Newbies don't leave your coins in an exchange

[Issa56]

This is a warning to newbies and a reminder to old members that they should not leave their coins in an exchange. Some old members would not learn from other peoples mistake but they will want to learn from their own mistake.

No matter how you warn people, they will never listen until they fall victim before they know the reason why people are discouraged from leaving their coins on exchange. Both newbies and even people that have been long in crypto space do leave their coin on exchange. If newbies are leaving coins on exchange, I do warn them and advise them, since I believe they don’t know the implication, but I get annoyed when I see people who have been in the crypto space do the same. They already have experience, so they shouldn’t be making the same mistake.

From the word exchange, it means that it is where one goes to buy and sell cryptocurrency to fiat and vice versa. I have observed that newbies don't know the difference between an exchange account and a bitcoin wallet.

Since leaving coins on exchange is easy and can easily be accessed, people decide to turn them into their wallets. Even if some individuals are aware of the risk of leaving coins on exchanges, they maintain the belief that there are trustworthy exchanges with robust security measures that prevent hacking and guarantee the return of user cash in the event of an issue. However, they are unaware that any exchange can be compromised. Even though the exchange you believe to be secure hasn't been compromised in the past, but that doesn’t mean it can’t be compromise.

Exchanges are used by traders for their daily trading and as a newbie, you shouldn't jump into trading until your have learnt the fundamental analysis and technical analysis to your proper understanding and also have learnt how to read charts, this is because trading is very risky and a newbie with zero knowledge on trading will end up losing all his coins.

You can leave the money you use for trading on exchange if you are a trader. You can’t send coins into exchange when you want to trade and withdraw them after trading. However, if you know that you will be taking a long-term break from trading, take your money out of exchange and deposit it into your wallet. You can then return your funds to exchange when you decide to resume trading. However, before engaging in trading, always ensure that the exchange you choose is reputable.

You will lose all of the money you are going to trade with if you want to be a trader but lack fundamental information. You cannot make quick money without having basic knowledge in trading. You should be ready to read if trading is truly your goal to generate money.

[Hamza2424]

No matter how you warn people, they will never listen until they fall victim before they know the reason why people are discouraged from leaving their coins on exchange. Both newbies and even people that have been long in crypto space do leave their coin on exchange. If newbies are leaving coins on exchange, I do warn them and advise them, since I believe they don’t know the implication, but I get annoyed when I see people who have been in the crypto space do the same. They already have experience, so they shouldn’t be making the same mistake.

Experienced ones, pretend to be more conscious but in reality still, with their attitude they face serious losses, there was a thread last about indicating a case of the Account frozen by Binance and the Op was asking fo help from the serious to solve about the estimated amount was $500+ which refers that the users were not newborn at least this is wah ti think.

With the careless attitude the Op lost his funds now its 50/50 weather he recovers his funds but putting him into further investigations by the platform or the support team complete ignores his request, From million if they lose a customer it wont impact their overall reputation. Its Obvious that newbies will make mistakes as they are not aware of the conciqunces and they are not guided properly, or they ignore sometimes important suggestion by taking them lightly.

[lovesmayfamilis]

I thought OP was going to tell us a personal experience that motivated the creation of this topic. To be honest, I’m surprised we are still discussing about this, enough has been said on the topic already and if recent events cannot teach newbies and old members (I doubt if anyone who’s been here for six months would make such a mistake) to store your coins in a non custodial wallet, then you will likely learn the hard way.

This topic is always better than those who tell here what Bitcoin is, something that is now popularized. In fact, post above from yours says the right things, not everyone knows about the forum, and new people who come here will always look for simple ways. Our privilege is that the community immediately discusses all events happening in the world of cryptocurrencies, and it is not a fact that the one who begins the path to Bitcoin alone, can cover all the information at once.

Take a look at this post.

what is the difference between on exchange wallet and bitcoin wallet, what you suggest on creation on it?


Thanks.

I have witnessed that people I know who are not forum users still store their seed phrases in “password-protected form” in their emails, and every time they wave their hand at the warning that such storage is unsafe. So yes, the OP is right, the best teacher will always be the experience gained from your mistakes.

[Z390]

Bitfinex was also hacked lately, I will never trust any centralized exchange with my assets, even as a trader I always withdraw my funds from the exchange after each trades, some people still leave theirs on the platforms, but I don't blame them, they must be thinking about the transaction fee of moving in and moving out of the exchange everyday.

Some people just decide to trust the exchange that they are using for no reason, such people must be willing to lose their money, the only exchange I trust is Binance I can leave my asset on this platform for a while but I always end up withdrawing them when it's time.

