Treat exchanges the way you treat your casino accounts.

[cryptoaddictchie]

We have an opportunity to have full control of our money. A system different from the traditional banking system, so what purpose is moving from the traditional banking system if you'll just end up keeping your money in a centralized exchange?

Yes you are right. We should always treat the cex as something not safe. Yes it has a lot of options and privileged but we must be limited to that considering the potential security of our asset. Its not bad to use cex in fact, many have love that however er should not forget the golden rule of not your keys not your coins since its a centralized entity. Always practice usage of non custodial wallets.

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[CryptSafe]

Of a truth there is no difference between a centralised banking system from the centralised exchange system. They both operate in similar ways holding their clients or customers funds where only them have access to it  and can do whatever they feel like because it is in their possession and they are backed by the government regulations which gives them head over your funds with them and before you do anything with your funds, you must first fulfill their protocols so as to access your funds which is not conducive in most cases.

In that case haven seen their actions and inactions, one should be able to know that casinos too have the same fate and as such should be treated the same way because non of them are self custodial and that does not guarantee the safety of your assets being in possession or custody of any of the above mentioned third parties.

The best thing one can do to guarantee their asset safety is to make sure their  assets are always under their custody.  If as a trader you want to trade,.you should only send the trade amount and if there be any profit, you withdraw it instantly after trading same applicable to the casinos as well. Do not retain your profit or assets in a third party exchanges or casino as your asset safety can not be guaranteed. Big names in the industry have suffered hack that alone should tell you that even the smaller names too are not safe. Take the safety of your assets very serious.

[ultrloa]

It should be common knowledge by now that we're not supposed to leave our coins in an exchange, sadly it's not.

Some people feel we should ditch centralized exchanges altogether. I buy into that idea even though I've not fully stopped using them.

I don't quarrel with using centralized exchanges, my quarrel is with leaving your coins in them.

Those of us who gamble might get this better.
When dealing with your online casino accounts, you usually just fund them with the amount you want to use in gambling. It's usually funded from your bet accounts or wallet. You don't leave your winnings in that account. You withdraw them to your bank account or crypto wallet.

The same logic should be applied to your exchange account. Fund it with just the amount you want to trade or exchange. For traders, you can withdraw your profit into your wallet and leave only the amount you want to trade with.

We have an opportunity to have full control of our money. A system different from the traditional banking system, so what purpose is moving from the traditional banking system if you'll just end up keeping your money in a centralized exchange?

As always we should be more aware about anything could possibly happen in a platform that's why its important for us not to make the exchange or casino as our wallet so that we will not get hack or scammed if unfortunate events happen to them. Much better if we want to store our balance we should grab a wallet that we hold our own keys so that we are not easy target for any hackings or anything bad that might happen to our wallets. We should always think about temporary things if we put some balance on our exchange account and make sure to withdraw our funds when we are already done for either trading our funds or gamble it on a casino. I know its hard to do some action nor discipline ourselves towards this action since sometimes we are lazy to do this basic things but once we experience the worst for sure we always think about securing and don't take those platform as safe place to hold our funds.

[Iroh]

Sadly, what should be commonly known isn’t commonly practiced as people still fail to heed to sound advice until they get burned.
I think your analogy is quite flawed as some gamblers are also guilty of leaving considerable amounts on their preferred gambling accounts perhaps to be able to quickly place bets at short notice. Same issue with leaving your coins on exchanges, it’s commonly known but not always practiced.

We have an opportunity to have full control of our money. A system different from the traditional banking system, so what purpose is moving from the traditional banking system if you'll just end up keeping your money in a centralized exchange?

People who had or still have their money saved under/inside their mattress have a pretty good idea on how important having self custody of their funds really is. We do have the opportunity presently to take custody of our funds but it seems people are not willing to be wholly responsible for safeguarding their own money.

[Woodie]

It should be common knowledge by now that we're not supposed to leave our coins in an exchange, sadly it's not.

Some people feel we should ditch centralized exchanges altogether. I buy into that idea even though I've not fully stopped using them.

I don't quarrel with using centralized exchanges, my quarrel is with leaving your coins in them.

