Many understand the risk and yet....

[Achalugo BTC]

Anyone can do whatever he likes, be it saving on an exchange or saving on a noncustodial wallet. But the main thing is that we have to let them know the disadvantages of holding coins on an exchange which means they do not have full control over their coins on the blockchain. That is the reason I will prefer noncustodial wallets over exchanges.

That is why its good for people should ask questions in anything they don't really understand, which can help them to make an informed decision about it and also spreading awareness about custody risks will also help people to know both the side effects and disadvantages of it, because that will help them to know the kinds of wallet they will need, so as they won't do things which they will later regret.

[GreatArkansas]

he choose Coinbase to do the job for him, funny enough he understand the risk and still choose to do this.

They don't want to do an effort of doing it because they think it's still safe doing that. Despite knowing that there were several news in the past that have taken users funds from the exchanges due to hacking incidents, they'll not stop doing it. Stop reminding people when they are aware of the risk and keeps on doing the risky thing. They will take account to themselves and responsible for any result that they'll get, there's no way to stop them unless it happens to them in actuality with what we don't want to see happen to them. It will only make them do the right thing when the bad thing has come.

Yes. Some people also don't know these risks, especially the new one and some of them already realized that if something bad happens to the exchange, that's the only time they will realize they did something bad, expensive lesson.

Well, to people who already know this risk, the pros and cons. Some may have a reason, too, why they intend to let it stay on exchanges, like for example they want to sell it after they buy, or they find it a hassle setting up a personal wallet and securing private keys or seed phrases (which is this is really much safer).

[BALIK]

After all they will have someone to blame? After all they have money in the bank and they have access to it when they want, and Coinbase just feel to them like another bank?
~snip~

Well, It’s all about personal preference some people are comfortable keeping their Bitcoin on CEX like Binance or Coinbase, while other people prefer using hardware wallets. basically, every option have their own risk and it’s up to us to choose which risk are we willing to take. The most recent hack incident was happened on Trust Wallet, where more than 2,500 wallets were affected. Luckily, they provided reimbursements to those who affected by the hack. Meanwhile, some people are afraid to lose their hardware wallet or forgetting where they stored their keys. We can’t force everyone to use one method, because both third party services and hardware wallets will continue to improve their security over time.

It is true that every choice has its own risks, there is no such thing as a zero risk option. However, we must also acknowledge that relying on others or third parties always carries more risks. Because then our safety is in the hands of other, and we depend on them.

Therefore, I still advise anyone who is still storing bitcoin on centralized exchanges or services to reconsider. Because once something goes wrong, there is no chance to fix it

Every option carries risk, but choose those with lower risk.

[MarjorieZimmermanGinger]

Instead of me telling him that since he can't become his own bank and take responsibility he should not invest in Bitcoin, he choose Coinbase to do the job for him, funny enough he understand the risk and still choose to do this.

What do you have to tell such people?

This kind of understanding does happen to some people because they may not understand the impact of the resulting risks and even I used to be like that. Luckily, when I joined Bitcointalk, I gained a much better understanding of much safer asset storage which practically made me much more capable of keeping my assets safe. People only think about how to invest, but they neglect to consider asset security measures. This generally happens because I see many friends who currently trust exchanges to store their assets even though we have explained in more detail that this practice is fundamentally unsafe and carries more risks.

[LastKiss]

After all they will have someone to blame? After all they have money in the bank and they have access to it when they want, and Coinbase just feel to them like another bank?
~snip~

Well, It’s all about personal preference some people are comfortable keeping their Bitcoin on CEX like Binance or Coinbase, while other people prefer using hardware wallets. basically, every option have their own risk and it’s up to us to choose which risk are we willing to take. The most recent hack incident was happened on Trust Wallet, where more than 2,500 wallets were affected. Luckily, they provided reimbursements to those who affected by the hack. Meanwhile, some people are afraid to lose their hardware wallet or forgetting where they stored their keys. We can’t force everyone to use one method, because both third party services and hardware wallets will continue to improve their security over time.

It is true that every choice has its own risks, there is no such thing as a zero risk option. However, we must also acknowledge that relying on others or third parties always carries more risks. Because then our safety is in the hands of other, and we depend on them.

