More exchanges shutting down, Hold your Asset with You

[Zanab247]

Well, I don't have huge amount of money to store in my hardware wallet yet but if I have such big money it will be store in hardware wallet which is very safe for investors to store their assets for future purpose. I heard how many people fell victim to scammer to have access to their centralized exchange to withdraw their money without their notice because the centralized exchange is not too safe like hardware assets which is the best for long investment. I believe, many people will take this information serious to withdraw all their money and store them for hardware wallet which is more secure and reliable for future use.

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[MainIbem]

These might be for non forum users or those who aren't routed into cryptocurrency entirely because I as believe almost the reputable users here are already aware of the implications of what centralized exchange could capable of doing if your assets are being stored over there without moving them to a self custodian wallet.
It's a pity for one not to know read to the problems associated with centralized exchange even upon the recent happening.

Supported by U.S. law enforcement, police in Ukraine have disrupted a network of crypto exchange services suspected of laundering criminal proceeds. The platforms were allegedly processing dirty money obtained from ransomware attacks and various fraud schemes.

Shutting down those exchange was as a result of illegal activities if you read from the headlines.

[Davidvictorson]

Centralised crypto exchanges are bad we get it but which centralised exchange can we use to hold up a small amount of our Bitcoin temporarily even if it is for the shortest period of time just to carry out a transaction? Furthermore because other centralised exchanges are going to shut down how about those that have already stood the test of time, the attacks and hacks, the political and social witch-hunting. Should we also be wary about them too?

[ZAINmalik75]

for long-term investment it is not recommended to store it in CEX or DEX, it is highly recommended to store your crypto assets in a personal wallet where only you and your trusted people know the password and the phrase. at the moment only hardware wallets are very very secure but there are also some personal wallets that are quite recommended.

Some people want to stake their token to increase number of tokens because holding coin in wallet will not increase the amount of token while same token when staked, the amount will increase which is extra profit. This is the reason people are holding btc and other tokens in cex and dex. I will not recommend to hold in Cex as every exchange can be turned out to bankrupt like FTX and then we cannot do anything.

Hardware wallet are also very expensive. Ledge are known well secured hard wallet but price is more than 200$ which a normal investors cannot bear to buy for holding 500$ fund. Another big issue with hardware wallet is it's shipping custom charges for countries other than Europe.

[Coyster]

Centralised crypto exchanges are bad we get it but which centralised exchange can we use to hold up a small amount of our Bitcoin temporarily even if it is for the shortest period of time just to carry out a transaction? Furthermore because other centralised exchanges are going to shut down how about those that have already stood the test of time, the attacks and hacks, the political and social witch-hunting. Should we also be wary about them too?

Yes, be wary about all of them, all the centralized exchanges that have gone down also had their heydays, and in those times people said the same thing you are saying now, but when they collapsed, the victims who kept their funds there had themselves to blame, but it was then too late. Having said that, as long as the money you have in an exchange isn't for day trading, you should move it to your non-custodial wallet, don't leave your funds in an exchange, even if it is temporarily.

[BitDane]

Exchanges are created for trading and not intended to use like a stash.  Anything that is used more than the intended reason of creation will bring trouble or problem to people who use it that way.  Same goes with exchanges, people who use exchanges as stash to save their coins often end up losing their coins through exchange hack, exchange shutdown or account hack.  Many had experience the latter and I even know someone who lost everything when his exchange account was hacked.

So it is indeed advisable to keep our idle coins in our own wallet and deploy necessary security to prevent hacker from accessing it.

[qwertyup23]

These might be for non forum users or those who aren't routed into cryptocurrency entirely because I as believe almost the reputable users here are already aware of the implications of what centralized exchange could capable of doing if your assets are being stored over there without moving them to a self custodian wallet.
It's a pity for one not to know read to the problems associated with centralized exchange even upon the recent happening.

The problem with a self custodian wallet, well at least for me personally, is its access, use, and accessibility. The use of exchanges are far more superior in terms of convenience and use of the application due to its simple nature. You can also easily convert your BTCs to your designated currency in the event that you need cash.

Though this may be the case, the question still remains if such convenience is far more essential than security. Like what OP has mentioned, more exchanges are starting to shut-down and some have been scammed over the past years.

Personally, if you only have a handful amount of BTCs to dispose with and for use, then putting them into exchanges MAY be better. But if you plan on HODLing for long-term usage, then putting them into hardware wallets is the obvious and superior choice.

[ancafe]

I believe, many people will take this information serious to withdraw all their money and store them for hardware wallet which is more secure and reliable for future use.

Use a centralized exchange only to make transactions and don't store large amounts of assets for long periods of time, even though centralized exchanges are not safe to use, we need them for transactions but not a place to store secure assets. Apart from that you should avoid centralized exchange because there have been many problematic cases and losses received by the user.

