People are giving too much importance to exchanges

[dunfida]

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.

There are actually some pros when it comes on using up an exchange on which it would really be just that normal that you should really seeing this to be beneficial or something that would really be comfortable
instead on making up some active withdrawal and deposit specially if you are a trader on which pulling it off on exchangers from time to time would really be that spending up for some fees but if you are some sort of whale then it would really be problem if you are really just that paranoid with safety on which i could say that it is really that a must thing to be done in the place. Some could really be able to deal up with the hassle
but there are some who couldnt and this is why despite of the risks they would simply just park their coins and even if they are wary about the risks, they dont really just care at all. This is why you should really be
that mindful about the risks on storing up your coins on exchangers. There's no such thing about 100% safe when we do deposit our coins into those centralized exchange. We dont possess those wallet
keys on which on the time that there's something happened then thats a huge trouble or problem into our coins.

[BitcoinBabbler]

This are the small value of market sentiment and you have used your savings when you want if u like and your bitcoin you have a mine other choice and market is not stranded that all are know and like happen some times and this are not surprise in that and have should be a long investment scheme and every bear market and have a bull market due to wait for long time is will be continue .

[nlovric]

Snip...

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.

There are actually some pros when it comes on using up an exchange on which it would really be just that normal that you should really seeing this to be beneficial or something that would really be comfortable
instead on making up some active withdrawal and deposit specially if you are a trader on which pulling it off on exchangers from time to time would really be that spending up for some fees but if you are some sort of whale then it would really be problem if you are really just that paranoid with safety on which i could say that it is really that a must thing to be done in the place. Some could really be able to deal up with the hassle
but there are some who couldnt and this is why despite of the risks they would simply just park their coins and even if they are wary about the risks, they dont really just care at all. This is why you should really be
that mindful about the risks on storing up your coins on exchangers. There's no such thing about 100% safe when we do deposit our coins into those centralized exchange. We dont possess those wallet
keys on which on the time that there's something happened then thats a huge trouble or problem into our coins.

Without a doubt you are correct. Some people do not worry about keeping their money and coins on exchanges either because they are ignorant of the risks or because they are aware of the risks but choose to take them nonetheless. And while it may appear that a centralised exchange like Binance is completely safe this is not the case at all. Professional or expert traders are fully aware of these hazards and they also know how to invest their money wisely and safely especially when trading. There have been instances of exchanges going bankrupt in the past and when FTX exchange went bankrupt it took a substantial chunk of money from several major investors. You may have recently heard of the Atomic Wallet hack in which many customers cash were transferred to unsecured wallets and no one knew where their funds ended up. We must thus take all necessary precautions to keep our money or coins as secure as possible.

[savetheFORUM]

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.

That's true, a lot of people I've seen complaining about their exchange accounts getting compromised and their assets being stolen because they have been keeping all their assets in their exchange account which is a big mistake, someone should only keep a specific amount of money in exchange, the money that they use as their trading capital if they are making trades regularly.

If someone doesn't make trades on a daily or a regular basis, they should simply keep their assets in a non-custodial wallet where they will be the only ones to have access to them and no one can access them unless they leak their seed phrase or private keys.

[Blitzboy]

`

Without a doubt you are correct. Some people do not worry about keeping their money and coins on exchanges either because they are ignorant of the risks or because they are aware of the risks but choose to take them nonetheless. And while it may appear that a centralised exchange like Binance is completely safe this is not the case at all. Professional or expert traders are fully aware of these hazards and they also know how to invest their money wisely and safely especially when trading. There have been instances of exchanges going bankrupt in the past and when FTX exchange went bankrupt it took a substantial chunk of money from several major investors. You may have recently heard of the Atomic Wallet hack in which many customers cash were transferred to unsecured wallets and no one knew where their funds ended up. We must thus take all necessary precautions to keep our money or coins as secure as possible.

The rhetoric of keeping coins on exchanges despite the risks seems unwise to me. Exchanges have long been the Achilles' heel of the crypto world. Centralization is a vulnerability, and these platforms, like Binance or FTX, are nothing more than juicy targets for hackers.

This isnt fear-mongering but an assertion based on historical evidence. Recollect the catastrophic Mt. Gox incident or the Bitfinex hack. When the dust settled, it was the innocent investors, not the 'whales', who suffered the most.

