Not your keys, not your crypto. Let be guided here please.

[Ever-young]

Sorry, but I’m not sure what this user is complaining about or why they are complaining in the first place.
He used a centralized service to send a large amount of money from his account to another user’s account, and as part of their AML policies, the service has the right to seize the funds until the user explains he made such a large transaction.
If they don’t do so, whether we like it or not, those services will be used and abused by money launderers/tax evaders/ terrorists...
If you don’t want to get in the same situation then simply don’t use centralized services.

Before going ahead to make use of centralized services, they’re supposed to have known that stuffs like this were most likely to happen right? The exchanges are only doing what they feel is necessary to protect themselves too, because if ever a situation arises where someone is caught using their services for something illegal, the exchange’s reputation might eventually be dragged along. So seizing users’ funds are normal for exchanges.

[Finebone]

If you're reading this now please don't just preach not your keys not your coins, practice it to avoid calling out people to come and rescue you on social media platforms and this forum.

I doubt this people encountering this problem have heard the phrase, not your key not your coin because it surprises me that people that have heard this warning keep becoming victims to this same people. I see many reasons people give for making use of exchanges but prevention is better than cure it's better we protect ourselves against this hungry KYC freaks that wants to get the information of everybody using their platforms and store our coins ourselves than giving them that privilege but most times, I don't think they have any real reason for being worried about a transaction but they just want to know who owns that amount of money on their platform. We should protect ourselves by taking the storing of our finances into our own hands.

I agree with your sentiment sir, holding your asset in an exchange is one dangerous risk we all should avoid by all means since we have no control of the key.

Another dangerous thing most investors are not paying attention to, is staking their asset hoping for a reward, what they fail to understand is that their asset must be in that exchange in the stipulated timeframe you are staking that your asset, which makes it vulnerable to hacking and so many others things that might go wrong in the process of keeping it in an exchange, so staking should also be avoided by all means because it can't even give you what it can take from you, so what's the point taking such a huge risk?

[Cookdata]

Before going ahead to make use of centralized services, they’re supposed to have known that stuffs like this were most likely to happen right? The exchanges are only doing what they feel is necessary to protect themselves too, because if ever a situation arises where someone is caught using their services for something illegal, the exchange’s reputation might eventually be dragged along. So seizing users’ funds are normal for exchanges.

This saying is easy though if you are not the victim and I hope you don't become one that's when you will know that this rules are rubbish, useless and not necessarily. If you have accepted to take my KYC the first time you don't have to be another FBI to ask where the money is coming from. Everything is onchain, I believe exchange like Binance have chain analytical department that run this things, at best they can check if the money is clean or not.

I'm not even sure if Binance will be requesting for an additional information about the money if the deposit is flat to be an illegal fund, it's going to be seize as soon as the money is deposited into Binance but you can see what they have been asking, the purpose and source of the money, they just want to waste the innocent owner. By the way, this will sound as a warning to everyone that centralized exchanges don't have sense during bull run, they get overwhelm by too much money and then stop thinking straight.

[Ever-young]

Before going ahead to make use of centralized services, they’re supposed to have known that stuffs like this were most likely to happen right? The exchanges are only doing what they feel is necessary to protect themselves too, because if ever a situation arises where someone is caught using their services for something illegal, the exchange’s reputation might eventually be dragged along. So seizing users’ funds are normal for exchanges.

This saying is easy though if you are not the victim and I hope you don't become one that's when you will know that this rules are rubbish, useless and not necessarily. If you have accepted to take my KYC the first time you don't have to be another FBI to ask where the money is coming from. Everything is onchain, I believe exchange like Binance have chain analytical department that run this things, at best they can check if the money is clean or not.

Rubbish and useless or not, they’re still rules and it’s not in your place to query them because I believe they were all slated in the ToS, which was provided to be read on registration, but not everyone actually get the chance or time to read all those things. Besides the local banks do have the right to ask the source of the funds you receive if they happen to have any form of suspicions, and I really don’t see much difference between the CEXs and the local banks because they’re both controlled by a central authority. So it’s not a matter of whether the rules are fair or not. If you don’t wanna go through that stress,  better you don’t give them access to your funds in the first place.

[m2017]

Lol Binance asking my Face every two days  to prove that I'm the real holder of the account.

It gets to the point of being funny (or not so funny) when the exchange carefully tries to protect your money from you.

This is so dumb IMO. Why they needed to verify so often to prove myself. Especially they ask it whenever I tried to withdraw frequently.

It's like an extra "step" when exiting - making life more difficult for clients so they withdraw funds from the exchange less often.

