Bitcoin withdrawal suspension saga: why self custody is the best

[Hatchy]

There are alot of things to be learnt from discussions here and the least and most of recurring of them all is the gist concerning privacy and decentralization.

It baffles me when I see old members of the forum repeating the things that is preached against over again. Many of us here are aware of how some users were flagged a certain time by an exchange due to a mixer campaign that got involved with some dirty doings. We have to play smart and try to protect our privacy by all means.

Centralized platforms can freeze your money any time they find something suspicious with your transactions. This would be a good example for those who would still repeat same act. It just never ends..

[Ojima-ojo]

There are alot of things to be learnt from discussions here and the least and most of recurring of them all is the gist concerning privacy and decentralization.

It baffles me when I see old members of the forum repeating the things that is preached against over again. Many of us here are aware of how some users were flagged a certain time by an exchange due to a mixer campaign that got involved with some dirty doings. We have to play smart and try to protect our privacy by all means.

Centralized platforms can freeze your money any time they find something suspicious with your transactions. This would be a good example for those who would still repeat same act. It just never ends..

The reason why some of the Old membersz added their exchange wallets address to their signature payments, mostly comes from the headeck that comes with moving Bitcoin sometimes when the meme pool is congested and transactions fees get skyrocket..


They do this with aims of avoiding the high fees and delayed transactions, but what they must know is that, as they keep enjoying the easy exchange of their payments to Fiat, they should know that they are losing privacy, freedom and control of their assets at any point in time.

[HONDACD125]

The reason why some of the Old membersz added their exchange wallets address to their signature payments, mostly comes from the headeck that comes with moving Bitcoin sometimes when the meme pool is congested and transactions fees get skyrocket..


They do this with aims of avoiding the high fees and delayed transactions, but what they must know is that, as they keep enjoying the easy exchange of their payments to Fiat, they should know that they are losing privacy, freedom and control of their assets at any point in time.

I believe that's no reason for someone to take the risk of getting their accounts or funds frozen, because when you make a transaction in a centralized platform, they have all the rights to do anything they want, because we have given them consent when signing up, so we can't do anything about it if they think our payment or funds we received aren't clean. I'm not saying that funds from signature campaigns are not clean, but I'm just talking in general, because problems won't tell you before they arrive.

That is why, it's always better to use a non-custodial wallet to receive your funds, it is especially better for those who wish to hold their funds and not sell them immediately, because then they won't be facing any problems, at least not very soon. If in the future they want to sell them, if they care about privacy and anonymity, they should use a decentralized P2P platform for it, such as Bisq.

[dzungmobile]

That is why, it's always better to use a non-custodial wallet to receive your funds, it is especially better for those who wish to hold their funds and not sell them immediately, because then they won't be facing any problems, at least not very soon. If in the future they want to sell them, if they care about privacy and anonymity, they should use a decentralized P2P platform for it, such as Bisq.

Use no KYC exchanges or true Peer to Peer platforms like Bisq is good option if you care about your fund safety and privacy.

https://kycnot.me/?categories=exchange&currency-mode=or&currencies=btc
Why KYC is extremely dangerous – and useless.
[ANN] Bisq - Exchange, Decentralized.
[GUIDE] How to buy and sell Bitcoin using Bisq.

[Davidvictorson]

Most of us who used KuCoin and other exchanges to recieve payment need to take note that there are many risks involved because of some exchanges policy and it is best to use wallet and then probably move your bitcoin out from the wallet to exchange to sell. This is usually the best practice when Receiving bitcoin.

I want to think that people who still store their Bitcoins in a centralized exchange and continue to do their transactions or just save it there either one, do not know the inherent dangers or two know about it from the stories of others and are living in a fantasy they can't lose their Bitcoins to exchange just like the others. Or maybe they are trying to be smart like wanting to save some money on the transactions fees involved in sending Bitcoins from their wallet to their exchange app whenever they have to do a transaction.

