Investment Become Gambling

[PremiumcryptoHub]

[edited out]

Holding in an exchange is not a good idea at all, I never agree with it. Last year in 2025, the Bybit exchange was hacked and many of its holdings were stolen. Holding in an exchange is not a good idea at all. There are many decentralized wallets that everyone can use. The safest is the hardware wallet.

Whenever we keep our holdings in an exchange, if a hacker hacks that exchange company, he can easily steal everyone's holdings. But if we use a decentralized wallet such as Trust Wallet, if we don't make any mistakes ourselves, we may not be a victim of hacking. If we don't make mistakes like the Seed phrase is stolen or if we enter a phishing link, etc., we may not be a victim of hacking.

Trust Wallet is not decentralized, and it is not open source.

Trust Wallet is owned by Binance and it is closed source.

As far as I know, everyone has control over the private key and recovery face of the trust wallet, so many people consider this trust wallet as decentralized, but the main goal of decentralized wallets is to give users sole ownership and full control over their Bitcoin or other crypto assets, but we do not see that in the case of this wallet because it was acquired by Binance in 2018, so I advise many people I know in nigeria to refrain from using them, actually a third party is also involved here.

I would not recommend Trust Wallet in terms of anything more than you might keep in a hot wallet..  so Trust Wallet would not be good for securing large amounts of funds to have confidence in privacy, security and/or getting rug pulled or funds frozen.

As evidenced by the fact that a few months ago, we noticed that users of this wallet had their crypto assets worth about $6 million stolen, so it is best for everyone to refrain from using it.

https://bitcointalk.org/index.php?topic=5569549.msg66217973#msg66217973

[ruykeri]

I see your point about just jump in, but honestly telling a complete beginner they don't need basic knowledge feels a bit risky. Cryptohas a brutal learning process, and without understanding the absolute basics, a newbie is basically just flipping a coin. Taking a week or two to learn the fundamentals isn't procrastinating, it’s just protecting your hard earned money.
Experience is a great teacher, but it doesn't have to hurt that much.

What knowledge do they need again apart from being able to figure out the discretionary income which I believe they can do with their common sense?. The basic things a newbie investor should be worried about is knowing how to hold their bitcoin securely and also where/how to buy bitcoin and they need to understand that bitcoin is a volatile asset. After that, they can start their accumulation process without needing to first go and acquire any special knowledge before investing. And please be specific about the asset you’re talking about instead of using this vague term “crypto”.

If someone buys Bitcoin without discretionary income in the hope of short-term profit without a long-term mindset, it will be like gambling. Bitcoin is basically a way of long-term investment. Whereas those who do short-term trading cannot succeed in most cases. You see, the price of Bitcoin was very high a few months ago, and now the price has decreased. If someone bought Bitcoin with their essential money in for thinking of  short-term profit, and at this time if they needed money for some urgent work, they would be forced to sell Bitcoin now at the price is right now low. Because there would be no other way to raise money to meet their urgent needs. Therefore, one should be very careful when investing in Bitcoin and should hold and continue investing with a long-term mindset. And you are right, investing in any crypto other than Bitcoin is relatively more risky. Because many of them eventually turn into scam projects and many people lose their money.

[Proty]

I see your point about just jump in, but honestly telling a complete beginner they don't need basic knowledge feels a bit risky. Cryptohas a brutal learning process, and without understanding the absolute basics, a newbie is basically just flipping a coin. Taking a week or two to learn the fundamentals isn't procrastinating, it’s just protecting your hard earned money.
Experience is a great teacher, but it doesn't have to hurt that much.

What knowledge do they need again apart from being able to figure out the discretionary income which I believe they can do with their common sense?. The basic things a newbie investor should be worried about is knowing how to hold their bitcoin securely and also where/how to buy bitcoin and they need to understand that bitcoin is a volatile asset. After that, they can start their accumulation process without needing to first go and acquire any special knowledge before investing. And please be specific about the asset you’re talking about instead of using this vague term “crypto”.

