Many understand the risk and yet....

[Josefjix]

What do you have to tell such people?

Let him do what works best for him, maybe he knows his flaws, his weaknesses and strength and he is capitalizing on it for his own betterment. If he considers worthy to afford the risks of keeping funds in those centralized exchange, then that's fine. But the disadvantage will be that, such person can't pass on funds to his generation if he passes away, maybe his children.

The reasons dex had been the best for keeping coins is because of been your own bank, keeping on cex is meaning, submitting your bank to the hand of others who op think he is safe with them.

[Hypnosis00]

Let's get straight to the point. Those who have clearly understood the risk will never put their coins to an exchange and become a threat of scamming and losing after. They trust theirselves more than the exchange itself so there's no reason they will fall on that.

However, those who have not seen the point, and get their job done with the presence of an exchange, they think they can take advantage on this only to find out in the end they are the ones being taken advantaged of. And they will only understand the real point once they experience the losses then.

[iBaba]

Let's get straight to the point. Those who have clearly understood the risk will never put their coins to an exchange and become a threat of scamming and losing after. They trust theirselves more than the exchange itself so there's no reason they will fall on that.

However, those who have not seen the point, and get their job done with the presence of an exchange, they think they can take advantage on this only to find out in the end they are the ones being taken advantaged of. And they will only understand the real point once they experience the losses then.

I think it is also good to sometimes recognize the importance or advantages of these exchanges, they make our transactions especially during the P2P process alot more easier so we cannot just decide to runaway from them. What someone like me have done or will always do is to separate my assets into two.

I have the spend-able  asset and the savings which I will never want to access for my spendings. Such wallet or account will have the ability of recieving only and not sending out. So I will set up a non custodial wallet for such activities only and leave my exchange wallet available for my little savings/spendings and not a place to save my planned investment.

[GiftedMAN]

By keeping money in an exchange, an investor may not have to keep his keys under his control, later he may think is safe, but in reality his assets are not safe because if the exchange is hacked, will he get his money back? And there is no certainty. Therefore, if you are trying to keep your assets, you should store them safely from the beginning. Keeping them in your wallet, whether short-term or long-term, is safe. If you have a small amount of money that can be spent on your own needs or is available for trading, then you should keep it in a good top-level exchange, but it should be understood that it is not completely safe.

A lot of investors tend to focus so much on the accumulation and growth part of the investment and often give little to no attention on the most important aspect of the investment which is security and safety of the asset. Leaving one’s funds in an exchange comes with lots of risks, this is because exchanges are meant to be some sort of a gateway and not a storage tool, and storing tool goes against the core values of bitcoin, which is privacy, anonymity and decentralization.

[Livingleged]

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?

It is not even a question of why won’t anyone want to keep his private keys and prefer to use the centralized exchange to avoid the whole stress, then he should be ready to face the consequences that just it. It has been said severally that custodian wallet can be compromised and your funds aren’t fully safe but you decide it’s Whats best for you then if anything happen it’s left to you to take full responsibility.
Even though these centralized exchange have Made running p2p transactions much easier then it should be like a place where you run transactions and not for keeping your assets.

[CryptoHeadlineNews]

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?

It's true that there are some people who understands the risk associated with keeping funds on centralized exchanges, and yet still chose to keep theirs, simply because maybe the funds isn't that huge, and as such, maybe they just need it where they can always easily have access to swapping it or convert into Fiat immediately. But on the contrary, it still doesn't make sense for people not to prioritize maximum security, knowing fully well that a centralized exchange can anytime or anyway be hacked and all your entire funds gone, of which you could have prevented it if you had own the private key to it by keeping it on a safe and secured non custodial wallets like Blue Wallet and Electrum. Because the same way a person keeps his Coinbase account username and password secret from third parties, so can same be applicable to keeping a seed phrase. So it's all about individual decision making, and as a newbie when an individual starts to act adamant why he should prioritize centralized exchanges, it's only best to do the right thing rather than keep arguing.

[SOKO-DEKE]

I just feel that those who are still storing their Bitcoin on exchanges are the set of people who do not understand much about privacy. If they did, they would not decide to leave their funds on exchanges. Being your own bank brings a lot of advantages, and one of those advantages is that your identity will not be out there and the amount of funds you have will not be known to anyone except you, or those you choose to inform.