Common it's my fund I can do whatever I wants , why they needed to verify it so often. 

These aren't really your funds anymore. Remember the rule stated in the title of this thread. And since your balls money are in the hands of the exchange, they're ready to dictate terms to you. Which they happily do.

Also if I change my IP , outside of my home/workplace I use mobile data they are doing this so much strictly. Rn it's now pain in the ass. Thinking to reduce dependencies on Binance .

The "cure" is very simple - stop using centralized exchanges.

[Yaunfitda]

Sorry, but I’m not sure what this user is complaining about or why they are complaining in the first place.
He used a centralized service to send a large amount of money from his account to another user’s account, and as part of their AML policies, the service has the right to seize the funds until the user explains he made such a large transaction.
If they don’t do so, whether we like it or not, those services will be used and abused by money launderers/tax evaders/ terrorists...
If you don’t want to get in the same situation then simply don’t use centralized services.

Before going ahead to make use of centralized services, they’re supposed to have known that stuffs like this were most likely to happen right? The exchanges are only doing what they feel is necessary to protect themselves too, because if ever a situation arises where someone is caught using their services for something illegal, the exchange’s reputation might eventually be dragged along. So seizing users’ funds are normal for exchanges.

And we have seen worst cases, I don't know if others will still remember this case,

The company's CEO and founder, Gerald William Cotten, died in December 2018 after traveling to India. Up to C$250 million (US$190 million) in cryptocurrency owed to 115,000 customers was missing[2] or could not be accessed because only Cotten held the password to off-line cold wallets

https://en.wikipedia.org/wiki/Quadriga_(company)

That is one of the bizarre things that happened in crypto in the past, the CEO died and together with it the money of his customers as he is the only one who have accessed. So don't you forget about it as CEX are really dangerous to put most of our assets as we don't have control of it.

[Ever-young]

And we have seen worst cases, I don't know if others will still remember this case,

The company's CEO and founder, Gerald William Cotten, died in December 2018 after traveling to India. Up to C$250 million (US$190 million) in cryptocurrency owed to 115,000 customers was missing[2] or could not be accessed because only Cotten held the password to off-line cold wallets

https://en.wikipedia.org/wiki/Quadriga_(company)

That is one of the bizarre things that happened in crypto in the past, the CEO died and together with it the money of his customers as he is the only one who have accessed. So don't you forget about it as CEX are really dangerous to put most of our assets as we don't have control of it.

Dangerous is an understatement, I believe a more appropriate term would be “Not an option”. Yeah it’s okay if you only wanna use them as a gateway to buy or sell your crypto, but storing or using it as a platform for investment is complete NO and you’ll only end up endangering your funds, your investment and your future. Not that I have problems with humans but I don’t trust humans, let me rephrase that, there’s only an extent that my trust for humans can be. It’s enough that I’m leaving some little cash in the bank, no way I’m doing that with my Bitcoin when I know I can control it myself.

[LOVER BOY 422]

I came across a post on twitter this night. It worth sharing here so everyone of us can take it seriously that "Not your keys, not your coins". Someone complains that the most populous CEX Binance hold his funds ($500k) and suspended his account until he proved the purpose of that huge transaction.

My @Binance account got restricted  because I moved $500k between my wallet and account

any help please? @heyibinance @cz_binance @BinanceHelpDesk

This was Binance respond when he contacted them for resolution.

https://x.com/notEezzy/status/1980384531841708275?t=YvyIU8p8NJ4oeVelyW-bQg&s=19

At first I thought it was usual content to generate traffic but the official Binance support Twitter responded that they are working on the issue. Then I confirm the authenticity of the story.

I still wonder why people feel comfortable with huge amount resting on exchange wallet knowing fully well that they have no full control of their assets but the exchange does. These guys are not new to crypto, they know the implications of this but yet they choose to know and embrace keeping their assets in exchanges.

If you're reading this now please don't just preach not your keys not your coins, practice it to avoid calling out people to come and rescue you on social media platforms and this forum.

I still can't upload a picture    Is one merit not longer the requirement to be able to upload images? What am I missing?

That's a major problem many of us are facing,when you have make money the next thing is to remove the money in that wallet to another place where the money could be save pending when you need the money to use it and do a better thing not leaving it in the wallet,just look at this story is very touching because what if she couldn't see the password he will be denied access and all his efforts are weast of time.
This should be a lesson to the unknown

[Lannakosa]

Dangerous is an understatement, I believe a more appropriate term would be “Not an option”. Yeah it’s okay if you only wanna use them as a gateway to buy or sell your crypto, but storing or using it as a platform for investment is complete NO and you’ll only end up endangering your funds, your investment and your future. Not that I have problems with humans but I don’t trust humans, let me rephrase that, there’s only an extent that my trust for humans can be. It’s enough that I’m leaving some little cash in the bank, no way I’m doing that with my Bitcoin when I know I can control it myself.