If someone buys Bitcoin without discretionary income in the hope of short-term profit without a long-term mindset, it will be like gambling. Bitcoin is basically a way of long-term investment. Whereas those who do short-term trading cannot succeed in most cases. You see, the price of Bitcoin was very high a few months ago, and now the price has decreased. If someone bought Bitcoin with their essential money in for thinking of  short-term profit, and at this time if they needed money for some urgent work, they would be forced to sell Bitcoin now at the price is right now low. Because there would be no other way to raise money to meet their urgent needs. Therefore, one should be very careful when investing in Bitcoin and should hold and continue investing with a long-term mindset. And you are right, investing in any crypto other than Bitcoin is relatively more risky. Because many of them eventually turn into scam projects and many people lose their money.

Buying bitcoin using money that is not your discretionary income is gambling because the pressure of selling before you even planned to do so . Buying bitcoin whether you are using discretionary income or not with the hope of making quick profit is still considered as gambling with bitcoin. There is great risk involved in trading bitcoin and anyone that is involved in trading is risking there income.

[Cgrexp]

Buying bitcoin using money that is not your discretionary income is gambling because the pressure of selling before you even planned to do so . Buying bitcoin whether you are using discretionary income or not with the hope of making quick profit is still considered as gambling with bitcoin. There is great risk involved in trading bitcoin and anyone that is involved in trading is risking there income.

 Investing beyond the immediate need is basically taking a big financial risk. In this case, the possibility of panic selling increases when there is a financial crisis or a price drop in an emergency situation. Such behavior is basically trying to make a quick profit with high risk, which is almost like gambling. Gambling-like strategies should never be applied to investing. A planned investment will be considered only when someone is aware of their own risks. If decisions are made according to a long-term plan within their financial capacity, then there is no gambling mentality in investing.

[BluebloodCXVI]

I do not necessarily agree that a new investor should know how to store their bitcoin before starting. It takes a long time to understand self custody, most of us got into bitcoin buying on an exchange and leaving it there until after a while before we knew it was the wrong way to store our coins. Besides, sending your coins regularly to the wallet can be expensive if the fees are high and the new investor would loose a lot on fees, so it is better they consolidate on an exchange for a while before sending to the wallet. They can use the exchange for a while as they're still new and along the line learn better non-custodial wallets to use in storing their coins properly and the right time to send those coins across which is when the fees are low or when they've consolidated for a while, maybe $500 worth of sats so they don't leave much coins on an exchange.

This your idea doesn’t fully sit well with me. Perhaps it is better to start knowing about self custody as soon as you start buying bitcoin (i can’t emphasize on this enough). You can keep small amounts on an exchange while you are still learning, but your goal should always be to understand how to take control of your coins instead of figuring it out later after you have already built a sizable position.
The fact that many of us left our bitcoin on exchanges when we just started newly does not make it the best approach, it’s just how we learned our own and it was kind of the easiest entry point at that time but plenty of  people still also learned the hard way when exchanges froze their withdrawals, got hacked, or even collapsed.
The bottom line is that i think a new investor should at least understand the basics of storing their Bitcoin before they start accumulating a meaningful amount. They should know the difference between owning Bitcoin and trusting a third party to hold it for them.

[Judith87403]

Investing beyond the immediate need is basically taking a big financial risk. In this case, the possibility of panic selling increases when there is a financial crisis or a price drop in an emergency situation. Such behavior is basically trying to make a quick profit with high risk, which is almost like gambling. Gambling-like strategies should never be applied to investing. A planned investment will be considered only when someone is aware of their own risks. If decisions are made according to a long-term plan within their financial capacity, then there is no gambling mentality in investing.

When one invests money that they’re not prepared to lose, they literally put themselves in a position where it becomes very easy for them to make most of their decisions from an emotional standpoint, especially during market downturns. This way, with this mindset, investing can truly turn into gambling because what’s the investor thinks about more at this point is making quick profits rather than focusing on long term growth. Smart investing is mainly about proper planning, risk awareness and management and most importantly, using funds you can actually afford to lose.

[JayJuanGee]

[edited out]

Holding in an exchange is not a good idea at all, I never agree with it. Last year in 2025, the Bybit exchange was hacked and many of its holdings were stolen. Holding in an exchange is not a good idea at all. There are many decentralized wallets that everyone can use. The safest is the hardware wallet.

Whenever we keep our holdings in an exchange, if a hacker hacks that exchange company, he can easily steal everyone's holdings. But if we use a decentralized wallet such as Trust Wallet, if we don't make any mistakes ourselves, we may not be a victim of hacking. If we don't make mistakes like the Seed phrase is stolen or if we enter a phishing link, etc., we may not be a victim of hacking.

