More exchanges shutting down, Hold your Asset with You

[348Judah]

I got the motivation to write on this from Recent events should make you withdraw all your coins to your own wallet: Part 3 when i came across the news on crypto exchanges shutdown in Ukraine, if you're still using a centralized exchange, then read about this recent event happening in Ukraine as the US Cyber security Personnels bring down about nine (9) cryptocurrency exchanges for lack of being regulated along with other deformities in compliance to the government policy for their operations https://news.bitcoin.com/ukraine-us-shut-down-9-cryptocurrency-exchanges/ come to think of it if you have your bitcoin or any other cryptocurrency with any of this exchanges, all will definitely go lost because you have no access to control over them, this makes it ore very crucial and paramount that we make use of crypto wallet that gives us control over the private keys to the wallet we are use.

Why you should avoid Centralized exchange

1. They can be attacked by hackers
2. Your privacy is not guaranteed in them
3. They are third party/centralized institutions and work policies for their own interest
4. You will be subjected to KYC, AML and other governments cyber operational agencies
5. You can be traces and tracked down through the information provided for your KYC
6. They have same functions and disadvantage as using a centralized financial institutions (banks).
7. They can go bankrupt and you loose your entire investment with them

Recommendations for the storage of your cryptocurrency assets

1. I will recommend an Open Source Hardware Wallets, find below some good examples below from threads created and discussed on the forum here https://bitcointalk.org/index.php?topic=5288971.0

2 . Bitcoincore is very good for your security measures over your asset and you can connect the software to run bitcoin node, for more details, check the link below
https://bitcoin.org/en/bitcoin-core/

Additional informations on these are high welcome from experienced members of this community.

[1714247239]

1714247239

[pooya87]

People should use exchanges for what they were made for which is trading not to store their coins. But your examples are not really related to the risks involved with the centralized exchanges in general. If you check the name of these so called exchanges you realize that they weren't even known among the cryptocurrency users. Even the domain name looks super shady (eg. 100btc[dot]pro). Not to mention that these were obvious scam services that were created to rip people off.

[Mr.suevie]

People should use exchanges for what they were made for which is trading not to store their coins. But your examples are not really related to the risks involved with the centralized exchanges in general. If you check the name of these so called exchanges you realize that they weren't even known among the cryptocurrency users. Even the domain name looks super shady (eg. 100btc[dot]pro). Not to mention that these were obvious scam services that were created to rip people off.

Exactly my thought on this because its not right or proper to save your coins in these exchanges. Binance exchange is the most used exchange in my country and I can even say the world at large and this have made more users to trust this exchange as they believe that CZ and binance won't experience any difficulty that would lead to them shutting down but despite all this I still don't believe, as it is centralized and anything can happen so I just moved the amount of coins I want to sell to my binance app and then do my transaction there and close up the app because I wouldn't want to be part of the many that might eventually cry and regret when something happen to this exchange.

[OcTradism]

Don't use Bitcoin[dot]com as a website at which you read news about Bitcoin.

It is a website for Bitcoin Cash, is managed by Roger Ver team. Do you think it is good to get news from that website that can be considered as from a scam team?

Exchanges are created, get hacked and closed or died or scam exit. Many exchanges come and go in history and you can read many of their stories at Exchange graveyard.

Reminder: do not keep your money in online accounts

By holding your asset with you, I hope that you meant holding bitcoins with private keys that is available with non custodial wallets, not with exchange wallets.

[michellee]

It is the responsibility of each exchange to protect its exchange from all kinds of attacks that will come. As centralized exchanges, they will become targets of hackers so exchanges should increase the security on their sites.

And users should also pay attention to which exchange they can use to trade with and it is better to look for exchanges that can really be trusted. Even though it is a centralized exchange, we still have to gather more information to know if the exchange is feasible for us to use.

A Big No and highly not recommended for keeping coins on the exchange but for trading only. And once we are done trading, we have to withdraw all those coins and leave the exchange.

[Smack That Ace]

People should use exchanges for what they were made for which is trading not to store their coins. But your examples are not really related to the risks involved with the centralized exchanges in general. If you check the name of these so called exchanges you realize that they weren't even known among the cryptocurrency users. Even the domain name looks super shady (eg. 100btc[dot]pro). Not to mention that these were obvious scam services that were created to rip people off.

Exactly my thought on this because its not right or proper to save your coins in these exchanges. Binance exchange is the most used exchange in my country and I can even say the world at large and this have made more users to trust this exchange as they believe that CZ and binance won't experience any difficulty that would lead to them shutting down but despite all this I still don't believe, as it is centralized and anything can happen so I just moved the amount of coins I want to sell to my binance app and then do my transaction there and close up the app because I wouldn't want to be part of the many that might eventually cry and regret when something happen to this exchange.

This is what I always say when it comes to exchanges, we should use exchanges for the purpose they were created for, they are not made to store assets. Don't abuse them or trust them too much and put all our assets in the exchange. We use bitcoin because it's decentralized, and we hate the centralization of banks, but it's funny how many people don't trust banks but trust centralized exchanges. Even if the major US banks collapse and their stock prices plummet like shitcoins in the crypto market, Binance is not 100% reliable.

