I can’t have my money in a centralized exchange and not worry about it. I may not panic every second but I guarantee that I’ll check back just it be sure it is safe. However, if it was a decentralized wallet, I would leave it there, and even confidently forget about it because I know it’s always going to be there. I can’t imagine how much one’s heart will skip if they tried to log into their CEX wallet and they are told that their password is incorrect or some funny story.
And I'm sure, your heart will also flutter if one day you can't access your non-custodial wallet or don't see your assets in it. Everything has risk, you store your bitcoins with a non-custodial wallet, which means your bitcoins will be 100% safe and there will never be an accident.
Additionally, as long as the exchange is open, even if someone forgets their password, 2FA...people will always have a way to access their accounts. Centralized exchanges have risks and unattended wallets have risks too, nothing is completely safe, absolutely safe, my friend. Make a realistic and fair comparison.
But there’s no way you can have such issues with a non custodial wallet without you having made the mistake. But with exchanges, it can be very different. I once had tokens on an unpopular exchange and was trying to recover them through 2FA, and I was stressed. They put me through stress asking me to confirm my government name and all of that. That can’t happen in a wallet I completely manage myself. What if the exchange shuts down too? How about the fact that CEX can be pressured by the government and they do certain things against anonymity. Such convo is really not up for debate. Don’t get me wrong; I use CEX, but I completely know that it’s riskier, and that’s why I think storing funds there isn’t a smart decision. In peace again, my friend
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As I said, everything has risks. When we store and preserve our assets ourselves, there will also be risks that we cannot fix if there are mistakes. You may have heard stories of people who own millions of dollars worth of bitcoin but they cannot access their non-custodial wallets and that is one of the risks.
I believe that most people are silently using CEX like you and me because of the services and utilities it brings us. But they don't dare admit it because they fear the anger of bitcoin maximalists on the forum. I do not encourage or support anyone to use a centralized exchange to store bitcoin because it is too risky and the risks are beyond our control. But we also don't need to badmouth it while we're still using it.
You may be silently using CEX but I don’t say what isn’t true or tell a lie, at least not in such case. I boldly said that I use CEX even if I warn against it. And I don’t know what you mean badmouth, is it another word for “truth”? You’ve acknowledged my point by saying it’s too risky and you don’t encourage it. My initial reply that created this thread still stands because it’s a very simple and honest reply that didn’t need to be elongated.
I have been using CEX since entering this market and still use them until now, I always make it public and have nothing to hide or lie like many others. I agree with your point because as I said everything has risks, CEX, DEX, non-custodial wallets...all have their own risks, nothing is 100% safe or guaranteed.
And what I mean is if we still use CEX in combination with non-custodial wallets like you and me. We need to evaluate fairly, both have their own advantages and disadvantages. Let's not just focus on CEX's shortcomings and demonize it while we exaggerate non custoded wallets.
