Does anyone still stores their crypto in any exchange

[CypherMonk]

Does anyone here still stores their crypto in exchanges? I think the best choice would be to move a higher value of funds to a hardware wallet while leaving a small amount that's less than 5K in an exchange.

Exchanges have proven time and time again that they can disappoint their users at any time. Let's not talk about the FTX issue. but for instance, Atomic Wallet just let its users' funds vanish into thin air a few days ago with no reasonable explanation.

So, why would anyone in their right mind take the risk of storing your crypto on exchange? When it usually means that the exchange retains control (or 'custody') of your assets without giving you access to the private keys. Also, they can disappoint you at any time.

[1715185931]

1715185931

[1715185931]

1715185931

[1715185931]

1715185931

[1715185931]

1715185931

[1715185931]

1715185931

[Rockstarguy]

I see no reason why anyone would prefer to choose exchange wallet to invest bitcoin with several ugly situation we have experienced sometimes ago. Exchange should only be consider to be a place for instant trade and not where to invest bitcoin  because it is risky and anything can happen to exchange. centralised wallet where bitcoin is stored it means the bitcoin also belongs to the exchange, in a case where it is not your key it is also not your coin. How people feel so   comfortable investing bitcoin with exchange needs to be look into and make the right decision.

[Venik]

I never did. I was always using OWNR wallet. I think that if people didn't think about using something else besides exchanges after the FTX crash then nothing will help them.

[lucifur]

As someone who doesn't really have a lot of crypto, I admit that I have been using and will continuously use exchange wallet. I find it convinient since I mostly transfer it and trade it. If I were to have a crypto worth $500 more tho, I wouldn't trust holding it in exchange.
I am fairly new to crypto and I don't really have the time to delve more in to it but it's a common sense not to trust an online wallet to hold your money, be it in crypto or fiat.

[EarnOnVictor]

Permit me to establish a point here. It might have been said that non-custodial wallets are the best...blah blah...which I do not doubt for safekeeping. However, many of you are disregarding the context of making more money with your coin, and by virtue of this neglecting the styles, goals and investment plans which must vary. Personally, my goal is to make money with Bitcoin and I plan to make it in both risky and less risky ways.

I hold my coins which are of the less-risky class and are stored in my non-custodial wallet. While the ones I trade and invest regularly are stored with three exchanges.

There is no way a non-custodial wallet can help me trade and invest in spots and futures. Also, there are coins that I only alternate between BTC and USDT without spot/future trading them to save the value from the bearish moments. This is basically about your plan and how best it works for you to maximize your income. Even if one exchange goes insolvent, the others are still there for me as they help me make more than what HODLing would have made possible.

[CypherMonk]

I see no reason why anyone would prefer to choose exchange wallet to invest bitcoin with several ugly situation we have experienced sometimes ago. Exchange should only be consider to be a place for instant trade and not where to invest bitcoin  because it is risky and anything can happen to exchange. centralised wallet where bitcoin is stored it means the bitcoin also belongs to the exchange, in a case where it is not your key it is also not your coin. How people feel so   comfortable investing bitcoin with exchange needs to be look into and make the right decision.

I see no reason why anyone would prefer to choose exchange wallet to invest bitcoin with several ugly situation we have experienced sometimes ago. Exchange should only be consider to be a place for instant trade and not where to invest bitcoin  because it is risky and anything can happen to exchange. centralised wallet where bitcoin is stored it means the bitcoin also belongs to the exchange, in a case where it is not your key it is also not your coin. How people feel so   comfortable investing bitcoin with exchange needs to be look into and make the right decision.

Permit me to establish a point here. It might have been said that non-custodial wallets are the best...blah blah...which I do not doubt for safekeeping. However, many of you are disregarding the context of making more money with your coin, and by virtue of this neglecting the styles, goals and investment plans which must vary. Personally, my goal is to make money with Bitcoin and I plan to make it in both risky and less risky ways.

I hold my coins which are of the less-risky class and are stored in my non-custodial wallet. While the ones I trade and invest regularly are stored with three exchanges.

There is no way a non-custodial wallet can help me trade and invest in spots and futures. Also, there are coins that I only alternate between BTC and USDT without spot/future trading them to save the value from the bearish moments. This is basically about your plan and how best it works for you to maximize your income. Even if one exchange goes insolvent, the others are still there for me as they help me make more than what HODLing would have made possible.

I think we all are saying the same thing and that means keeping high-value coins that we don't use often in a non-custodial wallet is excellent. For us who use a small portion of our coins for trading, investment, or paying for services, we can keep that in exchange for quick access.

This will help people maximize keeping what they can lose in exchange. Sadly, even when some people know the risk, they will still go ahead to keep millions of dollars in exchange and cry when it gets blown away.

[Not your key not your BTC]

Does anyone here still stores their crypto in exchanges?

Why you care?
it's their money, let manage it themselves, even if lost they do not ask you to refund.

[lovesmayfamilis]

Does anyone here still stores their crypto in exchanges?

Why you care?
it's their money, let manage it themselves, even if lost they do not ask you to refund.

Other than that, the news about the Atomic wallet hack has appeared on the forum a few times, but users, in one sense or another, pop this topic whenever drama can be created. Everyone has long known that keeping your assets on the stock exchange is not safe. How much we will discuss these topics, one can only guess, since the FTX echo still appears in various places.
I agree with you, too, and I doubt the OP is really concerned that anyone is still holding their funds on exchanges. You can answer yes; there are many such people, and many understand all the risks for which they themselves will be responsible. Dodn't worry.

[Crypt0Gore]

Less than 5k is still a lot of money, if that's small to you then you are talking for yourself, I will never leave anything like 200$ on any crypto exchange because that's a lot of money to me and it's more than the minimum salary paid in my country, that's like four months of salaries combined.

I don't leave my assess on any centralized exchanges but many people are still doing so, I am sure you are aware that SEC sued Binance and Coinbase, do you know that millions of funds have been moved out of these two exchanges since the past hours now? The update I got said that it's over 1bn now, though this is not verified yet.

This showed that so many people still leave their funds on these centralized exchanges and I can't tell them not to because they understand the risk involved, everyone is aware of the FTX collapse,  that should have been the time that every investors rejects all CEX.

so it's either people just trust CEX more than their wallets which makes them the stupid types or they believe that nothing can go wrong with Binance and Coinbase because they are the giant CEX in this crypto space, which is still stupid.

[Potato Chips]

There will always be people who will use exchanges as a means of storage. Best we can do is lessen the numbers by spreading the word AKA education.

My guess is some people don't know the weight of such action:

1. Perhaps some of these people aren't informed enough; or
2. They feel detached to horror stories because "well, it didn't happen to me so-"; or
3. They forget easily - once things start to get comfortable again, they'll be lax again.

Another thing worth mentioning is that there's always a good chance something will go wrong with your exchange while you're actively trading. The reality is it's all about mitigating risk with CEx and depending on what kind of trading you're aiming for, you may be stuck with them.

[hd49728]

Does anyone here still stores their crypto in exchanges?

There are people who are doing this. Because if nobody does this, all centralized exchanges would close their services.

I think the best choice would be to move a higher value of funds to a hardware wallet while leaving a small amount that's less than 5K in an exchange.

If you have $100,000, it is good and safe enough to store $5,000 on exchanges for trading.
If you only have $5,000 and store it all on exchanges, it's bad and risky.

The capital you can store on exchanges will depend on your total capital, your risky taste and your management on your capital safety. If we trade on centralized exchanges, we must have money there, big or small capital.

[TravelMug]

Does anyone here still stores their crypto in exchanges? I think the best choice would be to move a higher value of funds to a hardware wallet while leaving a small amount that's less than 5K in an exchange.

Exchanges have proven time and time again that they can disappoint their users at any time. Let's not talk about the FTX issue. but for instance, Atomic Wallet just let its users' funds vanish into thin air a few days ago with no reasonable explanation.

So, why would anyone in their right mind take the risk of storing your crypto on exchange? When it usually means that the exchange retains control (or 'custody') of your assets without giving you access to the private keys. Also, they can disappoint you at any time.

Well simply because there are still traders out there, maybe day to day and that's why most of the time they still store their crypto in a central exchange. For sure they know the caveat of having it in a exchanges, and maybe doing everything in their power to secure their accounts. So there is risk involved and I understand what you are talking about.

As in my case though, I used exchanges for my P2P trading, so the most money I left in an exchange is like $100. But then again a couple of days, I will have to trade it to get it the money in my local fiat.

[Dunamisx]

Does anyone here still stores their crypto in exchanges? I think the best choice would be to move a higher value of funds to a hardware wallet while leaving a small amount that's less than 5K in an exchange.

Just a little amount of money one can afford to loose should be left on centralized exchanges, if you're conversant with what's going on with some of the reputable cryptocurrency exchanges like Binance and one other exchange suffering big issues with the government due to regulation policies, many of their investors were already taking their asset off them into a personal decentralized wallet.

Exchanges have proven time and time again that they can disappoint their users at any time. Let's not talk about the FTX issue. but for instance, Atomic Wallet just let its users' funds vanish into thin air a few days ago with no reasonable explanation.

All of them are thesame birds in different shades of colours, it's only their names that makes their difference, centralized exchanges will always have thesame rate of risk of loosing one's asset with them either through hacking, scam, or them releasing your private informations to get you tracked down.

[Dave1]

Does anyone here still stores their crypto in exchanges?

Why you care?
it's their money, let manage it themselves, even if lost they do not ask you to refund.

You also forget one thing, it's a going to be an expensive lessons for them. They just really don't learn from the past, just like in this example:

https://nypost.com/2021/12/20/mystery-of-crypto-ceo-who-died-taking-250-million-with-him/

When the 30-year-old died — unexpectedly and mysteriously — in 2018, some $250 million worth of Canadian cash and cryptocurrency also went missing. Around 75,000 customers of Cotten’s QuadrigaCX crypto exchange suddenly lost fortunes they had earmarked for everything from tuition to retirement funds, life savings and mortgages.