I cannot endorse such a nonchalant attitude towards security. Yes, dealing with private keys and hardware wallets can be cumbersome, but that's the price one must be willing to pay for true financial sovereignty. Its high time we stopped treating exchanges as banks and took full control of our digital assets.

[nlovric]

`

Without a doubt you are correct. Some people do not worry about keeping their money and coins on exchanges either because they are ignorant of the risks or because they are aware of the risks but choose to take them nonetheless. And while it may appear that a centralised exchange like Binance is completely safe this is not the case at all. Professional or expert traders are fully aware of these hazards and they also know how to invest their money wisely and safely especially when trading. There have been instances of exchanges going bankrupt in the past and when FTX exchange went bankrupt it took a substantial chunk of money from several major investors. You may have recently heard of the Atomic Wallet hack in which many customers cash were transferred to unsecured wallets and no one knew where their funds ended up. We must thus take all necessary precautions to keep our money or coins as secure as possible.

The rhetoric of keeping coins on exchanges despite the risks seems unwise to me. Exchanges have long been the Achilles' heel of the crypto world. Centralization is a vulnerability, and these platforms, like Binance or FTX, are nothing more than juicy targets for hackers.

This isnt fear-mongering but an assertion based on historical evidence. Recollect the catastrophic Mt. Gox incident or the Bitfinex hack. When the dust settled, it was the innocent investors, not the 'whales', who suffered the most.

I cannot endorse such a nonchalant attitude towards security. Yes, dealing with private keys and hardware wallets can be cumbersome, but that's the price one must be willing to pay for true financial sovereignty. Its high time we stopped treating exchanges as banks and took full control of our digital assets.

Given historical occurrences like Mt. Gox and Bitfinex I can see your concerns about the security dangers involved with storing Bitcoin on exchanges. We must prioritise the security of our digital assets and be aware of the weaknesses of centralised platforms. While dealing with hardware wallets and private keys may seem tedious, they provide actual financial independence and autonomy. Keeping our private keys secure reduces the possibility of being a target of exchange attacks on a big scale. However it is crucial to take into account each person risk tolerance and situation because some people may prefer the simplicity and liquidity that exchanges provide for chances in trading or investing. By finding a balance between convenience and security and learning how to secure cryptocurrencies we may have the power to manage our digital assets and adhere to the decentralisation and financial sovereignty tenets.

[Abiky]

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.

That's the real problem. Trust. When people start trusting exchanges to secure their crypto assets, they're bringing back the middleman into the system. This is the single point of failure crypto was meant to avoid in the first place. Because of this, governments can do whatever they want with crypto. Exchanges have a lot of power, thanks to people who don't know (or never care about) self-custody. There's nothing we can do about this  especially when the majority is into crypto to make a quick buck.

The clock is ticking for the crypto/Blockchain industry, so time will tell us whenever centralization will prevail or all the other way around. Unless decentralized exchanges grow in liquidity/trading volume and market dominance, the crypto industry won't be going anywhere soon. Who knows if CEXs ultimately destroy crypto's true value proposition? Just my opinion

[Agbe]

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.

In these days exchange is having traffic because of the calamity that happened recently on the transaction fee. Even in the forum we discovered that most of the campaign participants sent their exchange wallet address to managers to change the bitcoin wallet addresses. So with that many people are still using their exchange addresses for trading and other transaction activities.
Yes I will also agree with that keeping funds I'm exchange is at the owners' risk. Now that Binance is under a law suit and we don't know what will happen, so it is better the operators of the said exchange should not keep funds there for a long period.

[borovichok]

In these days exchange is having traffic because of the calamity that happened recently on the transaction fee. Even in the forum we discovered that most of the campaign participants sent their exchange wallet address to managers to change the bitcoin wallet addresses. So with that many people are still using their exchange addresses for trading and other transaction activities.
Yes I will also agree with that keeping funds I'm exchange is at the owners' risk. Now that Binance is under a law suit and we don't know what will happen, so it is better the operators of the said exchange should not keep funds there for a long period.

Areas that propagate problems receive a great deal of attention from the public; everyone wants to know what problems are hitting the market. Crypto exchanges are struggling to deal with fraudulent operations that harm the general public. Fraudsters target the top exchanges to be able to decrease their functional requirements; some fight back, while others give up and crash to the dump. I don't think it's an efficient time to hold our currencies on exchanges at the moment because it's riskier than storing fiat money in banks. Binance is now suffering significant problems, but all will be resolved in due course.

[laurenB7742]

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.