When funds are kept on exchanges, people may think their money is safe, but leaving funds on exchanges seems like exposing oneself, because KYC will be collected and the funds are linked to the person. The fact is that any exchange can collapse, and if it collapses, that means someone’s money is gone.I know it is not easy to keep a seed phrase, but if someone has the knowledge, I don’t think hiding a seed phrase should be a stressful thing

[MainIbem]

By keeping money in an exchange, an investor may not have to keep his keys under his control, later he may think is safe, but in reality his assets are not safe because if the exchange is hacked, will he get his money back? And there is no certainty. Therefore, if you are trying to keep your assets, you should store them safely from the beginning. Keeping them in your wallet, whether short-term or long-term, is safe. If you have a small amount of money that can be spent on your own needs or is available for trading, then you should keep it in a good top-level exchange, but it should be understood that it is not completely safe.

A lot of investors tend to focus so much on the accumulation and growth part of the investment and often give little to no attention on the most important aspect of the investment which is security and safety of the asset. Leaving one’s funds in an exchange comes with lots of risks, this is because exchanges are meant to be some sort of a gateway and not a storage tool, and storing tool goes against the core values of bitcoin, which is privacy, anonymity and decentralization.

It's very true mate, for security reasons, I don't think people should store their digital assets in a centralised wallet or exchange. It's one thing to take advantage of Bitcoin as an investment option but it's another thing to secure what you're investing in, the risk of storing an asset in a centralised platform is high, cause security is not 100% guaranteed and it makes no sense to leave it in a hands of a third party people should remember that if it's "not their keys then it's not their coins".

[Lida93]

Some people don't really understand the risk of leaving their coins in an exchange; they thought it was the safest place to keep their assets, which their laziness in them is what gave them that type of thinking, trying to convince them that it's better to hand over security to a third party than doing it yourself, as if any serious thing happens to the exchange, their coin will remain safe, and also forget the fact that exchanges have the right to file for bankruptcy when necessary, and if a user's account is accessed, all funds are gone.

Some people wants to see what would happen it doesn't matter what you tell them they would still stick to what they have resought to do because they always want other people to take the responsibility of handling their stuffs for them even when there could be a risk of losing it. There's no burden in keeping our keys but some people makes it look like it's such hard thing doing it, an excuse for their laziness.

[Issa56]

Some people wants to see what would happen it doesn't matter what you tell them they would still stick to what they have resought to do because they always want other people to take the responsibility of handling their stuffs for them even when there could be a risk of losing it. There's no burden in keeping our keys but some people makes it look like it's such hard thing doing it, an excuse for their laziness.

Some people just believe that leaving their bitcoin on exchange is the easiest way to store their bitcoin, they believe they can easily access their bitcoin when it’s store on exchange, and some of them believe if anything happens to the exchange, then they going to be refunded. Some people have been warned so many times about leaving their coin on exchange, but they not just going to listen, until they lose their coin on exchange before they going to learn there lesson. If you are lazy to properly secure your seed phrase, then you not really serious because I don’t see anything difficult in that.

[Joy- maker]

You are very correct, because there are folks who know the risk of leaving their Bitcoin in a centralised exchange yet they choose to keep their holding there. I know keeping seed phrase safe can be difficult at times because I once misplaced my seed phrase, since it was not properly kept. Although I am not bordered because I stored few Altcoins there not bitcoin, and not really reasonable amount so I can afford to loose it.

But keeping  your coins in a centralised exchange is not available, especially when you want to hold for life time. Since anything can happen to the exchange anytime any day. Just be your own Bank and safe yourself Some stress. Because losing hudge amount of money can be very heart broken and sometimes it can lead to someone death that I have witnessed in several occasions.

[lixer]

You can't, because I am one of those people and you do not understand the risk and reward ratio. The trouble is that, when I keep my money in binance, that means they are in charge and they are responsible for the security and safety of my funds. When I get to keep it, I am in charge of security and safety of my funds instead. Now tell me, what makes you think that I am more safe and secure than binance?

What would make me be more careful with it? There are many stupid people out there, who will lose it all to a scam, or a hacking, so it is clear that keeping it at binance is better for us.

