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

[GeorgeJohn]

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.

The question is that have you tried it out, by sending a coin from mixer direct to exchange and it got frozen, I don't know for now, like a year ago I send coin direct from mixer to exchange and my coins was funded, I don't know if they have innate a law that nobody should send a coin from a mixer to exchange >>>> I had you make some emphasise that is not talking about keeping a coin in an exchange, for me that one should be more conscious despite that both is pointing at to secure your coin, people who store their coins in exchange will never store much coins except that they're ignorant of exchange hacking, if they know that exchange can be hacked,  I don't think that they will be comfortable leaving their coins on exchange

Another important thing newbies should know concerning exchange rules, is that, if exchange says that the coin to be deposited in their exchange is 0.00006 and you deposited 0.00005, such coin won't be funded in exchange wallet, I used 0.00006 as point of illustration>>> So we you have to cross check the deposit minimum of exchange requirements before you fund their wallet, I think it's important for newbies to know that before they will lost their coins in exchange, I have never see an exchange that refund such provided that it has been approved in blockchain. So we need to take note of that.

[adultcrypto]

If you are from some country, it is very difficult for you to bycot CEX when buying bitcoin because that is the only option available for the citizens since the authorities have imposed limitations on various fronts like cards and other means they could buy directly from. In this situation, the individual can buy through P2P in CEX and then move it to their private wallet where they control the private keys.

Therefore,  for storing bitcoin, private wallet is the recommended option even though they purchase can be made from CEX and other means.

[Zaguru12]

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.

In serious occasions like when the government is actually tracking down some stolen or illegal coins it does investigate even the wallet it is coming from. For example the hack of bybit had many addresses blacklisted so even if you send from such addresses to mixer and to another wallet, then again to exchange it will be track from all the addresses it had passed through, so this doesn’t work on rare occasions.

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.

Personally I think people just are used to the easiest way of doing things and that’s why they simply stick with handing over their funds to a third party like exchanges and frankly it is not a good practice no matter what to have funds on exchanges.

What OP was actually pointing at though is steps to avoid having you crypto that is sent to CEX tagged tainted

[Bitcoin Smith]

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.

Yep, those exchanges can track more than one trail to see if it ends up in any blacklisted origin and can freeze the account just for that so if we want clean bitcoins then we have to use DEX but do we have enough options for that nope. Let's just give you an example Bisq is decentralized p2p for bitcoin but the number of trade happens won't even be 1% of the numbers we see in centralized exchanges or p2p that gives us the clear picture of how centralized the system currently is even we got options to bypass and people doesn't really care about these things even when they deal with bitcoin.

As a bitcoin community we can help them to teach about these things and make them to realize the importance of decentralization and stay out of the centralized bodies with our main stash.

[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.

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 -

I was referring to the case the OP mentioned, where users withdraw their funds from an exchange and, before sending them somewhere else, they transfer them to a wallet, which would mean:

CEX -> non custodial wallet -> destination address

instead of

CEX -> destination address.

So, I was referring to the case you lose or delete your keys, you're eventually asked where funds come from and you can't prove the wallet was yours, which complicates traceability.

-snip- from a centralized exchange wallet, it is better you first receive any bitcoin payment into your wallet -snip-

Although re-reading the OP, I think that what he really meant was that, instead of receiving payments directly in your CEX, it is better to receive them in a wallet you own and then send these funds to the CEX from there. That makes a lot more sense.

[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.

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.

I am not so sure that he's only talking about that, as it is only found in the middle of the post as a note. Anyhow, that is not saying anything then except don't break a services terms of service, which is common advice. Isn't it? The title is misleading a bit misleading. This can still cause problems depending on illegal activities and how deep exchanges are looking into history.

[Ishicryptic]

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.

This is an important information for everybody that deals in cryptocurrency, let your none custodial wallet be your center point for all your transactions that will go through exchanges. Don't allow people to send coins directly into your exchange account, it could be from mixers or against any of the exchange TOS so to be on the safer side it is best to first receive crypto into your self custody wallet then you can send to your exchange account. Same thing should apply when you want to move coins from your exchange account, let it drop into your none custodial wallet first before sending it to another wallet. Exchanges can monitor your account or seize your coins for reasons that yyare innocent of, it is better to avoid such from occuring.