Therefore, I still advise anyone who is still storing bitcoin on centralized exchanges or services to reconsider. Because once something goes wrong, there is no chance to fix it

Every option carries risk, but choose those with lower risk.

Yeah, without realizing we become lazy to look for lower risk option, most of us already comfortable storing our Bitcoin on CEX or other third parties. They know that if they don’t make customers feel comfortable on their platforms, they will go bankrupt. That’s why they offer many promotions or persuasion words to attract users and keep them using their services. In the end, we forget to look the best option for our Bitcoin security and forget the bigger risks of relying on them.

[HajiBagi]

Anyone can do whatever he likes, be it saving on an exchange or saving on a noncustodial wallet. But the main thing is that we have to let them know the disadvantages of holding coins on an exchange which means they do not have full control over their coins on the blockchain. That is the reason I will prefer noncustodial wallets over exchanges.

I 100% agree with you, everyone can do whatever they like, if they like they should use any type of exchange to save or hold their coin that doesn’t concern anyone because it is their own money, but they should know that is it very dangerous or tell them the advantage and disadvantages of it, make them understand how it is so that if they are interested they will do the right thing, some people are very lazy when they are holding their coin and when you try to tell them they feel like you are doing more than yourself or you want to tell them that you know more than them.

I have see many people that don’t want to be corrected, some might think you want to scam them or you are looking for a way to scam them that is why you are giving them advice, never force anyone to do what they don’t like, just advise them and if they are willing to do the right thing they will do and if they did not do it, they will not blame anyone when anything happens to them because no one is safe, we should be careful with everything we do to avoid losing what we can’t afford to lose.

[Lida93]

What do you have to tell such people?

Since it's not an act of ignorance. I would tell them to keep doing what they're doing until what they're aware of happening then happens, there I can now asked them how they feeling. But until then, let them keep doing what they're doing.

Persons with strong convicted reasons as to why they doing what they're doing, they are tough nut to crack into until they come in contact with EXPERIENCE of the fact of how wrong what they're doing is

[Mpamaegbu]

~

Laziness.

Laziness is the first reason that I can attribute to such decision because he doesn't want to create time to open his own personal wallet and protect his investment. So he has not had an experience of those who lose their coins because the exchange where their coin is was hacked because if has witnessed such then he will learn the hard way.

I can bodly tell you that many people who condemn leaving cryptos on Cexs do also have some of theirs there too for safekeeping. Some haven't even had any sad experience with Cexs but they've had numerous hack encounters with their personal wallets. Yes, I know all about the, "not your keys, not your coins" tagline in this industry. But what of if you've the keys but you can't assess your coins any more because someone else got them moved to another address or sold them? What is worse than that?

I would be glad knowing my coins got hacked on Binance than in my private wallet. With Binance, I'm hopeful I could get reimbursed but with my private wallet; it's gone forever.

While I'm not completely for keeping cryptos on Cexs, I'm not also of the opinion that keeping them there is totally wrong. That's my point.

[Versatile_choice]

And even if they become aware on the disadvantages of holding coins on an exchange, if they are not willing to manage their own risk and do the right thing, still they will resort on sticking to what they think is right and less burden for them.

People may listen to us but we can't guarantee that they will follow us. So let's leave them with that. But one thing is certain, they will only make a wise turn if they start experiencing losing their coins, and blame the exchange for their irresponsibility and unreliability.

The thing is that everyone have the right to decide for themselves on what to do, you just need to play your role that's by letting them know the risk that is involved when holding their assets on an exchange and then allow them to make final decision. You know most people might not do exactly what you ask them to do, but don't allow that to stop you From telling the truth so that at the end you will not be tag as a bad friend that is why I usually make correction whenever I see something wrong then is left for the person to take it or they leave it.

[KiaKia]

Laziness mixed with lack of responsibility, there is nothing else that I can think about, such people are too burden with everything that requires them to stand for themselves, I know that people like this exists in the world and I have seen few when I was teaching people about Bitcoin.

Some people will even want you to help them hold their coins, and they use their hardearned money to bought the coins, but the burden of holding it themselves is what they don't want.

Coinbase has a wallet and many people still use them till date, what they can't tell is the difference between a custodial and non-custodial wallet which makes them trust the likes of Binance wallet and Coinbase wallet.