There is no such thing called smart in crypto, anyone can still lose their funds even if they are very smart, you must always be cautious about your decisions, give no space for silly mistakes that could cost you everything.

[Ruttoshi]

It is sad to see that exchanges deceive their users to keep funds in their custody so that they can be in full control of customers funds. And newbies fall for their trick because they don't know that it is not safe to do that because this exchanges can run away with your funds and there is nothing you can do about this. Be your own bank as bitcoin has given us this opportunity, not you keys, not your coins

This reminder is something that we have been seeing over and over again here in the forum, but because of transaction fees some people prefer to leave their funds in an exchange so that they can get easy access to their coins, which is bad. I think that it is only traders that needs the exchange most time and not we hodlers. I will say that you should see an exchange as an enemy to your bitcoin, maybe this will make you get scared of them.

[Solokan]

For beginner who want to invest in BTC for the long term, it must be sent to a wallet after buying it from the exchange with the aim of so that there is nothing unwanted, because if we put BTC on the exchange it is of course very risky.

But for those who like daily trading, of course there is no problem putting BTC on the stock exchange as long as it has to be on a trusted stock exchange and you have to be able to do technical and fundamental analysis and have good insight and experience. However, putting BTC on the exchange is very risky and we have to learn from the FTX incident.

and according to my personal experience, if our put BTC on the stock exchange, our are usually always tempted and want to sell it when there is a slight increase and always forget the main goal, namely long-term investment in BTC.

I really agree with the topic you made.
Of course, there are beginners who know about this and there are those who don't. Of course, with the topic you created, hopefully there will be many benefits, although I think many people have discussed this.

[Yamifoud]

This reminder is something that we have been seeing over and over again here in the forum, but because of transaction fees some people prefer to leave their funds in an exchange so that they can get easy access to their coins, which is bad. I think that it is only traders that needs the exchange most time and not we hodlers. I will say that you should see an exchange as an enemy to your bitcoin, maybe this will make you get scared of them.

They just want to save from paying huge TRX fees but the security of their funds has been ignored putting their situation at high risk because whatever will happen to the exchanges, they will also suffer the consequences and might not be refunded. Though we can say it was not a good idea but I admit that I've done this before. Well, maybe I was trusting the platform that I'm using and it is quite different from using new exchanges. Therefore, before leaving our coins in a particular exchange platform, we are also aware and are ready for whatever will happen.

[SOKO-DEKE]

This is a warning to newbies and a reminder to old members that they should not leave their coins in an exchange. Some old members would not learn from other peoples mistake but they will want to learn from their own mistake.

It's true that some people don't learn from the mistakes of others unless it occurs to them and they have the necessary experience. I don't anticipate people to still be putting their coins within exchanges, especially with huge quantities of money, given the rate at which people are losing their money through exchanges.

From the word exchange, it means that it is where one goes to buy and sell cryptocurrency to fiat and vice versa. I have observed that newbies don't know the difference between an exchange account and a bitcoin wallet.

Yes, newbies may not know the difference between exchange accounts and Bitcoin wallets, but what I expected from anybody before putting their money or investing in anything was the safety of their properties. So as a newbie is not and excuse to leave their coins on exchanges, they need good knowledge about how to provide strong security for their money first before investing their money.many people are desperate of making profit in crypto industry and often forget about proper thing they need to learn first. If someone money is not properly secured even you make more profit the money may not be yours.

Exchanges are used by traders for their daily trading and as a newbie, you shouldn't jump into trading until your have learnt the fundamental analysis and technical analysis to your proper understanding and also have learnt how to read charts, this is because trading is very risky and a newbie with zero knowledge on trading will end up losing all his coins.

Becoming a successful trader demands a lot of information and is not an easy task. It will be challenging for someone who is still new to the cryptocurrency business and has not acquired sufficient trading knowledge to succeed in trading. Therefore, trading is not for the ignorant or inexperienced. Additionally, trading requires diligence and technical analysis rather than laziness. You will remain a loser if you don't conduct study.

[Stepstowealth]

This is because exchanges are in full control of your bitcoin and they will decide what happens to your coins the moment you keep it in their custody.
Keep your bitcoin safe from third party.
Not your keys not your coins.
Let's discuss.

We have discussed this many times here and in different ways, many forum members already know the consequences of that action. The people who need reminder are the people who are investors in bitcoins but are not members of this forum. Some of them are investing wrongly by leaving their bitcoins on exchanges simply because they believe and trust the reputation of these exchanges. If we meet these kind of people we need to always tell them that they are doing the right thing the wrong way. They are doing well investing, but doing it wrongly by keeping their bitcoins under the keep of a third party.