In these days exchange is having traffic because of the calamity that happened recently on the transaction fee. Even in the forum we discovered that most of the campaign participants sent their exchange wallet address to managers to change the bitcoin wallet addresses. So with that many people are still using their exchange addresses for trading and other transaction activities.
Yes I will also agree with that keeping funds I'm exchange is at the owners' risk. Now that Binance is under a law suit and we don't know what will happen, so it is better the operators of the said exchange should not keep funds there for a long period.

It is generally considered risky to keep funds on an exchange for an extended period of time. Another layer of uncertainty has been added to the situation by the SEC's recent lawsuit against Binance. Taking appropriate steps to protect your funds is recommended for exchange operators and users alike.

When trading or engaging in transaction activities on an exchange, it's important to stay up-to-date on the latest legal developments, security practices, and regulatory compliance of the exchange. Using a hardware wallet for long-term storage can help you diversify your holdings while maintaining control over your funds.

[serveria.com]

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.

To start with, I don't believe Binance will disappear. It's a huge global corporation and even having to leave US market completely won't make it go bust. But yeah, people still overreact when some FUD shows up. I dunno why, perhaps Bitcoin is still young as more mature markets are normally less prone to FUD.

[Agbe]

Crypto exchanges are struggling to deal with fraudulent operations that harm the general public. Fraudsters target the top exchanges to be able to decrease their functional requirements; some fight back, while others give up and crash to the dump. I don't think it's an efficient time to hold our currencies on exchanges at the moment because it's riskier than storing fiat money in banks. Binance is now suffering significant problems, but all will be resolved in due course.

Really there are too much fraudsters in the exchange. There was a day I was selling 0.008 worth of BTC in binance and there vendor indicated that has paid the money to my account but I didn't receive any alert of payment but he was disturbing me to release the coins but I refused. I even told him to send me a screenshot of the payment he refused too. With the long argument for about 3 to 5 period he paid the money and I received the alert so I released the coins for him. Scammers full exchange, so I gave him negative feedback note on his profile rate. And I don't think exchange can fish out those guys because they use different method in their crimes.

[tranthidung]

Really there are too much fraudsters in the exchange. There was a day I was selling 0.008 worth of BTC in binance and there vendor indicated that has paid the money to my account but I didn't receive any alert of payment but he was disturbing me to release the coins but I refused.

If you choose a trusted with high reputation and with high past trading volume, you will have less probability to trade with a scammer. Because a trusted vendor will not sacrifice his account reputation that is gained after a long time, to scam in one trade.

In addition, scammers always push their trade partners in hurry to release coins. It is one of alarms for a scammer.

I even told him to send me a screenshot of the payment he refused too. With the long argument for about 3 to 5 period he paid the money and I received the alert so I released the coins for him.

When you trade Peer-to-Peer, only release your coin if you receive payment if you are a seller; always mark the trade as Paid if you are a buyer.

[Blitzboy]

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.

That's the real problem. Trust. When people start trusting exchanges to secure their crypto assets, they're bringing back the middleman into the system. This is the single point of failure crypto was meant to avoid in the first place. Because of this, governments can do whatever they want with crypto. Exchanges have a lot of power, thanks to people who don't know (or never care about) self-custody. There's nothing we can do about this  especially when the majority is into crypto to make a quick buck.

The clock is ticking for the crypto/Blockchain industry, so time will tell us whenever centralization will prevail or all the other way around. Unless decentralized exchanges grow in liquidity/trading volume and market dominance, the crypto industry won't be going anywhere soon. Who knows if CEXs ultimately destroy crypto's true value proposition? Just my opinion

The irony is palpable here! Bitcoin, born out of a vision to bypass central authorities, now finds itself at the mercy of centralized exchanges. Trusting entities like Binance and Coinbase goes against the very grain of what Bitcoin stands for!

Your friend' story is more common than you think. People prefer the ease of use of a centralized exchange and turn a blind eye to the philosophical underpinnings of cryptocurrencies. They place their trust in the CEOs of these companies, but are they not becoming the very middlemen we wanted to avoid?!

Our last hope rests on decentralized exchanges. Without a significant rise in their trading volumes, we risk the survival of the crypto industry itself. Centralization could very well be the cryptonite that destroys the superman of the financial world - cryptocurrencies. Does anyone else find this deeply concerning?

