Pretend that you believe storing btc in an exchange is better than a hard wallet

[Zaguru12]

Most exchanges offer some sort earnings program these days, so earning interest on your coins might be a good reason to store them on exchange. For example those 0.15% you get for BTC on Kraken are totally worth the risk imho (/s)

I don’t see this kind of APR as advantages seriously compared to the risk one will face when this exchanges run into trouble, 0.15% of a $10k worth of bitcoin is $15 mate and just a $100 earning for holding a bitcoin for one year mate, I will rather take off my bitcoin and invest it into other businesses and I guarantee one will get more than that with a bit of custodianship. This low APR on bitcoin is because bitcoin is less volatile compared to other cryptocurrencies where you see them having higher APR. but mind you once you those Altcoins are bound to drop in value before the unstaking period. So to me this is a huge risk I will rather go and hodl my bitcoin on spot or rather accept trading bonuses.

Well, reputable exchanges have top-notch security, meaning your assets are in safe hands. Plus, some exchanges even offer insurance to cover a portion of your funds, which is a solid backup. It makes sense to keep your Bitcoin there because if an exchange is running profitably, they’ll do whatever it takes to maintain a good reputation and win the trust of traders. That means employing a solid internal control system to safeguard your assets, so your funds are well-protected.ange could actually assist in tracing where those coins are headed, thanks to their robust system.

There is no top security for a thing that’s online or a platform that can easily shut their doors on me by freezing my assets on the order of some authorities or actually share my Identity with other parties this doesn’t mean security to me. Concerning the proof of reserves that exchanges boost of I am still one of those skeptical on believing that, we have seen exchanges bigger than the ones we have today collapse or got hacked and the customers assets are hardly returned. So even that is a big lay off for me. You are your own maximum and top notch security because nobody will be careful and protective of your assets as you the owner

[michellee]

Storing our Bitcoin on an exchange needs acceptance of what may happen to that exchange. We don't know how good their security to protect all of the assets in their exchange. That is why we always recommend to store Bitcoin and altcoin on hardware wallet so we can control by ourselves and responsible with the wallet.

Maybe we want to store our Bitcoin on an exchange is because we want to stake our Bitcoin and earn more satoshi. Many exchange allow this to their members while we are waiting for the bull run time. Besides that, we can earn more amount of each coins that we have for some periods. For example, if you staking BNB in Binance, you also have a chance to earn free token based on how many BNB you stake. 

[o48o]

For a change, since most of us here recommend not storing Bitcoin on an exchange because of the "not your keys, not your coins" principle, let's flip the script. Although using a hardware wallet is advised, it’s not 100% foolproof either—sometimes we make mistakes, like our devices getting compromised, often due to user errors.

So, let’s have a little debate to test everyone's knowledge here: defend why we should store our Bitcoin on an exchange instead of a hardware wallet. Enjoy!

Because Cexes and banks are generally safer to majority of people. Sure, people are losing their money to scams even from their bank accounts, but imagine how much easier those scams would be when there's zero outsourced security measures for your cryptos, and when it would be standard to hold your own cryptos in self custody.

Since fundamentals of self custody are based to fact that users have their own responsibility, i would like to argue that majority of the people are stupid and non-tech savvy, so even if they would be responsible, they wouldn't have technical knowhow to keep themselves protected. Just the fact that huge amount of people can't keep their own computer safe, should be clear enough signal that most people couldn't handle the responsibility. Even pros get hacked, imagine how easy targets people who aren't tech-savvy are.

And i am not talking just about social engineering or pure old school hacking. Just losing the device where the private key is, is a realistic problem.
And unlike in insured exchanges/banks or CEXes that can afford to cove losses from hacks, it's not like insurance companies want anything to do with covering our self custodial bitcoins when we don't have any decent security measurements for them.

I understand that storing it in cex is against the whole bitcoin ethos, but realistically the whole ethos is based on the idea that all the users would be tech-savvy people.

[Ndabagi01]

For a change, since most of us here recommend not storing Bitcoin on an exchange because of the "not your keys, not your coins" principle, let's flip the script. Although using a hardware wallet is advised, it’s not 100% foolproof either—sometimes we make mistakes, like our devices getting compromised, often due to user errors.

