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Author Topic: Why Exchanges are seen as Supermarket not banks  (Read 34 times)
Olotu20 (OP)
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December 06, 2025, 11:07:36 AM
 #1

Exchanges could be described as a supermarkets because they buy and  sell  products to the general public.
Banks are like vaults because they hold and protect your money.

EXCHANGE= SUPERMARKET
Exchanges only let  you buy and sell goods at a temporarily  basis and let you holds items for the sake of your convenience, this does not guarantee a lifelong protection of your goods that is stored or displayed on the supermarket for people to buy. Because if at the cause of an emergency and  the supermarket burns down your goods are gone and nothing can be done.And this is exactly how crypto exchanges work.

What exchanges do

Crypto Exchanges only let you buy and sell crypto by helping bringing together the seller and buyer together a kind of Matchmaking. Exchanges also help hold your coins temporarily for you at thesame time these exchanges Can also  freeze accounts, halt withdrawals, or go bankrupt. And this is what happens when you leaves your Bitcoin in an exchange it’s not really yours the supermarket which is the exchange control the private keys.

Banks/Vault Theory

A bank is a place that has a legal protection for your money because it's insured and has a legal responsibility towards your fund, so  a Bank can be seen as a vault which could be seen as a private wallet that should be used in storing your Bitcoin. It should be noted that Bitcoin was primarily created to remove trust in intermediaries By giving self custody to individuals so in the world of Bitcoin

Exchange = ramp (buy & sell)
Wallet = bank.
You = central bank.
Exchange = shop.
Wallet = vault.
Private keys = ownership.
Self-custody = financial freedom.
Donk1
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December 06, 2025, 07:09:10 PM
 #2

Bro your first paragraph is confusing me. Wait are you trying to explain what a wallet is in simple terms? If that's what you are trying to do yeah, you are right, but truly speaking no offense though I am sure you put in effort to write this topic but then if you are trying to explain in simple terms, simply break it down okay....
​That said yeah Bitcoin was created to be decentralized in the sense that as a crypto enthusiast, you will have complete control over your money. More over it's very wrong to keep your coins in an exchange. Why Because am  sure we are all aware  that there have been several hacks on many reputable exchanges so we should always do well to  move our coins to our wallet. That's why there is a common phrase used in the crypto space ,Not your key not your coins... That said,exchanges are centralized and keeping your coins there will mean you are risking the safety of your money.... That's just it, bro....

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Joy_learns_crypto
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December 06, 2025, 07:34:37 PM
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EXCHANGE= SUPERMARKET
Exchanges only let  you buy and sell goods at a temporarily  basis and let you holds items for the sake of your convenience, this does not guarantee a lifelong protection of your goods that is stored or displayed on the supermarket for people to buy. Because if at the cause of an emergency and  the supermarket burns down your goods are gone and nothing can be done.And this is exactly how crypto exchanges work.

What exchanges do

I don’t think you buy goods and keep them in a supermarket to hold the goods for you, even on an online store when you make a purchase of a good the online market companies gives you a date that your goods will get to you.
Exchange is not a supermarket, there is no where you are getting at with connecting exchange to a supermarket.

 
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