People are giving too much importance to exchanges

[jokers10]

The thing is people use exchanges only for the short trades they make and some people on the forums I'm sure don't store bitcoins on binance or other centralized exchanges but because binance provides a trading service some people still use them today in trading. I've used Binance several times for short trades but it's not for long term use and for day traders maybe some people use a centralized exchange only for trading.

Because it's impossible every day they have to transfer assets to their wallet every time they finish trading, Bitcoin has never followed that centralized exchange which you have to understand and bitcoin has never had anything in common with exchanges as the two are quite different. Who cares if binance is lost or not?

Oh, believe me, many, many people store their assets on exchanges, even many on this forum do so. If you remember how exchanges scammed and got hacked, there were so many sufferers and lost funds!

If we'll look at how many bitcoins of clients Binance stores on its wallets, it will be a significant amount. So any problems with Binance will definitely impact the entire crypto market. This is a situation when the quantity is turned into quality.

Not to be worried a lot we should remember that 1BTC is always 1BTC. All temporary problems with centralized projects will pass and what we have will stay with us.

[Nrcewker]

These are just small incidents which stuns the Bitcoin community, hence many people sell their Bitcoins in panic and fear. As there are more sell orders then buy ones, therefore the price also falls down. It’s normal and doesn’t affect for long term goals. Once everything settles, more people buy the coins and hence the price goes up again.
So yes exchanges and Bitcoins are two completely different entities, but they affect little to each other parallely. So yes people need to stop giving huge importance to these news.

[DeathAngel]

Exchange issues can affect the price of bitcoin, even for a sustained period but the OP is right, people do give too much importance to exchanges. Bitcoin will be here for a longer time than all currently existing exchanges. They can all go down & whilst the BTC/USD exchange rate may go down, 1BTC = 1BTC, nothing can change that.

I’m well aware of the current problems Binance & Coinbase are having with US regulators but let’s look at the bigger picture. Bitcoin is fine & will get through whatever they throw at us.

[MoonOfLife]

The thing is people use exchanges only for the short trades they make and some people on the forums I'm sure don't store bitcoins on binance or other centralized exchanges but because binance provides a trading service some people still use them today in trading. I've used Binance several times for short trades but it's not for long term use and for day traders maybe some people use a centralized exchange only for trading.

Because it's impossible every day they have to transfer assets to their wallet every time they finish trading, Bitcoin has never followed that centralized exchange which you have to understand and bitcoin has never had anything in common with exchanges as the two are quite different. Who cares if binance is lost or not?

Oh, believe me, many, many people store their assets on exchanges, even many on this forum do so. If you remember how exchanges scammed and got hacked, there were so many sufferers and lost funds!

If we'll look at how many bitcoins of clients Binance stores on its wallets, it will be a significant amount. So any problems with Binance will definitely impact the entire crypto market. This is a situation when the quantity is turned into quality.

Not to be worried a lot we should remember that 1BTC is always 1BTC. All temporary problems with centralized projects will pass and what we have will stay with us.

I like when you say this, I also believe the people who always say that leaving money on centralized exchanges is risky and stay away from them or those who always say they never use them. Many of them are trying to lie to please the crowd, and behind the scenes, they still use and store their bitcoins on CEX. Looking at the trading volume and the number of bitcoins that centralized exchanges are holding for customers, it can be seen that up to 80-90% of investors are putting money into exchanges.

[Coinworld.story]

I think that this is almost the same as stocks, I think people always overreact. On the other hand, it shows how small and concentrated bitcoin is. Whereas in all countries there are many banks, and if one bank collapses, the currency will not follow.

But one exchange sued (has yet to collapse), and currently bitcoin lost 5% in a fairly short amount of time. It's not normal. There may not be enough exchanges, so going down shouldn't have any effect on the value of the bitcoin.

[DanWalker]

These are just small incidents which stuns the Bitcoin community, hence many people sell their Bitcoins in panic and fear. As there are more sell orders then buy ones, therefore the price also falls down. It’s normal and doesn’t affect for long term goals. Once everything settles, more people buy the coins and hence the price goes up again.
So yes exchanges and Bitcoins are two completely different entities, but they affect little to each other parallely. So yes people need to stop giving huge importance to these news.

