Your favourite exchange can be nowhere to be found

[aylabadia05]

Don't be so comfortable with the exchange you are dealing with to keep your digital assets. Exchange being popular and big is not assurance that it is safe and last forever.  Crypto exchanges are unpredictable and anything can happen.

I used FTX to make transactions before they crashed and luckily I didn't store any assets there.
FTX exchange is global, while local exchanges are more reliable and trustworthy to use as a place to sell or buy so they are not as prioritized, including another reliable exchange, namely Binance.

Just use them as a place of exchange, not for storing. The best place to keep assets in a wallet is not on an exchange.
Putting something wrong in its wrong place is at your own risk.

[uchegod-21]

Some of us might think that the exchanges are not collapsing any moment because they have a very rugged security system that is nearly hacked proof. We can also say that they have been around for so long time and other people serve much more higher amount of coins while your own is maybe less than thousand, nothing will happen. It could be true that nothing will happen but then to use bitcoin the right way it is supposed to be used, do not trust any system that doesn't give you your seed phrase. Use the exchanges as exchanges and use the wallets as wallets. By this, you will not have much to lose if things go wrong.

[Zlantann]

This is a timely reminder for newbies and others who keep large sums in exchanges. The fall of FTX came as a surprise because there was no indication that it would go bankrupt. I usually hear people say that a particular exchange is too big to fall. These persons don't know that any centralized platform can be mismanaged or government might seize it which will lead to the loss of your money. The only time I put money in exchanges is when I want to change them for fiat.

I don’t know why some people take the risk of leaving their coin on exchange, we all have seen different exchanges that failed previously, lots of exchanges have been hacked before, I just dont know why some people are not learning from things that happened previously, exchange should be a place which we are suppose to trade alone, not a place to store your coin. If you are a trader, then you can be trading on exchange, but whenever you notice you won’t be trading for some time, then you have to withdraw your money from the exchange. Don’t leave your money on exchange.

One of the reasons why people still put large sums in exchanges is because of ignorance. Many people don't know the difference between a custodian and a non-custodial wallet. The person who introduced me to Bitcoin didn't explain to me the different types of wallets. I had to read about wallets by myself. Most newbies are just interested in making money in this bull run, meanwhile, they have zero or no knowledge about where air what they are putting their money in.

[Coyster]

mempool should not be a reason to choose exchange to keep bitcoin over good non custodialwallet

I second this, nothing should make one keep their assets in a centralized exchange, if you do not want to trade it, then don't send it into a centralized exchange. It is common for people to say they have had their funds in a custodial service for a long time and they are yet to lose it, but they forget that it does not mean the assets are safe and it only takes a blink of an eye for the exchange to halt withdrawals and file for bankruptcy.

[lovesmayfamilis]

I would say that trusting any exchange means accepting risks that can happen at any time. If there is a need to use an exchange, then do not rush to trust your money to the first one that seems reliable in your opinion. There are no reliable ones as such; however, try to find out as much information as possible about it, especially those negative moments that users had. Usually, people don't hesitate to write about it. And yes, do not store all your capital there; I use exchanges one day, no more.

[SatoPrincess]

@OP you're correct non custodial wallet is the best place and it's bad to hold our coins in centralized exchanges even though the fee spikes in few days ago. But, how can the user who suggesting to use non custodial wallet choose to use centralized exchange?

Username: Y3shot
btc addy: bc1qe80grekeexp2qsv5du7lnn3398gj4vj28trchm

Your address is a part of Kucoin. https://platform.arkhamintelligence.com/explorer/address/bc1qe80grekeexp2qsv5du7lnn3398gj4vj28trchm

Let's repeat what you said above.

MeMPOOL shOuLD noT be A REasON tO chooSE EXchaNGE tO KEeP BITcoIn oVer gOoD noN cuStodiAlWAllet

I'm not against people trading with exchange. Normally the fastest means to sell and buy is from exchange. But it is not good when bitcoin or other digital assets are kept in exchange for hodling. It is possible I make use of crypto exchange but I don't make use of it for hodling because it is not sage.

OP you listed fine examples of exchanges that have failed yet your actions speak louder than your words. Plaguedeath already pointed out that you use an exchange wallet for signature campaigns, you can’t tell me you spend all your signature earnings immediately. From what I can see on blockstream, you have a decent amount of hodlings in that wallet. Maybe you should take your own advice.

[Wakate]

Before you feel so comfortable and relaxed with your favourite exchange wallet know their were some people's favorites exchange like that of yours that is nowhere to be found.