[dzungmobile]

I want to think that people who still store their Bitcoins in a centralized exchange and continue to do their transactions or just save it there either one, do not know the inherent dangers or two know about it from the stories of others and are living in a fantasy they can't lose their Bitcoins to exchange just like the others. Or maybe they are trying to be smart like wanting to save some money on the transactions fees involved in sending Bitcoins from their wallet to their exchange app whenever they have to do a transaction.

The chance of don't know about risk of the practice is bigger than knowing about all possible risks but don't mind to do proper practice. Most people knew of risk, and recommended safe practice but they decided to do what they feel most convenient.

They only start to be woken up, and perhaps thinking of changes when they already fell into scams, hacks, fund loss but if they practiced like "putting all eggs in a single bag", they will not have any second chance to restart with a new practical method.

Warnings and recommendations are abundantly enough in books, open source online resources for everyone to learn and improve their practice. For example.
Bitcoin wallet basics. Many resources for reading and learning, only whether people are ready to read and learn.

[JiiBs]

I want to think that people who still store their Bitcoins in a centralized exchange and continue to do their transactions or just save it there either one, do not know the inherent dangers or two know about it from the stories of others and are living in a fantasy they can't lose their Bitcoins to exchange just like the others. Or maybe they are trying to be smart like wanting to save some money on the transactions fees involved in sending Bitcoins from their wallet to their exchange app whenever they have to do a transaction.

I often take it to be a deposit for the purpose of trading these Bitcoins and Altcoins for the long term of short term, swapping it or engaging in some p2p trades but over time, you find people building comfort over the fact that, these are rare occurrences that hits once a while and with you to have not been a victim, it gives the idea of the exchange being used to be very secured. It’s always just a matter of time and you are a victim, the principle of not your keys not your coins should be a fair warning.

[Ojima-ojo]

I want to think that people who still store their Bitcoins in a centralized exchange and continue to do their transactions or just save it there either one, do not know the inherent dangers or two know about it from the stories of others and are living in a fantasy they can't lose their Bitcoins to exchange just like the others. Or maybe they are trying to be smart like wanting to save some money on the transactions fees involved in sending Bitcoins from their wallet to their exchange app whenever they have to do a transaction.

I often take it to be a deposit for the purpose of trading these Bitcoins and Altcoins for the long term of short term, swapping it or engaging in some p2p trades but over time, you find people building comfort over the fact that, these are rare occurrences that hits once a while and with you to have not been a victim, it gives the idea of the exchange being used to be very secured. It’s always just a matter of time and you are a victim, the principle of not your keys not your coins should be a fair warning.

what most of the people that find exchanges to be a secured storage for their Bitcoin don't understand is that, cryptocurrency is all about freedom and Decentralizations, this make it important for them to put measures in place that build up that freedom.

Security without freedom is somewhat not complete satisfactions and that have a lot to do for a Bitcoinnaire or crypto pros.

[dzungmobile]

Security without freedom is somewhat not complete satisfactions and that have a lot to do for a Bitcoinnaire or crypto pros.

If security comes with dependence on anyone, any party, any company to provide that security to you, and you can not control it with your practice, I see it is no longer secure but in fact it turns to be risky.

You can store your bitcoins on centralized exchanges and think they have their big companies with security resources so their platforms are more secure than your own computer, laptop, phone or wallets. It's dangerous as their exchanges can be hacked and it's not strange if a centralized exchange has hacks in its history. When hacks happen, your fund can be lost forever and without compensation from that exchange.

It's not secure if you have a vision for the future while security of your bitcoin only can come from open source, non custodial wallets and cold storage methods. You can do this, control this by yourself in very secure ways.

[puloweh555]

Most of us who used KuCoin and other exchanges to recieve payment need to take note that there are many risks involved because of some exchanges policy and it is best to use wallet and then probably move your bitcoin out from the wallet to exchange to sell. This is usually the best practice when Receiving bitcoin.

I want to think that people who still store their Bitcoins in a centralized exchange and continue to do their transactions or just save it there either one, do not know the inherent dangers or two know about it from the stories of others and are living in a fantasy they can't lose their Bitcoins to exchange just like the others. Or maybe they are trying to be smart like wanting to save some money on the transactions fees involved in sending Bitcoins from their wallet to their exchange app whenever they have to do a transaction.

