Reason I prefer saving my money in exchange to Bank

[Derekfunds]

Bank normally is supposed to help people whenever they are in need of cash but nowadays reverse is the case, I don't know if I will say it is because of the government and currently bank charges is becoming something else, whether you do transaction or not they will charge you. Below is the reason I prefer saving in exchange to Bank

Access and liberty: money saved in exchange is very accessible provided you have your internet connection and you can transact anytime, any day, any hour if you wish to unlike Bank that sometimes will deprive customer from making use of their own money because of maintenance and some careless network issues, yes nothing is wrong with maintenance but it should be done in a way it won't affect customers and to be honest I feel relaxed and free whenever my money is in exchange because it very hard to get my seed phrase, pass key and the rest of them unlike Bank that someone can just penetrate without Bank sending you an OTP.

I can remember the last time I had little issue with bank and I was in need of that money, omor I nearly mad because they were frustrating me knowing fully well that I'm the owner of the account. The crypto space has been a blessing I mean it is always available and reliable.

[Amphenomenon]

I know the bank as much flaw especially commercial bank like First bank, GT, etc. Thank God for fintech like Opay, Palmpay and Kuda. That aside, CEX has their own flaws.

They charges you fee that can be questionable sometimes depending on the service you want example:
Look how Bitget took advantage of the limited p2p exchanges available in Nigeria from top CEX and then charges 0.5% or 0.05% for every p2p transaction.

Also, another thing is that your coins in these CEX (Centralise exchanges) are not yours, since you don't own the seed phrase/key, NOT YOUR KEY = NOT YOUR COIN. While you can have your coins here, just has how bank may question where you received your funds and ceased till everything can be clarified, CEX is no difference, know this and avoid another danger.

The best is Non-Custodian wallet, where you have your key and full control of your coins and this is a better way of keeping funds rather depositing all  in the bank. It even gives an hedge against inflation and also a better ROI than what a bank may promise to give, and this is more likely when you invest in bitcoin, but all your funds there in case of emergency and then there is a dip or being in the bear market then you may end up selling in lost. Although, one thing is sure HODLing bitcoin for a long term( at least five years) is far better than any ROI from bank and many others.

[Mpamaegbu]

...whether you do transaction or not they will charge you. Below is the reason I prefer saving in exchange to Bank

Na those old generation banks dey do all dat mumu stuff. I nor wan mention those idiots here. I nor dey see all dat wit Fintech banks dem. Instead na dem go dey give u daily interest if ur money dey for auto save. OPay and Palmpay dey give me joy. I neva experience am wit Kuda sha. Maybe na as I neva too dey use dat wan. I go try their features too.

...to be honest I feel relaxed and free whenever my money is in exchange because it very hard to get my seed phrase, pass key and the rest of them unlike Bank that someone can just penetrate without Bank sending you an OTP.

Nor too loose guard oh. Nor be betta advice to leave ur coins (I believe na im be d money) for exchange if you nor dey trade am. You fit keep am for ur private wallet and then transfer am to exchange only wen u wan exchange am to fiat and withdraw. But make we tell ourselves d truth, no how we go fit avoid banks completely. Wen u exchange d coin for exchange, na still through bank u go still take receive cash na. By then bank go don chop dem own commission.

[Charles-Tim]

Also, another thing is that your coins in these CEX (Centralise exchanges) are not yours, since you don't own the seed phrase/key, NOT YOUR KEY = NOT YOUR COIN. While you can have your coins here, just has how bank may question where you received your funds and ceased till everything can be clarified, CEX is no difference, know this and avoid another danger.

Not his keys not his coins means the coins are not his own on the blockchain, which makes him not to have full control over his own coins, the exchange has the full control.  They can decide not to give the person the coins and disable withdraw for certain reasons, unlike while using a noncustodial wallet which give the full control.

I neva experience am wit Kuda sha. Maybe na as I neva too dey use dat wan. I go try their features too.

Kuda does not have it, but you can lock (save) your naira and earn interest daily on it.

