and finding a way how to save fees is a wise move.

That's why when an exchange gets hacked or compromised, they freeze all accounts and didn't allow users to withdraw their funds.  It will surely be really frustrating that will others will create a massive panic.  Then, it's us who will suffer when there's a security breach on the exchange.

[joniboini]

I think that's not a greedy habit, looking and finding a way how to save fees is a wise move.

I also think this is true. Your average joe doesn't move their funds regularly because they simply want to save some fees, I don't think that is really greedy behavior, just how people would normally do if they put some trust in exchange. Things might change if they get destroyed by "scam" exchanges like FTX though, so they would learn the hard truth eventually.

I think people should give DEX like Bisq a try if they just need to trade once in a while. It might be a bit more expensive than your regular exchange, but it should give better control over their funds. It is almost impossible to distance yourself from an exchange platform entirely if you are a daily trader, so I don't think we can remove this risk entirely. This might sound like a broken record but the only way to reduce the risk is just to store the money you can afford to lose on exchange if you use them regularly. Store most of your money offline.