So that's it, gone are the money that they have work hard in their life in a sudden death of the owner of the crypto exchanges.

And there are thousands of horror stories too, like the FTX collapse or exchanges doing rug pull.

[Zaguru12]

As someone who doesn't really have a lot of crypto, I admit that I have been using and will continuously use exchange wallet. I find it convinient since I mostly transfer it and trade it. If I were to have a crypto worth $500 more tho, I wouldn't trust holding it in exchange.

No body is actually saying that Exchanges should be avoided even the centralized ones. Because they somehow are the easiest of place people could trade there coins to fiat on, mostly people from the countries that cryptocurrency is not popular in or countries that it is banned to use in. The key thing avoid the ones that actually requires KYC because it defeats the privacy idea brought by cryptocurrency. The second thing which is the most important thing is not to leave off your funds on them except you are comfortable to loss that amount.

As for a traders, mainly daily traders, it will be hard to take your coins off everyday to the wallet after trading as it will just be an unnecessary waste of transaction fee. But you leave some off it and maybe weekly take them off it. Or better still use multiple exchanges for your trade as such you have divided your funds into multiple exchanges and that could easily minimize the chances of losing them all if an exchanges got compromised or some sort of that.

[Y3shot]

Does anyone here still stores their crypto in exchanges?

Why you care?
it's their money, let manage it themselves, even if lost they do not ask you to refund.

Exchange is just the same thing as investing in meme coins, they are both risky  but you can stop people from making use of them. If people are hodling their bitcoin in Exchange it is their risk and if anything happens they will bear the consequences by themselves. If an exchange get crashed now it won't stop everyone from making use of exchange.  Past experience should be enough to teach people on what to do.

[isaac_clarke22]

Does anyone here still stores their crypto in exchanges? I think the best choice would be to move a higher value of funds to a hardware wallet while leaving a small amount that's less than 5K in an exchange.

Well here in my country we have some web wallet app that can be also used as an exchange (Coins PH). While I did not encounter any scary issue, the recent wallet update made almost made my jaw drop as my funds in the original wallet suddenly all went to zero then I realized they're going to do a wallet upgrade like the usual improvement and stuff.

Nothing was lost, but you get the idea and what I felt during that real life experience. We all know the usual "not your keys, not your crypto" sayings. You'll never know the feeling of it until you really experienced it, lmao.

The caveat is just use these services when you're using what they offer like trading, paying bills (for the app I used, not sure if other exchanges do that lol), and the usual day-to-day transactions.

[drwhobox]

Does anyone here still stores their crypto in exchanges? I think the best choice would be to move a higher value of funds to a hardware wallet while leaving a small amount that's less than 5K in an exchange.

Leaving a small amount in exchange will make no difference, you don't need to leave any amount in exchange unless you are trading with that amount. Less than 5k is huge if you are a casual trader, day traders usually trade with a higher amount of money and they leave huge amounts in exchanges. They always play with risk and if they are successful with their trades it pays off.

[Jawhead999]

while leaving a small amount that's less than 5K in an exchange.

$5K is still a big number, a good hardware wallet only cost $100+with additional fee around $20.

Atomic wallet isn't an exchange though, it's a non custodial wallet but closed source.

There's always someone leave their money on a centralized exchange, there are a lot factors they do it, either they're a trader, ignorance or they just lazy to move to their non custodial wallet because they always think SAFU will protect them.

[yazher]

I have a few altcoins that are stored in some of the exchanges hoping for the price to increase and when it reaches the desired amount that I want, I just quickly sold it. I don't need to worry because mostly they are not gonna earn much from my altcoins if ever they decide to steal it since it's not a big amount of money and considering the trust for the exchanges we have nowadays, it's better not to put everything in there and get your hard wallet as soon as possible because that's the most recommended way to store your cryptocurrencies for safety and also you don't have to worry about exchanges getting hacked.

[m2017]

Does anyone here still stores their crypto in exchanges? I think the best choice would be to move a higher value of funds to a hardware wallet while leaving a small amount that's less than 5K in an exchange.

I think that there are such people who keep / kept their cryptocurrencies on the exchanges. After accusations SEC against the Binance, users abruptly began withdrawing their money from this exchange. According to some reports, more than $1.65 billion was withdrawn per day on the basis of the ETH network. This proves that many people keep their crypto assets on exchanges. Still. Even after the old and new stories of the fall of the cryptocurrency exchanges.

Move to hardware wallet? Before, I would have agreed with you, but now I don’t even know what solution I could recommend. The industry is experiencing various shake-ups, now in one direction, now in another. After some of them, keeping crypto in a hardware wallet doesn't seem so safe anymore (thanks to famous brands).

Exchanges have proven time and time again that they can disappoint their users at any time. Let's not talk about the FTX issue. but for instance, Atomic Wallet just let its users' funds vanish into thin air a few days ago with no reasonable explanation.

Exchanges are not the best place to store crypto, but as you can see, not only exchanges can disappoint their users, but also online wallets like the Atomic Wallet.

So, why would anyone in their right mind take the risk of storing your crypto on exchange? When it usually means that the exchange retains control (or 'custody') of your assets without giving you access to the private keys. Also, they can disappoint you at any time.

Probably, lazy and ill-informed people keep crypto on the exchanges. I see no other explanation, but the fact is that there are quite a few such people.

[sokani]

Does anyone here still stores their crypto in exchanges?

Yes... There are persons that still store their crypto assets on exchanges and the reason could be that they're newbies and are ignorant of the fact exchanges are not the most effective way of storing crypto assets. Also, there are another set of persons that are not new to crypto but their business requires them to have a good amount of crypto assets on exchanges, I'm talking about the crypto traders. If peradventure the exchange crashes, their funds will be gone as well. The most effective method of storing crypto assets still remain using non custodial hardware wallets such as Trezor, ledger, ellipal, safepal etc.

[Woodie]

I know several people who store their crypto coins on exchanges like Binance because its part of their business which is peer 2 peer  trading, and its understandable as its the only way to provide a convenient service, and not miss out on any potential business that relies on having coins stored their.
Before anybody says they are doing it wrongly or something, they too know the risk and its the price they are ready  to pay to remain in business besides the "not your keys, not your coins!"

As someone who doesn't really have a lot of crypto, I admit that I have been using and will continuously use exchange wallet. I find it convinient since I mostly transfer it and trade it.

Atleast found someone telling the truth  

Having to Use the exchange wallet has its perks and this also means avoiding extra transaction fees and you can easily trade from one coin to another without losing much, unlike using your custodial/non-custodial wallet which means losing some coins along the way, waiting longer for confirmation and the alike before you make that trade happen.

[Pandu Geddon]

Does anyone here still stores their crypto in exchanges? I think the best choice would be to move a higher value of funds to a hardware wallet while leaving a small amount that's less than 5K in an exchange.

if you are not a day trader on a centralized exchange. better not leave any of your money there. whatever the amount is still a risk that you have to accept.
if you are a long term holder drag all your assets to the wallet. no reason to spare it. You've said it yourself, stay sane by keeping your assets in the safest place you can control yourself.

[CryptopreneurBrainboss]

So, why would anyone in their right mind take the risk of storing your crypto on exchange? When it usually means that the exchange retains control (or 'custody') of your assets without giving you access to the private keys. Also, they can disappoint you at any time.

Just because wallets gives you your privacy key doesn't mean you'll be safe from hacks. Don't only rely on only what a wallet tells you about their service because Atomic wallet told their customers they were a decentralized Non custodial wallet then how did the hackers get access to customers private key to withdraw their coins without their approval. Atomic wallet is a closed source wallets so nothing can be verified and we still have to believe whatever explanation they come out with. As you use non custodial wallet, make sure they're open source like Electrum.

Exchanges shouldn't be used as a wallet neither should all wallet that are available are safe to be used for holding of your coins. If you don't know what wallet to trust, ask questions on the forum and you'll be enlightened because many users are yet to understand the disadvantage of using some wallets that's are vey popular at the moment. Not only centralized service are awful to use, we also have some services that's are decentralized yet not advisable to be used due to them been closed source.

[macson]

Does anyone here still stores their crypto in exchanges? I think the best choice would be to move a higher value of funds to a hardware wallet while leaving a small amount that's less than 5K in an exchange.

Exchanges have proven time and time again that they can disappoint their users at any time. Let's not talk about the FTX issue. but for instance, Atomic Wallet just let its users' funds vanish into thin air a few days ago with no reasonable explanation.

So, why would anyone in their right mind take the risk of storing your crypto on exchange? When it usually means that the exchange retains control (or 'custody') of your assets without giving you access to the private keys. Also, they can disappoint you at any time.

for now, i'm not actively trading so i keep the assets that i have in my personal wallet ^{(i keep my BTC in the software wallet)}.  at the moment the SEC is actively moving even Binance is also under their attention so storing Bitcoin in the exchange wallet for now is very high risk, for active traders, it's better to save your assets to your personal wallet when you're done trading ^{(although there will be a fee, but your assets are safer)}, don't store them in exchange wallets.

[Coyster]

I never did. I was always using OWNR wallet. I think that if people didn't think about using something else besides exchanges after the FTX crash then nothing will help them.

OWNR wallet isn't open source, so whatever happened to Atomic wallet can happen to it without anyone knowing what the cause is or why people's funds is suddenly disappearing. The bad news that happened with Atomic wallet is enough for people using closed source wallets to move it to open source wallets; in closed source wallets you trust the devs, in centralized exchanges, you trust the exchange, thus they are somewhat similar.

[Accardo]

Exchanges was never made to store crypto, but to trade or swap cryptocurrency. For people who trade often they'll have to leave some funds in the exchange, for easy transaction. Hence, in my opinion, I don't have much funds saved in any exchange, because I don't need to swap coins often. No need leaving my funds in exchanges when I have a wallet. In addition, most people that keep funds in exchange don't want to take responsibility for holding their money, I talked with a friend he preferred keeping his crypto in exchange because he thinks the exchange will refund him if anything happens to his money, but if he losses crypto in his wallet maybe to hackers the money is gone without any hope of getting them back again. Different reasons for different people.