[Peanutswar]

Many newbies or lets say traders nowadays are keep storing their funds into an exchange other hand they keep telling they can easily make trade if the market dumps or pumps but on the other of it is its not really recommendable. Reason is the essence of the anonymity of the bitcoin will be gone because at the first place most of the exchange right now have their KYC and mandatory requirement of information as part of verification, next is not your money anymore once you deposit into an exchange its their money because you don't have the fully access with your funds they have the rights if they want to freeze your account and you cant do nothing but to comply if you want to get your funds back at least. So ideally all of your transactions are with your wallet so you have the fully use of your funds without getting overthink.

[Anointsamz]

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.

To avoid been a victim of loosing your Bitcoin, it is better you first receive any bitcoin payment into your wallet that you can easily access and control with your password/passkey and can restore the wallet at anytime.

[Wiwo]

To avoid been a victim of loosing your Bitcoin, it is better you first receive any bitcoin payment into your wallet that you can easily access and control with your password/passkey and can restore the wallet at anytime.

Third parties wallets like exchange wallets, have the control of the end owner and if your bitcoin is from some bitcoin services like mixers, it may not go well with those exchanges based on their AML laws and the other regulatory demands on them this make all the other efforts to abide by the bitcoin privacy feature usless.

So being sole custodial of your bitcoin, making sure that you have all bitcoin in your wallet and backing up all your private keys to your wallets saved so that you can use it to recover your wallet at anytime.

[Coyster]

but come to think of it, could it be that we have the same experience like this all the time, sometimes we may receive payment from exchanges, bounties, and even from making trades on exchanges, except we choose to use a decentralized exchange.

I don't know what you mean by receiving payments from exchanges, but if you are talking about winning contests or any promotion in an exchange, you are definitely going to receive your rewards in your exchange account. This warning is basically if you are receiving money from third parties, maybe a colleague, business transaction or even a signature campaign, the safer approach is to receive your money in your own wallet, because you don't know the service the sender used to send the money, it could have been a mixer.

[suzanne5223]

I supported what you said about taking the security and custody of Bitcoin seriously more than ever due to the stance government towards Bitcoin, and some countries that are known for supporting privacy now openly offer other countries the exchange of CEX user private information.
Another reason why everyone needs to prioritize the use of self-custodial wallets is to increase the level of Bitcoin decentralization.

Many newbies or lets say traders nowadays are keep storing their funds into an exchange other hand they keep telling they can easily make trade if the market dumps or pumps but on the other of it is its not really recommendable. Reason is the essence of the anonymity of the bitcoin will be gone because at the first place most of the exchange right now have their KYC and mandatory requirement of information as part of verification, next is not your money anymore once you deposit into an exchange its their money because you don't have the fully access with your funds they have the rights if they want to freeze your account and you cant do nothing but to comply if you want to get your funds back at least. So ideally all of your transactions are with your wallet so you have the fully use of your funds without getting overthink.

That's correct.
Let's be honest. There's no way it will be easy for day traders not to use CEX as storage. What's important is that they have their trading asset on CEX and don't have their hodling bag on CEX. That's what was not recommended.

[SmartGold01]

If I must say; last year there about or do I think earlier this year I provided and exchange address on the forum for sig payments but when the payment was sent to exchange from a mixers I was restricted by that platform to do further investigation on my source of funds which they said if I am not able provide a concrete information my exchange could be entirely be blocked from me, so I have to further doing more verification and after the whole had to change the address to a wallet address that I know I have the key. Now when payment is sent to that address it doesn't go directly to the exchange rather it wallet before I could move from there to exchange directly with this there is no trace it at all.

[tech30338]

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.

With lots of hacking that is happening in centralized exchange, and also with the recent hacked happen in Iran, meaning putting profits and funds with large amount is not safe, OP is right having control with keys and seed phrase, is the best thing we can do, imagine you have 100 bitcoin in an exchange and gets hacked, what if the exchange has been hit by a massive hacking that they can't recover that would been a disaster for us users.

[doomloop]

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.

Black listed is someone is not allowed. But why will they still accept it? Though I think money won't just return on its source too, so what happens is that we can only lose it. Also if we are talking about criminals, I think many of them are wise to not use the same wallet because they will think they are being tracked.