[SeriouslyGiveaway]

Laziness mixed with lack of responsibility, there is nothing else that I can think about, such people are too burden with everything that requires them to stand for themselves, I know that people like this exists in the world and I have seen few when I was teaching people about Bitcoin.

Some people will even want you to help them hold their coins, and they use their hardearned money to bought the coins, but the burden of holding it themselves is what they don't want.

There are many resources for learning with free access, no payment or learning fee required so if people are lazy and not ready for learning, they will be responsible for any loss after all. From wallets, storage, backup, recovery, security to how to invest and trade Bitcoin, it's all free to learn and it's not hard to learn these things gradually with time.

Coinbase has a wallet and many people still use them till date, what they can't tell is the difference between a custodial and non-custodial wallet which makes them trust the likes of Binance wallet and Coinbase wallet.

Even Coinbase wallet and Binance wallet are non custodial, we should not trust those wallets if they are still close source. It's very clearly that a wallet built by a centralized exchange is close source, and you have to trust these exchanges and their close source wallets.

While in cryptocurrency, don't trust, verify everything and open source wallets are recommended.

[sokani]

One benefit of keeping your coins on custodial services like Binance is that the exchange is responsible for safety of your coins. In case your coins are in self custody then there is no way to recover them in case the coins are lost due to any reason.

That shouldn't be enough reason to still keep funds on a centralised exchange. The crypto owners who had their funds stored on FTX when it went bankrupt, how is it going for them? Since 2022, when this unpleasant incident took place, after all the wait, they are yet to receive their funds. The best practice is always self-custody. "If it's not your keys, it's not your coins."

[dzungmobile]

One benefit of keeping your coins on custodial services like Binance is that the exchange is responsible for safety of your coins. In case your coins are in self custody then there is no way to recover them in case the coins are lost due to any reason.

They can be more technical then you and have more resources for security but it does not mean your coins will be safe and secured there. They can try to provide as best service as possible to you and other customers but blackswan event might occur anytime and you must know that risk and build up your own plan for avoiding individual bankruptcy if their exchange has problems.

That shouldn't be enough reason to still keep funds on a centralised exchange. The crypto owners who had their funds stored on FTX when it went bankrupt, how is it going for them? Since 2022, when this unpleasant incident took place, after all the wait, they are yet to receive their funds. The best practice is always self-custody. "If it's not your keys, it's not your coins."

Exchanges can disappear, die or scam anytime so storing your bitcoin or cryptocurrency fund on a centralized exchange is one of most dangerous practice. There are enough exchange deaths with many reasons, like scam exits, hacks, bankruptcy, seizure by government and even more but generally you don't control what happen with centralized exchanges as well as your funds there.

[Uhwuchukwu53]

Though I have not gotten experience of those who are full of experience about crypto generally that prefer exchange to store there holding what I observe that most Short time holder due to watching the market and not been able to move their coin or token from one place of storage to another prefer exchange to enable quick trade when they envisage their marketing target, but even as that it's very risky,for a long time holder who engaged on this act it really shown how careless such individual could be considering the risk involved, it's in nature of human that their careless and not managing risk properly leads to their cry when ever they encounter losses.

[passwordnow]

They don't want to do an effort of doing it because they think it's still safe doing that. Despite knowing that there were several news in the past that have taken users funds from the exchanges due to hacking incidents, they'll not stop doing it. Stop reminding people when they are aware of the risk and keeps on doing the risky thing. They will take account to themselves and responsible for any result that they'll get, there's no way to stop them unless it happens to them in actuality with what we don't want to see happen to them. It will only make them do the right thing when the bad thing has come.

Yes. Some people also don't know these risks, especially the new one and some of them already realized that if something bad happens to the exchange, that's the only time they will realize they did something bad, expensive lesson.

Well, to people who already know this risk, the pros and cons. Some may have a reason, too, why they intend to let it stay on exchanges, like for example they want to sell it after they buy, or they find it a hassle setting up a personal wallet and securing private keys or seed phrases (which is this is really much safer).

They will only move their funds when the hack has exploded and it's all over the news. People should have learned it already when it happened to Bybit and the influx of withdrawals there was overwhelming and the good thing with that incident is that Bybit never had delayed those requests and allowed them coming. But what if it happens again to their chosen exchanges and the withdrawals have been halted and there's no way for them to take their funds out of that affected exchange, that's what we're saying that they should avoid keeping it on an exchange.