[Kelvinid]

Does anyone here still stores their crypto in exchanges? I think the best choice would be to move a higher value of funds to a hardware wallet while leaving a small amount that's less than 5K in an exchange.

Well, I did but not that much. I keep $100-$200 in Binance as my capital for trading. If you are in trading, you don't need to withdraw it all and then deposit again, you'll double your transaction cost so instead, leave some money enough for trading and that is what I did for several months and I have no problem.

So, why would anyone in their right mind take the risk of storing your crypto on exchange? When it usually means that the exchange retains control (or 'custody') of your assets without giving you access to the private keys. Also, they can disappoint you at any time.

As I consider leaving money for trading, well, that is a different story for those who keep their money as storage wallets. That is not a good idea because even using reputable exchanges still remains not advisable.

[nakamura12]

I don't know if there are people who store theor crypto in an exchange but I think there's someone who are using an exchange to store their crypto. Most people doesn't want to store their crypto in an exchange because you are not the one who owned the seed phrase, private key or mnemonic phrase. That's why they prefer using a wallet where they can access it anytime like electrum wallet.

[CryptSafe]

Hello no mate. I will never dare do such no matter how small such fund is. I only trade and after trading, I transfer all funds to my private or self custodial wallet where I have the private keys myself. So far  third party exchanges have proven to be not reliable and dependable to be able to secure funds and assets of her clients. There have been hacks and misappropriation of funds by CEOs of exchanges so far and all swept under the carpet. Just of recent, there have been a news circulating that the ftx founder been granted bail after misappropriation of funds kept under his custody. There are also other big names that are good players in the industry but today are no more, some have crumbled as a result of their recklessness with customers funds.
You see OP there are lots to say about third party exchanges here but as it is I do not think or dream or holding my funds with any third party exchanges.
I see that as an unsafe act.

[Rengga Jati]

Does anyone here still stores their crypto in exchanges? I think the best choice would be to move a higher value of funds to a hardware wallet while leaving a small amount that's less than 5K in an exchange.

Actually yes.
I am sure that many people are still doing this.
I am personally also doing so because of some reasons. But, not all of the cryptos are stored in exchanges, some are in personal wallets. What makes me still storing in some exchanges is because I am sometimes still using them for trading or short term holding, so this is better to make it in exchanges to decrease transfer fees. But exactly, I will withdraw the profits  of svae some Bitcoin again not in exchanges.
We notify that it is risky, but  this is what still happening right now.

[coupable]

In short, it is a culture that people acquired through their use of banks that they are not qualified to take responsibility for their own money and to have their own banks. Of course, the banks are responsible for spreading this culture, since it is directly in their interest.
Following the same logic, most users use trading platforms as they deal with banks in terms of keeping their savings. In the first place, it is difficult to convince them of the seriousness of this and that a private wallet is safer. This may also be one of the reasons for their reluctance to use decentralized platforms. Maybe after a succession of bankruptcies and the collapse of some of the reliable platforms, as happened last November 2022 with the Ftx Stock Exchange, awareness of the risks of using that platform for long-term storage will rise.

[CypherMonk]

Exchanges was never made to store crypto, but to trade or swap cryptocurrency. For people who trade often they'll have to leave some funds in the exchange, for easy transaction.

you are right, there's no reason to keep your coin on exchanges if you don't trade or want to swap your crypto for another coin. Exchanges are not ideal for storing your crypto assets.

Maybe after a succession of bankruptcies and the collapse of some of the reliable platforms, as happened last November 2022 with the Ftx Stock Exchange, awareness of the risks of using that platform for long-term storage will rise.

People that aren't familiar with the risks of using an exchange to store their crypto are now becoming aware of it. But sadly, some people are born to take risks and even when they know it's going to happen at any time. They will still continue to store huge sums of money on an exchange until it all vanishes into thin air. They will be the first to keep lamenting everywhere.

[Queentoshi]

Does anyone here still stores their crypto in exchanges? I think the best choice would be to move a higher value of funds to a hardware wallet while leaving a small amount that's less than 5K in an exchange.

If there was really a way to check you'll find out that some people regardless of how many times that they have been warned not to keep money in exchanges still keep money in exchanges. Some people have procrastinated moving their bitcoin to safer places where they have more control away from the exchanges and even if something were to happen to an exchange now say like binance that is currently having some legal issues some people will still be affected by it. Newbies to Cryptocurrency and people who were not into Cryptocurrency at the time when exchanges have crashed need to reminded and told too that they are not safe.

[CryptSafe]

Does anyone here still stores their crypto in exchanges? I think the best choice would be to move a higher value of funds to a hardware wallet while leaving a small amount that's less than 5K in an exchange.

If there was really a way to check you'll find out that some people regardless of how many times that they have been warned not to keep money in exchanges still keep money in exchanges. Some people have procrastinated moving their bitcoin to safer places where they have more control away from the exchanges and even if something were to happen to an exchange now say like binance that is currently having some legal issues some people will still be affected by it. Newbies to Cryptocurrency and people who were not into Cryptocurrency at the time when exchanges have crashed need to reminded and told too that they are not safe.

What you have said is not different from the truth mate. Most people keep procrastinating which has led to most fortunes gone down as a result of this. Many people too are just too lousy to do the needful. Some often times blame it to being busy why in the real sense they are not ready to do anything about it. Some are even having the mindset that if an exchange closes or being hacked, they would get a refund which I see as stupid.

The fall of some big notable and recognized exchanges should see e as a lesson to all in the Crypto space not to trust their funds and assets with third party exchanges because they can never tell what could happen in the next miniut.

[Z390]

Yes people still store their asset on the hands of centralized exchanges, and most of them are traders bit I except them to understand that one day the exchange might tuck up and this could make them lose their money.

Keeping your assets on closed source wallet are even better than leaving them on exchanges, before you talk about what happened with Atomic wallet, well, centralized exchanges fail more than crypto wallets, although I will never advise a fellow human being to store funds on a closed source wallet.

[Alpha Marine]

No matter how much I see this kind of topic on this forum and on any other platform, I always feel it's not been said enough. You'd be surprised at the number of people who still use exchanges, especially CEXs as their wallets. They just comfortably leave coins worth a very huge amount of money in exchanges. What borders me more is the fact that these guys are not newbies, they are people who have been in the industry for quite a while.
Just recently I heard about a guy that was a big gun among traders in my country who left over $80k worth of coins in his finance account and used his Binance account to receive coins that were gotten through fraud unknown to him.
The fraud was traced to his account. Binance reported him to his home authority where he was arrested and taken to court and his account was frozen by finance along with all the money in it.
That placed him in a very difficult situation because most of the money where money from investors and he had to pay it back. It placed him in so much debt.

[Dr.Bitcoin_Strange]

Does anyone here still stores their crypto in exchanges? I think the best choice would be to move a higher value of funds to a hardware wallet while leaving a small amount that's less than 5K in an exchange.

Leaving less than $5k in a centralized exchange is bad advice. No fund should even be left on a centralized exchange because you don't know what challenges the exchange might be facing in next minute. An example is the period when Bitcoin transaction fees were very high and the Binance exchange disabled Bitcoin withdrawal for some days, which was very bad because someone could have any urgent use for their coins. That's why the user @o_e_l_e_o would really advise against even interacting with CEX because of their KYC verification and because they can also track and save users IP addresses. CEX and KYC are all attacks on Bitcoin. Bitcoiners should get used to using a DEX platform to exchange their Bitcoin because CEX is just like the bank where we keep our local currencies; there are laws and authorities that govern their operation, and Bitcoin was not created to be governed or controlled by any authority.

[Inwestour]

Does anyone here still stores their crypto in exchanges? I think the best choice would be to move a higher value of funds to a hardware wallet while leaving a small amount that's less than 5K in an exchange.

Exchanges have proven time and time again that they can disappoint their users at any time. Let's not talk about the FTX issue. but for instance, Atomic Wallet just let its users' funds vanish into thin air a few days ago with no reasonable explanation.

So, why would anyone in their right mind take the risk of storing your crypto on exchange? When it usually means that the exchange retains control (or 'custody') of your assets without giving you access to the private keys. Also, they can disappoint you at any time.

Are you talking about $5,000? I would definitely not keep such amounts on the exchange, why these risks? By the way, Atomic Wallet is not an exchange, but a wallet, but anyway, as we see, even such storage methods do not guarantee security for your funds, so a hardware wallet will be more secure.

The worst thing about the Atomic Wallet situation is that they have never determined how the hackers stole the funds and I suspect that they will not return the lost funds to users.

The exchange can be used to buy or sell coins, but I would not use it to store any amount of coins, I would rather withdraw even a small amount to a cold wallet, so I will be calmer.

[acroman08]

Does anyone here still stores their crypto in exchanges?

pretty sure there are some and it is one of the dumbest things to do, crypto exchange sites should only be used for their purpose(at least that is what I think), which is exchanging cryptocurrencies.

I think the best choice would be to move a higher value of funds to a hardware wallet while leaving a small amount that's less than 5K in an exchange.

or leave none at all? I have been using exchange sites for a long time now, and I have made it a habit of withdrawing everything that I put there. storing money on an exchange site for a long period of time, may it be FIAT or cryptocurrency is just too risky.

[isaac_clarke22]

I have a few altcoins that are stored in some of the exchanges hoping for the price to increase and when it reaches the desired amount that I want, I just quickly sold it. I don't need to worry because mostly they are not gonna earn much from my altcoins if ever they decide to steal it since it's not a big amount of money and considering the trust for the exchanges we have nowadays, it's better not to put everything in there and get your hard wallet as soon as possible because that's the most recommended way to store your cryptocurrencies for safety and also you don't have to worry about exchanges getting hacked.

Considering that alts are usually capable of shorter gains, I can see why people just usually hold them in exchange. The risk and cost isn't worth it though in the end. The exchange gave you a wallet...well to exchange in their site. These days I am now just seeing these exchange sites as a service and not that kind of service where I hundred percent entrust my money.

