Is important to carry out all bitcoin transactions through your own wallets

[Wiwo]

This is for the newbies to Bitcoin and bitcointalk at large, urging you to take your privacy and compliance seriously, since regulations from various governments are beginning to take interest in Bitcoin transactions, and just as the phrase goes. (Not your keys, not your coins), knowing that makes you stay guided on how you handle your Bitcoin transactions to avoid losing your assets to AML and other compliances.

Note: there are some red spots that regulations state for coin receptions, such as Bitcoin mixers and a few gambling sites, although the majority of the centralized regulated Bitcoin wallet hosters like exchange high restrictions on deposits from Bitcoin mixers, whereas are linen on gambling deposits.

To be on the safer side and not lose your bitcoin, because of regulatory compliances, from a centralized exchange wallet, it is better you first receive any bitcoin payment into your wallet, that you control with your private key/wallet seed phrase saved and can restore the wallet anytime.

Bitcoin global payment is taking shape, and a lot of services are now paid using Bitcoin, and at that, we have to take the security of our Bitcoin seriously, by making sure that we are the custodial of our Bitcoin before anything.

[Oshosondy]

This is true but what if you win money from trading on an exchange? There are sometimes that you will think of not using the money on your noncustodial wallet but to use your profit on the exchange.

But I understand what you mean which is for people to know that they have complete control on their noncustodial wallet instead of exchange that their coins can be seized.

Also there are times that an exchange can suspend deposit and withdrawal.

[Obim34]

Also there are times that an exchange can suspend deposit and withdrawal.

Custodial wallets are not self controlled wallet, exchanges can decide to monitor and seize operation of your account based on suspicions without valid reasons. I have said within myself that the day i win a huge amount, either from my casino or business deal, i don't withdraw directly to my exchange. For clear reasons, BTC fees aren't much at the moment, it is better to take full control of your funds before disbursing either trading for fiat or sending to your holding address.

[Sim_card]

This is true but what if you win money from trading on an exchange? There are sometimes that you will think of not using the money on your noncustodial wallet but to use your profit on the exchange.

If you win money from trading in an exchange and you want to use the profits in exchange, it's not a problem because the funds will be sent to another exchange or still in the custody of the exchange that you won from. What OP said is that don't send funds from exchange to mixer or from a gambling site to an exchange and vice-versa. It's better you send funds from mixer/gambling site direct to your noncustodial wallet and vice-versa.

[Porfirii]

I agree that this is a good idea, generally speaking, but it adds an additional step in case you have to eventually justify the origin of the funds. It also adds a little extra risk in case you created your own wallet in a compromised computer.

But as long as your security is good and you keep track of all the transactions and keep your keys in case you're asked to probe that you're the owner of the wallets, you should be fine.

[un_rank]

I agree that this is a good idea, generally speaking, but it adds an additional step in case you have to eventually justify the origin of the funds. It also adds a little extra risk in case you created your own wallet in a compromised computer.

I cannot see how receiving funds to your address adds an "extra step" in justifying origin of funds. The way I see it, it is easier to track funds sent through your personal wallet and keep logs of transactions than it is with an exchange.

If you are using a compromised computer, it does not matter what approach you take, you are already at high risk. Having your non custodian wallet which has its own keyboard can actually help keep your funds safer.

- Jay -

[bitmover]

This is true but what if you win money from trading on an exchange? There are sometimes that you will think of not using the money on your noncustodial wallet but to use your profit on the exchange.

But I understand what you mean which is for people to know that they have complete control on their noncustodial wallet instead of exchange that their coins can be seized.

Also there are times that an exchange can suspend deposit and withdrawal.

Depending on what kind of trade you make, you can buy the coins from the CEX, withdrawal, and then deposit them again to sell and make your profits.

It is safer, although it takes some times to set up wallets for some altcoins and it also has some costs involved.

[HONDACD125]

What's important for newbies to understand is that they are not supposed to make personal payments or anything like that from their centralized exchange wallets because exchanges are not to be used as wallets; it's as simple as that. When you create an account on an exchange, you do that with the purpose of trading cryptocurrencies, buying and selling assets that you need to trade, and you should only do that with your exchange account. When you need to make a payment or something, you should do that with your non-custodial wallet, and you should have your funds that you use for such things in that wallet and not in an exchange.

So many newbies don't even know what a non-custodial wallet is, and they use exchanges for each and everything, having no wallet at all, and they also believe that an exchange is the safest place for their assets, which is wrong, because as you said and everyone say it, not your keys, not your coins, and in an exchange, you don't get to own your private keys or anything like that, but you only see a visual representation of your funds, which proves nothing that you are the only one having access to that because you are not.