[Btcdeybodi]

Also, another thing is that your coins in these CEX (Centralise exchanges) are not yours, since you don't own the seed phrase/key, NOT YOUR KEY = NOT YOUR COIN. While you can have your coins here, just has how bank may question where you received your funds and ceased till everything can be clarified, CEX is no difference, know this and avoid another danger.

Not his keys not his coins means the coins are not his own on the blockchain, which makes him not to have full control over his own coins, the exchange has the full control.  They can decide not to give the person the coins and disable withdraw for certain reasons, unlike while using a noncustodial wallet which give the full control.

I wonder why someone will save his money in a centralized exchange and thinks that there is much difference between them and banks when you still need same KYC documents you give to banks for you to operate with an exchange and your money is not even in your own custody but still under centralized authority whereby anything can happen to the exchange just as it happen to FTX in 2022 and so many people lost their money. I just hope that similar thing should not happen to Binance because many people i know have their money on Binance. Unless when you want to exchange your crypto to FIAT or convert to other coins, that is when you can send it to an exchange if not self-custody wallets is the best place to store one's crypto assets for safety and privacy.

[Lida93]

Bank normally is supposed to help people whenever they are in need of cash but nowadays reverse is the case, I don't know if I will say it is because of the government and currently bank charges is becoming something else, whether you do transaction or not they will charge you. Below is the reason I prefer saving in exchange to Bank

Whatever reasons you might wanna give to make CEX more attractive to traditional banking it will still make them of no difference in operations because they both  work under the regulations of the authorities and can confiscate or withhold our funds at the demand of the authority. CEX just like traditional bank can be hacked or an insider robbing off the CEX leaving customers at the risk of losing their funds.

Nothing different between the two financial institutions except that one is dealing with fiat while the other is on cryptocurrencies. Not your keys not money wasn't is a popular phrase for a reason!

[Amphenomenon]

Also, another thing is that your coins in these CEX (Centralise exchanges) are not yours, since you don't own the seed phrase/key, NOT YOUR KEY = NOT YOUR COIN. While you can have your coins here, just has how bank may question where you received your funds and ceased till everything can be clarified, CEX is no difference, know this and avoid another danger.

Not his keys not his coins means the coins are not his own on the blockchain, which makes him not to have full control over his own coins, the exchange has the full control.  They can decide not to give the person the coins and disable withdraw for certain reasons, unlike while using a noncustodial wallet which give the full control.

Yea, this was what I meant, although did not give much clarity like yours but now is all good, others will understand better.

I wonder why someone will save his money in a centralized exchange and thinks that there is much difference between them and banks when you still need same KYC documents you give to banks for you to operate with an exchange and your money is not even in your own custody but still under centralized authority whereby anything can happen to the exchange just as it happen to FTX in 2022 and so many people lost their money. I just hope that similar thing should not happen to Binance because many people i know have their money on Binance. Unless when you want to exchange your crypto to FIAT or convert to other coins, that is when you can send it to an exchange if not self-custody wallets is the best place to store one's crypto assets for safety and privacy.

This is the ironic truth and that is why we can still say knowledge is power. We or many of us including me once saw CEX as secured and trusted including KYC but after joining this forum and during the whole 2022 crypto crisis with FTX, we became enlighten after everything, and to be real there are somethings we might hold as true, good or secure but later on find out we were having wrong or little knowledge/understanding on it, after all learning is continuous.

[Sammye3]

Bank normally is supposed to help people whenever they are in need of cash but nowadays reverse is the case, I don't know if I will say it is because of the government and currently bank charges is becoming something else, whether you do transaction or not they will charge you. Below is the reason I prefer saving in exchange to Bank

Access and liberty: money saved in exchange is very accessible provided you have your internet connection and you can transact anytime, any day, any hour if you wish to unlike Bank that sometimes will deprive customer from making use of their own money because of maintenance and some careless network issues, yes nothing is wrong with maintenance but it should be done in a way it won't affect customers and to be honest I feel relaxed and free whenever my money is in exchange because it very hard to get my seed phrase, pass key and the rest of them unlike Bank that someone can just penetrate without Bank sending you an OTP.