In the long term hodlings like Bitcoin, that's like screwing myself up for an upcoming vulnerability issues with the site, lol.

or leave none at all? I have been using exchange sites for a long time now, and I have made it a habit of withdrawing everything that I put there. storing money on an exchange site for a long period of time, may it be FIAT or cryptocurrency is just too risky.

I guess some people just can't help doing that unless they really encountered the "unexpected losses".

[coupable]

Maybe after a succession of bankruptcies and the collapse of some of the reliable platforms, as happened last November 2022 with the Ftx Stock Exchange, awareness of the risks of using that platform for long-term storage will rise.

People that aren't familiar with the risks of using an exchange to store their crypto are now becoming aware of it. But sadly, some people are born to take risks and even when they know it's going to happen at any time. They will still continue to store huge sums of money on an exchange until it all vanishes into thin air. They will be the first to keep lamenting everywhere.

We are in a world based on centralization and in which banks monopolize decision-making power, and this is what pushes towards spreading the culture of banks in people's minds and that they are unable to protect their money by themselves and that they have to pay fees in exchange for securing it.
This explains the regulators' policy of cracking down on decentralized platforms and privacy-friendly service platforms. This is simply because it does not serve the interests of those parties that monopolize the financial sector in its traditional form.

[Natalim]

Does anyone here still stores their crypto in exchanges?

Yes... There are persons that still store their crypto assets on exchanges and the reason could be that they're newbies and are ignorant of the fact exchanges are not the most effective way of storing crypto assets. Also, there are another set of persons that are not new to crypto but their business requires them to have a good amount of crypto assets on exchanges, I'm talking about the crypto traders. If peradventure the exchange crashes, their funds will be gone as well. The most effective method of storing crypto assets still remain using non custodial hardware wallets such as Trezor, ledger, ellipal, safepal etc.

Well, traders know what will be the consequences of storing a huge sum of money there but yes, they preferred to do that as it was necessary. But if the purpose is to just hold there, that was not a good idea and it was not recommended to all of us. "Not Your Keys, Not Your Coin" and we don't have to miss this thing otherwise, we let things get compromised. Because whatever happens to the exchanges, we can't assure to get back our money from them and what we just heard from them is a sort of promise yet they will never do it.

[Peanutswar]

As we told here every time we recommend the use of hot wallets or cold wallets why? because once you make a deposit to their platform its already their money not yours because exchange does not gives any private keys on your side that's why they can easily make turn around with your money.

I recommend to make some to read this content of GazetaBitcoin so you get an idea perhaps 12 years later and people still don't know to use Bitcoin nor what it's good for

I see no reason why anyone would prefer to choose exchange wallet to invest bitcoin with several ugly situation we have experienced sometimes ago. Exchange should only be consider to be a place for instant trade and not where to invest bitcoin  because it is risky and anything can happen to exchange. centralised wallet where bitcoin is stored it means the bitcoin also belongs to the exchange, in a case where it is not your key it is also not your coin. How people feel so   comfortable investing bitcoin with exchange needs to be look into and make the right decision.

People doing this for convenience of course they don't need to transfer into the wallet to exchange and change into other cryptocurrency and brings back again to the wallet, and if you are an active trader why need to get back so you can use your exchange assets to make immediately positions for the possible trend of the market.

[Sandra_hakeem]

Does anyone here still stores their crypto in exchanges? I think the best choice would be to move a higher value of funds to a hardware wallet while leaving a small amount that's less than 5K in an exchange.

Has there ever been a time you stored crypto in Centralized exchanges?? I'm asking cus I feel you should know that these has been said a countless times already,..and that anyone that makes such an attempt will always have himself to blame for it.
You seeee,..reading enhances and creates an opportunity NOT to be misinformed... If anyone is pronned to it, then there's every tendency that they won't make unnecessary mistakes. I won't advice anyone to plung 'em bucks in hot wallets.. non-custodial, cold wallets are the best... _{You loose your keys, that's the end of the story} lol...

Sandra 🧑‍🦰

[BitDane]

Does anyone here still stores their crypto in exchanges? I think the best choice would be to move a higher value of funds to a hardware wallet while leaving a small amount that's less than 5K in an exchange.

I don't store my crypto in exchanges but I know there are still many people who uses centralized exchanges as stash.

So, why would anyone in their right mind take the risk of storing your crypto on exchange? When it usually means that the exchange retains control (or 'custody') of your assets without giving you access to the private keys. Also, they can disappoint you at any time.

One reason is that they trust the exachange.  Another is that they are lazy setting up a personal wallet, or they are afraid that they will mess up the transfers and lose their crypto.  Or it is possible that they are trading and they use all their exchange crypto balance to trade.

[Hypnosis00]

For trading purposes, I did but if considering it as a storage destination, no I don't. Just having $100-$200 kept on the exchanges seems to be acceptable and  I know some have it more for trading only. It was not suggested because of the risk involve and we know that exchanges won't be as responsible as they are for turning back your funds if there is something will happen to them that causes all of their funds lose which includes all deposits. That is why we should have to avoid it and anticipate such scenario before we regret it.

[SOKO-DEKE]

Many users continue to store their currencies on exchanges because they find exchanges to be user-friendly and for other reasons that I believe they may have. Since exchanges are unreliable, it might not be a good idea to store our coins there for an extended period of time. Although I have only had a limited amount of experience in the cryptocurrency sector about the exchanges, but the few collapses I have seen have led me to feel that exchanges are not trustworthy despite any goodwill they may acquire. When you have the chance to be your own bank and retain your money in your own hands, why would you even keep your funds under exchange care?you can keep small amount of money in exchanges for some reasons but huge amount of fund should be avoided because your account under exchange can easy even get tracked and get hack easily under exchanges.

[Issa56]

Does anyone here still stores their crypto in exchanges? I think the best choice would be to move a higher value of funds to a hardware wallet while leaving a small amount that's less than 5K in an exchange.

Definitely people will still be storing their crypto on exchange, so we have to keep on enlightening people about the risk associated with leaving your coin on exchange. I don't know what you mean by we should move higher amounts of money to hardware wallet and leave lower amount on exchange, the amount you call a small amount might be a very big amount at my place, what I do recommend is that, any crypto you are trying to hold for a long term should be withdraw from the exchange, either big amount or small amount.

The only people that should leave money on exchange are traders, if you are a trader, you can't be withdrawing your coin everyday, so the best place to leave it is exchange. But as a trader, if their is any amount you won't be using for long term, then withdraw it to your hardware wallet.

Exchanges have proven time and time again that they can disappoint their users at any time. Let's not talk about the FTX issue.

Since crypto have been in existence, their are lot's of exchanges that have been compromised, that's why we shouldn't just leave our coin on exchange, no exchange is too big to be hacked, so don't think any exchange is having high security and your fund is safe their, if your coin is not in your non custodial wallet, then it's not safe.

So, why would anyone in their right mind take the risk of storing your crypto on exchange? When it usually means that the exchange retains control (or 'custody') of your assets without giving you access to the private keys. Also, they can disappoint you at any time.

Most people store their crypto on exchange because they believe it's very accessible, they can easily login and sell their crypto any moment they want without paying any transaction fee. Some of them believe if they keep their coin on exchange, and the exchange get hacked, the exchange will be held responsible and they will refund their customers money, I believe this are some reasons why people leave their coin on exhange.

[tvplus006]

Does anyone here still stores their crypto in exchanges? I think the best choice would be to move a higher value of funds to a hardware wallet while leaving a small amount that's less than 5K in an exchange.

I think that it is the newcomers who keep their coins on the exchange, since they are still little aware of all the problems associated with such storage. Other traders, as a rule, keep as much money on the stock exchange as they need for daily trading.

[ImThour]

I have roughly 20% of my Crypto on an exchange account because it provides me to do some trades here and there instantly. Rest 80%, I am still holding it in my hardware wallet.
It's not bad to have some amount of crypto on exchanges. Mainly because of the fee, it takes huge fees when I try to buy and sell asset on a Dapp like Uniswap instead it's free in many exchanges.

I use Convert option in Binance to sell lmao, it's free of cost.

[Nheer]

Does anyone here still stores their crypto in exchanges? I think the best choice would be to move a higher value of funds to a hardware wallet while leaving a small amount that's less than 5K in an exchange.

Cryptocurrency exchanges are quite helpful for carrying out our daily transactions, especially for traders who engage in sporadic trading. For convenience and to avoid incurring transaction costs whenever they try to transmit assets from wallets to exchange for trading, they always hold the assets intended for trading in exchange. Despite their unreliability, we are unable to live without exchanges despite your advice that we not hold any cryptocurrency we wish to hodl for an extended period of time in an exchange. Only the ones we intend on using later should be kept.

Exchanges have proven time and time again that they can disappoint their users at any time. Let's not talk about the FTX issue. but for instance, Atomic Wallet just let its users' funds vanish into thin air a few days ago with no reasonable explanation.

It is now common knowledge that cryptocurrency exchanges disappoint. There have been numerous catastrophes affecting these exchanges that require our attention. It is not recommended to store your assets in exchanges because you run the risk of losing your money. Some exchanges have collapsed due to hacks where assets were stolen by hackers, while other exchange owners conned their customers and fled with all of their assets.

Always keep your private keys in a wallet where you have complete control so that no one else can access them. Also, always keep in mind Not your keys not your coin.

[Lida93]

No doubt exchanges are quite risky to leave our coins dormant in there but these exchanges are playing an ultimate role that shouldn't be underestimated because of a risk that could be avoided by the users. We are all aware of the various features embedded in these platforms and their functional usages that makes each uniquely important. With a non-custodial wallet it's obvious you can't trade but it's less risky and put you totally in control of your asset through your seed phrase, while in exchanges you're not totally in charge of your wallet as your seed phrase are under the exchanges care but you can make trades  be it spot or features trading with it.

It's beckon on the user/trader to understand and know  how to make good use of these different platforms to keep his assets safe and secure while you make profit at same time.