[Ullaa]

I think too many people disregard the hazards related to where their Bitcoin originates from or where it’s going. Using mixers or particular platforms could trigger red flags and even if you're not doing anything wrong, your cash could get trapped or flagged

Personally I always move anything I buy or earn into a wallet where I retain the private keys It provides me peace of mind. Bitcoin is strong but with that power comes responsibility and a key part of that is privacy and knowing the present regulatory landscape

[Apocollapse]

To be on the safer side and not lose your bitcoin, because of regulatory compliances, from a centralized exchange wallet, it is better you first receive any bitcoin payment into your wallet, that you control with your private key/wallet seed phrase saved and can restore the wallet anytime.

It's safer, I agree.
No lose coins, I disagree.

If your intention to receive the coins first in non custodial wallet then send it to centralized exchange and think they won't freeze your coins, you're incorrect. Many centralized exchange not allow "concealing", they track your coins not only looking by the latest address.

If people worried with regulations and laws, use no KYC P2P or DEX instead.

[serjent05]

Personally I always move anything I buy or earn into a wallet where I retain the private keys It provides me peace of mind. Bitcoin is strong but with that power comes responsibility and a key part of that is privacy and knowing the present regulatory landscape

I am wondering if a person buys his Bitcoin in a centralized exchange, and sends it to his wallet directly, how can he say that he protected his identity?  Isn't it as clear as day that anyone can track a person's identity if he bought his Bitcoin in a centralized exchange?  While in a decentralized exchange, those who deposit fiat still use a third-party provider in order to buy Bitcoin and these third-party providers still ask for KYC, thus they can still trace the person's identity through this third-party provider.

I think the best way to protect one's identity is to buy Bitcoin face to face even though it has risks.


It is indeed very important that we store our Bitcoin in our non-custodial wallet in order to have full access to our Bitcoin anytime.

[CryptSafe]

Also there are times that an exchange can suspend deposit and withdrawal.

Custodial wallets are not self controlled wallet, exchanges can decide to monitor and seize operation of your account based on suspicions without valid reasons. I have said within myself that the day i win a huge amount, either from my casino or business deal, i don't withdraw directly to my exchange. For clear reasons, BTC fees aren't much at the moment, it is better to take full control of your funds before disbursing either trading for fiat or sending to your holding address.

It is never advised to use a third-party wallet, such as exchange etc, to receive payment for any reason because you just might not know where the funds are coming from since this is crypto space and if the sender wallet is blacklisted you have no idea and this makes it not convenient to do so  because the third party you are using to receive the funds might freeze it or otherwise. For this reasons, using your own private wallet is the best option so that you are sure of your funds when you recieve them.

[xmrhopium]

When there is money involved, you always (almost) have to go through the kyc verification process which is not only in crypto but everywhere in any financial system.

And whether it is a centralized or decentralized exchange they need to get assured that the users account isn't being used for illegal stuffs, for their responsibility to not create any trouble later or being flagged by regulator bodies for that cause which could damage their company's reputation.

If you are not doing any kind of wrong or have any intention regarding only using for ethical way then there's no reason to get worry about those kyc. It's there to protect their customers and for them too.

I've been using binance for very long time (I don't know what other cex's you guys are using or getting scared to use) neither promoting binance here, bought monero from dex's and sold in cex's and bought huge ltc on cex's and then swap for xmr, same with bitcoin. (No hard problem but i saved huge of my money on bitcoin transaction fee on cex's at a time, it used to have something 8,9$) but now my corn are safe on electrum. I still swap ltc for btc on dex'c and vice-versa but till date I've never got any issues from while using them. Sometime they might asks for another additional documents like electricity bills, passport details, bank statements of six months, whats user occupation is, source of income etc... but if you have valid source of funds then there is no point to get worry about.

In here in my country, we do have ban on crypto (might arrest) a person who talks even about bitcoin or any related on any social media and have to pay penalties for that but anyhow people found good option buying/selling coin and local currency thru p2p at there (or I would say is only the one option to get usdt, none credit card accepted). Sometimes it is also risky to trade with a new dude over there can be a police who lurking out to catch users from there (and this is not new) had arrested many thru out that way.

Though storing bitcoin for a long time in cex's can be a bad idea. They might steal it but for trading, receiving/sending of less amount for short duration, it is ok to use. Also, for a long term I definitely reccomend using a non custodial wallet like electrum wallet where you can easily control 12 words seed phrase and have full ownership of your coins.

Also, I see no wrong on buying coin thru centralized exchanges and then send it back to their cold wallet, I don't understand why people are creating much issues with their privacy regarding, if dude is not a big giant mammal "whale".

