I'm so tired of this bullshit.

[NotATether]

Following the recent Bitcoin ATHs, C0inbase subredditors are now gaslighting people that storing your coins on that exchange is more secure than self-custodying.

But what triggered me to make this thread is this guy who insisted that people who receive sudden KYC/AML requests know what they did wrong, and that since it's supposed to be a Tip-Off (i.e. if your money gets frozen by exchanges or banks then that's your problem and nobody else's.)

This sounds ridiculous, so I took a screenshot of the interation with names redacted.






It's not hard to find the thread if you're interested.

Do not leave your coins on exchanges if you don't need to trade. I don't care how many bitcoins are in their multisig. *Your* setup is multiple times more secure than an industrial-grade setup whose website accounts are targetted by thousands of the smartest hackers on the internet.

And then on top of that the exchange itself is working against you. I repeat, do not throw away your hard-earned money this way!

[_act_]

Following the recent Bitcoin ATHs, C0inbase subredditors are now gaslighting people that storing your coins on that exchange is more secure than self-custodying.

You said Coinbase subredditors

Coinbase is an exchange and there are some people there on the Coinbase subreddit that may just like to mislead people.

I am not active on Reddit but the best forum I know that I can see the true information about what bitcoin and exchanges is still on this forum, Bitcointalk.

You saw what Binance CZ posted about this when people were moving coins from Binance to a noncustodial wallet in 2022. Those that are working for an exchange may just like to mislead people and they may be the one posting it.

[EL MOHA]

Do not leave your coins on exchanges if you don't need to trade. I don't care how many bitcoins are in their multisig. *Your* setup is multiple times more secure than an industrial-grade setup whose website accounts are targetted by thousands of the smartest hackers on the internet.

And then on top of that the exchange itself is working against you. I repeat, do not throw away your hard-earned money this way!

Seriously I am not surprised about Coinbase actually telling people to move their bitcoin to the exchange and saying that wallet isn’t secure enough, I will simply classify this as an advertisement and nothing more because if the exchange is secure why do the exchange has a cold wallet for themselves and if it is secure bitcoin why can’t I simply get myself my own cold wallet instead of allowing a third party to store it in theirs for me. This is all a stunt to make gullible people to leave their coins on the exchange. This exchanges are simply just introducing new techniques to bait people into leaving off their coins with them, Binance has this SAFU narrative they are pushing plus even trying to introduce inheritance scheme on the platform which is all not enough reason not to be your own bank,

For me exchanges Should be treats as market place that they are and not for storing bitcoin, simply buy and sell their and take off your coins there with very little there for bitcoin prep traders. The guy making silly excuses in the image is simply a coinbase reply guy I guess because this exchanges sometimes just freezes accounts without proper verification and this kind of funds are hardly returned

So for me be your own bank

[Hatchy]

And then on top of that the exchange itself is working against you. I repeat, do not throw away your hard-earned money this way!

Not your keys, not your coins. It's that simple. Exchanges are massive targets for hackers, and even the best ones have been breached, often with no clear explanation of how. We have seen alot of them in the past and more to happen in the future.. so Relying on an exchange means trusting them not only with security of your funds but also with your access, which can be arbitrarily frozen by KYC/AML requests.

why then should one take the risk of leaving  their money in the hands of some people that can't even what their own back? It sounds ridiculous...

[Felicity_Tide]

~snip

And then on top of that the exchange itself is working against you. I repeat, do not throw away your hard-earned money this way!

For how long are we going to continue with this sermon before everyone finally realize...?
The world is already filled with enough problems, which means, anyone that sees Cex as the ultimate solution is literally adding more problems to the ones available already.
I'm disappointed tbh, and I think those that are justifying these actions are part of the problems in the world today. The presence of Central authority has become a part of us, despite the troubles they sometime cause.

Not your keys... Not your coins.

[RickDeckard]

Do not leave your coins on exchanges if you don't need to trade. I don't care how many bitcoins are in their multisig. *Your* setup is multiple times more secure than an industrial-grade setup whose website accounts are targetted by thousands of the smartest hackers on the internet.

And then on top of that the exchange itself is working against you. I repeat, do not throw away your hard-earned money this way!
[/quote
Sadly >90 % of users that buy bitcoin still see the whole Bitcoin system as a centralized currency with a centralized entity. To them, CEX's such as Coinbase, Binance et all are the only point of truth and the only ground where their funds are safe, just like traditional banking (the fun fact is that, even people's money stored in banks is lent in a ridiculous amount of times  ).