If it were just a minor incident, it would not cause a stir in the community or create panic sell. Although exchange and bitcoin are two completely different entities, it is not true to say that they are unrelated or do not affect each other much. If they had nothing to do with each other, there would be no panic in the market.

On the contrary, for me, they are closely related. As we know, investing in bitcoin and participating in the market will mainly go through exchanges. Exchanges need bitcoin to survive because people invest in bitcoin, not in exchanges. Bitcoin can exist without an exchange, but to grow bigger and more popular, an exchange is indispensable. They are really related.

[ancafe]

Oh, believe me, many, many people store their assets on exchanges, even many on this forum do so. If you remember how exchanges scammed and got hacked, there were so many sufferers and lost funds!

If we'll look at how many bitcoins of clients Binance stores on its wallets, it will be a significant amount. So any problems with Binance will definitely impact the entire crypto market. This is a situation when the quantity is turned into quality.

The reminder created by theymos should be an important warning to anyone, that storing BTC on a centralized exchange is not a smart solution for securing our assets. Regardless of whether people keep assets on a centralized exchange like Binance or not, it will be the responsibility of each individual and they will be the ones who will suffer the consequences when something happens. But for me the move to secure the asset is important, moreover bitcoin is quite valuable in the long term and even if a centralized exchange is used it is only a short term trade.

For the problems caused by the situation that happened on binance to the entire crypto market and indeed it will be significantly affected and today we have seen how crypto or bitcoin is corrected. We often encounter market sentiment and it is not only influenced by exchanges, but there are also several other things that make bitcoin continue to have an impact on the market and when everything is normal it will return to be better.

Not to be worried a lot we should remember that 1BTC is always 1BTC. All temporary problems with centralized projects will pass and what we have will stay with us.

Yes it's true and 1 BTC will remain 1 BTC definitely won't change, we hope this incident will pass and will not affect anything, especially the confidence in BTC because we have seen a long term store of value. When it comes to exchange there is a lot of coming and going in this industry and it is a normal occurrence and there is no need to overreact.

[Lamkuthang]

I think that this is almost the same as stocks, I think people always overreact. On the other hand, it shows how small and concentrated bitcoin is. Whereas in all countries there are many banks, and if one bank collapses, the currency will not follow.

But one exchange sued (has yet to collapse), and currently bitcoin lost 5% in a fairly short amount of time. It's not normal. There may not be enough exchanges, so going down shouldn't have any effect on the value of the bitcoin.

Indeed, it can be seen in behavior and can be observed in the stock market, where people tend to overreact. However, it also highlights the relatively small and concentrated nature of the bitcoin market. Even though some countries have multiple banks, this abnormality suggests that there may be an insufficient number of exchanges, causing a downward move to impact the overall value of bitcoin.

[irhact]

I understand why some people are preferred to keep their Bitcoins in an exchange wallet and that is for trading, not for holding. But these people know what will happen when an exchange got scammed or whatever, yet they still do it despite the risk because of their trust. It could be a manipulating power that most exchanges injected into the mind of the holders. We know it was wrong but can't change their stances as well as it was their choice. They will change their minds when experiencing losses of their funds from exchanges.

There are very few people that keep their coin on exchange for trading, most of the newbie keep their coins on exchange for holding and some old users also do this. We have many people staking their coins on exchanges which is why exchange have so many coins in their wallets. For traders, using exchange to store their trading capital, they already know that they're risking their coins.

But for individuals thinking exchange are the best place to hold their coins, they're the individual this post is focused on because they would regret choosing exchange over personal wallets when the exchange disappears with their coins or collapse due to hacks.

[tjtonmoy]

These are temporary effects of market sentiments. If you really want to make your savings usable anytime, you should consider choosing something other than Bitcoin. The market is volatile and we all know that. So this kind of scenario happens now and then. No big surprise there. Bitcoin is the best asset for investing and not only that, it has to be a long-term investment plan. After every bear market, there will be a bull market as well. So waiting for that is going to be a long time.
Exchanges are not the main reason here. It is all part of big market sentiment. Many negative news or events creates this kind of situation and they will fade away eventually. All we need to do is hodl. But if you mix your savings with it, you won't be able to get the best results. It has to be an investment asset, not a saving. CEXs are bad, and we should not keep our assets there. We should only use what it's created for. I like to do my work in CEX and then move all my assets to a private wallet. I also don't give a damn if they are gone.

