Is It Safe To Keep Crypto On Exchanges??

[Gentle_Soul]

A friend who just started using crypto asked me if it's ok to have his Bitcoin and USDT on Binance or other exchanges for a long time. He was worried about safety, government issues, and whether it's better to move his crypto to a personal wallet.
Honestly, I didn't have a clear answer for him, so I thought to ask here.

Do you leave your crypto on exchanges or do you move it immediately?

What risks should people in Nigeria consider when deciding?

Is there any safety to use for exchanges or wallets?

I believe, your advice will not just help him but others here too who may have the same question.

Saving Bitcoin on other exchanges is quite a risky one especially for a long period of time because this exchanges most times are being controlled by government and other conditions its essential to note that   exchanges are  not sustainable enough to hold a huge asset for a long time and also they can be easily hacked .

Also your account can also be controlled by the exchange   thereby causing a restriction and  you being unable to access your funds at will  so I really do not like my usdt on an exchanges for a long period of time

[Mehmet69]

A friend who just started using crypto asked me if it's ok to have his Bitcoin and USDT on Binance or other exchanges for a long time. He was worried about safety, government issues, and whether it's better to move his crypto to a personal wallet.
Honestly, I didn't have a clear answer for him, so I thought to ask here.

Do you leave your crypto on exchanges or do you move it immediately?

What risks should people in Nigeria consider when deciding?

Is there any safety to use for exchanges or wallets?

I believe, your advice will not just help him but others here too who may have the same question.

First, you need to understand what an exchange is. An exchange is an online platform where all types of cryptocurrencies can be bought or sold, fiat to cryptocurrency, coin to coin and any crypto to fiat. It is like a local store. You go to the store, pay and purchase the product. Similarly, if you deposit money on an exchange, you can buy any coin of your choice.

If you deposit your money at your local store, the storekeeper has control over that money. Similarly, if you deposit Bitcoin on an exchange, the company has full access to it. So they can control your wallet without your permission.

But the main purpose of using crypto is financial freedom, complete control and privacy of your money. Which is never possible on an exchange. For long-term holding, decentralized wallets should be used.

The seed phrases for controlling the wallet should be kept in a safe place and under your control. Because we believe, Not your keys, not your coins.

[Joeboy]

I think the best possible solution is utilizing a hardware wallet or a personal wallet as they can be used for long term.

NB: This is to clear any kind of possible misconceptions.
Now when talking about hardware wallet one have to be very open minded. Apart from the fact that is isn't beginners friendly and also that it is expensive, one should also note that it isn’t perfect(No wallet at all is 100% foolproof). Like any electronic device, hardware wallets can malfunction, get damaged, or even get lost or stolen. And also, if one forgets or  misplaces his/her recovery seed, the whole funds is gone, there is no “reset password” button.

That is why the main focus of every traders shouldn't just be on reliable and perfect wallet like the hardware wallet or a personal wallet but also on properly backing up his/her wallet’s seed phrase, coz your seedphrase is the real key to your funds

[Oshio-man]

Do you leave your crypto on exchanges or do you move it immediately?

No, leaving your coins in the exchange is not safe because you are not the only one that have the key to the coins in that exchange, you can transfer coins to exchange if you want to sell to make funds from the coins because there are different buyers and sellers in the exchange market, and they are ready to receive different currencies you want from the transaction, If I don't want to resell the coins I bought from the exchange, I will immediately move them from exchange to my personal wallet where only me have the key to the wallet and the coins, I have heard some people said they have leave their coins in the exchange for few weeks or month before selling them off and nothing happen to their coins, but I will not advice you to leave your coins more than a day in your exchange before you can sell.