As for those that are new with no idea about exchanges that went bankrupt in the past. Don't be so comfortable with the exchange you are dealing with to keep your digital assets. Exchange being popular and big is not assurance that it is safe and last forever.  Crypto exchanges are unpredictable and anything can happen.

This is a friendly reminder to those that may have forgotten or not aware of crypto exchanges that went bankrupt or crashed down and nowhere to be found.

list of failed exchanges & companies well known due to bankruptcy

FTX
FTX's implosion was the biggest and most spectacular crypto downfall in 2022.

BLOCKFI
Crypto lender BlockFi was the first crypto company to follow FTX into bankruptcy. BlockFi had several ties to FTX, BlockFi has previously said it had 450,000 users and intends to ask a bankruptcy judge to allow some of them to withdraw funds.

THREE ARROWS CAPITAL
The crypto hedge fund Three Arrows Capital (3AC) was a major crypto firm to go bankrupt in 2022, brought down by the collapse of cryptocurrencies Luna and TerraUSD in May 2022.

VOYAGER DIGITAL

CELSIUS NETWORK
Another crypto lender brought down by the Terra and Luna collapse, Celsius Network began its U.S. bankruptcy case in July on rockier footing than Voyager.

mempool should not be a reason to choose exchange to keep bitcoin over good non custodialwallet

FTX was quite a good exchange that many people had funds on but it was quite surprising to see that the exchange suddenly crashes to zero with users losing their funds. This was a big misery to many investors especially for people that has huge amount on the exchange using it to trade and hold for a better future. It is very important for us to know what we are doing so that we are not going to end up creating account on similar platform putting all our eggs in it with trying to calm down. It is important we calm down and put small amounts of money in an exchange so that if any wrong thing happens, it is not going to affect us.

[Mpamaegbu]

mempool should not be a reason to choose exchange to keep bitcoin over good non custodialwallet

Except one isn't a trader and is going to hodl for a long time, leaving coins in exchanges will enable one speed up trading of coins. The process of waiting for coins to confirm before placing trades isn't an experience one wants to witness. It's a frustrating one, especially when entry positions are clear. I believe that's why those who do it, do so. For instance, I've a few coins in exchanges I use for viable project staking. I don't have to keep transferring in and out whenever I want to stake or use them. No matter what we do, we can't completely eradicate risk in this industry. We can only minimize it.

Talking about exchanges disappearing or being no more, that's a part of the risk in this industry. We can only do our due diligence (Research) before patronizing any exchange but whatever happens later isn't what we can decide. Part of my research mechanism is to check the trust rating of any exchange before opening an account. I try to stay with those from 8/10 to 10/10.

[qwertyup23]

Since its advisable to keep funds on our own noncustodial wallet then leaving on exchange is solely based on someones preference. You got it mate, some of these are high tier exchange before like FTX but experience a disaster trimming of funds. Only trust few with reliable and trusted one backed up funds like Binance or maybe OKX.

Unfortunately, Binance has been negatively tagged by our SEC since the company failed to comply with the requirements provided under the laws of the Philippines. Though this may be the case, Binance has released a statement saying that they will fulfil such responsibility in order to provide exchange and trading services in the country.

I do agree with everyone here that leaving your BTCs/cryptocurrencies in exchanges are risky given that you have no right with your private keys. Having a custodial wallet is still the best way for security in order to guarantee full custody over your coins. This will not only benefit you in the long-run, but it will also give you the highest form of security that many still fails to take advantage.

QUESTION:
Given that we know custodial wallets hold the safest way for security, do you guys have any recommendations on how to start? I have been a forum user since 2017 but I still hold my BTCs inside exchanges. Are there any guides in order to transfer my BTCs in exchanges to non-custodial wallets?

[Spaceman1000$]

Before you feel so comfortable and relaxed with your favourite exchange wallet know their were some people's favorites exchange like that of yours that is nowhere to be found.

As for those that are new with no idea about exchanges that went bankrupt in the past. Don't be so comfortable with the exchange you are dealing with to keep your digital assets. Exchange being popular and big is not assurance that it is safe and last forever.  Crypto exchanges are unpredictable and anything can happen.

This is a friendly reminder to those that may have forgotten or not aware of crypto exchanges that went bankrupt or crashed down and nowhere to be found.

list of failed exchanges & companies well known due to bankruptcy

FTX
FTX's implosion was the biggest and most spectacular crypto downfall in 2022.