If you are one of the daily traders, you must be prepared and responsive to all possibilities, at least only place the amount of daily trading to be stored on a centralized exchange and try to continue to monitor the development of exchange.

[348Judah]

Centralised crypto exchanges are bad we get it but which centralised exchange can we use to hold up a small amount of our Bitcoin temporarily even if it is for the shortest period of time just to carry out a transaction? Furthermore because other centralised exchanges are going to shut down how about those that have already stood the test of time, the attacks and hacks, the political and social witch-hunting. Should we also be wary about them too?

Yes, be wary about all of them, all the centralized exchanges that have gone down also had their heydays, and in those times people said the same thing you are saying now, but when they collapsed, the victims who kept their funds there had themselves to blame, but it was then too late. Having said that, as long as the money you have in an exchange isn't for day trading, you should move it to your non-custodial wallet, don't leave your funds in an exchange, even if it is temporarily.

Here's another typical example why using an exchange could be annoying https://twitter.com/WatcherGuru/status/1655230159383830528?t=cQ7olV4vA8PTUG_GibCnmQ&s=19 on the link, it announced on the temporary suspension of all Binance withdrawal due to congestion on the network, which means if you're using a Binance exchange wallet and want to make withdrawals for an emergency matter arising you couldn't, which amount to failure at anytime i meeting up with financial needs as they arises while using a centralized exchange, isn't it more better to make use of a cold storage which is non custodial wallet and have rest of mind in having access to your finances at any time.

[CryptSafe]

If you can be able to use this slogan " not your keys, not your coin" as your welcome address on your gadgets such as your phone and laptop I believe you will not for one day leave your assets with centralized exchange. Many have lost their fortunes overnight as a result of their carelessness of  leaving or storing their assets with centralized exchange and some today are shut down without their clients assets returned back to them.

Centralised exchange so far is not in any way safe to store funds and assets as they have say and control over the assets. Do not forget that they are under laws of the government where they are registered and therefore can work in accordance with the law of the nation where they are found. So therefore, it would be nice doing trade with the centralised exchange but do well to withdraw to your personal assets to self custodial wallet.

[348Judah]

If you can be able to use this slogan " not your keys, not your coin"

Exactly as expected, once it's not your keys then not your coins, now that we are even more closer to the next halving and we have begin to see alot of series of events happening around including this one Bittrex exchange joins the lane for looming into bankruptcy just popping in again, one should not just invest his whole assets on altcoins or have his bitcoin with a custodial wallet, the recent happenings were enough reasons to take precautionary measures to safeguard our asset from getting lost or taken away from us without a recoverable plan and option left.

Centralised exchange so far is not in any way safe to store funds and assets as they have say and control over the assets

The best use case for an exchange is by how it's been called, an "exchange" just for the exchange of currencies but not for storage over a long time.

[asawale]

Keeping your cryptocurrency assets in your personal custodial wallet is the right way to keep your assets. I even encourage people to keep their funds or assets in a wallet they don't at all use to interact with any dapps which might unknowingly corrupt their wallets.

The best for m of keeping you cryptocurrency is to use a hard wallet.

[Peanutswar]

I don't get it people have money for investment but don't have money for.security of their asset what an audacity.
People keep storing their funds in those exchange which is does not have the fully capability to withdraw if there's something might happen to those exchange and if there's any they keep ranting because they didn't bring their money back.
This scenario repeats as always instead they learn they keep doing at the same time.
It's better if they buy cold wallet or even have a hot wallet instead keep sticking with the exchange.

[imamusma]

Here's another typical example why using an exchange could be annoying https://twitter.com/WatcherGuru/status/1655230159383830528?t=cQ7olV4vA8PTUG_GibCnmQ&s=19 on the link, it announced on the temporary suspension of all Binance withdrawal due to congestion on the network, which means if you're using a Binance exchange wallet and want to make withdrawals for an emergency matter arising you couldn't, which amount to failure at anytime i meeting up with financial needs as they arises while using a centralized exchange, isn't it more better to make use of a cold storage which is non custodial wallet and have rest of mind in having access to your finances at any time.

I agree that a centralized exchange is not a safe deposit wallet for long term investment, but use the exchange only as a place to convert your assets and get out of there once you close your trade. But due to bitcoin network congestion, you may have to have other options such as converting your bitcoins to fiat or stablecoins and withdrawing your funds to a secure wallet. That will solve your problem because there are many options you can think of instead of just one.

isn't it more better to make use of a cold storage which is non custodial wallet and have rest of mind in having access to your finances at any time.

Of course, but it doesn't completely prevent you from the risk of losing. The security of your wallet is your own full responsibility and you must have the knowledge and the right way to practice wallet security. Losing the seed or password (user error) will also make you lose access to your wallet and your assets will be lost forever.

[_BlackStar]

I don't get it people have money for investment but don't have money for.security of their asset what an audacity.