So, let’s have a little debate to test everyone's knowledge here: defend why we should store our Bitcoin on an exchange instead of a hardware wallet. Enjoy!

Do we still need to justify this after when the not paying heed to not your keys not your coins is highly susceptible to danger and total loss of fund? Centralized exchange is not really going to temper with your money without your knowledge or any kind of discrepancies leading to your account first, they’ll all say all kind of things when you’re the next for them to deal with. Like not obeying their terms and conditions, receiving scam money and all of that.

Centralized exchange susceptibility to bankruptcy is not something anyone can tell but for those that have happened before, no one can tell when it happened or if it was going to happen. It is better to lose the security of your funds and not gain access than someone else losing it in their custody for you. When your funds are in your custody fully, you tend to protect them more than when under the custody of someone else or an exchange.

[Pmalek]

If you hold a small bag, there is no benefit in using a cold wallet over a CEX actually.

There is no benefit in using CEXs for that matter either. Think about it. CEXs have minimum trading amounts and minimum size orders. They also have minimum deposit and withdrawal sizes and withdrawal fees. If you are holding a few dollars worth of crypto, then sure, buying a hardware wallet doesn't make much sense. But they are also not meant for such users. We can't call them investors.   

Because you will spend many fees and time for sending and withdrawing your cryptos each time you want to make some trades.

You will spend even more in fees when withdrawing from your CEX if that is the ultimate plan. Plus you pay exchange fees, and there is a possibility that the exchange won't allow you to withdraw everything as small amounts may be left in your exchange account.

In addition you will miss investment plans offered by the exchanges, and if you are a newbie you can be hacked or lose your funds because of bad handling sadly.

This has gone horribly wrong several times in the past, where users have lost millions through such "investment schemes" earning yield. You can also get your exchange account hacked if you don't know what you are doing or the exchange itself gets hacked.

Cryptos are not user friendly unfortunately...

True. But one should invest some time into understanding how to use and work with the assets they are purchasing and not just blindly follow the herd.

[Synchronice]

For a change, since most of us here recommend not storing Bitcoin on an exchange because of the "not your keys, not your coins" principle, let's flip the script. Although using a hardware wallet is advised, it’s not 100% foolproof either—sometimes we make mistakes, like our devices getting compromised, often due to user errors.

So, let’s have a little debate to test everyone's knowledge here: defend why we should store our Bitcoin on an exchange instead of a hardware wallet. Enjoy!

There are types of people that aren't tech-friendly, can't take care of their Bitcoin hardware wallet and prefer to use a service that lets them to transfer their duties and responsibilities to 3rd parties. For these people, hardware wallets and non-custodial wallets aren't good options because there is a very high chance that they'll lose their wallet's seed phrases and logically, will not be able to access their wallets. For such people, exchanges are a better option but the problem is that in this case they make themselves dependent on 3rd party, which can block their account and access to fund at any time they wish but the positive side is that when you use 3rd party, you don't have to worry about seed phrases, WIF keys and other problems that comes with traditional wallets.

[Z-tight]

defend why we should store our Bitcoin on an exchange instead of a hardware wallet. Enjoy!

What silly thing are we going to defend next after this, or are we going to agree with cz that almost everyone would likely lose their BTC store in their self custodial wallet, so in order not to lose it, they should store it in their binance account and enjoy the 'safu' promo. Bs, there is no way to defend having your coins stored in a centralized exchange, the exchange can come up at anytime and confiscate your funds, close your account, etc. in a hardware wallet, your funds are offline and you are responsible for your own security.

[Fiatless]

So, let’s have a little debate to test everyone's knowledge here: defend why we should store our Bitcoin on an exchange instead of a hardware wallet. Enjoy!

Traders can keep money in exchanges because of its liquidity. These set of Bitcoin investors who always engage in crypto trading want a platform where buyers and sellers are always available. Some people are naturally careless. Password or private keys might not be safe in their custody. They might decide to keep their money in exchanges since they have options to recover their accounts if they lose or misplace them.

However, I don't have any reason to keep my money in centralized platforms because it is more riskier. It is better to be careful to keep my funds than to put them in the custody of humans who cannot be trusted.