Trust Wallet is not decentralized, and it is not open source.
Trust Wallet is owned by Binance and it is closed source.

As far as I know, everyone has control over the private key and recovery face of the trust wallet, so many people consider this trust wallet as decentralized, but the main goal of decentralized wallets is to give users sole ownership and full control over their Bitcoin or other crypto assets, but we do not see that in the case of this wallet because it was acquired by Binance in 2018, so I advise many people I know in nigeria to refrain from using them, actually a third party is also involved here.

I would not recommend Trust Wallet in terms of anything more than you might keep in a hot wallet..  so Trust Wallet would not be good for securing large amounts of funds to have confidence in privacy, security and/or getting rug pulled or funds frozen.

As evidenced by the fact that a few months ago, we noticed that users of this wallet had their crypto assets worth about $6 million stolen, so it is best for everyone to refrain from using it.
https://bitcointalk.org/index.php?topic=5569549.msg66217973#msg66217973

For sure, I don't claim to be any kind of a technical expert, so I frequently need to rely upon certain representations, including claims of whether a wallet is open source or closed source.. and I am even reluctant in regards to some of the "secure elements" that some wallets have, since frequently there are aspects of "secure elements" that cannot be open sourced, so as soon as there is one aspect that is closed source, then there can be less confidence in regards to what that portion of the chip is doing or capable of doing.

You are likely correct that there are a good number of normal people who get tricked into believing that they have gotten complete control over their wallet and the various bitcoin addresses contained therein based on their having access to back up seed words and abilities to privately recover the wallet/addresses to other kinds of wallets - yet TrustWallet is not completely open source, and is not even considered to be open source, so then there can be ways in which Binance or potentially other agents of Binance or even anyone who might discover the closed source aspects of the wallet(s) can freeze or even take coins... so yeah, that is part of the reason to just keep minimal quantities of any bitcoin that you might own on those kinds of wallets. 

I will admit that I have one of my wallets that used to be open source, but it was acquired by an exchange, so then after that it was no longer open source, yet I had a certain number of bitcoin that I had put on the wallet and then I had a transaction history on that wallet that went back to 2017, and after I found out that the wallet had gotten acquisitioned by an exchange, I did not put any additional value on the wallet, and I started to treat the wallet (including the historical transactions and any new transactions) as if it were the same (or very similar) to other coins (or value) that I had on exchanges.  I have also slowly been using up the coins from that wallet in the same kinds of ways that I would use for an exchange wallet, even though with the wallet, I have the ability to control the transaction fees more than I am able to do with any of the value that I have on exchange wallets.

[SmartCharpa]

Buying bitcoin using money that is not your discretionary income is gambling because the pressure of selling before you even planned to do so . Buying bitcoin whether you are using discretionary income or not with the hope of making quick profit is still considered as gambling with bitcoin. There is great risk involved in trading bitcoin and anyone that is involved in trading is risking there income.

A guy cannot succeed buying Bitcoin out of their discretionary income while hoping for a quick return. Anybody with this mindset will never be considered an investor, they are just gambling, buying with some money they might need anytime soon, thinking they can outsmart the market and make a quick return, perhaps to cover some expenses. Bitcoin is all about future value. You can’t be thinking about what you can achieve within a month in Bitcoin. You need to think about 4 to 10 years or even more, yet this can only be done with the cash you can afford to lose.

However, if someone is doubting Bitcoin only because they don’t believe in its history, I believe that with the way the market has been going up and down these days, they should have learned that Bitcoin is not something they can buy for a short time. We need to always think about its future and what the price could be in the next 10 years. By that time, some people will regret why they failed to buy now when they had the chance.

[Umulala-alala]

But the knowledge before investing is very important so as to not make silly mistakes in your investment journey especially emotionally. Time used to get knowledge is very important and it should not be overlooked, if one should wait to know well about Bitcoin before investing it's actually valid.

Bitcoin knowledge can be complicated for a brand new investor who just want to start investing in bitcoin. It's impossible for you to know it all before investing in bitcoin because you will waste a lot of time that you should have used to build your portfolio to a significant size.

Bitcoin is best learned by investing and have the market experience. Since you are a no coiner, there's no point trying to know much about bitcoin. Just get started provided your discretionary income is available and learn as you go to get the best out in your bitcoin accumulation journey. This is where some people get it wrong because they want to know everything in order to avoid mistakes but continously buying bitcoin will teach you better than theory.

