Does anyone still stores their crypto in any exchange

[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.

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[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.