[ImThour]

I can come with some points but most of them are already talked but still, let's go with it:

1. Exchanges provides an easy way to access and spend your money. In hardware wallet, you always need your device with you.
2. Exchanges also offers Earn / Interest schemes over your Crypto, which might be one reason you might want to stick to it.

But in the end, "Not your keys, not your coins".

[markm]

I would love a secure way, preferably that does not cost too much in fees, to build my massive columns of buy offers and sell offers, that also makes the support I thereby give to both sides of the pair, visible to sites like Coin Market Cap et al, since keeping a visible strong buy-side seems to be a huge defacto part of why some coins are judged valuable, and how valuable they are judged, by such ranking sites.

Of course I nowadays use the Stellar platform a lot so that at least the buy-side (the Lumens) is still in my wallet whilst deployed as buy-side on various pairs, but how much attention are sites like, again, Coin Market Cap, paying to such "support" when ranking assets?

Thus, a CEX that gets its offerings shown on ranking sites has its uses, for example how else do ancient heritage coins such as IXCoin, I0Coin and DeVCoin even get their up to date statistics continuously piped onto such ranking / aggregator sites?

-MarkM-

[Rruchi man]

So, let’s have a little debate to test everyone's knowledge here: defend why we should store our Bitcoin on an exchange instead of a hardware wallet. Enjoy!

It is difficult to sound silly and defend something when I know the truth, but the excuse that someone can give is the ease of trading your cryptocurrency, from bitcoin to other cryptocurrency if you are considering investing in them too.

 Another argument can be the accessibility that some may argue exchanges have more than hardware wallets, and this is something that can be advantageous when you consider using bitcoin as a currency.

[South Park]

For a change, since most of us here recommend not storing Bitcoin on an exchange because of the "not your keys, not your coins" principle, let's flip the script. Although using a hardware wallet is advised, it’s not 100% foolproof either—sometimes we make mistakes, like our devices getting compromised, often due to user errors.

So, let’s have a little debate to test everyone's knowledge here: defend why we should store our Bitcoin on an exchange instead of a hardware wallet. Enjoy!

Traders do not really have too much of a choice, they need to store their coins on their exchange of preference, as not doing things this way will mean higher fees to pay and the possibility of not taking advantage of some great opportunities that may appear as they wait for their coins to hit the exchange, however for those of us that are not traders, there is not really too much of an excuse to engage on this behavior since we know it offers no advantage to us and there are many risks associated with it.

[legiteum]

For a change, since most of us here recommend not storing Bitcoin on an exchange because of the "not your keys, not your coins" principle, let's flip the script. Although using a hardware wallet is advised, it’s not 100% foolproof either—sometimes we make mistakes, like our devices getting compromised, often due to user errors.

So, let’s have a little debate to test everyone's knowledge here: defend why we should store our Bitcoin on an exchange instead of a hardware wallet. Enjoy!

This conversation reminds me of people who won't travel on a commercial airliner because they think it will crash--so they get in a car instead, which is hundreds of times more dangerous, statistically speaking.

That said, the first thing I would ask here is how much money are we talking about here? The answer to that determines the entire conversation. If we're talking about the "cash" (cache) in your wallet--money you could lose and it wouldn't ruin your life--then keeping it on your physical person and self-guarding it is perfectly fine.

But if we're talking about your "life savings"--money that would ruin your life if you lost, and, money that a criminal would kill you for--then keeping that money on your own physical person is just nuts. As clever as you think you are, criminals will always be more clever--and more violent and ruthless. And as diligent as you think you are, you don't do this for a living so you will never be as good at it as somebody who does do this for a living.

That's why most Bitcoin, in terms of dollar-volume, is stored in some kind of centralized account by some centralized company: most people don't want to mess with being infosecurity experts. They do something else for a living and will pay an expert to help them out.

(Of course this completely discombobulates the original premise of Bitcoin, but as I've said many times here, Bitcoin hasn't been broadly used for its original purpose since about 2012).