[Asuspawer09]

Does anyone here still stores their crypto in exchanges? I think the best choice would be to move a higher value of funds to a hardware wallet while leaving a small amount that's less than 5K in an exchange.

Exchanges have proven time and time again that they can disappoint their users at any time. Let's not talk about the FTX issue. but for instance, Atomic Wallet just let its users' funds vanish into thin air a few days ago with no reasonable explanation.

So, why would anyone in their right mind take the risk of storing your crypto on exchange? When it usually means that the exchange retains control (or 'custody') of your assets without giving you access to the private keys. Also, they can disappoint you at any time.

I mean it's not a good idea, I don't store any amount on my exchange platforms since they are really risky and can easily freeze all of my cryptocurrency as stored on a secured wallet just to be sure. Exchanges are actually useful for buying, selling, P2P, etc., and less hassle on converting different networks if you're in the cryptocurrency space you definitely need exchanges on your transactions. Its already a good starting point for newbies since they can easily trade cryptocurrency on an exchanger, someone planning to daily trade can easily use exchanges.

It's not an issue I guess you could pick a trusted exchange like Binance it doesn't mean what happened to FTX is going to happen on Binance as well, Sure you could probably store a small percentage of your portfolio on exchanges just for the interest rates since exchanges have great interest rates. But either way, just use other wallets for your main investment since the fee doesnt cost a lot you could easily transact from your wallet to exchange easily.

[wahyuagung26]

Does anyone here still stores their crypto in exchanges?

Storing assets on the exchange is not too bad, but it's just that you should keep the quantity of assets you save, because even though it is an old exchange whose existence is very safe even we don't think it's very good to store in large quantities, and yes we are right preferring to move it to a hardware wallet, although we still store a small amount on exchanges, the main anticipation is having a wallet where we get full access to the private keys.

Although the exchange promises we won't know when it could crash or give disappointing news, and we don't do work that we feel is too risky, crypto traders and investors use this in their own way, but they know where the safest place is. they have.

[UserU]

Yeah, I keep my shitcoins there although they're worth a hundred bucks in total.

[CryptopreneurBrainboss]

Permit me to establish a point here. It might have been said that non-custodial wallets are the best...blah blah...which I do not doubt for safekeeping. However, many of you are disregarding the context of making more money with your coin, and by virtue of this neglecting the styles, goals and investment plans which must vary. Personally, my goal is to make money with Bitcoin and I plan to make it in both risky and less risky ways.

There's a difference between putting your Bitcoin to work and storing your Bitcoin on exchanges. If you're trading I believe you don't use all you Bitcoin to trade so it's better you transfer those Bitcoin that aren't been used to trade to a Non-custodial wallets while you use those left in the exchange for trading. Funds in exchange should be funds that are affordable for you to lose and since those are trading coins then they fit that narrative as you should only use coins that are affordable to you to lose for trading as well. You can always transfer your coins form your non-custodial wallets to an exchange for investment purpose but don't store your coins on exchanges.

No centralized exchange is too big to fail, Binance exchange can fail tomorrow irrespective of how big they're so we have to be cautious with decisions we take concerning our finances. Many people have lost all their savings to hacks of exchanges in the past, you shouldn't make yourself a victim when you have the chance to take precautions now. Transferring your coin would only cost you few cents or dollars for transaction fees and that shouldn't bother you. It should be an expenses you can risk instead of losing all your investment to a mistakes that's not from you. You'll blame yourself for life when that happens as you lose your coin due to an exchange getting hacked.

[Ziskinberg]

Does anyone here still stores their crypto in exchanges?

Storing assets on the exchange is not too bad, but it's just that you should keep the quantity of assets you save, because even though it is an old exchange whose existence is very safe even we don't think it's very good to store in large quantities, and yes we are right preferring to move it to a hardware wallet, although we still store a small amount on exchanges, the main anticipation is having a wallet where we get full access to the private keys.

Not too bad, yeah, but that was a wrong decision for me. Why? Not your keys, not your coins - that certainly will tell us that anytime the site will take our money without turning it back to us. Why we should do that since we know that is possible in the first place which is why it was not encouraged, instead use Electrum wallet, in fact, it was free.

Although the exchange promises we won't know when it could crash or give disappointing news, and we don't do work that we feel is too risky, crypto traders and investors use this in their own way, but they know where the safest place is. they have.

That's the point there. We already know the possible risk because even if it was the most trusted exchange in the crypto space, that still remains a BAD decision.

[mamesso]

So, why would anyone in their right mind take the risk of storing your crypto on exchange? When it usually means that the exchange retains control (or 'custody') of your assets without giving you access to the private keys. Also, they can disappoint you at any time.

Investors need to know a safe place to store crypto assets as a precautionary measure to secure their assets. The value of each individual's assets certainly varies, but the assets owned require a truly safe place to store them. If you store crypto assets on an exchange, your private key assets are fully controlled by a second party, your assets are very at risk of being hacked or your assets may be lost.
Any assets that are not planned to be traded in the near future should not be stored on exchanges, it is highly recommended to use Crypto asset exchanges for trading not to store your assets.

[Porfirii]

So, why would anyone in their right mind take the risk of storing your crypto on exchange? When it usually means that the exchange retains control (or 'custody') of your assets without giving you access to the private keys. Also, they can disappoint you at any time.

Investors need to know a safe place to store crypto assets as a precautionary measure to secure their assets. The value of each individual's assets certainly varies, but the assets owned require a truly safe place to store them. If you store crypto assets on an exchange, your private key assets are fully controlled by a second party, your assets are very at risk of being hacked or your assets may be lost.
Any assets that are not planned to be traded in the near future should not be stored on exchanges, it is highly recommended to use Crypto asset exchanges for trading not to store your assets.

Unfortunately, many people are too lazy to take control of their coins and "trust" in these centralised services. For a person who likes to trade a couple times a month, for example, it could seem too hard an effort for him to withdraw and deposit every time he wants to trade. Additionally, fees linked to withdrawals are also typical of these sites, and can discourage even more the user from taking his money out from there.

Add that most users are uneducated and don't know about Mt.Gox and even more recent debacles, and that they are used to traditional banking and trust on third parties holding their savings, and there we have them, unknowingly reckless.

[Halime Anatolia]

So, why would anyone in their right mind take the risk of storing your crypto on exchange? When it usually means that the exchange retains control (or 'custody') of your assets without giving you access to the private keys. Also, they can disappoint you at any time.

I think the reason may sound general, but the dominance is like this. First, many people store their crypto on exchanges because they think exchanges are a comfortable place to store and manage their crypto assets. Exchanges often provide easy-to-use interfaces, and users can easily buy, sell, and trade their assets.

Second, some people may not have sufficient knowledge or technical skills to store their own crypto. especially For those who are new to the world of crypto, using exchanges may seem simpler and more reliable.

[Nwada001]

In as much as most people find it very interesting and easy to use when it comes to exchanges, it's still highly advisable for one to proceed with caution, knowing that we are not just going there to trade our coins, nor are we going there to store our coins alone. Those might be our primary objectives of using a centralized exchange, but the fact that our identity information is being given to them in exchange is enough reason to discourage anyone from using a centralized system.

5k is a very huge amount of money to leave in a centralized exchange. I don't leave my funds on centralized exchanges, but not for the purpose of saving them there. This is as a result of a pending open order in my order book (open/sell order). Aside from this one, if I conclude any of my trades, I'm moving my coins immediately to a self-custodial wallet, for which I'm 100% responsible for my assets security.

That's why the user @o_e_l_e_o would really advise against even interacting with CEX because of their KYC verification and because they can also track and save users IP addresses. CEX and KYC are all attacks on Bitcoin.

It's good to find out that there are a lot of people who are also learning and taking privacy protection very seriously, not just because it's highly recommended by the aforementioned user but for our own personal safety as well.

[ItsCrafty]

I think the reason may sound general, but the dominance is like this. First, many people store their crypto on exchanges because they think exchanges are a comfortable place to store and manage their crypto assets. Exchanges often provide easy-to-use interfaces, and users can easily buy, sell, and trade their assets.

I think storing your assets on exchanges has both advantages and disadvantages. On the positive side, exchanges provide convenience and easy way access to your assets for trading purposes. They offer security measures to protect user funds. However, there are risks involved. Exchanges can be helpless to hacking attempts, and if an exchange is compromised, your assets could be at risk A major portion of your assets should be kept in a separate, secure wallet that you control, such as a hardware wallet or a software wallet with robust security features. This gives you more control over your possessions and reduces the danger of loss or theft. So it depends on you how many safety measures your adopt to secure your assets.

[Dr.Bitcoin_Strange]

It's good to find out that there are a lot of people who are also learning and taking privacy protection very seriously, not just because it's highly recommended by the aforementioned user but for our own personal safety as well.

Normally, privacy is supposed to be a priority for every bitcoiner, not just some kind of forceful thing on them. Currently, a lot is happening with the SEC and their issues dragging centralized exchanges to court, and I fear that if they really want to attack Bitcoiners through those exchanges, then it will really be very easy for them to just extract individuals KYC details from those CEX and use them to carry out their investigations. This is one reason why people should make privacy a priority for themselves rather than feeling forced based on what another person thinks. But although it is very important that the sir OL mentioned it, you know the saying that goes, " having faith in something comes from first hearing about it." So, he said it and people learn and make it a habit.

Cheers 🥂, Dr.Bitcoin_Strange 👺👺

[mamesso]

~Snip~

Unfortunately, many people are too lazy to take control of their coins and "trust" in these centralised services. For a person who likes to trade a couple times a month, for example, it could seem too hard an effort for him to withdraw and deposit every time he wants to trade. Additionally, fees linked to withdrawals are also typical of these sites, and can discourage even more the user from taking his money out from there.

Add that most users are uneducated and don't know about Mt.Gox and even more recent debacles, and that they are used to traditional banking and trust on third parties holding their savings, and there we have them, unknowingly reckless.