You probably already know what the reason in generally, so I'm not surprised it could even increase as the crypto market encourages many new ones to start registering their accounts on exchanges. But in any case, each of them need not be forced to believe what we are advice. They are in charge of their own investment budget regardless of where they keep it. It's certainly good to advise people not to hold assets in stocks long-term, but we shouldn't force them not to.

It's better if they buy cold wallet or even have a hot wallet instead keep sticking with the exchange.

Even Electrum can also be recommended for their security if the user is not willing to spend a few dollars to buy a wallet. Having a wallet in hand or on mobile/PC is not mandatory as long as the user can store seed from his wallet safely.

[Z390]

Something is up with Bittrex exchange, they filed for bankruptcy and I believe that there is more to that story than what I know right now, in the coming days I am sure things will become more clearer.

The problem with centralized exchange is they won't ring any alarming bell, things will just go bad unexpectedly, when you least believe that anything can go wrong is probably when something bad will happen.

The case of centralized exchanges are like banks, things are going badly but they always pretend like things are going smoothly until it gets out of their control.

Never ever trust any centralized exchanges, high or low, you can't tell what they are doing behind your back, they have some good and bad goals too, do not give them your money for any use at your back.

[yazher]

One thing I fear about centralized exchanges is when they gonna hold your crypto assets without letting you withdraw outside their exchanges. this is what happened to me with Okex back then and I think if I'm not mistaken, it took about a month before they let anyone withdraw thankfully I kept my XRP there decent amount and when they disable the withdrawal it is as if I am hoarding my XRP and 1 month has passed the price increase and thankfully my gain has increased to that time. But the worst-case scenario is when the price has increased and they will never let you withdraw your crypto assets. that's why take advantage to store it privately instead of letting them do the task which will gonna make you regret it if the same case will happen to you.

[Zlantann]

Here's another typical example why using an exchange could be annoying https://twitter.com/WatcherGuru/status/1655230159383830528?t=cQ7olV4vA8PTUG_GibCnmQ&s=19 on the link, it announced on the temporary suspension of all Binance withdrawal due to congestion on the network, which means if you're using a Binance exchange wallet and want to make withdrawals for an emergency matter arising you couldn't, which amount to failure at anytime i meeting up with financial needs as they arises while using a centralized exchange, isn't it more better to make use of a cold storage which is non custodial wallet and have rest of mind in having access to your finances at any time.

Binance suspending withdrawals might be because of the Bitcoin network congestion. I have not had any issues using exchange for transactions but the experiences of others are enough reason for me to be careful. But exchanges will continue to strive because in some areas they are the only means of converting Bitcoin to fiat. P2P transaction is still in the infant stage in most countries because of slow adoption, lack of awareness, and government policies. Exchanges are also into aggressive advertisements that make most people believe that they are the only means to buy, sell or keep Bitcoin. My candid advice is to use exchanges for daily transactions in areas where P2P is not available. But never use them as a wallet where you hodl your investment.

[boyptc]

Binance suspending withdrawals might be because of the Bitcoin network congestion. I have not had any issues using exchange for transactions but the experiences of others are enough reason for me to be careful. But exchanges will continue to strive because in some areas they are the only means of converting Bitcoin to fiat. P2P transaction is still in the infant stage in most countries because of slow adoption, lack of awareness, and government policies. Exchanges are also into aggressive advertisements that make most people believe that they are the only means to buy, sell or keep Bitcoin. My candid advice is to use exchanges for daily transactions in areas where P2P is not available. But never use them as a wallet where you hodl your investment.

Just use them when it's needed.

I agree on the last part that we should just use them as is and not basically the typical wallet that we use for storing our bitcoins. The regret will always be there at the end when we're not careful enough.

Halting of transactions and even filing for chapter 11, we've been seeing these things and these should give the idea that when you store your bitcoins on any of them. All of these are possible.

[coupable]

Also, two days ago, the famous Bittrix platform was declared bankrupt (all old members know it) after three weeks of being legally prosecuted for violating the laws. The platform is based in the United States. The United States is leading a systematic campaign to verify the activities of crypto service platforms, including Binance and Coinbase, and this can be considered one of the indirect results of the collapse of the FTX exchange.
https://www.reuters.com/markets/deals/crypto-exchange-bittrex-inc-files-bankruptcy-after-sec-complaint-2023-05-08/

Centralised crypto exchanges are bad we get it but which centralised exchange can we use to hold up a small amount of our Bitcoin temporarily even if it is for the shortest period of time just to carry out a transaction? Furthermore because other centralised exchanges are going to shut down how about those that have already stood the test of time, the attacks and hacks, the political and social witch-hunting. Should we also be wary about them too?

Do you know what complicates the crisis more? These platforms provide attractive services to users in a way that makes them trust them blindly. This is actually the reason for the huge crash with FTX.
The same thing is happening now with Binance, where the BinancePay service has turned into a main method used by users in their daily life dealings, since everyone has a Binance account, and Binance supports everyone, including citizens in the countries that are banned.