BLOCKFI
Crypto lender BlockFi was the first crypto company to follow FTX into bankruptcy. BlockFi had several ties to FTX, BlockFi has previously said it had 450,000 users and intends to ask a bankruptcy judge to allow some of them to withdraw funds.

THREE ARROWS CAPITAL
The crypto hedge fund Three Arrows Capital (3AC) was a major crypto firm to go bankrupt in 2022, brought down by the collapse of cryptocurrencies Luna and TerraUSD in May 2022.

VOYAGER DIGITAL

CELSIUS NETWORK
Another crypto lender brought down by the Terra and Luna collapse, Celsius Network began its U.S. bankruptcy case in July on rockier footing than Voyager.

mempool should not be a reason to choose exchange to keep bitcoin over good non custodialwallet

It has been said repeatedly even here on the forum, that it is not advisable to keep most of your digital assets on centralized exchange, especially because of the uncertainty that is attached with them. I believe most crypto enthusias that leave their assets on most of the centralized exchange are basically traders, but for the long time holders, they mostly make use of non custodian wallet, as your keys is the gateway to access your assets.  
I don't even want to believe that a holder will keep his assets in centralized exchange because of the fear of mempool congestion, because that will be ridiculous.

[cryptoaddictchie]

Unfortunately, Binance has been negatively tagged by our SEC since the company failed to comply with the requirements provided under the laws of the Philippines. Though this may be the case, Binance has released a statement saying that they will fulfil such responsibility in order to provide exchange and trading services in the country.

Yeah a very bad news but still accesible on the app. I can still use it. I believe they will not succeed on banning the Binance app on those platforms as they dont have enough reason to do so. Its like a force act on the part of SEC to fully implement the ban, but clearly they dont have the rights. People of the Philippines which uses crypto suffered form their insisting approach on Banning they arent protecting the people at all.

[Dunamisx]

Unfortunately, Binance has been negatively tagged by our SEC since the company failed to comply with the requirements provided under the laws of the Philippines. Though this may be the case, Binance has released a statement saying that they will fulfil such responsibility in order to provide exchange and trading services in the country.

Yeah a very bad news but still accesible on the app. I can still use it. I believe they will not succeed on banning the Binance app on those platforms as they dont have enough reason to do so. Its like a force act on the part of SEC to fully implement the ban, but clearly they dont have the rights. People of the Philippines which uses crypto suffered form their insisting approach on Banning they arent protecting the people at all.

Exchanges are having a rough time with some of the governments already and it is better that if we have our digital assets with them, we should move them to a non custodial wallet, a good example with how finance has been suffering a lot of threats upon attacks from US, Nigeria, India, Philippines and some other, we only know how it begins and we are not sure of where it may landed, you can just wake up a day to discover that the exchange have been banned from your country or it's under attack, what will be your fate at that moment being it's user.

[cryptoaddictchie]

a good example with how finance has been suffering a lot of threats upon attacks from US, Nigeria, India, Philippines and some other, we only know how it begins and we are not sure of where it may landed, you can just wake up a day to discover that the exchange have been banned from your country or it's under attack, what will be your fate at that moment being it's user.

Yeah as a forum user I am also that believer, I am just keen on those particular cex cause I can use them which noncustodial cant give me some needed features especially in p2p. Like in our country, The Sec pushing it ban here immediately without court order, I can see why our political aspect is indeed bound by crocodiles. Anyway thanks for that input.

[Kelward]

There are more crypto exchange service companies that have gone bankrupt or have been hacked that didn't make the OP list, example is Patricia, an exchange service in my country, they built a reputation and gained investors trust, eventually they were hacked, and their investors funds are gone. One of the best lessons that I've learned on this forum is that I shouldn't leave my coins in an exchange, no matter how reputable that they are, because they can go down anyday, "not your keys, not your coins". None custodial wallet is the best option to hold your coins, because you're the sole custodian of the private keys.

[avp2306]

Before you feel so comfortable and relaxed with your favourite exchange wallet know their were some people's favorites exchange like that of yours that is nowhere to be found.

As for those that are new with no idea about exchanges that went bankrupt in the past. Don't be so comfortable with the exchange you are dealing with to keep your digital assets. Exchange being popular and big is not assurance that it is safe and last forever.  Crypto exchanges are unpredictable and anything can happen.

This is a friendly reminder to those that may have forgotten or not aware of crypto exchanges that went bankrupt or crashed down and nowhere to be found.

list of failed exchanges & companies well known due to bankruptcy

FTX
FTX's implosion was the biggest and most spectacular crypto downfall in 2022.