Burdened with the fee of transferring assets from an exchange to a personal wallet is the most common reason used by many people who make them lazy so they let their assets be controlled by third parties. Users need to have a deep understanding of how to store assets safely, the hacking incident on several exchanges should be a lesson for users to learn methods to improve asset security.
not your key, not your asset' this phrase has been heard very often in forum and on several sites as an early anticipation in maintaining asset security. Create your own bank so that assets can be controlled safely, knowing more ways to keep assets safe will help increase asset security from hacks that have befallen Mt.Gox.

[Andrija Branislav]

Some people may not have the technical knowledge or confidence to set up and manage a hardware wallet, making exchanges a more accessible option for storing their cryptocurrency. While it is true that exchanges have suffered from security breaches in the past, many have learned from these incidents and strengthened their security protocols. Additionally, some exchanges offer insurance coverage to reimburse users in the event of a security breach. These security measures and insurance options provide a layer of protection that can reduce worries about storing cryptocurrencies on exchanges.

Indeed, This a nice solution but Custody has its challenges. Managing a hardware wallet or software wallet requires a certain level of technical knowledge and responsibility. E.g. Common mistakes, such as forgetting a password or misplacing a hardware wallet, can also have financial consequences. In this regard, Some individuals may prefer the convenience and support offered by exchanges, relying on security measures and user-friendly interfaces rather than taking sole responsibility for their crypto assets.

[Coyster]

Indeed, This a nice solution but Custody has its challenges. Managing a hardware wallet or software wallet requires a certain level of technical knowledge and responsibility.

Yes you need responsibility to be your own bank, but no you mustn't have too much technical knowledge. There isn't anything technical about using a hardware wallet or a non custodial software wallet, it is pretty easy to use and requires common sense to basically know that your seed phrase should be kept a secret and offline wallets should be used for large sum in Bitcoin.

E.g. Common mistakes, such as forgetting a password or misplacing a hardware wallet, can also have financial consequences.

If you forget your password or misplace your hardware device, you should have the seed phrase, that is what you'll use to gain access to your funds again.

[CryptSafe]

You know exchanges are flooded with newbies every minute of the day. So one can not really really but my intuition tells me there are lots of newbies who are inundated with happenings around the exchange. They have no ideas and as such do not mind and bother to know. These are the people that falls for these exchange bonus of holding their assets to gain more. Since the newbies have no idea, they would opt for it thinking it is safe there but unknown to them that is the worst decision one can take here without putting into consideration any possibility of the exchange being attacked by hackers.
As for me, I barely leave my assets with third parties. I am knowledgeable enough to know what is happening within the Crypto space so I would not be that ignorant to stay aloof.
What I do advise newbies under me is to make sure they protect their assets so they do not wake up to hearing stories that touches the heart. There are lots of self custodial wallets out there one can make use of in storing their assets and funds so why not go for them. Transaction fee for withdrawal should not scare you if you really want to protect yourself from any unforseen circumstances.

[Who is John Galt?]

Some people may not have the technical knowledge or confidence to set up and manage a hardware wallet, making exchanges a more accessible option for storing their cryptocurrency. While it is true that exchanges have suffered from security breaches in the past, many have learned from these incidents and strengthened their security protocols. Additionally, some exchanges offer insurance coverage to reimburse users in the event of a security breach. These security measures and insurance options provide a layer of protection that can reduce worries about storing cryptocurrencies on exchanges.

Indeed, This a nice solution but Custody has its challenges. Managing a hardware wallet or software wallet requires a certain level of technical knowledge and responsibility. E.g. Common mistakes, such as forgetting a password or misplacing a hardware wallet, can also have financial consequences. In this regard, Some individuals may prefer the convenience and support offered by exchanges, relying on security measures and user-friendly interfaces rather than taking sole responsibility for their crypto assets.

The recently failed largest American banks must have studied the risks that led to the ruin of other banks, but this did not save them. Once you choose the path of trusting a centralized system, ask yourself, what is the advantage of using such a great decentralized tool as bitcoin? Bitcoin is not in vain called trustless, it gives you the opportunity to control your money without relying on anyone and without asking anyone for permission, without going through the KYC procedure, without coordination with managers. Yes, bitcoin transactions are irrevocable. Yes, you need to think about the security of your own and the storage of your money. But no one can tell you how and when to manage your money, no one can spend it without your knowledge, no one else will say that the owner of the exchange died and took the keys to the user's funds stored on the exchange with him to the grave.

It is a choice between bitcoin and the right to manage your money, and the hope of insurance and transferring the right to savings to someone else who will decide how, when and why you can or cannot do something with money that is no longer completely yours.

[Questat]

I think the reason may sound general, but the dominance is like this. First, many people store their crypto on exchanges because they think exchanges are a comfortable place to store and manage their crypto assets. Exchanges often provide easy-to-use interfaces, and users can easily buy, sell, and trade their assets.

I think storing your assets on exchanges has both advantages and disadvantages. On the positive side, exchanges provide convenience and easy way access to your assets for trading purposes. They offer security measures to protect user funds. However, there are risks involved. Exchanges can be helpless to hacking attempts, and if an exchange is compromised, your assets could be at risk A major portion of your assets should be kept in a separate, secure wallet that you control, such as a hardware wallet or a software wallet with robust security features. This gives you more control over your possessions and reduces the danger of loss or theft. So it depends on you how many safety measures your adopt to secure your assets.

For trading purposes, that is okay but if we think about storing there assuming that is our owned wallet, that is a terrible idea - too risky.
Of course, we have to anticipate everything that is possible to happen in crypto exchanges like hacking and scam. Because even though we are using reputable exchanges, this won't assure that our funds are totally safe as they are not exempted from hacking incidents. It was indeed better to have our personal wallets and keys, at least if there is something happening to our funds, we are the ones to be blamed.

[LogitechMouse]

Does anyone here still stores their crypto in exchanges? I think the best choice would be to move a higher value of funds to a hardware wallet while leaving a small amount that's less than 5K in an exchange.

No not me, but there are many people here that are still storing their assets on exchanges for various reasons. Buying a hardware wallet, and store it there would always be the best choice, but there are some who for some unknown reasons don't want to buy for more safety. I wonder why. Can somebody enlighten me with this one?

Exchanges have proven time and time again that they can disappoint their users at any time. Let's not talk about the FTX issue. but for instance, Atomic Wallet just let its users' funds vanish into thin air a few days ago with no reasonable explanation.

FTX, Atomic Wallet, Cryptopia, and more in the future.
These are just some of the exchanges, and/or wallets who have been hacked, or money got stolen just recently, and I expect more in the future. I guess these exchanges must focus more on the security of their exchange rather than other features. There might be a chance that these incidents did happen because somebody inside the company did it. I mean like sabotage something like that.

So, why would anyone in their right mind take the risk of storing your crypto on exchange? When it usually means that the exchange retains control (or 'custody') of your assets without giving you access to the private keys. Also, they can disappoint you at any time.

2 reasons that I know.
1. Selling faster - Transaction takes time, and that time might take away some profit from the user that's why they prefer storing it on an exchange so that they can liquidate it faster to maximize their profits.
2. They can earn - Binance has earn feature where you can earn a certain percentage just by storing it on their exchanges. Kraken is doing it as well, and they call it staking. There are some other exchanges that has this as well, and I believe this is also the reason why users are storing their money in their exchange.

I believe that there are more reasons as to why, but I think these are the top 2.

[reagansimms]

So, why would anyone in their right mind take the risk of storing your crypto on exchange? When it usually means that the exchange retains control (or 'custody') of your assets without giving you access to the private keys. Also, they can disappoint you at any time.

It's strange that there are still people who don't care about advice for the safety of their assets, Exchange is more vulnerable to hacker attacks, freezing the assets of its users based on government requests if a violation is found, or the worst possibility is that the Exchange can go bankrupt at any time. But there are still many people who prefer to keep their assets on the Exchange even though they know that keeping their assets on the exchange means that they have given full control over their assets to a third party. if any of these three possibilities occur, you have no way of getting back the money held on the Exchange or your money will be lost.

[Inwestour]

It's strange that there are still people who don't care about advice for the safety of their assets, Exchange is more vulnerable to hacker attacks, freezing the assets of its users based on government requests if a violation is found, or the worst possibility is that the Exchange can go bankrupt at any time. But there are still many people who prefer to keep their assets on the Exchange even though they know that keeping their assets on the exchange means that they have given full control over their assets to a third party. if any of these three possibilities occur, you have no way of getting back the money held on the Exchange or your money will be lost.

The most surprising are those who, after recent events, still continue to keep their funds on binance. It may not have an immediate effect, and this lawsuit can drag on for many years, but if the exchange is going through hard times, then this is a clear sign that you cannot keep your coins there.

This is already quite dangerous to do, even if the exchange does not go under pressure from regulators, but in this case, the risks increase significantly. This applies not only to binance, any exchange is not the best way to store your coins, it seems to me that there are enough examples, starting from Mt. Gox and ending FTX. You don't have to wait for another exchange to make sure it doesn't end there.

[ultrloa]

So, why would anyone in their right mind take the risk of storing your crypto on exchange? When it usually means that the exchange retains control (or 'custody') of your assets without giving you access to the private keys. Also, they can disappoint you at any time.

It's strange that there are still people who don't care about advice for the safety of their assets, Exchange is more vulnerable to hacker attacks, freezing the assets of its users based on government requests if a violation is found, or the worst possibility is that the Exchange can go bankrupt at any time. But there are still many people who prefer to keep their assets on the Exchange even though they know that keeping their assets on the exchange means that they have given full control over their assets to a third party. if any of these three possibilities occur, you have no way of getting back the money held on the Exchange or your money will be lost.

Because they are fully comfortable with the exchange where they trade and I understand some of them find it so hassle to withdraw the funds and deposit it back again when you want to trade again since it cost time and money. Maybe the only thing we can advice to these investors is they should never left their balances unattended and always read the news so that they cam get a hint on when to withdraw and leave the exchange for good.