[henry_of_skalitz]

Though I have not gotten experience of those who are full of experience about crypto generally that prefer exchange to store there holding what I observe that most Short time holder due to watching the market and not been able to move their coin or token from one place of storage to another prefer exchange to enable quick trade when they envisage their marketing target, but even as that it's very risky,for a long time holder who engaged on this act it really shown how careless such individual could be considering the risk involved, it's in nature of human that their careless and not managing risk properly leads to their cry when ever they encounter losses.

Exchanges are much more marketed than cold wallets or storages.

They will change their mind once there will be no way to go back.

[sunsilk]

One reminder is already enough that they shouldn't keep their funds in any exchange if they have no plans of trading.

They should not use all or big capital part for trading which is risky and easily to lose money. So trading should be given very small part of their capital.

They should not store their fund on exchanges a long time or longer than what they actually need. Without plan to do anything, they must withdraw coins to their non custodial wallets.

Many warnings about risk of storing fund on centralized exchanges.
Reminder: do not keep your money in online accounts.
Exchange graveyard.
Events made you scare about custodial wallets, centralized exchanges.

Even they have plans of doing it, they shouldn't follow that plan at all. The risk of keeping it on exchanges is there and it's never gone.

And I think that even we give them so many threads, news and other reminders they'll not stop doing it because they have been used to it.

They might only stop when it has happened to them although we're not wishing it happening to anybody.

[Agathamay]

Now I know why some people keep leaving their Bitcoin in the hands of centralised exchanges.

What if the reason why we keep telling people to take their funds or bitcoin out of centralised exchanges and they failed to do it was because it was all intentional? What if they intentionally want Coinbase to hold their Bitcoin for them simply because they suck at keeping private keys like their lives depends on it?

After all they will have someone to blame? After all they have money in the bank and they have access to it when they want, and Coinbase just feel to them like another bank?

In 2026, a Reddit user still believe that if no Centralised exchanges like Binance and Coinbase existed he won't be holding any Bitcoin or crypto because he just can't keep anything too sensitive like private keys and recovery seed safe.

Instead of me telling him that since he can't become his own bank and take responsibility he should not invest in Bitcoin, he choose Coinbase to do the job for him, funny enough he understand the risk and still choose to do this.

What do you have to tell such people?

A lot are called but few are chosen.
Don't even know how this sounds or relates with this story but that's the first thing that came to my head after reading your story and yes a lot of people truly suck at keeping things especially when it comes to their private keys and just as you said, one major reason for this, is because they always want to have someone to blame if things goes wrong and this is a way to tell you that, there are people that truly don't like taking responsibilities.

You simply should have told him straight over there, if he can't keep his seedphrase and be his own bank, then he should truly not invest in bitcoin and I don't even know why you had to withhold such bitter truth from him.

[Muba20]

What do you have to tell such people?

There are some advantages to keeping Bitcoin in an exchange wallet, which is why many people want to keep it in an exchange wallet without taking responsibility for it, even knowing the risks. Here they get some advantages that they do not need to store keys. Again, Bitcoin transactions can sometimes be very expensive. An exchange wallet is good for most people for instant trading, but you should also know about security. If the keys to your acquired assets are in the hands of others, then one sense you are not the owner. So anyone can take any decision considering the risk. I think that those who keep small amounts in exchange wallets are not very risky. If you have a dream of holding it for the long term, it is better to keep it with yourself rather than in exchange wallets.

[Cyber_warrior]

What if the reason why we keep telling people to take their funds or bitcoin out of centralised exchanges and they failed to do it was because it was all intentional? What if they intentionally want Coinbase to hold their Bitcoin for them simply because they suck at keeping private keys like their lives depends on it?

If you are planning to invest in bitcoin, then you don’t have to be lazy, if you know the risk involved in leaving funds on exchange, then you going to avoid that. We should know anything can happen to exchange at any moment, and no matter the amount of coin you are holding on the exchange, if anything happens to the exchange, then all your coins are gone already.

Keeping your seed phrase isn’t something difficult, just carve it on iron steel and store it in a place you know nobody will be able to access it. I don’t think that’s something difficult, that we won’t be able to do.

Some people won’t know the risk involved in leaving coin on exchange until they lose their coin before they going to realize the mistake which they made.