I can remember the last time I had little issue with bank and I was in need of that money, omor I nearly mad because they were frustrating me knowing fully well that I'm the owner of the account. The crypto space has been a blessing I mean it is always available and reliable.

I think in that aspect, it's pretty safe saving in exchange than banks, because they're have being several occasions of externals gaining access within authorization and having frustration network issues can also be an issue during an urgent situation. Someone can easily get access to your card even your ATM card but it's not same in crypto. It's end to end encrypted and the funds are locked and free from external harm

[B-BossMan]

Actually, some of those old cargo banks are so annoying at times, but when it comes to fast and reliable transactions, I will go for Fintech wallets, because you hardly see those Fintech banks having issues. Since I opened OPay, PalmPay, Kuda, and Moniepoint, I stopped using all these old banks. Moreover, as the OP said, in terms of saving money, your exchanges are so good, with no delay of network or some unnecessary charges like some banks. Although some people are comfortably saving their money in those old banks such as Access, GTB, Keystone, UBA, First Bank, and Zenith Bank because of the lack of trust they have for Fintech banks... it's a choice, though.

[Majestic-milf]

 I know say banks sef get their own craze for head when it comes to this issue of money mata but if you ask me I go say each get their disadvantages. If you notice, nah the unsatisfactory way these banks dey behave nai dey make customers choose the Fintech banks like Opay and the others over them since them dey more reliable and easier to transact business with. No much fees and less network wahala unlike these Banks.
 The same thing apply with Bitcoin in a situation where you loss your keys, that one nah the end of your funds, especially if you no backup your file.

[Sticky Bomb]

Bank normally is supposed to help people whenever they are in need of cash but nowadays reverse is the case, I don't know if I will say it is because of the government and currently bank charges is becoming something else, whether you do transaction or not they will charge you. Below is the reason I prefer saving in exchange to Bank

For the bank charges, na wetin you get when your president na chief tax collector, for bank helping when people dey in need of cash, bank still dey give loan if you qualify, them dey give business loan, them even dey help you buy some machines you go need for your business and you go dey pay small small_{I don see access Bank do that one}, but you go get better collateral, so if you no get better collateral for the loan, you gats patronize loan sharks wey go use interest cut your neck.

I feel relaxed and free whenever my money is in exchange because it very hard to get my seed phrase, pass key and the rest of them unlike Bank that someone can just penetrate without Bank sending you an OTP.

You dey mix things up for here, CEX no dey use seed phrases or private keys, na non-custodial wallets dey give am. Dem link your CEX account to your email, so if your email come dey compromised, even the 2FA for the CEX account no go fit save you since the scammer go log you out of your mail make you no get the code, come take over your account and your funds otilo.

I can remember the last time I had little issue with bank and I was in need of that money, omor I nearly mad because they were frustrating me knowing fully well that I'm the owner of the account. The crypto space has been a blessing I mean it is always available and reliable.

Exchanges fit do you pass Bank if them block your account, na until them finish investigations you go see your funds and Dem fit even confiscate am if you no convince Dem say the funds legit, bank sef better for this matter as e get who you go fit dey worry physically, but for exchange na so so automated message you go dey get from their help desk until them resolve your matter.

The only time you go enjoy freedom na when you dey use non-custodial wallet with your keys or seed phrases intact.

[Egii Nna]

Also, another thing is that your coins in these CEX (Centralise exchanges) are not yours, since you don't own the seed phrase/key, NOT YOUR KEY = NOT YOUR COIN. While you can have your coins here, just has how bank may question where you received your funds and ceased till everything can be clarified, CEX is no difference, know this and avoid another danger.

Not his keys not his coins means the coins are not his own on the blockchain, which makes him not to have full control over his own coins, the exchange has the full control.  They can decide not to give the person the coins and disable withdraw for certain reasons, unlike while using a noncustodial wallet which give the full control.