[Etranger]

Exchanges are not the safest way to store cryptocurrencies. But they are necessary for those who conduct regular frequent transactions. In this case, it is inconvenient to hold funds on other platforms, it takes a lot of time and increases the cost of commissions. I think it is up to a person to decide for himself whether he can handle the risk that exchanges carry and whether this risk is justified by the benefits that the exchange can certainly offer.

[Obari]

I really don't have any major holdings right now, so yes I still keep mottled holdings in exchanges and yes before you judge me, I already know the risk because I can afford to bear the risk.
I feel some convenient  using exchanges because they are simpler and easier to understand  and almost free if not free to use. I hope to buy a hardware wallet to keep my holdings  but that will be when I have over 5k in my hodlings  because I wouldn't want to risk such amount not for any reason or what so ever.

[alastantiger]

So, why would anyone in their right mind take the risk of storing your crypto on exchange? When it usually means that the exchange retains control (or 'custody') of your assets without giving you access to the private keys. Also, they can disappoint you at any time.

Please keep your crypto in a non-custodial wallet. But you should still note that sometimes, some exchanges are even more secured than your non-custodial wallets you have on your PC because people lose their cryptocurrencies through their own mistakes, such as getting viruses on their computers or losing hardware wallets. Besides some exchanges invests a significant amount of money in securing their platform, and holding more funds increases their security expenditure. Just saying, so even in the event of a hack, you can get your coins back from an exchange unlike when it happens on your PC. This is just a unpopular opinion and it is for those small accounts.

[Cookdata]

Does anyone here still stores their crypto in exchanges? I think the best choice would be to move a higher value of funds to a hardware wallet while leaving a small amount that's less than 5K in an exchange.

Exchanges have proven time and time again that they can disappoint their users at any time. Let's not talk about the FTX issue. but for instance, Atomic Wallet just let its users' funds vanish into thin air a few days ago with no reasonable explanation.

So, why would anyone in their right mind take the risk of storing your crypto on exchange? When it usually means that the exchange retains control (or 'custody') of your assets without giving you access to the private keys. Also, they can disappoint you at any time.

You see, on a lowkey there are quite a number of people in this forum that go around saying don't do this, don't do that blah blah but they don't practice what they teach, don't be surprised that many of them still used centralized exchange as storage to keep their assets which is a very bad practice on the long run, I feel people don't learn from others until it they learn it the hard way and why should a sensible person wait to learn it the hard way.

Centralized exchanges are a bad practice no matter how they put it, the least you can do is trade whatever you have to swap your coins but as soon as your business is done over there, move your coins as fast as possible to a personal wallet where you only can access without anyone, but what I believe even with the repetition of these messages, those who will take the advice will take it, and those that wouldn't will ignore.

[Taskford]

Does anyone here still stores their crypto in exchanges? I think the best choice would be to move a higher value of funds to a hardware wallet while leaving a small amount that's less than 5K in an exchange.

Exchanges have proven time and time again that they can disappoint their users at any time. Let's not talk about the FTX issue. but for instance, Atomic Wallet just let its users' funds vanish into thin air a few days ago with no reasonable explanation.

So, why would anyone in their right mind take the risk of storing your crypto on exchange? When it usually means that the exchange retains control (or 'custody') of your assets without giving you access to the private keys. Also, they can disappoint you at any time.

You see, on a lowkey there are quite a number of people in this forum that go around saying don't do this, don't do that blah blah but they don't practice what they teach, don't be surprised that many of them still used centralized exchange as storage to keep their assets which is a very bad practice on the long run, I feel people don't learn from others until it they learn it the hard way and why should a sensible person wait to learn it the hard way.

Centralized exchanges are a bad practice no matter how they put it, the least you can do is trade whatever you have to swap your coins but as soon as your business is done over there, move your coins as fast as possible to a personal wallet where you only can access without anyone, but what I believe even with the repetition of these messages, those who will take the advice will take it, and those that wouldn't will ignore.

Doesn't mean they say that its all true sometimes those people just base on what they read or experience in short while. That's why we need to do our own research and need to experience many things on crypto since we are the only one here can help ourselves and we don't need to rely always on what people say since not all the time they can help us.

Advices are meant to be here but not 100% to follow since you also need to do your own diligence to see if its working for you or not.

[AakZaki]

It is said to save for a long time of course not. I certainly have assets in several exchanges just for trading and then if I make a profit, I will withdraw them. It may seem very complicated, but it doesn't matter as long as my assets remain safe and in my full control. Probably about 30% of the assets that go to the exchange for trading capital, the rest remains in my personal wallet. Will not keep more than that on any exchange.

[suzanne5223]

Please keep your crypto in a non-custodial wallet. But you should still note that sometimes, some exchanges are even more secured than your non-custodial wallets you have on your PC because people lose their cryptocurrencies through their own mistakes, such as getting viruses on their computers or losing hardware wallets.

You have a point about some CEX being more secure than some people having their cryptocurrency in the self-custodial wallet but everything depends on personal understanding about how to securely hold crypto for a long term in a self-custodial wallet.
Despite the possible danger and responsibility of using a self-custodial wallet as storage it is not advisable to use CEX as storage.

Besides some exchanges invests a significant amount of money in securing their platform,

How can we be sure about it? Just by the public announcement? Do you know how many wallets and exchange development teams lied about their service security?

Just saying, so even in the event of a hack, you can get your coins back from an exchange unlike when it happens on your PC. This is just a unpopular opinion and it is for those small accounts.

Buddy, MtGox victims are yet to receive their crypto and the same thing goes for FTX.

[letteredhub]

We have gone past times when we use to have confident about our coins sbeen safe in exchange as recent occurrence has taught so many of us a lesson that it's a big risk leaving your coins in any exchange. You risk losing it all as the keys doesn't belong to only you being in charge and also the risk of the exchange getting hacked. Having a secure wallet of yours where you keep your coin's only to have it in exchange when you wants to trade is just the smart move to always take after which you return it back to your wallet.

[KingsDen]

Does anyone here still stores their crypto in exchanges? I think the best choice would be to move a higher value of funds to a hardware wallet while leaving a small amount that's less than 5K in an exchange.

Yes, there are people here who doesn't know about other wallets apart from centealized exchanges like Binance and Coinbase. 
Some will have to spend more than 50% of the coins to want to save in order to afford hardware wallet.
As 5k less is small amount to you, some will consider anything higher than $100 as big amount.

Exchanges have proven time and time again that they can disappoint their users at any time. Let's not talk about the FTX issue. but for instance, Atomic Wallet just let its users' funds vanish into thin air a few days ago with no reasonable explanation.

The more exchanges fail,  the more people use them because a new exchange would be launched today and use almost a million dollar for promotion and everyone especially newcomers will troop in.

So, would anyone in their right mind take the risk of storing your crypto on exchange? When it usually means that the exchange retains control (or 'custody') of your assets without giving you access to the private keys. Also, they can disappoint you at any time.

Some day traders have no choice than to leave their coins on the exchange as they can not be sending funds in and out on daily bases. Choose a reputable exchange and conduct your trading and stop stressing yourself.

[petulino]

We have gone past times when we use to have confident about our coins sbeen safe in exchange as recent occurrence has taught so many of us a lesson that it's a big risk leaving your coins in any exchange. You risk losing it all as the keys doesn't belong to only you being in charge and also the risk of the exchange getting hacked. Having a secure wallet of yours where you keep your coin's only to have it in exchange when you wants to trade is just the smart move to always take after which you return it back to your wallet.

You are absolutely right that in the past we considered our capital very safe in the exchanges, but now times have changed and various events have helped us all to know that now we should keep our assets in our personal wallet. Exchanges only give you access to your assets through a password, while they are actually under the control of the exchanges.

Therefore, you should keep only the amount you use for trading in the exchange. Rather, you should try to keep your money spread across different exchanges. This way you can also minimize the risk to your fund. In personal wallet if one has a hard wallet then this is the best option.

Exchanges should only be used for buying and selling. Long term coins should always be kept in your personal wallet.

[YOSHIE]

So, why would anyone in their right mind take the risk of storing your crypto on exchange? When it usually means that the exchange retains control (or 'custody') of your assets without giving you access to the private keys. Also, they can disappoint you at any time.

@CypherMonk, you need to know that users are obliged to provide advice to other users, especially about their current asset storage, Such alerts have been happening lately since several cases of exchanges having problems, whether it's bankrupt and so on like the case with FTX exchanges etc.

And you need to know again, crypto users are all over the world, thoughts vary, especially regarding the storage of their crypto assets, if you ask like the title of your topic, for me the answer is yes, Of course there are also those who don't save on exchanges, it all comes back to our respective beliefs, other users cannot be forced, they are the ones who have to think wisely and what is best for their own assets, that's the point.

However, for me personally, of course I recommend storing your crypto assets here: https://bitcointalk.org/index.php?topic=5421039.msg61293646#msg61293646, safe or not I can't answer that, because it relates to the internet too, as I said above, to be sure, but the storage in the link thread that I mentioned, is probably better than the exchange. if you look at the current exchange situation.

[GeorgeJohn]

Does anyone here still stores their crypto in exchanges?

Right from time we have been emphasising on that since that storing your coin in the exchange is not encouraging indecencies that it's easier to sell your to fiat currency when you stock your coins their, but the disadvantages is higher in which I believe that an exchange can be hacked and any coin saved in such will be misplaced by the exchange because the exchange has be attacked, I hope its has happened to binance before where hackers attack binance and many people misplaced their coins, so therefore it's encouraging to use Electrum and trust wallet that's an exchange to save or store your coin but remember to secure your seed phrase so that nobody can penetrate to the wallet

[sunsilk]

There are still, no matter how many times it's been said and suggested that it's risky to store funds in exchanges regardless of the amount there will still be people that will keep their funds there.

Below $5k is still huge.

But it all depends on the user as said, while we're telling of not keeping funds in there and if there are people that can't help themselves but to store their funds on exchanges. Much better to say that they should only keep amounts they're okay to lose.