I try my best to divert such topics and help pave the way to sovereign to some users in Reddit, but mostly on subs that are not geared towards CEX's and are more geared towards welcoming new users into this space. I usually get happy if I'm able to steer at least 1 user from the usual path of CEX->KYC->Buy BTC, but that comes with a lot of time invested in the discussion...

[philipma1957]

Following the recent Bitcoin ATHs, C0inbase subredditors are now gaslighting people that storing your coins on that exchange is more secure than self-custodying.

But what triggered me to make this thread is this guy who insisted that people who receive sudden KYC/AML requests know what they did wrong, and that since it's supposed to be a Tip-Off (i.e. if your money gets frozen by exchanges or banks then that's your problem and nobody else's.)

This sounds ridiculous, so I took a screenshot of the interation with names redacted.






It's not hard to find the thread if you're interested.

Do not leave your coins on exchanges if you don't need to trade. I don't care how many bitcoins are in their multisig. *Your* setup is multiple times more secure than an industrial-grade setup whose website accounts are targetted by thousands of the smartest hackers on the internet.

And then on top of that the exchange itself is working against you. I repeat, do not throw away your hard-earned money this way!

Still locked out of my 12 year old account.

They took 10 pieces of info for kyc at this point they will likely never let me use them again.

But they did let me remove my money and coins.  I left 13 dollars because  I do not want the account to close.

It has all my tax info for the last 12 years.

Can't seem to get it fixed no matter what I do.

[NotATether]

Seriously I am not surprised about Coinbase actually telling people to move their bitcoin to the exchange and saying that wallet isn’t secure enough,

To clarify, these are not employees. They are just coinbase fanboys.

[Oshosondy]

To clarify, these are not employees. They are just coinbase fanboys.

How can you be so sure that they are just fan boys and not employees? I do not think you will be able to know that.

People can also have different opinions like how Peter Schiff have critic opinion about bitcoin.

Edit: Exchanges is not a place to hold your coins, I know that and it is true. It has a reason they are called exchanges and not wallets.

[PX-Z]

...You saw what Binance CZ posted about this when people were moving coins from Binance to a noncustodial wallet in 2022. Those that are working for an exchange may just like to mislead people and they may be the one posting it.

That's true. Fanboys, employees, and of course executives will all say the same thing for business reasons. This is exactly why FUD will never fully go away. It’s always better to equip yourself with proper knowledge so you don't get easily lured in or fooled by anyone online.

[batang_bitcoin]

That's true. Fanboys, employees, and of course executives will all say the same thing for business reasons. This is exactly why FUD will never fully go away. It’s always better to equip yourself with proper knowledge so you don't get easily lured in or fooled by anyone online.

And these people know that there are people who gets paranoid for what they read due to the FUD that they've read on these discussions. We've been tipping everyone about how exchanges should be use for its intended purpose to trade and not for safe keeping purposes. But still, there are people that trusts them due to their reputation and that's why they're keeping their funds there because they will reason many things, it's government recognized, it's got stocks already. But little did they know, once a hacking incident happens and they deny all refunds, their funds are gone forever.

[freedomgo]

To clarify, these are not employees. They are just coinbase fanboys.

You know what they’re really doing, they’re just promoting Coinbase. Maybe they think it’s safer just because they don’t know how to secure their own wallet. Or maybe they’ve never come across the phrase “not your keys, not your coins.” If they did, they’d understand that leaving your Bitcoin on an exchange means putting your future at serious risk.

We’ve already seen what happens , several exchanges in the past have pulled exit scams and ran off with users’ Bitcoin.

We should’ve learned from that by now.

[Plaguedeath]

Yeah this is no longer about privacy anymore, regardless you buy Bitcoin through centralized exchange or through no KYC P2P/DEX, it's advisable to leave your coins in self custody wallet especially you hold at least $1K.

There are people who worry if they bought tainted coins, there's no way to know if they bought from no KYC P2P/DEX, in this situation it's better for them to buy through centralized exchanges.

[Majestic-milf]

 I know that it's nice to promote Coinbase and all that but when you're beginning to vehemently insist that users keep their coins on these exchange, it looks fishy. Like they know that anything could happen to your coins but they aren't bothered. It's really a bad way of promoting the company if you ask me because by the time some naive ones listen to their "advice" and something happens to their monies, it becomes a problem.
 The question is; why will people want to leave their funds in exchanges after what happened to the likes of FTX, Mount Gox and the others. Haven't they learned their lessons yet?

[OgNasty]

There are so many different scenarios when it comes to custody options and individuals that there really isn’t a one approach fits all. For some people (maybe most people) they shouldn’t be responsible for their own coins while others may have no issue with it. I personally think the best approach with everything is diversification.

[Darker45]

I remember having a discussion with a fellow user here who "exclusively only use ChangeNOW", as I'm quoting below. It seems they share the same reasoning.