I wonder why someone will save his money in a centralized exchange and thinks that there is much difference between them and banks when you still need same KYC documents you give to banks for you to operate with an exchange and your money is not even in your own custody but still under centralized authority whereby anything can happen to the exchange just as it happen to FTX in 2022 and so many people lost their money. I just hope that similar thing should not happen to Binance because many people i know have their money on Binance. Unless when you want to exchange your crypto to FIAT or convert to other coins, that is when you can send it to an exchange if not self-custody wallets is the best place to store one's crypto assets for safety and privacy.

You are absolutely right. That is why most people fall victim in most cases, which is all as a result of poor research and ignorance. If they had known that a centralized exchange is just the same as a bank, they wouldn’t have this much trust in them, especially if they were aware of the FTX incident in 2022. That was when the slogan “Not your key, not your coin” became more recognized in relation to centralized exchanges. It serves as a reminder that you are not supposed to put your full trust in them, because they are not meant for long-term investment. I believe they are mainly for buying and selling crypto using fiat. If people actually took time to do their research, they wouldn’t see centralized exchanges as a safer place than their traditional bank.

[Kelward]

Banks get dem own functions while exchanges get dem own functions, I no think say one de better pass di other, e depend on di type of transactions wey you want to do. Di best place to save your money for short term use na for inside your bank account, you no need di consent of your bank to receive or withdraw money for your account. Bank transaction charges de very small and dem transaction time de very fast, especially Fintech banks.

Exchanges no be di best place to save your money because "not your keys not your coins", everybody wey get knowledge about cryptocurrency suppose to know dis fact. You no get total custody of your coins wey de for your exchange account, na di exchange get total control and if dem go bankrupt or get scammed e go follow affect you. Exchanges na basically for p2p transactions and for trading, if you want to save or hodl your coins make you keep am for your none custodial wallet wey only you get di total custody of your coins.

[Makus]

...whether you do transaction or not they will charge you. Below is the reason I prefer saving in exchange to Bank

Na those old generation banks dey do all dat mumu stuff. I nor wan mention those idiots here. I nor dey see all dat wit Fintech banks dem. Instead na dem go dey give u daily interest if ur money dey for auto save. OPay and Palmpay dey give me joy. I neva experience am wit Kuda sha. Maybe na as I neva too dey use dat wan. I go try their features too.

...to be honest I feel relaxed and free whenever my money is in exchange because it very hard to get my seed phrase, pass key and the rest of them unlike Bank that someone can just penetrate without Bank sending you an OTP.

Nor too loose guard oh. Nor be betta advice to leave ur coins (I believe na im be d money) for exchange if you nor dey trade am. You fit keep am for ur private wallet and then transfer am to exchange only wen u wan exchange am to fiat and withdraw. But make we tell ourselves d truth, no how we go fit avoid banks completely. Wen u exchange d coin for exchange, na still through bank u go still take receive cash na. By then bank go don chop dem own commission.

Exactly and that na why me seff no dey too put body for all those commercials banks their thief too much i don't dey one day make them collect 5k for my account without me executing any transaction, I go make complain seff dem tell me say in the next 7 working days I go see my money, till today I never see  anything, that thing naim just make me abandon that bank. Except say I wan execute large transactions naim I dey use one of my bank else na fintech bank i dey use.

Taking about the use of exchange, exchange no be better place to save our money oo because for exchange no be you get full access over your coin, the exchange  wey you dey use fit decide to wake one day make them retrict your account  for no reason, na why we seff go still need to dey very careful when  we dey deal with exchange, just as the name implies, exchange,  just use am for that purpose  make you comot body.

[knowngunman]

So what happens next? You'll continue to keep your assets in exchanges and never cash it to your prefer bank in the long run? One way or the other, you go still need bank to turn your assets into cash unless you'll need to have a physical transaction with a third party and that also has severe implications.

You're free to discredit banks but every reason you put up above no follow abeg. You should convince us with more concrete reasons next time. No be say I wan defend banks but everything you wrote above about banks is also applicable to exchanges. When it comes to transaction charges, Omo exchanges dey charge person pass banks especially during small transactions.