[MainIbem]

You are very correct, because there are folks who know the risk of leaving their Bitcoin in a centralised exchange yet they choose to keep their holding there. I know keeping seed phrase safe can be difficult at times because I once misplaced my seed phrase, since it was not properly kept. Although I am not bordered because I stored few Altcoins there not bitcoin, and not really reasonable amount so I can afford to loose it.

But keeping  your coins in a centralised exchange is not available, especially when you want to hold for life time. Since anything can happen to the exchange anytime any day. Just be your own Bank and safe yourself Some stress. Because losing hudge amount of money can be very heart broken and sometimes it can lead to someone death that I have witnessed in several occasions.

Every investment have their risk management just that some investors fail to apply it in Bitcoin investment, it doesn’t end with just buying and holding but securing your asset in a good wallet. Satoshi was fighting against centralisation that's why he created Bitcoin to ensure more privacy and boycott the third party system so I wonder why some folks would choose to go save their coin in platform where they could risk loosing it. Yes mate it is never advisable cause the risk factor is high.

[melinoe]

You are very correct, because there are folks who know the risk of leaving their Bitcoin in a centralised exchange yet they choose to keep their holding there. I know keeping seed phrase safe can be difficult at times because I once misplaced my seed phrase, since it was not properly kept. Although I am not bordered because I stored few Altcoins there not bitcoin, and not really reasonable amount so I can afford to loose it.

But keeping  your coins in a centralised exchange is not available, especially when you want to hold for life time. Since anything can happen to the exchange anytime any day. Just be your own Bank and safe yourself Some stress. Because losing hudge amount of money can be very heart broken and sometimes it can lead to someone death that I have witnessed in several occasions.

Every investment have their risk management just that some investors fail to apply it in Bitcoin investment, it doesn’t end with just buying and holding but securing your asset in a good wallet. Satoshi was fighting against centralisation that's why he created Bitcoin to ensure more privacy and boycott the third party system so I wonder why some folks would choose to go save their coin in platform where they could risk loosing it. Yes mate it is never advisable cause the risk factor is high.

I don't think it was meant to boycott the tradition.

More like give an alternative to it for those that want that option.

[Ever-young]

Every investment have their risk management just that some investors fail to apply it in Bitcoin investment, it doesn’t end with just buying and holding but securing your asset in a good wallet. Satoshi was fighting against centralisation that's why he created Bitcoin to ensure more privacy and boycott the third party system so I wonder why some folks would choose to go save their coin in platform where they could risk loosing it. Yes mate it is never advisable cause the risk factor is high.

The only reason anyone would store their bitcoins in a centralized wallet or platform is ignorance. Yes, only one who is ignorant would wanna store their bitcoins in a secure wallet. The truth is that most people who go into bitcoin investment focus more on how to accumulate and build a very high stash but fail to understand that security is even more important than the investment itself because if your investment isn’t well secured then there just might be no investment at the end of the day.

[knowngunman]

If you know the risk that is involved in dong something, why go on to doing it in the first place? apart from the fact that if you leave bitcoin in a exchange that a bull in bitcoin will equally affect you, there is no much different between doing that and leaving your fiat in the bank in both cases, you are giving your asset to a third party to take care of.

Of course they know the risk involved in keeping their coins in exchange but they go ahead to that do so they can have someone to blame later in case anything happens. They're simply running away from responsibility. Should in case anything happens, even though blaming exchange will not make any difference, some people still prefer to shift blame to others despite it makes no difference.

"If not because of Bybit hack last year that affected, I will worth xxx by now bla bla etc." Some people find comfort making statements like this instead of "If not for my carelessness with my wallet last year I will worth xxx by now". The only difference between the former and the latter is the shift of responsibility but it makes no sense because either way, it won't bring back your coins.

[purple_sparkles]

Every investment have their risk management just that some investors fail to apply it in Bitcoin investment, it doesn’t end with just buying and holding but securing your asset in a good wallet. Satoshi was fighting against centralisation that's why he created Bitcoin to ensure more privacy and boycott the third party system so I wonder why some folks would choose to go save their coin in platform where they could risk loosing it. Yes mate it is never advisable cause the risk factor is high.