[Coyster]

so therefore it's encouraging to use Electrum and trust wallet that's an exchange to save or store your coin but remember to secure your seed phrase so that nobody can penetrate to the wallet

Whilst electrum is endorsed by most of the Bitcoin community because it is open source, trust wallet is not, because it is closed source, so therefore don't advise people to use trust wallet. It isn't only about securing your seed phrase, Atomic wallet users also secured their seed phrases, but many of them lost their funds, and it could be because the wallet is closed source and prolly the seed phrase wasn't generated in a secure way, or it was pre-generated, thus the same thing can happen to trust wallet.

[Agbe]

Base on the last two months high prices of bitcoin transaction from the Electrum Wallet, I still keep small amount of unit of bitcoin in the exchange which I will transfer them to another wallet or sell it off from exchange. I only keep $10 worth of bitcoin in binance. The only thing I will not tell anyone to do is to keep bitcoin in an exchange for a very long time. You can send bitcoin to the exchange and sell it off at once. And that is what I normally do.

[lalabotax]

I'm sure yes, there are still, although certainly not all of them.
Due to several things:
- Using for trading or short term
- Do not have a hardware wallet
- Check portfolio more easily
and so forth.
However, it is undeniable that stocking cryptocurrency on exchanges is very risky. The risk is the possibility of being hacked, the account cannot be opened, the risk of exchanges collapsing, and so on. moreover, we do not have the private keys of the exchange account. So this is really risky.

[Bushdark]

Base on the last two months high prices of bitcoin transaction from the Electrum Wallet, I still keep small amount of unit of bitcoin in the exchange which I will transfer them to another wallet or sell it off from exchange. I only keep $10 worth of bitcoin in binance. The only thing I will not tell anyone to do is to keep bitcoin in an exchange for a very long time. You can send bitcoin to the exchange and sell it off at once. And that is what I normally do.

Bitcoin is still one of the most valuable coins in the market that is why we do see whales holding huge amount of Bitcoin in there portfolio. If every other cryptocurrency projects are going to fail, not even Bitcoin will join the number that is what Satoshi Nakamoto had done to make Bitcoin the only respected and valuable.

It will be very unwise for us to keep large sum of our holdings in an exchange no matter how good the reputation of the exchange could be. Some persons may want to stake there Bitcoin holdings and they may decided to send all there Bitcoin holdings to exchange but looking to at the be risk it could cost if our accounts got hacked or we finally get suspended for some certain reasons.

[bettercrypto]

Does anyone here still stores their crypto in exchanges? I think the best choice would be to move a higher value of funds to a hardware wallet while leaving a small amount that's less than 5K in an exchange.

Exchanges have proven time and time again that they can disappoint their users at any time. Let's not talk about the FTX issue. but for instance, Atomic Wallet just let its users' funds vanish into thin air a few days ago with no reasonable explanation.

So, why would anyone in their right mind take the risk of storing your crypto on exchange? When it usually means that the exchange retains control (or 'custody') of your assets without giving you access to the private keys. Also, they can disappoint you at any time.

Well, to be honest I have assets in other crypto exchanges, like Binance, and others. But the value of the assets I have on the platform is not a large amount, and if what I do leads to a large amount, I transfer it to the metamask wallet that is only reserved for my long-term holdings under Bsc, and Matic.

I understood what you wanted to point out and you are also right that in every exchange because it is centralized we do not really hold it, instead they have access to our wallets and that is the thing that is a risk that when there is a hacking issue there is a big chance that our assets will be frozen or will be closed suddenly without any opposition.

[Coyster]

Base on the last two months high prices of bitcoin transaction from the Electrum Wallet,

Electrum wallet or any other Bitcoin wallet do not have their own peculiar fee rate, the network was clogged by Ordinals inscriptions, thus Bitcoin fee rate and transaction fees shot up, if you used electrum or any other wallet for your transaction you'd still have to pay a high fee. Mind you that even some exchanges increased their withdrawal fees, or halted withdrawals in Bitcoin during that period, exchanges also make the most from people's withdrawal in Bitcoin, because they charge a high withdrawal fee and process many withdrawals in one transaction, thus when they pay the transaction fee to miners, they still have profit left from it.

[zaim7413]

The bad situation that has occurred in several exchanges lately should be of greater concern for traders or investors to trust exchange wallets as a place to store assets. The message from Theymos should be a lesson to all forum users not to trust Exchange wallets as a place to store assets.

Quote from: Theymos https://bitcointalk.org/index.php?topic=5421039.0

To the greatest extent possible, you should always avoid keeping BTC (or anything else) in online accounts. This is especially important right now because a very large exchange went bankrupt recently; this has already caused a contagion effect which has taken down other companies which accept deposits, and this contagion may continue to spread and affect more companies.

Exchanges are very vulnerable with the Risk of being hacked and scammed, guarding your assets carefully is the best way to keep them safe. You should always remember what seniors have said as a message to keep assets safe. Without the Private key, it's not your asset.

[Who is John Galt?]

Exchanges are very vulnerable with the Risk of being hacked and scammed, guarding your assets carefully is the best way to keep them safe. You should always remember what seniors have said as a message to keep assets safe. Without the Private key, it's not your asset.

That's right, keeping funds on an account on an exchange (for which there are no private keys) is very unsafe. But recent events with the Atomic Wallet hack and the announcement of Ledger Recover say that it can be risky to store on a wallet for which you have a private key if this wallet is with a closed code. So it's best to choose an open-source wallet and, of course, one for which you have complete control over the keys.

[SamReomo]

Does anyone here still stores their crypto in exchanges? I think the best choice would be to move a higher value of funds to a hardware wallet while leaving a small amount that's less than 5K in an exchange.

That's not a best choice because even leaving a $1 in a centralized or decentralized exchange is unsafe but people really don't care much about such things before getting ripped by those exchanges. Another important thing I must say is that relying on hardware wallets isn't safe either. The best way is to have an open-source wallet software like Electrum and move the funds into a wallet that's present on a air-gapped system with Linux installed on that system.

Anyone who puts their money into exchanges is somehow throwing that money into a water pond in hope that they could access that money whenever they want, but when they really want to have that money then they won't get anything. The centralized exchanges own their money and they can do whatever they want with the money of those users.

[qwertyup23]

Does anyone here still stores their crypto in exchanges? I think the best choice would be to move a higher value of funds to a hardware wallet while leaving a small amount that's less than 5K in an exchange.

That's not a best choice because even leaving a $1 in a centralized or decentralized exchange is unsafe but people really don't care much about such things before getting ripped by those exchanges. Another important thing I must say is that relying on hardware wallets isn't safe either. The best way is to have an open-source wallet software like Electrum and move the funds into a wallet that's present on a air-gapped system with Linux installed on that system.

Anyone who puts their money into exchanges is somehow throwing that money into a water pond in hope that they could access that money whenever they want, but when they really want to have that money then they won't get anything. The centralized exchanges own their money and they can do whatever they want with the money of those users.

This is interesting- so even hardware wallets are not reliable in terms of securing your cryptocurrencies?

When I first joined this forum, I believed that hardware wallets are the so-called "fool proof" type of wallets where no one, except yourself, can have access to it. Perhaps some have already discovered a method in order to gain unauthorized access to these hardware wallets?

For exchanges, I am guilty of this since I keep most of my BTCs inside our local exchange due to the convenience it provides. Though I hope that I can somehow transfer my BTCs soon for its security.

[SamReomo]

This is interesting- so even hardware wallets are not reliable in terms of securing your cryptocurrencies?

Yes, we can't just trust hardware wallets all the time because they can also be compromised like other hardware. The hardware wallets can also have vulnerabilities in their firmware which hackers can exploit to steal someone's Bitcoin.

When I first joined this forum, I believed that hardware wallets are the so-called "fool proof" type of wallets where no one, except yourself, can have access to it. Perhaps some have already discovered a method in order to gain unauthorized access to these hardware wallets?

Nothing is 100% secure and without proper awareness we can lose a lot of things in this technological world. The hardware wallets are considered as the safest option to store someone's Bitcoin but they aren't that much safe either. The hardware wallets are small in size and can be physically stolen by someone who knows everything about the owner and the stolen wallets can be easily hacked by the hackers who know about hardware and firmware hacking. The hardware wallets can also be compromised when they are connected into a system that's affected by malware.

The hardware wallets are mostly purchased from online vendors and sometimes they come with malware that could cause huge losses to the ones who store their Bitcoin in those hardware wallets. When someone unintentionally share their seed phrase with others that can also cause loss of funds from hardware wallets. And, there can be more problems with hardware wallets and that's why I said that hardware wallets aren't the safest option to store our Bitcoin.

For exchanges, I am guilty of this since I keep most of my BTCs inside our local exchange due to the convenience it provides. Though I hope that I can somehow transfer my BTCs soon for its security.

That's the worst thing that someone could do with his/her Bitcoin because those local exchanges can run away with your Bitcoin anytime. That's why people say that "Not Your Keys, Not Your Coins," and if your coins aren't in your own custody then they are not your coins. I recommend you to install your own open-source software wallet and make an air-gapped system, and then withdraw your Bitcoin in that wallet. That's the safest option I guess, but you must format the hard-drive or SSD of that system and install an open-source Linux distribution into that one before following the other steps. Also make sure to save your private keys and seed-phrase on multiple secure storage options that only you can access.

[Y3shot]

Does anyone here still stores their crypto in exchanges? I think the best choice would be to move a higher value of funds to a hardware wallet while leaving a small amount that's less than 5K in an exchange.

I don't think it is even good to leave a penny in an exchange because their is no need for it. I take exchange as where I can do quick buy and sell trade without keeping any money. A blind man or the deaf knows keeping money in exchange does not worth it, so no need for an exchange to be consider as a wallet to store Bitcoin. Their lots of exchanges that close down with people's money which is supposed to be a lesson for investors that exchanges is a very dangerous place for the storage of bitcoin.  All exchange can be easily hacked by hackers which means it is not safe for storage .

[kavuncu]

I don't store for long term but I actively use exchanges. I have to trust those exchanges. If one day they run away with my funds I don't know what to do. I don't have much money as you do.