Don't forget that the more time you waste, the more bitcoin price increases and the more you get older. Common sense to figure out your discretionary income and how much you will use to buy bitcoin from your discretionary income is enough to get you started while, you study your own cash inflow along the line as you have started your bitcoin investment.

Since time doesn't wait for any body there is no need delaying your investment to learn more about bitcoin when you have figured out your discretionary common sense if you got these you can get started immediately without waisting some good buying time because the more such person waits the more things to take away the money for investment comes so getting started and learning through it is what that should be done.

[PhilosopherKing]

It is not a bad idea for a newbie to learn or acquire knowledge about bitcoin as long as they are not waiting to gain the knowledge before starting to invest in bitcoin . It is only when a newbie decides to wait or delay investing in bitcoin with the idea that they want to learn about bitcoin before starting that's when it is wrong.

It is pointless and needless for person to be delaying theriself and be waiting to learn everything before starting. because there is less value in bitcoin theory than when gained in practice. It is the experience that person gain from ongoingly investing that can teach person better about bitcoin. And since bitcoin is a long time investment, the best understanding come gradually with experience rather than trying to master all things upfront. Person can start investing small and figure out other things as they are ongoingly investing.

[ZeroVinsonN]

It is not a bad idea for a newbie to learn or acquire knowledge about bitcoin as long as they are not waiting to gain the knowledge before starting to invest in bitcoin . It is only when a newbie decides to wait or delay investing in bitcoin with the idea that they want to learn about bitcoin before starting that's when it is wrong.

It is pointless and needless for person to be delaying theriself and be waiting to learn everything before starting. because there is less value in bitcoin theory than when gained in practice. It is the experience that person gain from ongoingly investing that can teach person better about bitcoin. And since bitcoin is a long time investment, the best understanding come gradually with experience rather than trying to master all things upfront. Person can start investing small and figure out other things as they are ongoingly investing.

Time spent trying to learn more about bitcoin is time that could have been spent accumulating bitcoin, the problem is that certain people don't see it this way, instead they tell themselves that the more knowledge they have the better investors they can be to the point that they don't even start investing until they believe they've satisfied their craving for bitcoin related knowledge, the knowledge on it's own isn't wrong for a person to have but the decision to not invest until after getting the knowledge is what's wrong, that's the mistake these people are making.

[Olatundespo]

It is not a bad idea for a newbie to learn or acquire knowledge about bitcoin as long as they are not waiting to gain the knowledge before starting to invest in bitcoin . It is only when a newbie decides to wait or delay investing in bitcoin with the idea that they want to learn about bitcoin before starting that's when it is wrong.

It is pointless and needless for person to be delaying theriself and be waiting to learn everything before starting. because there is less value in bitcoin theory than when gained in practice. It is the experience that person gain from ongoingly investing that can teach person better about bitcoin. And since bitcoin is a long time investment, the best understanding come gradually with experience rather than trying to master all things upfront. Person can start investing small and figure out other things as they are ongoingly investing.

A new investor will start by making small deposits of Bitcoin because he is still in the learning phase. I would not encourage such investors to take too much risk. It is better not to rush and not to indulge in emotions when investing in Bitcoin. Make decisions based on reality and consider time as an important tool because if you can use the learning time properly you will have a sufficient amount of Bitcoin holding after gaining experience in Bitcoin. Consider the period of saving instead of wasting extra time to learn Bitcoin because it is a great and best decision.

[Big Dirams]

It is not a bad idea for a newbie to learn or acquire knowledge about bitcoin as long as they are not waiting to gain the knowledge before starting to invest in bitcoin . It is only when a newbie decides to wait or delay investing in bitcoin with the idea that they want to learn about bitcoin before starting that's when it is wrong.

It is pointless and needless for person to be delaying theriself and be waiting to learn everything before starting. because there is less value in bitcoin theory than when gained in practice. It is the experience that person gain from ongoingly investing that can teach person better about bitcoin. And since bitcoin is a long time investment, the best understanding come gradually with experience rather than trying to master all things upfront. Person can start investing small and figure out other things as they are ongoingly investing.