I find their stand weird. With their argument, which I think is obviously unfair, exchanges are practically free to freeze funds without providing any explanation why, because they may not be legally allowed or it could be like a tip-off which might make it easier for certain actors to bypass triggers.

So, when funds are locked by exchanges, "Everything is the user's fault".

Of course, I don't agree.

There's enough smoke about ChangeNOW that it must be safer for you to avoid it and anything related with the service altogether. Godex's profile, at least on this forum, is full of red trusts. There's also an existing flag against them. SimpleSwap is also distrusted here.

It is interesting how people write about these services here because I exclusively only use ChangeNOW and SimpleSwap and didn't have a single issue to date. What exactly do you think that they are supposed to do if their risk system flags your transaction?

At the very least, they should provide sufficient explanation why the transaction is flagged. You don't just keep the funds of customers without a detailed explanation why you're doing it, or suddenly require personal explanation without saying why. Second, if you think the transaction shouldn't proceed, reject it, but return the funds to the owner. Why do they have to keep the money to themselves?

Have you considered the following two possibilities. First, they may not be legally allowed to tell you much. Second, if they reveal all the things that flags their system then it becomes easy to bypass it?

You tell that to the people who have lost life-savings, life-changing amounts to these scam exchanges. You tell that to the clueless customers who forever wondered what happened to their hard-earned money. They got no proper explanation, no response even.  

The possibilities you're talking about are the most convenient ways for these scammers to steal money. Forget about legalities. I'm sure these behaviors and alibis can't stand in a court of law. If only it's easy to bring these scumbags to court.

Yes, I will gladly tell them because they are the ones at fault. Deal with it, stop running away from responsibility. Read the terms of service before you send your money away to somewhere. If you believe that you have been wronged, then go ahead and sue. I wonder why practically no allegedly scammed party tries to sue.  

Everything is the user's fault, nobody was forcing them to do this. If you don't understand the risks of your actions, you are entirely to blame. Nobody else but you. It may sound harsh, but this is the reality of it. Don't want to get scammed? DYOR and start getting properly educated before you use something.

[Luzin]

There are so many different scenarios when it comes to custody options and individuals that there really isn’t a one approach fits all. For some people (maybe most people) they shouldn’t be responsible for their own coins while others may have no issue with it. I personally think the best approach with everything is diversification.

This is a pretty good option. Everything has risks including storing in a cold wallet. But indeed when you keep your assets in exchange there is no guarantee your assets are safe. In fact, the risk will be very large. But know that friends move in multiple exchanges and wallets it will make additional costs.

This means that there are wise things that we can take according to our abilities. For example, divide your assets in cold wallets and exchanges. We need exchanges and that is the risk that must be obtained so that we understand and anticipate it. New people should learn from history and what others say is not necessarily the best decision. Let us learn.

[peter0425]

Following the recent Bitcoin ATHs, C0inbase subredditors are now gaslighting people that storing your coins on that exchange is more secure than self-custodying.

I respect people who prefer having their coins in an exchange if that is what they prefer. In the same note, I expect them to do the same to people who choose to hold their coins themselves. But instead they will insist on false narratives and spread propaganda.

But what triggered me to make this thread is this guy who insisted that people who receive sudden KYC/AML requests know what they did wrong, and that since it's supposed to be a Tip-Off (i.e. if your money gets frozen by exchanges or banks then that's your problem and nobody else's.)
on with names redacted.

Two words. Victim blaming.

The one harassing OP in the screenshots said it himself. The list is long for their ToS and yet he is telling OP that he should have known what kind of violation he made just from reading their ToS. How is that possible?? Lol. Just hope it doesn't happen to him seeing he can't show any compassion.

[jcojci]

It is difficult if we want privacy in the middle of the crypto popularity. But keeping your coin in the exchanges will not recommended and a BIG NO because that is not your coins. We should keep our coins in our private wallet so we can control and know where we want to use it.

People may say many things about asking other people to keep their coins in the exchanges. But we don't have to follow that asking because we want privacy for our coins. We care with our coins so we want to keep it by ourselves.

[davis196]

Such douchebags like the guy, who defends Coinbase are one of the reasons why I don't use Reddit very often. So many toxic communities and so many "smartasses", who think they know everything and are smarter than you. Everyone has a opinion and defends it as if his life depends on that. This is so stupid. I don't believe that the official Coinbase customer support is hanging out on Reddit. The guy with the frozen Coinbase account must seek help elsewhere. Reddit is not the place for this. Keeping your coins in cold wallet is 1000 times better than relying on crypto exchanges 'just because it's convenient'.