[Abiky]

6 months ago, my savings went down because of the FTX debacle. I've never used FTX, I've never been a customer of this company, but my savings are in BTC, and because of that failure, BTC's value went down, and so went my savings.

Today, bis repetita. I've never used Binance. I've never been a customer of this company, but because the SEC sues Binance, BTC is down, and so are my savings, so I have a message to all bitcoiners out there.

Exchanges and BTC are 2 different things. One exchange going down doesn't mean BTC must follow.
Binance will disappear? I don't give a damn.

That's because people consider crypto as an investment. Not as a tool/technology/currency you can use to achieve financial freedom and sovereignity. It's all about making the most money within the shortest time possible. Wall Street got its hands into crypto/Blockchain tech, and totally ruined its true value proposition. This makes crypto no different than ordinary stocks. That's why you see how CEXs can either positively or negatively affect crypto market prices in an instant. Imagine if all CEXs are banned from the face of the Earth. It would be game over for the crypto/Blockchain industry as a whole. There's nothing we can do about this, other than "go on with the flow".

What really matters is that crypto stays decentralized so it could stand the test of time. Governments will continue to battle against crypto, but they won't be able to succeed if decentralization is in the way. If everything goes accordingly as planned, crypto (especially Bitcoin) will be able to live alongside Fiat currencies for generations. Who knows if acting now will make you filthy rich in the future? Just my thoughts

[sokani]

Negative news creates panick and weak hands tend to easily give in and sell off their crypto assets The FTX debacle created FUD and some investors sold their Bitcoin as a result of fear and it crashed the market. SEC suing of Coinbase and Binance might be responsible for the downward movement of Bitcoin to the 25k price mark and sadly that's how the market works. But for some of us that have been around for some time and have seen this happened over again and again, we can say that it's nothing to lose your sleep over, and keep hodling your bitcoin.

[Iadegbola34]

Man, that's rough! It sucks when external events impact your savings like that. Just remember, exchanges and BTC are separate things. Just because one exchange goes down doesn't mean BTC has to follow. So what if Binance is facing issues? I couldn't care less! Keep hodling and don't let these setbacks get you down. Stay positive, my fellow Bitcoiner!

[crunck]

You're a forum legend, which means you've been through a lot of ups and downs with bitcoin. It's hard to understand why until now, you still blame exchanges or anyone every time bitcoin drops in price. News, whether positive or negative, is part of the market, and it will always affect the market. Wise people will take advantage of it to make a profit or accumulate more bitcoins, no one complains and blames like you.

[nlovric]

I understand why some people are preferred to keep their Bitcoins in an exchange wallet and that is for trading, not for holding. But these people know what will happen when an exchange got scammed or whatever, yet they still do it despite the risk because of their trust. It could be a manipulating power that most exchanges injected into the mind of the holders. We know it was wrong but can't change their stances as well as it was their choice. They will change their minds when experiencing losses of their funds from exchanges.

There are very few people that keep their coin on exchange for trading, most of the newbie keep their coins on exchange for holding and some old users also do this. We have many people staking their coins on exchanges which is why exchange have so many coins in their wallets. For traders, using exchange to store their trading capital, they already know that they're risking their coins.

But for individuals thinking exchange are the best place to hold their coins, they're the individual this post is focused on because they would regret choosing exchange over personal wallets when the exchange disappears with their coins or collapse due to hacks.

You are 100% correct, buddy. Saving or storing coins in exchanges is acceptable particularly in highly regarded and safe exchanges like Binance and Coinbase. I maintain my money in exchanges for a number of reasons.

• I have to engage in active trading across various coin pairs.
• On occasion I must purchase a coin quickly and send it from my savings wallet to the exchange which could take some time.
• Recently, there have been problems with withdrawal fees especially with Bitcoin.

I believe that comparable problems are experienced by other traders which is why they retain their money on exchanges and reserve their savings accounts for long term investments. Additionally, I transferred all of my cash from the exchange owing to the recent FUD (Fear, Uncertainty, and Doubt) surrounding Coinbase and Binance.

[KiaKia]

They don't know the importance of a open source wallet compare to binance wallet, I just recently found out that some people are into Bitcoin investment for a long time now, and they don't even understand that Bitcoin was never created to be put in care of any centralized companies.