Time spent trying to learn more about bitcoin is time that could have been spent accumulating bitcoin, the problem is that certain people don't see it this way, instead they tell themselves that the more knowledge they have the better investors they can be to the point that they don't even start investing until they believe they've satisfied their craving for bitcoin related knowledge, the knowledge on it's own isn't wrong for a person to have but the decision to not invest until after getting the knowledge is what's wrong, that's the mistake these people are making.

Wasting time on acquiring more knowledge before investing is just procrastination and we doing that we are wasting much time and a lot of opportunities from the market. No need to wait and seek knowledge before investing we can start as soon as possible because there isn’t need for much knowledge before starting, knowledge can come along the way.
The moment we have the  availability of our discretionary income then we can start as soon as possible. Basic knowledge is absolutely enough to start then along the way we can increase our knowledge. Prioritizing knowledge over investment shows reluctance and that not a good mindset.

[Son Of Blockchain (SOB)]

Time spent trying to learn more about bitcoin is time that could have been spent accumulating bitcoin, the problem is that certain people don't see it this way, instead they tell themselves that the more knowledge they have the better investors they can be to the point that they don't even start investing until they believe they've satisfied their craving for bitcoin related knowledge, the knowledge on it's own isn't wrong for a person to have but the decision to not invest until after getting the knowledge is what's wrong, that's the mistake these people are making.

Wasting time on acquiring more knowledge before investing is just procrastination and we doing that we are wasting much time and a lot of opportunities from the market. No need to wait and seek knowledge before investing we can start as soon as possible because there isn’t need for much knowledge before starting, knowledge can come along the way.
The moment we have the  availability of our discretionary income then we can start as soon as possible. Basic knowledge is absolutely enough to start then along the way we can increase our knowledge. Prioritizing knowledge over investment shows reluctance and that not a good mindset.

To those who do that, they don't see it as procrastination but feel they're doing the right thing, if Bitcoin wasn't this volatile maybe I would've accepted that it's good to understand something better before fully going into it but Bitcoin's volatility is not patient to wait for anyone to finish learning or understanding it better.
 That why I'll accept that it's procrastination since people who do that can start up with their discretionary funds and learn more about Bitcoin investment at times goes, they don't really need to understand everything before starting cause they might miss better chances of buying when Bitcoin is cheaper.

[Qhunman]

To those who do that, they don't see it as procrastination but feel they're doing the right thing, if Bitcoin wasn't this volatile maybe I would've accepted that it's good to understand something better before fully going into it but Bitcoin's volatility is not patient to wait for anyone to finish learning or understanding it better.
 That why I'll accept that it's procrastination since people who do that can start up with their discretionary funds and learn more about Bitcoin investment at times goes, they don't really need to understand everything before starting cause they might miss better chances of buying when Bitcoin is cheaper.

If people continue Procrastinate investing in bitcoin they will delay  starting their investments journey so procrastination is bad and it is time wasting trying to learn everything before investing bitcoin. Bitcoin is best understood when you involved in practically than theory so instead of wasting time trying to gather every knowledge in bitcoin they should starting investing and the knowledge they seek will follow. Investors should stop delaying starting their bitcoin investment investing they should begin investing consistently and hold for the long term 4-10 years if they have discretionary income available.

[cocadalcan]

Time spent trying to learn more about bitcoin is time that could have been spent accumulating bitcoin, the problem is that certain people don't see it this way, instead they tell themselves that the more knowledge they have the better investors they can be to the point that they don't even start investing until they believe they've satisfied their craving for bitcoin related knowledge, the knowledge on it's own isn't wrong for a person to have but the decision to not invest until after getting the knowledge is what's wrong, that's the mistake these people are making.

Wasting time on acquiring more knowledge before investing is just procrastination and we doing that we are wasting much time and a lot of opportunities from the market. No need to wait and seek knowledge before investing we can start as soon as possible because there isn’t need for much knowledge before starting, knowledge can come along the way.
The moment we have the  availability of our discretionary income then we can start as soon as possible. Basic knowledge is absolutely enough to start then along the way we can increase our knowledge. Prioritizing knowledge over investment shows reluctance and that not a good mindset.

To those who do that, they don't see it as procrastination but feel they're doing the right thing, if Bitcoin wasn't this volatile maybe I would've accepted that it's good to understand something better before fully going into it but Bitcoin's volatility is not patient to wait for anyone to finish learning or understanding it better.
 That why I'll accept that it's procrastination since people who do that can start up with their discretionary funds and learn more about Bitcoin investment at times goes, they don't really need to understand everything before starting cause they might miss better chances of buying when Bitcoin is cheaper.