Talking about maintenance, e dey necessary to ensure smooth running of their system and services. Both banks and exchanges dey undergo maintenance and I prefer banks maintenance than exchanges own. Banks normally notify customers when they want to undergo maintenance and na mostly in the night dem dey do their maintenance when almost everyone is already sleeping unless na heavy system maintenance that will last for many hours.


Exchange don deny me access to withdraw my assets as many times as possible due to their untimely maintenance. This screenshot was taking just when I saw this post. I dey normally withdraw my USDT through TON network chain because of charges and as you can see from the image, it's currently not available which means I will have to wait until the maintenance end before I can be able to withdraw. What now makes them different from banks?

See bro, all this company/organisation or whatever they're called are not after your satisfaction as they claimed. They are simply mean for business and don't really care about you.

Talking about security? Which bank go allow you withdraw money from person account without OTP or any other security checks? Maybe you're still banking with 3rd generation banks. Have you tried First Bank before with their tight security system? Opay nko? Opay wey dey request facial verification when large amount transaction is detected. Dey play   Both banks and exchanges require you as well to guard your password and sensitive information very well else someone go move your money if you lose guard.

Again, exchanges no dey issue customers with private keys or pass phrases. You can only have log in password and authentication code for additional security. You know what this means in crypto right? It simply means na you buy the coins but na exchange get am because na dem dey keep the keys for you. They can only allow you to access it when they wish and if dem decides to freeze/hold it, there's absolutely nothing you can do.

For your own safety, if you think Banks are not safe to keep your assets for you, so are the exchanges and you are likely to lose your assets if anything bad should happen. If you're interested to store your assets for a long time, please get yourself a personal wallet that you will have full control with private keys and keep them safe from others having access to them.

[Mpamaegbu]

~

..I go make complain seff dem tell me say in the next 7 working days I go see my money, till today I never see  anything, that thing naim just make me abandon that bank.

Make we nor dey easily give up on stuff like dat. Na all these things dey make criminals for Naija dey get boldness bc dem believe sey most people nor go pursue their fuckup. If to sey dis ur case still dey fresh or you wan pursue d matta like dis, just go the bank social media handle; especially Twitter and drag dem there by also tagging CBN to it. Many people don resolve their issues with banks like that, sharp sharp. Once CBN dey tagged, banks dey quickly respond. Most of the things wey we nor know how to go about, e get people wey don do dem keep. All we need do na to search online for dem. Just a simple search. There are so much wey we fit take care of online without leaving awa house just by using awa phones.

[Cryptoprincess101]

~

..I go make complain seff dem tell me say in the next 7 working days I go see my money, till today I never see  anything, that thing naim just make me abandon that bank.

Make we nor dey easily give up on stuff like dat. Na all these things dey make criminals for Naija dey get boldness bc dem believe sey most people nor go pursue their fuckup. If to sey dis ur case still dey fresh or you wan pursue d matta like dis, just go the bank social media handle; especially Twitter and drag dem there by also tagging CBN to it. Many people don resolve their issues with banks like that, sharp sharp. Once CBN dey tagged, banks dey quickly respond. Most of the things wey we nor know how to go about, e get people wey don do dem keep. All we need do na to search online for dem. Just a simple search. There are so much wey we fit take care of online without leaving awa house just by using awa phones.

Na better OT you dey yarn so like this o because person don tell me before say him go ATM machine go withdraw money but them debit am wey be say him no receive the cash from the machine and him don waka tire for yin bank make dem reverse the money say e no get head for more than 3 months and as e be like dis e fit say him don forget about the money for dem. All these banks sef follow for criminal activities if dem settle down check dem well and the most annoying part na their customer service, very rude set of people with their busy body. If e be say any bank wey dey do anyhow you come drag dem for social media say dem go attend to your demand e make sense like dat na. People wey still dey keep their money sef na i dey pity because for a very long time now my foot never step enter bank premises not to talk of entering inside a banking hall.

[Charles-Tim]

If e be say any bank wey dey do anyhow you come drag dem for social media say dem go attend to your demand e make sense like dat na.