[Cryptomultiplier]

For a change, since most of us here recommend not storing Bitcoin on an exchange because of the "not your keys, not your coins" principle, let's flip the script. Although using a hardware wallet is advised, it’s not 100% foolproof either—sometimes we make mistakes, like our devices getting compromised, often due to user errors.

So, let’s have a little debate to test everyone's knowledge here: defend why we should store our Bitcoin on an exchange instead of a hardware wallet. Enjoy!

From experience, one may be left with little choice than to store their BTC on an exchange instead of a hardware wallet because of the withdrawal limit range, from the exchange to the hardware wallet.
Sending BTC from one of any popular exchange to an electrum wallet for example, has to be up to a certain amount, otherwise it would reverse or cancel or seize the coins due to inadherence of the TOS stated before you registered on the exchange.

The only time where saving or storing up of BTC in a hardware wallet is necessary, is when one is making a committed and consistent effort at a certain strategy of investment and also when one tries to play safe having come into much profit in BTC trading more than the limit stipulated.

[Stalker22]

Centralized exchanges can actually be pretty handy for some folks who dont wanna deal with extra responsibility of self-custody wallets.  Lets get real, not all of us are tech geniuses.  Losing that seed phrase or getting phished? Game over, man.  No take backsies.  But customer service at the exchanges can help sometimes, at least.

They handle security stuff so you dont gotta.  Two-step verification, safe storage - they got teams to keep your coins locked down.  And talk about easy access! Wanna make a quick trade? No problem.  Need your funds on the go? Phones your new wallet, baby.

But yeah, some downsides stomp all over the nice stuff.

[Dr.Bitcoin_Strange]

So, let’s have a little debate to test everyone's knowledge here: defend why we should store our Bitcoin on an exchange instead of a hardware wallet. Enjoy!

You already stated the reason why we must not and why people don't store Bitcoin on CEX, I expect we should be analyzing more facts why custodial wallet is better than CEX and not the opposite. If you actually believe that CEX is better for you, then store your coins there.

 Someone said that CEX offers rewards for storing your coins, yes that's true but the reward offer is small and if you have about 5 Bitcoin, I doubt if you will be free to store it on CEX, you will even be scared, having some thoughts (🤔💭 how about if someone hack my account on the CEX) in your head. Store small amount of asset on CEX and you will not get a reward, store a huge amount, then you have to be scared of whether your account will get hacked or not.

[livingfree]

defend why we should store our Bitcoin on an exchange instead of a hardware wallet. Enjoy!

Because there's an interest given 1%-3% per year for the "stake" Bitcoins on these exchanges.

Compared to us holding that in our hardware wallets or whichever wallet we prefer that has the private keys that we keep, we get no interest and are only dependent to the fluctuations.

That sounds enticing but still a no for me.

[Orpichukwu]

Because there's an interest given 1%-3% per year for the "stake" Bitcoins on these exchanges.

Compared to us holding that in our hardware wallets or whichever wallet we prefer that has the private keys that we keep, we get no interest and are only dependent to the fluctuations.

That sounds enticing but still a no for me.

That interest part is one thing I think most people use as an excuse to keep their bitcoin in an exchange, but the thing there is that the interest rate is always very small, and it's not always worth the risk.
 
I will rather use day trading as a reason to hold my bitcoin in an exchange since if I focus, there can be more profit, which can be made compared to the APR at the end of the year without also thinking about fees.

[nakamura12]

The reason why some people store their coins in an exchange is that they can trade right away and wouldn't have to spend for the transaction fee when transferring funds. In that case, you only need to pay transaction fee once you decided to withdraw your funds from ehe exchange. You can also stake your coins to earn profit where many custodial wallets doesn't have that kind of service although your coins are still in great risk when it comes to "not your keys not your coins".

[lionheart78]

So, let’s have a little debate to test everyone's knowledge here: defend why we should store our Bitcoin on an exchange instead of a hardware wallet. Enjoy!

I cannot defend something that I believe is not right to do.  Although storing funds in an exchange is convenient in a way that we can easily trade our Bitcoins and can easily take advantage of the market volatility in case Bitcoin deeply crashes or exponentially increases in price,  when the security of being the owner of Bitcoin is involved, I do not think that storing it in exchanges outweighs storing it in hardware wallet.