This topic has been brought up one too many times and your argument is valid so is the rest of the crypto users that keep coins on an exchange!

The primary reason for not keeping coins on an exchange is merely control based on the famous slogan around the forum, "not your keys, not your coins" and it's a good way to avoid losing coins should an exchange be hacked, windup or hit you with some terms and conditions to confiscate your coins etcetera...but some users will argue to say keeping coins on an exchange has its perks like avoiding paying transaction fees for back and forth transactions to the exchange, it's convenient for those in peer2peer business as the business can run 24/7 and I think for those that want to hodl coins for a long time are the best users to keep coins away from the exchange to protect their investments.

Those of us who gamble might get this better.
When dealing with your online casino accounts, you usually just fund them with the amount you want to use in gambling. It's usually funded from your bet accounts or wallet. You don't leave your winnings in that account. You withdraw them to your bank account or crypto wallet.

The same logic should be applied to your exchange account. Fund it with just the amount you want to trade or exchange.

You are right, but for me, the reason for not leaving coins on a gambling account is based on risk management as greed can easily kick in when bankroll increases, so after making some profits I withdraw and leave what I need to use.

[Z390]

Tons of money was moved out of Binance exchange when CZ resigned, it happened so fast within 24hours and that shows that people are losing trust in centralized exchange, it's true that some still don't want to learn but what can we do about it? Nothing, somehow some people still believe that centralized exchanges is where their coins should be, as if the coins get lost they can put the blame on the exchange, they don't want to take responsibility for securing their own private key and this is insane.

I don't mind letting such people learn the hard way, if anyone is still keeping their coins on any exchanges right now they choose to do it even when they know the risks involved, FTX fraud was a good example, enough to make everyone turned away from centralized exchange but still yet many don't care, whatever happens to their coins is what they deserve, I don't pity such people.

The only people that should leave a small money on exchanges are daily traders, because they can't keep moving funds in and out every time, this will make them to burn a lot on transaction fee, I do trade on Binance exchange and when I make some money I always remove my initial, and use the rest to trade, since this is a free money I believe I can still live with whatever happens after, anything can happen to any platform at anytime, make sure you don't leave assets you aren't ready to lose on any exchange.

[Abu-Naim]

We have an opportunity to have full control of our money. A system different from the traditional banking system, so what purpose is moving from the traditional banking system if you'll just end up keeping your money in a centralized exchange?

To bring solutions to banking systems and centralization that is why Bitcoin was created to give us financial freedom, but exchanged come to support the system in form of market to enable us get Bitcoin and other crypto easily through their services, but some of us start leaving our coin in their wallets because it is easy to hold in there, but the risk involved is very big and people need to consider the risk of leaving your coin in there since it is the same as banking system.

[Cookdata]

It should be common knowledge by now that we're not supposed to leave our coins in an exchange, sadly it's not.

Some people feel we should ditch centralized exchanges altogether. I buy into that idea even though I've not fully stopped using them.

I don't quarrel with using centralized exchanges, my quarrel is with leaving your coins in them.

Using a centralized exchange is different from leaving your coins on the centralized exchange. Privacy and security are two different things, when you use the centralized exchange, you don't have any privacy about yourself because with the mandatory use of KYC under the AML(anti-money laundering policy), you will be forced to submit your details to the centralized exchange before you can use any of their services and by that, everything you do and how you do is in their palm, they watch everything you do and you have zero privacy from them.

Leaving your coins on the centralized exchanges is practically zero on security, because "not your keys, not coin" and when anything happens like the company becoming illiquid or exiting, you will have yourself to blame because you don't have the private key to that coins and you will have nothing to withdraw in case of emergency like that and the centralized exchange can even seize your coins if they found you suspicious.

Those of us who gamble might get this better.
When dealing with your online casino accounts, you usually just fund them with the amount you want to use in gambling. It's usually funded from your bet accounts or wallet. You don't leave your winnings in that account. You withdraw them to your bank account or crypto wallet.

The same logic should be applied to your exchange account. Fund it with just the amount you want to trade or exchange. For traders, you can withdraw your profit into your wallet and leave only the amount you want to trade with.