I think that even if you use an exchange to swap your coins, it still carries risks, because you might deposit your coins, make the exchange, but then face problems when trying to withdraw. They might ask you for verification, or even block your withdrawal until they clarify the origin of your coins, yes that can happen too. I don’t think this would happen if you exchange small amounts, but it could cause a lot of trouble for those who deal with large sums of money.

[Ever-young]

I think that even if you use an exchange to swap your coins, it still carries risks, because you might deposit your coins, make the exchange, but then face problems when trying to withdraw. They might ask you for verification, or even block your withdrawal until they clarify the origin of your coins, yes that can happen too. I don’t think this would happen if you exchange small amounts, but it could cause a lot of trouble for those who deal with large sums of money.

That’s way more understanding than leaving all your funds in an exchange.

Again, since you’re only withdrawing instantly, your chances of losing your funds are pretty much narrowed, yeah a lot, if not most exchanges requires you to give out some of your information to establish kinda trust between you and them, they wanna make sure they’re not dealing with a criminal or a terrorist, so it’s kinda understandable you know. Where I have a problem is when folks leaves their funds in an exchange, that’s absurd.

[khaled0111]

I think that even if you use an exchange to swap your coins, it still carries risks, because you might deposit your coins, make the exchange, but then face problems when trying to withdraw. They might ask you for verification, or even block your withdrawal until they clarify the origin of your coins, yes that can happen too. I don’t think this would happen if you exchange small amounts, but it could cause a lot of trouble for those who deal with large sums of money.

Unfortunately, in this case, you don’t have many other options except using a decentralized exchange like bisq (keep in mind that decentralized exchanges have their own drawbacks too).
If you want to exchange, buy or sell coins and have no other option but to use a centralized exchange, then at least make sure to use a reputable one and follow their terms of service. After completing the trade, withdraw your coins immediately to your own non-custodial wallet.

[Zanab247]

"Not your keys, Not your coins" is not just a slogan that can be understood when someone gets into a bad situation with their funds. Exchanges are never a place to save. If you want to save, you should do it in your own wallet .

What will make people to save their money in exchange for long time when they know that they are not the only one control the coins in the exchange. 

But if you are planning to sell or trade in the market and something occur which you don't like in the market, you can wait but don't let the coins be on the exchange more than 6 months or one year before you can sell, because anything can happen that will make you to loose the coins in the exchange. I believe many newbies will learn from this thread not to leave their coins in the exchange because the place is not safe for saving coins for long years.

[RockBell]

Dangerous is an understatement, I believe a more appropriate term would be “Not an option”. Yeah it’s okay if you only wanna use them as a gateway to buy or sell your crypto, but storing or using it as a platform for investment is complete NO and you’ll only end up endangering your funds, your investment and your future. Not that I have problems with humans but I don’t trust humans, let me rephrase that, there’s only an extent that my trust for humans can be. It’s enough that I’m leaving some little cash in the bank, no way I’m doing that with my Bitcoin when I know I can control it myself.

I think that even if you use an exchange to swap your coins, it still carries risks, because you might deposit your coins, make the exchange, but then face problems when trying to withdraw. They might ask you for verification, or even block your withdrawal until they clarify the origin of your coins, yes that can happen too. I don’t think this would happen if you exchange small amounts, but it could cause a lot of trouble for those who deal with large sums of money.

When you deal with cryptocurrency, you need to do serious DYOR because it will help you gain knowledge of things to avoid. After all, when you don't avoid them, you are only putting your money at risk. After all, people have been making serious warnings when it comes to using exchanges, because the common ones are the ones that are centralized, and anything that is centralized is not safe, and you are not supposed to trust them.  And another important thing is that before you make use of any exchange, you should read the terms and conditions before depositing, so that you won't lose your money because the majority don't prioritize reading of terms and conditions, which is very important and the best way to store your asset, as it is not your keys, not your coin.

[Ever-young]

When you deal with cryptocurrency, you need to do serious DYOR because it will help you gain knowledge of things to avoid. After all, when you don't avoid them, you are only putting your money at risk. After all, people have been making serious warnings when it comes to using exchanges, because the common ones are the ones that are centralized, and anything that is centralized is not safe, and you are not supposed to trust them.  And another important thing is that before you make use of any exchange, you should read the terms and conditions before depositing, so that you won't lose your money because the majority don't prioritize reading of terms and conditions, which is very important and the best way to store your asset, as it is not your keys, not your coin.