The only reason anyone would store their bitcoins in a centralized wallet or platform is ignorance. Yes, only one who is ignorant would wanna store their bitcoins in a secure wallet. The truth is that most people who go into bitcoin investment focus more on how to accumulate and build a very high stash but fail to understand that security is even more important than the investment itself because if your investment isn’t well secured then there just might be no investment at the end of the day.

We never lose our money because we are too smart. Usually, a person who ends up losing their savings does so because of a foolish mistake. Very often, they understand and even realize the mechanism of that mistake, yet for some inexplicable reason they still make it. Everyone knows that cryptocurrencies should not be stored on exchanges for various reasons, but somehow there is always a clever excuse, why pay a withdrawal fee, it’s better to leave the funds there, it will be more, and it’s more convenient to sell quickly if needed. And yet, people still do it. The same goes for seed phrases and scammers. So what inside us resists the state of wealth and pushes us to make fatal mistakes. Perhaps it’s worth working through our relationship with money, then the mistakes that lead to losing wealth will become much less likely.

[betswift]

Every investment have their risk management just that some investors fail to apply it in Bitcoin investment, it doesn’t end with just buying and holding but securing your asset in a good wallet. Satoshi was fighting against centralisation that's why he created Bitcoin to ensure more privacy and boycott the third party system so I wonder why some folks would choose to go save their coin in platform where they could risk loosing it. Yes mate it is never advisable cause the risk factor is high.

The only reason anyone would store their bitcoins in a centralized wallet or platform is ignorance. Yes, only one who is ignorant would wanna store their bitcoins in a secure wallet. The truth is that most people who go into bitcoin investment focus more on how to accumulate and build a very high stash but fail to understand that security is even more important than the investment itself because if your investment isn’t well secured then there just might be no investment at the end of the day.

Custody is something you should crave yourself.

If you don't - there is always a risk of relying on someone that don't give a cent about you and your coins.

[puloweh555]

Some people don't really understand the risk of leaving their coins in an exchange; they thought it was the safest place to keep their assets, which their laziness in them is what gave them that type of thinking, trying to convince them that it's better to hand over security to a third party than doing it yourself, as if any serious thing happens to the exchange, their coin will remain safe, and also forget the fact that exchanges have the right to file for bankruptcy when necessary, and if a user's account is accessed, all funds are gone.

Some people wants to see what would happen it doesn't matter what you tell them they would still stick to what they have resought to do because they always want other people to take the responsibility of handling their stuffs for them even when there could be a risk of losing it. There's no burden in keeping our keys but some people makes it look like it's such hard thing doing it, an excuse for their laziness.

Many people store assets on exchanges because they have few assets. As you said, storing them in a self-managed wallet can lead to additional transaction fees which is better than losing assets. Perhaps this is why they still underestimate the high risk of storing on exchanges.

There have been numerous cases of exchanges being hacked or going bankrupt they should learn from these cases. They should have the mindset that if it's not their keys it's not their coins. Regardless of how few or many assets they have don't use exchanges as a long-term asset storage.

[WatChe]

We never lose our money because we are too smart. Usually, a person who ends up losing their savings does so because of a foolish mistake. Very often, they understand and even realize the mechanism of that mistake, yet for some inexplicable reason they still make it. Everyone knows that cryptocurrencies should not be stored on exchanges for various reasons, but somehow there is always a clever excuse, why pay a withdrawal fee, it’s better to leave the funds there, it will be more, and it’s more convenient to sell quickly if needed. And yet, people still do it. The same goes for seed phrases and scammers. So what inside us resists the state of wealth and pushes us to make fatal mistakes. Perhaps it’s worth working through our relationship with money, then the mistakes that lead to losing wealth will become much less likely.

The centralised exchanges are killing the concept of decentralised Bitcoin. If you are storing your Bitcoins on any centralised exchange then be aware of the fact that not your keys, not your coins. There are many stories that tells us that accounts having huge number of crypto were seized by centralised exchanges and reason provided are insane. If you are long term investor and don't want to touch your Bitcoins for long term then always store them in a decentralised wallet. Just spend some time in learning how to secure your decentralised wallet and you are good to go.