[Hyphen(-)]

It is the responsibility of each exchange to protect its exchange from all kinds of attacks that will come. As centralized exchanges, they will become targets of hackers so exchanges should increase the security on their sites.

It is always included in their policies to protect the users, possibly just to get new users, because if anything happens, everyone will carry their own cross, as we have seen with exchanges like FTX.

Since the exchanges cannot refund your money if it is stolen by hackers, I see no reason to believe their claims of being responsible for the user's wealth in their custody.

And users should also pay attention to which exchange they can use to trade with and it is better to look for exchanges that can really be trusted. Even though it is a centralized exchange, we still have to gather more information to know if the exchange is feasible for us to use.

A Big No and highly not recommended for keeping coins on the exchange but for trading only. And once we are done trading, we have to withdraw all those coins and leave the exchange.

Some of us continue to ignore the policy of not leaving our coins in the exchange and still leave them there. If something happens now, they will start complaining about losing a large sum of money.

I believe some exchanges do not require KYC before trading with them; these are good for people who enjoy trading, but once you have finished trading, make sure you move your money out of the centralized exchange.

[hugeblack]

There is no reason for you to keep your money on the platform after the trading is completed, all you need is to withdraw your money after you finish trading and divide it into several payments. It is true that you will pay higher fees, but you will reduce the risk if the platform decides to close your account or goes bankrupt.

2 . Bitcoincore is very good for your security measures over your asset and you can connect the software to run bitcoin node, for more details, check the link below
https://bitcoin.org/en/bitcoin-core/

Bitcoincore is not the ideal choice for your security, their security options are no different from other wallets that give the same result and with much less space, Bitcoincore is essential if you want to maintain your privacy.

[Wapfika]

then read about this recent event happening in Ukraine as the US Cyber security Personnels bring down about nine (9) cryptocurrency exchanges for lack of being regulated along with other deformities in compliance to the government policy for their operations https://news.bitcoin.com/ukraine-us-shut-down-9-cryptocurrency-exchanges/

Although I agree to everybody that we should only use exchange for its purpose which is buy and sell, This recent take down of 9 exchange is not worthy to create a big fuzz on current CEX especially those top exchange. Those 9 exchanges is not regulated and violating the regulation of the country where they are operating.

Any business will surely take down if it’s not compliant so we should not use this news to create another on using CEX. I bolded the part which needs to be highlight on this news to make a clarification on the recent action.

I never hold my fund on exchange for a long time but there’s a time that we need to store it a little longer on exchange especially if we have planned trade that dependent on time.

[acroman08]

no one should even be leaving their asset on an exchange site(any exchange site no matter how reputable they are) for long periods of time and if anyone is planning to use an unknown exchange they should do their own research before doing anything. as others have said, use them for what they are intended, never use them as wallet where you normally store your funds.

[jrrsparkles]

It's your assets only if you're in the possession of them so not only because of exchange may shut down at any time we should hold it on our wallets we should realise that its completely decentralized so keeping then under a non custodial wallet by us is the only real way of owning them. Well in case if an exchange is about to shut down even if they shut down immediately in no time they will give enough time like minimum of one month to withdraw remaining funds from theit wallets and also they will send the termination of service via email.

[Sandra_hakeem]

My heart skipped when I saw the title ... I actually thought another exchange went down.
Storing an asset in a centralized exchange is simply compatible to doing same on a casino site or app. The domains could get scrambled at any time and everything will be gone. I dunno why alot of peeps still make the same mistakes everyday and will end up saying it happened so they'll learn from it .... losing your funds unnecessarily, for the fact that it wasn't properly stored could affect you health-wise,.... remember, depression is real. A non-custodial wallet is best for storing 'em coins - only you'll need be careful lest you misplace 'em phrase too..

Sandra 🧑‍🦰

[Lucius]

There is no reason for you to keep your money on the platform after the trading is completed, all you need is to withdraw your money after you finish trading and divide it into several payments. It is true that you will pay higher fees, but you will reduce the risk if the platform decides to close your account or goes bankrupt.
~snip~

For those who are traders on a daily basis, it certainly does not make sense to withdraw funds every day because it is simply too expensive and impractical. CEX wants to keep as many "coins" in their possession as possible in order to have as much liquidity as possible, and they achieve this by having a rather expensive withdraw/service fee, or by making statements like :

“For most people, for 99% of people today, asking them to hold crypto on their own, they will end up losing it”

Considering how many people have a very high opinion of the "gentleman" in question, I am not surprised that the biggest CEX "store" millions BTC for their clients.

[SOKO-DEKE]

With all this bad news that has been coming out about exchanges closing down frequently due to one of two problems either by government or no capability of maintaining it again, they should have be enough evidence to convince anyone who is still keeping coins in exchanges that doing soo is dangerous, especially for long-term investments.If an exchange is to be used, it should be for trading purposes and after that it will good to withdraw our coins to a personal wallets for more security purposes. If was even aware that someone who has money in exchanges does not really own it because there are not the only one who have access to it as well.