If the sole reason for this is to save on transactions this is a flawed decision. It means they prioritize savings over security even though there have been numerous cases where exchanges can suspend transactions, and some have even gone bankrupt. I think this is a reckless choice, considering that the cost of sending transactions from a wallet to an exchange is not that high compared to security.

It's fortunate if the suspension is only for a small amount. What if a large amount of assets on an exchange is suspended? This is truly painful. So, from incidents like this, we can learn that asset security is more important than prioritizing saving transaction costs.

[Antotena]

I wonder why campaign perticipants can't use a none custodial wallet to receive their campaign payments, it costs nothing except data to create one. One of the biggest lessons that I've learnt in this forum is not to store your Bitcoin in an exchange because if it's not your keys it's not your coins. This should be a lesson to them and others that are still using exchange addresses to receive payment that it's not the best option. I hope that the issue is resolved soon and they can be able to access their accounts, hopefully they will do the needful and change their campaign wallet addresses.

I don't like the idea either but I remembered how everyone wanted alternative payment due to this transaction fee pressing issues. Back then, almost everyone was using custodial wallet but when taproot witness became a place of spam, the mempool was too congested, transactions were difficult to get through and people with low funds couldn't process their transaction, you can imagine the pain of someone paying $15 for a fee because they want to send $40 to another wallet to sell.

The mistake they made was they should have change the wallet address immediately the fees are dropped, by now anyone can send transaction in Bitcoin with just 1 sats and you will get confirmed in some minutes, which is just some scents and you will be good. The way forward, I will advice they follow the exchanges instructions and do the needful so they can get their account unfreeze, some of them have money in the exchange which is valuable to them.

[EluguHcman]

There are alot of things to be learnt from discussions here and the least and most of recurring of them all is the gist concerning privacy and decentralization.

It baffles me when I see old members of the forum repeating the things that is preached against over again. Many of us here are aware of how some users were flagged a certain time by an exchange due to a mixer campaign that got involved with some dirty doings. We have to play smart and try to protect our privacy by all means.

You are right, the tons of discussions in this forum was not meant to be just merely verbal interactions that should just die after all but taken appropriately measure as a working instrument in as much we have obligations to practicing self custody with the interest of monetary sovereignty

Centralized platforms can freeze your money any time they find something suspicious with your transactions. This would be a good example for those who would still repeat same act. It just never ends..

Even without finding something suspecious centralized system will always show that unjust authoritativeness as a regulatory firm letting users know that they have limited right in their system and avoiding this is best regarded to embrace the decentralized networks.

[coolcoinz]

1. bc1qg4arhl5fuep5tr9r2upplkj8qezur5hxnwxd8w belonging to *Ace* on spreadsheet number 12 and,
2. ⁠bc1qgralnxqcvmg335km595lh542vseqkf3flfyc8w belonging to ChocolateBitcoinK on spreadsheet number 20.


Are these supposed to be "similar" addresses? Most of the address is in fact different and the same beginning and ending doesn't really change anyything. I bet that you could find 100 more addresses that match like this, belonging to different wallets.

Are these people aware of the fact that a single sign in the address makes it a completely different one? That's how codes work. You can have have a 4 digit pin and you change 1 digit and never get access.
People from the exchange who tagged this are complete morons.

I've heard of problems withdrawing from exchanges in the recent weeks due to MICA in the EU. People are being asked for reasons when they withdraw, for instance if they want to spend the coins or hold. If you don't tell them you're going to be delayed. Also, if you claim you're withdrawing to your own wallet, you may be asked to prove ownership by signing a message. This is getting ridiculous.

[khaled0111]

You can have have a 4 digit pin and you change 1 digit and never get access.
People from the exchange who tagged this are complete morons.

Yes and as I said in my previous reply, the system this exchange and mempool.space use to spot poisoning attacks seems flawed. There is nothing suspicious about this transaction or the addresses involved, really (the number of similar characters at the beginning and end of each address looks completely normal and the sent amount is too high to be considered suspicious).
Besides, I don’t see why they decided to freeze the accounts that own the other output addresses because even if this was a poisoning attack attempt, only the sending address and the similar addresses should be flagged as suspicious.