I know a family friend in the U.S, he held all his XRP, NEO, and some top projects on Coinbase and this has been ongoing since 2019, I tried to tell him the different but he said it's easier for him to pu these assets in care of Coinbase, all he had on him was he trust Coinbase CEO, Brian Armstrong.

It's a big shame to witness how people are into Bitcoin for the money only and they failed to learn anything g about why Bitcoin even existed, anyone that understands why Bitcoin existed they will know what's wrong and what's right.

[Alisha-k]

6 months ago, my savings went down because of the FTX debacle. I've never used FTX, I've never been a customer of this company, but my savings are in BTC, and because of that failure, BTC's value went down, and so went my savings.

Today, bis repetita. I've never used Binance. I've never been a customer of this company, but because the SEC sues Binance, BTC is down, and so are my savings, so I have a message to all bitcoiners out there.

Exchanges and BTC are 2 different things. One exchange going down doesn't mean BTC must follow.
Binance will disappear? I don't give a damn.

I don't think I understand your point, you just gave instances where the exchange platform went down for some reasons and Bitcoin also went down with it, I know Bitcoin and exchange are 2 different world's but, the growth of 1 is greatly determined by the other......

I'll need clarifications if I'm wrong though.
I'd appreciate if clarification is made

[qwertyup23]

Negative news creates panick and weak hands tend to easily give in and sell off their crypto assets The FTX debacle created FUD and some investors sold their Bitcoin as a result of fear and it crashed the market. SEC suing of Coinbase and Binance might be responsible for the downward movement of Bitcoin to the 25k price mark and sadly that's how the market works. But for some of us that have been around for some time and have seen this happened over again and again, we can say that it's nothing to lose your sleep over, and keep hodling your bitcoin.

Also just to note, remember the factors that affect the price of BTC in the market.

Generally, the price of cryptocurrencies can be affected by two (2) factors, namely: extrinsic and intrinsic factors. The FTX conflict is what we call an extrinsic factor where people would panic sell their cryptocurrencies, thereby increasing supply and ultimately lowering its price on the market.

These are nothing but normal occurrences that happen in this kind of investment. Since lots of factors decide the price of it, exchanges and other types of problems may affect the price of BTC and other cryptocurrencies in the market.

[serjent05]

There are very few people that keep their coin on exchange for trading, most of the newbie keep their coins on exchange for holding and some old users also do this. We have many people staking their coins on exchanges which is why exchange have so many coins in their wallets. For traders, using exchange to store their trading capital, they already know that they're risking their coins.

But for individuals thinking exchange are the best place to hold their coins, they're the individual this post is focused on because they would regret choosing exchange over personal wallets when the exchange disappears with their coins or collapse due to hacks.

You are 100% correct, buddy. Saving or storing coins in exchanges is acceptable particularly in highly regarded and safe exchanges like Binance and Coinbase.

It is acceptable until you find the exchange got hacked and you are unable to recover your fund due to the severity of the exchange losses.  It is still wise to keep our funds away from third-party control.  We never know when the things gets rough so better to have a full control of our funds.

I maintain my money in exchanges for a number of reasons.

• I have to engage in active trading across various coin pairs.
• On occasion I must purchase a coin quickly and send it from my savings wallet to the exchange which could take some time.

This is a good reason to keep our funds in exchange since we have our funds on them due to trading.  At least there is a good reason and that is for trading.

• Recently, there have been problems with withdrawal fees especially with Bitcoin.

We can always convert our funds temporarily to other established cryptocurrency just to make sure that we have full control of our funds, then we can just convert it again when the fee gets lower.

[blackened515]

You're a forum legend, which means you've been through a lot of ups and downs with bitcoin. It's hard to understand why until now, you still blame exchanges or anyone every time bitcoin drops in price. News, whether positive or negative, is part of the market, and it will always affect the market. Wise people will take advantage of it to make a profit or accumulate more bitcoins, no one complains and blames like you.

We should not tender our blames and complaints to exchanges, they have no business with the pump and dump of bitcoin, the earlier we start rooting out our the challenges we face in the market, the more time we create to solved our problems. No relenting efforts, we need to ensure there's always plan B inother to backup our primary objective. Bitcoin dumps are caused by seasonal operations of the market. We are currently in the bear season, a time to accumulate more pieces of bitcoin, and withdrawing our profits when the bull season finally comes.