[traderethereum]

Do you think it only happens on centralized exchanges and will not happen on decentralized exchanges?
If you can be careful when trading, you don't need to be afraid or worried about things like that because you can protect your money or assets and when something happens, you can make the right decision by moving your funds to another place.
I still use centralized exchanges like Binance, Bybit, Poloniex and others but I don't leave most of my assets on those exchanges and only send some money to trade and withdraw when I have traded enough.
You can use a hardware or mobile wallet to store your crypto assets to keep full control over them.
The important thing is that you can choose a wallet that makes you comfortable storing your crypto assets without worrying about hacking or anything else.

[348Judah]

There is no reason for you to keep your money on the platform after the trading is completed, all you need is to withdraw your money after you finish trading and divide it into several payments. It is true that you will pay higher fees, but you will reduce the risk if the platform decides to close your account or goes bankrupt.
~snip~

For those who are traders on a daily basis, it certainly does not make sense to withdraw funds every day because it is simply too expensive and impractical. CEX wants to keep as many "coins" in their possession as possible in order to have as much liquidity as possible, and they achieve this by having a rather expensive withdraw/service fee, or by making statements like :

Honestly if we are to consider the rate of the ongoing transaction fees on the bitcoin network, one could got discouraged from making any move in doing a frequent transaction like others do irrespective of them being a trader or not, but we also have to put into consideration one important factor which is the value in our asset in comparison to having them on centralized exchange, the risk will be unbearable for someone having a huge amount he traded with on exchanges compared to someone with little investment, the cost for transaction charges could be more favourable for one than the other.

[Cryptomultiplier]

The exchanges shutting down may not have been solid as they had thought to been, but that's not to say same thing can't happen to Bitcoin or its exchanges. The use of exchanges is mostly to facilitate trade, anyone who keep their currency in it does so at his/her own peril.
The hardware wallets have that function and that's its aim. To keep your currency safe.
Using the right tool for the wrong job has created more problems than ever and am sure every investor should do his/her own research to know which wallet type to use, the quantity to save, the how to keep the wallet safe from forgetting passphrases, password and the likes.

[passwordnow]

We have warned many times before these shutting downs that no one should keep their Bitcoins or any asset in the exchanges if they don't have a plan of exchanging there within that particular day. Many are using it wrongly for keeping their assets there, thinking that it's okay to keep it and that the exchanges won't have any problems in the future. Aside from being hacked, they can file for bankruptcy and you'll never know when it will happen before they give an advisory to their users.

[cheezcarls]

I got the motivation to write on this from Recent events should make you withdraw all your coins to your own wallet: Part 3 when i came across the news on crypto exchanges shutdown in Ukraine, if you're still using a centralized exchange, then read about this recent event happening in Ukraine as the US Cyber security Personnels bring down about nine (9) cryptocurrency exchanges for lack of being regulated along with other deformities in compliance to the government policy for their operations https://news.bitcoin.com/ukraine-us-shut-down-9-cryptocurrency-exchanges/ come to think of it if you have your bitcoin or any other cryptocurrency with any of this exchanges, all will definitely go lost because you have no access to control over them, this makes it ore very crucial and paramount that we make use of crypto wallet that gives us control over the private keys to the wallet we are use.

Why you should avoid Centralized exchange

1. They can be attacked by hackers
2. Your privacy is not guaranteed in them
3. They are third party/centralized institutions and work policies for their own interest
4. You will be subjected to KYC, AML and other governments cyber operational agencies
5. You can be traces and tracked down through the information provided for your KYC
6. They have same functions and disadvantage as using a centralized financial institutions (banks).
7. They can go bankrupt and you loose your entire investment with them

Recommendations for the storage of your cryptocurrency assets

1. I will recommend an Open Source Hardware Wallets, find below some good examples below from threads created and discussed on the forum here https://bitcointalk.org/index.php?topic=5288971.0

2 . Bitcoincore is very good for your security measures over your asset and you can connect the software to run bitcoin node, for more details, check the link below
https://bitcoin.org/en/bitcoin-core/

Additional informations on these are high welcome from experienced members of this community.

“Not your keys, not your coins”

I have said this many times in either of my threads and replies. I keep most of my assets in a cold storage hardware wallet where it’s impossible to be hacked.

But for non-custodial hot wallets like the Metamask, Trust Wallet, etc., they still have some vulnerabilities and exploits that leads to the hackers finding backdoor to drain our assets without even using the seed phrase to access our wallets. So it is also not safe to store there much longer either.

Better invest in a hardware wallet like the Ledger Nano, Trezor, SafePal, etc.

[Bobrox]

How possibility without exchange we can't sell cryptocurrency assets? seems funny about your opinion secure assets on hardware wallet with very doubt how exchange trust reputation. You right, many exchange have been scam right now and they not returned yet all investors fund and last year we are still memorizing with FTX exchange collapse.  But when holding bitcoin or altcoin assets in hardware wallet if price suddenly up we loss moment for selling on the early moment.

All assets hold in hardware wallet need synchronization wen first time access, exactly we don't open yet for several days or weeks and take few minutes for login before sending faced problem with blockchain confirmation for bitcoin transaction. Some time sending Bitcoin to exchange wallet need waiting longer time and has chance price going drop.