[sunsilk]

I've read people who have been red-flagged by the CEXs because of their past transactions. It's either with a mixer or with a casino. OP's suggestion is good for those who don't want to experience the hassle of being questioned about your own funds that have been from both websites.

However, sometimes we're out of the habit of remembering that thing and directly transfer from either to the exchanges.

While it is easy to remember and many here is aware of this matter, this is intended for the newbies that might have no idea of it yet.

[BABY SHOES]

More precisely, those who are currently still joining the mixer signature campaign do not use the exchange wallet, usually they will experience deposit restriction problems which result in frozen assets.

Mixers are still too sensitive to deposits from mixers, maybe if it is from your own wallet it will not be detected if you send it to the exchange, but don't be too reckless, usually the exchange detects it comes from the mixer wallet.

My own casino has no problems, because some exchanges still accept it until now.

[Nwada001]

Personally I always move anything I buy or earn into a wallet where I retain the private keys It provides me peace of mind. Bitcoin is strong but with that power comes responsibility and a key part of that is privacy and knowing the present regulatory landscape

What about in a situation where you need to sell and convert what you have earned or sell profit from what you bought? How will you handle that? Will you make use of some DEX to trade and convert in order to be free from regulators, or will you still fall into using a centralised exchange? Some people actually do make use of self-custodial services, but when they want to convert their holding into another asset, they no longer care about the safety of their privacy.

[BenCodie]

More precisely, those who are currently still joining the mixer signature campaign do not use the exchange wallet, usually they will experience deposit restriction problems which result in frozen assets.

Mixers are still too sensitive to deposits from mixers, maybe if it is from your own wallet it will not be detected if you send it to the exchange, but don't be too reckless, usually the exchange detects it comes from the mixer wallet.

My own casino has no problems, because some exchanges still accept it until now.

There are no longer mixer signature campaigns on this forum? Or are you referring to external forums?

Personally I always move anything I buy or earn into a wallet where I retain the private keys It provides me peace of mind. Bitcoin is strong but with that power comes responsibility and a key part of that is privacy and knowing the present regulatory landscape

What about in a situation where you need to sell and convert what you have earned or sell profit from what you bought? How will you handle that? Will you make use of some DEX to trade and convert in order to be free from regulators, or will you still fall into using a centralised exchange? Some people actually do make use of self-custodial services, but when they want to convert their holding into another asset, they no longer care about the safety of their privacy.

Using a DEX does not necessarily free you from regulators. Decentralized exchanges like Bisq can help to make trades more privately though if you weren't using a self-custodial exchange to begin with, started on a centralized exchange or trading using Bisq or another decentralized/peer to peer platform though are selling to a bank account, privacy is likely to have been lost at some point in the process anyway.

[collecttmaster]

I disagree with this thread. While it has its benefits, and if you can learn to do things safely you should. But for a lot of people this is the reason that they lose crypto or get hacked. There is a good number of people who are better off keeping their coins on exchanges or even just buying those ETFs.

[SilverCryptoBullet]

This is for the newbies to Bitcoin and bitcointalk at large, urging you to take your privacy and compliance seriously, since regulations from various governments are beginning to take interest in Bitcoin transactions, and just as the phrase goes. (Not your keys, not your coins), knowing that makes you stay guided on how you handle your Bitcoin transactions to avoid losing your assets to AML and other compliances.

Note: there are some red spots that regulations state for coin receptions, such as Bitcoin mixers and a few gambling sites, although the majority of the centralized regulated Bitcoin wallet hosters like exchange high restrictions on deposits from Bitcoin mixers, whereas are linen on gambling deposits.

Be your own bank because "It's not your key, it's not your bitcoin."

Many accidents that unexpectedly caused a lot of losses on many people which are enough as strong warnings for careful people in order to stay away from using centralized exchanges, custodial wallets (no private key access) to store their bitcoin.

Reminder: do not keep your money in online accounts.
Events made you scare about custodial wallets, centralized exchanges.

People just are too careless and they ignored past accidents and available warnings while they are always ready for taking risk, and exploring dangerous things by themselves and their own fund.

[sokani]

I disagree with this thread. While it has its benefits, and if you can learn to do things safely you should. But for a lot of people this is the reason that they lose crypto or get hacked. There is a good number of people who are better off keeping their coins on exchanges or even just buying those ETFs.

The OP is not talking about keeping funds on centralized exchange, which is a bad practice whether you accept it or not. What he's saying is that we shouldn't send funds from mixers or gambling platforms to exchanges and vice versa. Because the transaction will be flagged and the funds will be frozen. Rather, we should use a non-custodial wallet to receive the funds first before sending to whatever destination.