[Zigabel]

I agree with you OP it's important that newbies and even old members be reminds of this vital information you just passed, sometimes not only do exchanges crash, they also get hacked and all you coins could be stolen and you will have nothing you can do about it. Its very important newbie understand the difference between wallet and exchange as it will help them to better safeguard their assets.

Some persons still make that mistake of storing their assets in exchanges probably because of the ease of been able to sell of at once but then the disadvantage could be really bad especially when it causes one to loose their assets, but with Bitcoin/crypto wallets there's some level of safety with which you can safeguard your assets.

[GbitG]

This is a warning to newbies and a reminder to old members that they should not leave their coins in an exchange. Some old members would not learn from other peoples mistake but they will want to learn from their own mistake.

Leaving funds in the exchange is not a miracle, even if it is accepted that the newbie is not aware of it and they do not know that keeping funds in the exchange can lead to loss for you. It is understandable, but even those who know Exchange is not trustworthy and yet they don't transfer their funds or assets to a safe place, so I think no one can be more stupid because they know that doing this is not the right thing to do. However, he does not show any action on it.

So the purpose of saying this is that personally, I also believe that if you have more funds and you have kept them on an exchange, then immediately withdraw them from this exchange and transfer it to a cold wallet. exchange cannot be trusted to guarantee you that I am responsible for refunding your funds or any other circumstances. And tell me the funny thing that there is no such exchange in the big exchanges that has not been hacked even the world's most trusted and larges crypto exchange, Binance, was also hacked by hackers as can be seen by searching on Google. The only improvement will be to be careful, No exchange can give you full protection; you should be the protector of your own funds through a hardware wallet.

[HelliumZ]

Not only does this apply to newbies but also to everyone who doesn't put their bitcoins or other currencies into an exchange. If a bitcoin is held in an exchange and that exchange suspends or withdraws, his bitcoins will be lost forever or he will never get them back. So Bitcoin should never be held on an exchange but should be held in a strong security complete wallet.
Many people have lost their bitcoins in the past on such exchanges so there is no need to experience this again. Those who deposit bitcoins in the exchange should withdraw from the exchange and transfer it to a bitcoin wallet.

[BlackBoss_]

Not only does this apply to newbies but also to everyone who doesn't put their bitcoins or other currencies into an exchange. If a bitcoin is held in an exchange and that exchange suspends or withdraws, his bitcoins will be lost forever or he will never get them back.

If they want to trade Bitcoin to altcoins, trade around altcoins, they will need to use centralized exchanges that give them more options to trade, more trading pairs than decentralized exchanges.

They must know 3 principles:
Trading is very difficult and mostly don't help traders richer.
Don't trade what they can not afford to lose.
Storing money on centralized services, exchanges is very risky.

So Bitcoin should never be held on an exchange but should be held in a strong security complete wallet.

You can describe what is a good wallet software.

Non custodial
Open source

Then you can create multisig wallet or cold storage wallet with that software, use strong password for your wallet, cosigners to increase security.

[Sebas.tian]

I believe, newbies will learn a good lesson from this trend because we have seen a lot of things in the community where by some coins will be missing in the exchange wallets after transaction and the coins is no where to be find that made that particular newbies to learn his or her lesson to download the real Bitcoin wallet that is well secured and safe for the users. The reason why some are still losing their money in the exchange market, is that they don't know that the place is made for exchange market, but some of them will start storing their coins into the exchange wallets hoping that, that is the right place to store coins for future use which is not true. When you want to trade your coins in the market, you can move your coins from your wallet to exchange to trade amount of coins your want to trade to make your income at the moment but don't leave any coins on the exchange market.

[DubemIfedigbo001]

I thought OP was going to tell us a personal experience that motivated the creation of this topic. To be honest, I’m surprised we are still discussing about this, enough has been said on the topic already and if recent events cannot teach newbies and old members (I doubt if anyone who’s been here for six months would make such a mistake) to store your coins in a non custodial wallet, then you will likely learn the hard way.

Well, OP may have had a personal experience that prompted him to create this thread, maybe he didn't feel like sharing it but giving a general moral lesson from his experience, which isn't a bad thing entirely. A friendly reminder of this issue isn't a bad idea cos these newbies need a constant reminder of the dangers of trusting exchange with their  funds regularly. Enough cannot be said about this, I'm even in support of giving these bitcoin engagement security prerequisites everyday cos new members enter the forum regularly, so this board should do that work of constantly reminding them of these simple things like how to store your seed phrases safely, using non custodial wallets and never trusting exchanges by leaving their funds behind.