We have an opportunity to have full control of our money. A system different from the traditional banking system, so what purpose is moving from the traditional banking system if you'll just end up keeping your money in a centralized exchange?

This is also individual, there are people that still leave their winnings on gambling platforms with the hope that 2FA and password will protect them from external hackers getting access to their money while some people withdraw their earnings that same day, some weekly and some prefer monthly just to understand the inflow and outflow of their money from casino. However, the best thing is when using any centralized platform and it involves money, don't ever leave it in their custody.

[Jegileman]

It should be common knowledge by now that we're not supposed to leave our coins in an exchange, sadly it's not.

Some people feel we should ditch centralized exchanges altogether. I buy into that idea even though I've not fully stopped using them.

I don't quarrel with using centralized exchanges, my quarrel is with leaving your coins in them.

This is a common advise that even new members that are just joining the forum will be aware of because of how it is been repeated in the forum in almost all the boards including local boards. Exchanges exit scam which can cause you to loss your money when you least expected it. Centralised exchanges have their role to play in the crypto market but exposing one’s privacy is just the disadvantage of using it and how they end up exiting scams. We are very careless as human but when it happens we do take caution for it not to happen again. Not your keys, not your coins should be the best advice that is currently being offered in the forum now.

[Luffygroove]

I've been facing issues with centralized exchanges and started using decentralized ones less. Recently, I came across a new project aiming to address this. They're building a hybrid exchange that claims to be Shariah-compliant, combining the efficiency of centralized exchanges with the security of decentralized ones. Despite being new, the team seems dedicated, working hard even on weekends. They already have a beta version with market and limit orders, and they're developing stop-limit functionality. To trade, you deposit assets into a smart contract, which adds to your trading balance. It's promising, and I'm hopeful it can provide a solution. Excited to see its success in the future!

[Dr.Bitcoin_Strange]

Despite the fact that this advice is always sung as a song on the forum, it's not everyone that will hear it, but there's a saying, "If we don't learn from others experiences, we will definitely learn from our own  experiences."The hack of FTX has been a lesson to learn in terms of keeping money on exchange. I was also keeping my coins on exchange, but after I learned that it was not a wise way of storing one's crypto asset, I had to divide them into a non-custodial wallet.

[The Cryptovator]

I fully agree with Zaguru12, exchanges should always be considered marketplaces. You should deposit the amount that you want to buy something, then move it to your own non-custodial wallet. This will be your personal bank. We have seen many exchanges go bankrupt, and users have lost funds. So if we can't take lessons from the past, then we have to be ready for a loss. Nowadays, hardware wallets aren't too costly, so the safest way to store your cryptocurrency is in your hardware wallet.

[wiss19]

Most people make this common mistake of keeping all their funds, even the ones that they wish to hold for a long term, in their exchange wallets thinking that they are secure. However, it's not just about the security of one's account but exchanges can face different problems that might cause one losing their assets or at least a part of it. One of the most common things that happen is cumulative wallet hacks where hackers hack into the databases of the exchanges and steal funds from many random wallets, yours can be one as well.

So, since we know non-custodial wallets exist, we shouldn't keep all our crypto in the exchanges if we are not using them regularly. Some people even withdraw their trading capital when they are done trading for a session and deposit again next time, that's not necessary because one will have to pay a lot of fees that way, but it should be done with assets that are kept idle in exchanges.

[Coin_trader]

So, since we know non-custodial wallets exist, we shouldn't keep all our crypto in the exchanges if we are not using them regularly. Some people even withdraw their trading capital when they are done trading for a session and deposit again next time, that's not necessary because one will have to pay a lot of fees that way, but it should be done with assets that are kept idle in exchanges.

General is you should sweep all your asset on exchange whenever you are on trading for the day since there’s a chance that your funds might be caught off guard inside once they shut down like what happened to FTX customers.

But as a trader myself. I don’t frequently withdraw my funds out of exchange since I never deposit all my funds on exchange but rather just the money that I will use on trading(P2P and scalp trading) and the rest of my coin stored on my hardware wallet. Most of the transaction fee just cost an average of 1$ to 2$ except for ETH which is acceptable considering the safety of your assets.