[Abiky]

To start with, I don't believe Binance will disappear. It's a huge global corporation and even having to leave US market completely won't make it go bust. But yeah, people still overreact when some FUD shows up. I dunno why, perhaps Bitcoin is still young as more mature markets are normally less prone to FUD.

Most people that are into crypto are not taking it seriously as a tech. They're only investing into it to make a quick buck in return. It will take some time before the market matures to a point where external factors will have little-to-no effect over a cryptocurrency's price. Binance may've suffered from SEC's actions, but that doesn't mean it's the end of the world. It will move its operations elsewhere and carry on with business as usual.

The one that will end up losing is the US with its aggresive crypto regulations. Crypto is decentralized, so it should be able to stand the test of time. If all centralized exchanges go down (which is very unlikely), we'll have decentralized exchanges at our side. Who knows how far will the industry go? Just my thoughts

[nullama]

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.

The thing is that while people keep being paid in fiat for their goods and services, then exchanges are very important for Bitcoin.

When people transition to getting paid in Bitcoin directly, then exchanges will fade away because there would be no real need for them.

The reality is that many people are just "betting" on Bitcoin, so they want to maximize their fiat by "buying low and selling high". That's not going to affect Bitcoin in the long term, it just creates noise in the short term.

[Abiky]

The thing is that while people keep being paid in fiat for their goods and services, then exchanges are very important for Bitcoin.

When people transition to getting paid in Bitcoin directly, then exchanges will fade away because there would be no real need for them.

The reality is that many people are just "betting" on Bitcoin, so they want to maximize their fiat by "buying low and selling high". That's not going to affect Bitcoin in the long term, it just creates noise in the short term.

Exactly. That's the problem. Fiat is still the standard unit of account, while BTC is viewed by many as a means for profit. If people started using Bitcoin as a currency, things would've changed by now. But that will never happen in a world where banks and governments rule the mainstream economy. Considering that most jobs are paid in Fiat, exchanges will continue to be relevant in the crypto/Blockchain space. Anything good or bad related to a crypto exchange will quickly move the crypto market. It'll be up to you to decide whenever you'd want to buy more coins and "hodl", or sell them all for a profit.

What matters is that crypto stays decentralized so it could stand the test of time. We already have decentralized exchanges, atomic swaps  and even P2P trading platforms, as alternatives to existing CEXs. If CEXs fail, we can still trade our crypto in a breeze. Who knows how the future will shape the entire crypto/Blockchain industry? Just my opinion

[Woodie]

-snip-

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.

There is some truth in the write up but am thinking other crypto users see the correlation of Bitcoin and Exchanges being that they provide an early indicator of whats to happen to the markets.

Besides you know how everyone says with crypto you can be your own bank, what happens if the only place you are able to sell or access your peer2peer platform to get fiat in exchange of the digital currency is shutdown ...?
It kind of leaves you stranded if you don't have other options,  and the fact that the top exchanges are under attack most will surely what to salvage whatever they can y selling before they lose the access especially that we are solely responsible for our actions.

[thecodebear]

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.

Exchanges are how new money comes into Bitcoin. It certainly makes sense that something bad going on with exchanges would make people afraid and therefore sell temporarily.

I does suck that the bitcoin market is soooooo delicate that it moves a ton on such things, but that's just the way of things right now. Also realize a lot of people are probably selling simply because they expect the price to go down on such news, so its a self-fulfilling thing. Traders hear bad news and they sell simply because they expect the price to drop from others selling, and so the price goes down more.

Anyway, hopefully in a few years we'll get to a point where exchange regulations are put together so exchanges are all on solid legal footing and there's nothing like the SEC attacking exchanges going on, and exchanges being transparent (probably due to regulations and all with proper security and insurance protocols in place) so we don't get stuff like FTX happening or bad results from hacks happening.

[posi]

What matters is that crypto stays decentralized so it could stand the test of time. We already have decentralized exchanges, atomic swaps  and even P2P trading platforms, as alternatives to existing CEXs. If CEXs fail, we can still trade our crypto in a breeze. Who knows how the future will shape the entire crypto/Blockchain industry? Just my opinion

I think cryptocurrencies are not decentralized, only a few are decentralized, and the rest are centralized. Decentralized exchanges have existed for a long time, but so far, it has not been able to compete with centralized exchanges for several reasons. And I also don't believe in the future, it can replace CEXs, very unlikely. Although many people will not like this, but CEX will never completely disappear, if Binance collapses, there will be one and many others to replace it. This is an area that makes a lot of money, I don't think people will ignore it.