Procrastinating in accumulation Bitcoin under the pretext of gaining knowledge will not be the right investment decision for you. You should start accumulation Bitcoin if you have discretionary funds because this fund is more important. Having reserve fund and an emergency fund is important for long term investment in Bitcoin but initially only discretionary funds are needed to start.
One of the reasons why investors do not survive in long term investments is personal instability and lack of patience. Accumulate Bitcoin for a certain period of time such as an initial period of 4 years. Increase the amount of Bitcoin accumulation and increase the holdings as your income increases. Adopt a slow policy in rope with your income without engaging in risky activities like trading.

[Crytohillss]

[edited out]

Holding in an exchange is not a good idea at all, I never agree with it. Last year in 2025, the Bybit exchange was hacked and many of its holdings were stolen. Holding in an exchange is not a good idea at all. There are many decentralized wallets that everyone can use. The safest is the hardware wallet.

Whenever we keep our holdings in an exchange, if a hacker hacks that exchange company, he can easily steal everyone's holdings. But if we use a decentralized wallet such as Trust Wallet, if we don't make any mistakes ourselves, we may not be a victim of hacking. If we don't make mistakes like the Seed phrase is stolen or if we enter a phishing link, etc., we may not be a victim of hacking.

Trust Wallet is not decentralized, and it is not open source.
Trust Wallet is owned by Binance and it is closed source.

As far as I know, everyone has control over the private key and recovery face of the trust wallet, so many people consider this trust wallet as decentralized, but the main goal of decentralized wallets is to give users sole ownership and full control over their Bitcoin or other crypto assets, but we do not see that in the case of this wallet because it was acquired by Binance in 2018, so I advise many people I know in nigeria to refrain from using them, actually a third party is also involved here.

I would not recommend Trust Wallet in terms of anything more than you might keep in a hot wallet..  so Trust Wallet would not be good for securing large amounts of funds to have confidence in privacy, security and/or getting rug pulled or funds frozen.

As evidenced by the fact that a few months ago, we noticed that users of this wallet had their crypto assets worth about $6 million stolen, so it is best for everyone to refrain from using it.
https://bitcointalk.org/index.php?topic=5569549.msg66217973#msg66217973

For sure, I don't claim to be any kind of a technical expert, so I frequently need to rely upon certain representations, including claims of whether a wallet is open source or closed source.. and I am even reluctant in regards to some of the "secure elements" that some wallets have, since frequently there are aspects of "secure elements" that cannot be open sourced, so as soon as there is one aspect that is closed source, then there can be less confidence in regards to what that portion of the chip is doing or capable of doing.

You are likely correct that there are a good number of normal people who get tricked into believing that they have gotten complete control over their wallet and the various bitcoin addresses contained therein based on their having access to back up seed words and abilities to privately recover the wallet/addresses to other kinds of wallets - yet TrustWallet is not completely open source, and is not even considered to be open source, so then there can be ways in which Binance or potentially other agents of Binance or even anyone who might discover the closed source aspects of the wallet(s) can freeze or even take coins... so yeah, that is part of the reason to just keep minimal quantities of any bitcoin that you might own on those kinds of wallets.  

I will admit that I have one of my wallets that used to be open source, but it was acquired by an exchange, so then after that it was no longer open source, yet I had a certain number of bitcoin that I had put on the wallet and then I had a transaction history on that wallet that went back to 2017, and after I found out that the wallet had gotten acquisitioned by an exchange, I did not put any additional value on the wallet, and I started to treat the wallet (including the historical transactions and any new transactions) as if it were the same (or very similar) to other coins (or value) that I had on exchanges.  I have also slowly been using up the coins from that wallet in the same kinds of ways that I would use for an exchange wallet, even though with the wallet, I have the ability to control the transaction fees more than I am able to do with any of the value that I have on exchange wallets.

Some persons assume that having their seed phase automatically means they have full sovereignty over their funds but the software layer matters most, if parts of a wallet are closed source, user are utimatley placing some degree of trust in the firm behind it whether  they realise it or not  I think your distinction between using such wallet for convenience Long term storage is really the best way.
Even if the risk is small, treating funds held in closed-source wallets similarly to exchange-held funds seems like a prudent way to manage that uncertainty.