Exchanges lie to you!

[coolcoinz]

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.



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!

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[CryptoPanda]

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.

[LoyceMobile]

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

[hugeblack]

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.

[Charles-Tim]

Yup, but these exchanges are a business and you can’t blame them for trying to promote their company.

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.

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.

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.

Another is people who choose close source wallets, to me it’s practically the same as leaving your crypto in 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.

This is exactly the reason I distrust exchanges and closed-source wallets.

Accepted, both are not recommendable.

[Crypt0Gore]

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

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 😂😂.

[cryptoaddictchie]

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.

[Lucius]

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.
~snip~

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.

[mk4]

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.

[DeathAngel]

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.

[BossTrack]

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.



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!

Is this an ad popup on the coinbase wallet?

[pixie85]

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.

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.

[coolcoinz]

Is this an ad popup on the coinbase wallet?

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.

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.

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

[Zwei]

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!

[Iroh]

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.

[Hyphen(-)]

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.

[UchihaSarada]

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.

[mk4]

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.

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.

[pooya87]

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.

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.

[AakZaki]

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.