BLOCKFI
Crypto lender BlockFi was the first crypto company to follow FTX into bankruptcy. BlockFi had several ties to FTX, BlockFi has previously said it had 450,000 users and intends to ask a bankruptcy judge to allow some of them to withdraw funds.

THREE ARROWS CAPITAL
The crypto hedge fund Three Arrows Capital (3AC) was a major crypto firm to go bankrupt in 2022, brought down by the collapse of cryptocurrencies Luna and TerraUSD in May 2022.

VOYAGER DIGITAL

CELSIUS NETWORK
Another crypto lender brought down by the Terra and Luna collapse, Celsius Network began its U.S. bankruptcy case in July on rockier footing than Voyager.

mempool should not be a reason to choose exchange to keep bitcoin over good non custodialwallet

Not your keys Not your coin this should be put in the mind of people since if they always feel comfortable storing their funds on exchange and don't check any updates then provably with this they might lose their money if the exchange scam them or suddenly collapsed just like what happen on those exchange.

Maybe its really so hassle to withdraw our funds then exchange it but we should be more mindful that even if the exchange is high reputable one they still have a chance to scam we prove it so many times. Non costudial wallets is always advisable so that we can avoid any possible danger brought up by any exchange scamming or any unwanted scenarios that we don't want to happen.

[tabas]

Just don't keep your funds on any exchanges, whether they are centralized or decentralized or you truly trust, it's best to have your funds on your hand where you hold the key. You'll never be sure whom to trust with your funds but no other than yourself and a non custodial wallet.
We have to learn to the past incidents that exchanges that have been known became an issue of the era where they've became popular.
@OP, don't forget about mt.gox.

[Alphakilo]

list of failed exchanges & companies well known due to bankruptcy

FTX
FTX's implosion was the biggest and most spectacular crypto downfall in 2022.

They would have dragged Binance down with them too. Luckily, Binance knew what it was doing. They offered help then withdrew their help a couple days later. Why? Because by doing so the demise of FTX would be guaranteed in a matter of just days instead of weeks or perhaps even months. You try to save then back off at the last second, very well executed. For sure and without a doubt CZ was applying a secret technique from The Art of War. If Binance had not backed out, it would have been the one that faces bankruptcy because they will suddenly have to hold a worthless asset and huge obligation to FTX debtors.

[Wapfika]

list of failed exchanges & companies well known due to bankruptcy

FTX
FTX's implosion was the biggest and most spectacular crypto downfall in 2022.

They would have dragged Binance down with them too. Luckily, Binance knew what it was doing. They offered help then withdrew their help a couple days later. Why? Because by doing so the demise of FTX would be guaranteed in a matter of just days instead of weeks or perhaps even months. You try to save then back off at the last second, very well executed. For sure and without a doubt CZ was applying a secret technique from The Art of War. If Binance had not backed out, it would have been the one that faces bankruptcy because they will suddenly have to hold a worthless asset and huge obligation to FTX debtors.

There’s no way they can dragged Binance down because CZ itself orchestrated everything before he cut ties with them. He is one of the co-conspirators of SBF on doing shady things on their exchange

SBF pull out his investment on Binance while CZ do a rhetorical action but with greater intensity that cause a downfall to FTX. Right now CZ is also on the road for jail time same with SBF. I believe he already accept the penalties just to avoid more auditing on his exchange that might cause same scenario to FTX.

[Miles2006]

I'm not familiar with the exchanges listed but I made a little research about FTX, this is another means whereby owners misuse people funds and from my understanding this is common among exchange. But at first I don't think the idea of storing coins in an exchange is right besides I believe exchange are meant for buying and selling as the name imply. I read similar story few days ago concerning exchange and should be avoided cause the person giving this testimony has experienced such situation before (victim). This issue have been discussed several times here so it's enough reason we stay out from exchange in terms of storing our coins but still it's best forum members  throw more light on this in order to enlighten newly investors

[BABY SHOES]

QUESTION:
Given that we know custodial wallets hold the safest way for security, do you guys have any recommendations on how to start? I have been a forum user since 2017 but I still hold my BTCs inside exchanges. Are there any guides in order to transfer my BTCs in exchanges to non-custodial wallets?

Custodial wallets are not secure because it is a third party like an exchange that manages your assets. So this is not recommended by many people, you can start by creating a non-custody wallet or called hotwallet as a free wallet where you can have your own control will be better or have hardware much more secure, I save here.

It's simpler that all you have to do is withdraw BTC from the exchange to a custody wallet even that's simple right? But I realize the withdrawal fee will be quite high.