Not just drag the bank to social media but make sure you threaten them with CBN. Even if you do not take it to social media but threaten to report them to CBN and you are right, they do not use it to joke. They will refund you as fast as possible and possibly still message you that your account as been credited to bring your notice to it. I have seen someone did the later to threaten the bank and they refunded him very fast.

People wey still dey keep their money sef na i dey pity because for a very long time now my foot never step enter bank premises not to talk of entering inside a banking hall.

Worth knowing that Moniepoint and Kuda are Micro Finance Banks, although Opay and Palmpay are Fintechs. Not all of them are Fintechs. If you mean to keep money generally, you will still in one way or the other depend on naira.

[GPVibes]

Bank normally is supposed to help people whenever they are in need of cash but nowadays reverse is the case, I don't know if I will say it is because of the government and currently bank charges is becoming something else, whether you do transaction or not they will charge you. Below is the reason I prefer saving in exchange to Bank

I think maybe we are expecting too much from our banks and leaving out the government who are the drivers of banks through their policies. The high and incessant fees we get from banks to our phones in the guise of maintenance of account and ATM transaction charges are not independent of what is happening with the current administration of generating revenue through taxation. It is the government "renewed hope" that is causing hopelessness on the faces of Nigeria and that is the reality on ground.

As to whether bank is suppose to "help people whenever they are in need of cash" how do you mean brother? I hope you don't mean giving people money freely, no. If you mean making money available, fine but you also know the government/bank policy of decongesting the bank and bank premises and bank is not a charity organizations. I think that is the reason that licenses have been given to Fintechs to operate and ease financial service challenges from the commercial banks. Also, the Point of Sale (POS) people too are there and helping to distribute money. I don't know when I have gone to bank so far for ATM transaction or to deposit/withdraw money from bank desk, this is because you are either using app or POS. It is just the charges that are beginning to be higher and reason being that government too is interested to scoop our small money through multiple taxation.

If we feel that banks were helping in the past, I don't think so. If you are ready with bank terms like collateral and interest rates, you will still do business with them just like it felt as if they were helping before because it was easier with collateral and interest rate.

What I see and the reality is that it is becoming hard to survive in the economy now unlike before so every charge is now obvious and annoying. Electricity tariffs too is there, it is not only bank that is chopping our money.

Important note however, don't leave your money or crypto in CEX. Not your keys not your money. It is better kept in Trust Wallet ( Non Custodial Wallet) and if you want to exchange using CEX then you do that by sending it there, convert and sell, money to your bank account.

[EL MOHA]

Talking about maintenance, e dey necessary to ensure smooth running of their system and services. Both banks and exchanges dey undergo maintenance and I prefer banks maintenance than exchanges own. Banks normally notify customers when they want to undergo maintenance and na mostly in the night dem dey do their maintenance when almost everyone is already sleeping unless na heavy system maintenance that will last for many hours.


Exchange don deny me access to withdraw my assets as many times as possible due to their untimely maintenance. This screenshot was taking just when I saw this post. I dey normally withdraw my USDT through TON network chain because of charges and as you can see from the image, it's currently not available which means I will have to wait until the maintenance end before I can be able to withdraw. What now makes them different from banks?

Let me start with there is nothing different between banks and centralized exchanges, in fact if you’re not too careful you will find peace with this banks than even exchanges.

Let me start with there is nothing wrong with maintenance or things like that but sometimes it takes way too long from both sides, take all this fintechs for example they simply just don’t prolong their maintenance as the traditional banks do. As for exchanges I think most of the time the reason why they actually deactivate some network withdrawals because of congestion on those networks to avoid transactions been stuck on that network which most of the time is due to the exchanges lack of paying good fees.

Just like the exchange you’re using now which I know is KuCoin is usually a  very bad exchange in terms of their transaction charges and other things, this same TON network is available on some exchanges too. So will advice you pivot from the exchange because it is seriously not too good of an exchange in term of fee charges.

As for OP comparison what I see is that OP doesn’t really know the difference of an exchange or a wallet and needs to look into that actually