I share in your view about centralized exchanges, it’s true that these CEXs are quite convenient but the truth is that they come with their own drawbacks, and the most drawback of all is the fact that you don’t have access and complete control over your funds. The moment you drop your funds in a centralized exchange, the literally trusting the exchange to secure your money at all time, and this is the mistake that most people made and have regretted due to hacks, shutdown and account freezing.

[Hardyrobust]

When you deal with cryptocurrency, you need to do serious DYOR because it will help you gain knowledge of things to avoid. After all, when you don't avoid them, you are only putting your money at risk. After all, people have been making serious warnings when it comes to using exchanges, because the common ones are the ones that are centralized, and anything that is centralized is not safe, and you are not supposed to trust them.  And another important thing is that before you make use of any exchange, you should read the terms and conditions before depositing, so that you won't lose your money because the majority don't prioritize reading of terms and conditions, which is very important and the best way to store your asset, as it is not your keys, not your coin.

I share in your view about centralized exchanges, it’s true that these CEXs are quite convenient but the truth is that they come with their own drawbacks, and the most drawback of all is the fact that you don’t have access and complete control over your funds. The moment you drop your funds in a centralized exchange, the literally trusting the exchange to secure your money at all time, and this is the mistake that most people made and have regretted due to hacks, shutdown and account freezing.

The main problem with centralised exchange aside the fact that it is not secured is that you don't have full control over your assets. This can become a big problem as most of this exchanges can come up with any policy of there choices. The exchange can decide to derive you the access to your assets due to newly implemented regulations and they will begin to request for documents they never needed during verification process.

[DPHOR]

"Not your keys, Not your coins" is not just a slogan that can be understood when someone gets into a bad situation with their funds. Exchanges are never a place to save. If you want to save, you should do it in your own wallet .

What will make people to save their money in exchange for long time when they know that they are not the only one control the coins in the exchange. 

But if you are planning to sell or trade in the market and something occur which you don't like in the market, you can wait but don't let the coins be on the exchange more than 6 months or one year before you can sell, because anything can happen that will make you to loose the coins in the exchange. I believe many newbies will learn from this thread not to leave their coins in the exchange because the place is not safe for saving coins for long years.

I had a friend who loves using exchange to save his coin because he is a trader and he loves leaving them on exchange with the mindsets that he can quickly jump into any trade he wanna do than pulling out his funds from exchange where it would now make him to start fund back his exchange before could trade, so he regularly does that. I could remember during FTX collapse something unforgettable happened to him which he learned on a hard and after that whenever he trades he moves some of his percentage of funds to external wallet and uses the remaining balance to trade in order for him to have saving.

What actually happens is that some people do like experience before they could learned what has already happened to others, because if he was that taking advise he wouldn't had have to lose something big when that exchange was hacked. learning to apply safety in our trade really helps us that much than becoming a victim of hack.

[uche6215]

"Not your keys, Not your coins" is not just a slogan that can be understood when someone gets into a bad situation with their funds. Exchanges are never a place to save. If you want to save, you should do it in your own wallet .

What will make people to save their money in exchange for long time when they know that they are not the only one control the coins in the exchange. 

But if you are planning to sell or trade in the market and something occur which you don't like in the market, you can wait but don't let the coins be on the exchange more than 6 months or one year before you can sell, because anything can happen that will make you to loose the coins in the exchange. I believe many newbies will learn from this thread not to leave their coins in the exchange because the place is not safe for saving coins for long years.

I had a friend who loves using exchange to save his coin because he is a trader and he loves leaving them on exchange with the mindsets that he can quickly jump into any trade he wanna do than pulling out his funds from exchange where it would now make him to start fund back his exchange before could trade, so he regularly does that. I could remember during FTX collapse something unforgettable happened to him which he learned on a hard and after that whenever he trades he moves some of his percentage of funds to external wallet and uses the remaining balance to trade in order for him to have saving.

What actually happens is that some people do like experience before they could learned what has already happened to others, because if he was that taking advise he wouldn't had have to lose something big when that exchange was hacked. learning to apply safety in our trade really helps us that much than becoming a victim of hack.

Yes they are but they are not saving for long term but short term and once they want to sell at anytime they do sell without waiting for the all time high. And really id you look at it it is not good to save in non custodial wallet when you are saving short term mostly when the transaction fee was high those days but now you can also save your coins win the non custodial wallet even if you are saving for short term because the transaction fee is very small now too
The security in most of the exchanges are good and it is good to use more popular exchanges and not unpopular ones.