[mamesso]

The incident that FTX has experienced should be a lesson for anyone who still has or chooses a Wallet exchange as a place to store assets. Exchanges can only be used as a place to exchange crypto assets, but many traders/investors who are new to the Cryptocurrency field make a mistake, they store their coins in the exchange wallet instead of transferring them to a wallet where they can control the private key.
If something happens to the exchange such as a hack or the exchange goes bankrupt, then the coin owner does not have any control over his coins because the coins are not under his control.

[knowngunman]

See exchanges in this same way and whatever that makes you to use an  exchange, when you are done, you should not leave your funds in there. We have seen big exchanges like FTX crashed and the whole thing is still a drama currently. You should only leave the amount that you can afford to lose in an exchange and don't for once risk your bitcoin. This is because exchanges are in full control of your bitcoin and they will decide what happens to your coins the moment you keep it in their custody.
Keep your bitcoin safe from third party.
Not your keys not your coins.
Let's discuss.

The collapse of FTX is an eye opener for all of us especially those who practices to keep their assets in the exchange account. This practice is not applicable to newbies. A lot of people choose to keep their Bitcoin in an exchange accounts despite that they are not traders. Even as a trader, it's not advisable to keep large quantities in exchange for long time because there are some risks involved in doing so. If the exchange gets hacked, your Bitcoin is gone. These exchanges can go bankrupt or shut down and could leave you without access to your funds.

There are several dangers associated with keeping Bitcoin in an exchange account and If you value your privacy and financial sovereignty, it's not ideal to keep your Bitcoin in an exchange account. Always store your Bitcoin in a hardware wallet.

[AprilioMP]

It's not uncommon to see threads that warn against storing assets on exchanges, this has been a common discussion and others have suggested storing in your own wallet that has a key that you hold.

theymos has announced this, there are also those who still insist on storing on the exchange, let's leave it alone, the important thing is that we have given advice on it, as long as we don't talk about the dangers of storing assets on the exchange but still use it then it is not logical with the advice given.

It is really necessary to warn repeatedly by including examples of cases that have occurred so that beginners who are new to the world of crypto do not experience losing money due to feeling comfortable saving online.

First, I activated myself in forums, I participated in various discussions on various boards. I often come across reminders about not saving money on the stock exchange. I think how stupid those who do that are - saving money on the exchange without caring about the negative effects that will be received when the exchange has problems.

Maybe they get involved in saving without going through the knowledge gained from the learning process, because if they go through the learning process, then they will know what the function of the stock exchange is for. I don't want to do something without having knowledge about it. It's better to look stupid by asking than to suffer a big loss.

[TakeItEasy]

The incident that FTX has experienced should be a lesson for anyone who still has or chooses a Wallet exchange as a place to store assets. Exchanges can only be used as a place to exchange crypto assets, but many traders/investors who are new to the Cryptocurrency field make a mistake, they store their coins in the exchange wallet instead of transferring them to a wallet where they can control the private key.
If something happens to the exchange such as a hack or the exchange goes bankrupt, then the coin owner does not have any control over his coins because the coins are not under his control.

The FTX scammed was nor expected as it was considered as one of the best exchange, and mostly users have store their funds at the Exchange. Also, I'm still storing in the Binance but I think it is also dangerous? What do you think about? After that incident I had got the hardware wallet which gives me some relaxation about the storing funds in my wallet.

In my opinion, hard wallet will be a better solution or the better wallets to store the funds which are completely secured in all aspects if we think of it. Many people are using hardware wallets which are quite easy to store the funds and they are mostly used by the YouTubers, even I'm also using it because it not only stores my funds but it also give me 100% security.

[doomloop]

The exchanges need traders to function.  What good is a coin exchange if no one is buying or selling coins?

People should buy and sell in exchanges then, why do they keep their coins in the exchanges if they are not using them very often? There is nothing wrong in keeping your funds in the exchange if you are using those funds every day for trading and you don't want to pay withdrawal and transactions fees twice every day, but if you are not a regular trader, you don't use the funds in your exchange account, and you are planning to hold them for long term, why not take them out of it before it's too late?

A lot of people make this mistake, and it's just out of ignorance and nothing else. Someone, who has knowledge about the market, knows what happens every now and then with centralized exchanges, and also knows that an exchange isn't for keeping assets but it's for trading purposes, wouldn't do that at all.