There are good reasons on why some use an exchange. Can be the same, on why some will even use a gambling platform to received funds. And as long as we are dealing on a third party or centralized institution, freezing of funds is always possible no matter what. This is why, it is always advised to not store funds longer on them if ever we can't avoid using them.

[collecttmaster]

Black listed is someone is not allowed. But why will they still accept it? Though I think money won't just return on its source too, so what happens is that we can only lose it. Also if we are talking about criminals, I think many of them are wise to not use the same wallet because they will think they are being tracked.

There are good reasons on why some use an exchange. Can be the same, on why some will even use a gambling platform to received funds. And as long as we are dealing on a third party or centralized institution, freezing of funds is always possible no matter what. This is why, it is always advised to not store funds longer on them if ever we can't avoid using them.

It is because laws are stupid and made so that the exchange or services act like traps. You could be an innocent user who has received "bad" coins and not even know it, then you deposit them somewhere and it gets frozen and you get into trouble. Then you have to explain many things and hope for a good resolution even when you didn't do anything! It sucks, but this is what are have to deal with right now. If the law did not allow them to behave this way or did not dictate it so, then this would not happen. You can test if some coins are bad by sending smaller amounts but even this is not guaranteed to work.

[Asiska02]

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.

Its possible that we all take careful measures ensuring that we are receiving transaction directly into our own personal wallet which we have control over, but come to think of it, could it be that we have the same experience like this all the time, sometimes we may receive payment from exchanges, bounties, and even from making trades on exchanges, except we choose to use a decentralized exchange.

The OP is not considering receiving money into an exchange wallet a great option to be considered when you have your own personal wallet you can receive funds into. In some occasions, receiving payment from exchanges is normal but while receiving from bounties, we can make use of personal wallets for self custody of the money when it is received. The reason some users prefer to use centralized exchange is for direct conversion of the coins into fiat to use in their local currency, avoiding small fees charges while sending to a centralized exchange either for direct exchange into fiat or for buying other coins with it. Although, keeping your portfolio in your own full custody is the best no matter the disadvantage you’re looking at because the advantages supersedes all of that.

[Wiwo]

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.

Its possible that we all take careful measures ensuring that we are receiving transaction directly into our own personal wallet which we have control over, but come to think of it, could it be that we have the same experience like this all the time, sometimes we may receive payment from exchanges, bounties, and even from making trades on exchanges, except we choose to use a decentralized exchange.

The OP is not considering receiving money into an exchange wallet a great option to be considered when you have your own personal wallet you can receive funds into. In some occasions, receiving payment from exchanges is normal but while receiving from bounties, we can make use of personal wallets for self custody of the money when it is received. The reason some users prefer to use centralized exchange is for direct conversion of the coins into fiat to use in their local currency, avoiding small fees charges while sending to a centralized exchange either for direct exchange into fiat or for buying other coins with it. Although, keeping your portfolio in your own full custody is the best no matter the disadvantage you’re looking at because the advantages supersedes all of that.

Asiska02 thanks for clarifying the dude sound as if he have missed my point and i believe he get notified on this replies so as to get better understanding of what we are talking about, because he mistake the topic to mean exchange related instead of the sefl custodians oriented that i want us to talk and discuss on innthis thread.

[Hazink]

To avoid been a victim of loosing your Bitcoin, it is better you first receive any bitcoin payment into your wallet that you can easily access and control with your password/passkey and can restore the wallet at anytime.

When you talk about a wallet you can easily access with a password and passkey, I hope you are not referring to using a centralized custodial service as the wallet because that will be a double risk, but if you are referring to wallets that enable you to protect them with extra security like a password and passkey, it will be okay, but your private key is very important as well in such a case before you can regain full access to the wallet and not just the password and passkey.

[Mpamaegbu]

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.

Nobody should fault what you said in the upper part of your post concerning sending Bitcoin first to one's wallet instead of directly to an exchange. It saves the hodler any unnecessary updated terms and conditions of centralized exchanges we can't run away from. However, we ought to also know that part of the advantages of Cexs is the ease of regaining access to one's account if password is lost or forgotten. This isn't the case with private key or seedphrase of private wallets. Once those are lost, they're lost forever.