[Issa56]

Many forum members has been campaigning of not store your bitcoin with exchange address but many of us continue to ignore such information, it seems that many information tender here some of us doesn't value such,

Because some people decide to receive there signature payment on exchange doesn’t mean they are holding the bitcoin there, after withdrawing some might just decide to make use of p2p to convert the amount which they want to there local currency, and just send the rest to their non custodial wallet and hold. I can still remember so well when the gas fee was kind of high, and people were finding it difficult to make transactions, even campaign manager were finding it difficult to make payment then, I guess that was when people decide to make use of exchange to make things easy for them, but some people didn’t request for change of wallet when the gas fee went back to normal, and they keep on receiving there payment on exchange, but that doesn’t mean they are holding on exchange.

[MusaMohamed]

Because some people decide to receive there signature payment on exchange doesn’t mean they are holding the bitcoin there, after withdrawing some might just decide to make use of p2p to convert the amount which they want to there local currency, and just send the rest to their non custodial wallet and hold. I can still remember so well when the gas fee was kind of high, and people were finding it difficult to make transactions, even campaign manager were finding it difficult to make payment then, I guess that was when people decide to make use of exchange to make things easy for them, but some people didn’t request for change of wallet when the gas fee went back to normal, and they keep on receiving there payment on exchange, but that doesn’t mean they are holding on exchange.

By using addresses on centralized exchanges as receiving addresses for signature campaign payments, they possibly only plan to do either.

- Selling bitcoins to stable coin and withdraw stable coin to their non custodial wallets.
- Selling bitcoins and trading with altcoins on that centralized exchange.

The first plan is good enough but the second plan is more dangerous because trading is difficult and most traders have loss in trading.

Both plans have same risk by unknown future of that centralize exchange.
Reminder: do not keep your money in online accounts.

[FinneysTrueVision]

If there was a potential poisoning attack, it would have involved addresses that don’t belong to Kucoin. It makes no sense that they would freeze the accounts of people that were unrelated. It is normal for large, batched payments to sometimes have addresses with similar ending characters. They would have to freeze many innocent people’s accounts if this is really their policy.

I don’t know how you arrived at the conclusion that it was due to possible address poisoning. When trying to find similar cases, search results only lead back to this thread. It’s a really bad policy if it is true. The only real solution is to stop using custodial wallets, but no matter how much it is repeated, many people don’t follow this advice. Even the people that like to say ‘not your keys, not your coins’ in every thread are often using CEXs to receive their payments.

[Popkon6]

It is wisest to have a secure wallet, because if you accept payments in a secure wallet and want to sell it, you can of course sell it on an exchange, which will cost you a small fee. Kucoin exchange has disabled withdrawals for thousands of people, but in my opinion, it should never be used as a wallet or exchange.

[SilverCryptoBullet]

It is wisest to have a secure wallet, because if you accept payments in a secure wallet and want to sell it, you can of course sell it on an exchange, which will cost you a small fee. Kucoin exchange has disabled withdrawals for thousands of people, but in my opinion, it should never be used as a wallet or exchange.

Exchanges are exchanges and they are places for trading, not to hold your bitcoins or altcoins as your assets. People mostly forget about purposes of exchanges, that is trading and trading. Staking on exchanges is another big mistaken practice from people who have altcoins. By staking, they lock their altcoins on exchanges while nobody knows what will happen with those exchanges in the future, next weeks, next months or next years.

Events made you scare about custodial wallets, centralized exchanges.

[DPHOR]

Although this is actually bad using exchange address to receive payment from signature directly to exchange, there are some risks that may involved most time exchange might seize the funds. I think someone I knows very well has experience this similar issues from the other forum receiving payment directly from mixer and the exchange restricted them him and asked for further verification and prove of source of funds. The best practice is receive payment to a non custodial wallet and then whenever they feels like moving their payments to exchange they could likely transact it as when needed than directly receiving from exchange.