Many understand the risk and yet....

[snowpega]

<snip>
What do you have to tell such people?

Holding funds on centralized exchanges is not a good act near me. What, if any, specific exchange shutdown under any legal rules or regulations? At such a verge, many exchanges just run away without returning their users' funds back. We have such cases available back in time, and you will find them easily on the internet if you do a little research on it. Well, what do you personally think about it? Like, one should hold their earned funds in wallets or centralized exchanges? Which one is the best option?

This is why it is recommended more to hold your funds at somewhere safe place. And in my point of view, it is better to hold your funds in wallets that are away from the digital space. But here one most important thing to follow is that one should have to remember their wallet's seed phrase to access it whenever or any time he/she needs them. As without seeds phrase, no one will be able to access his/her funds back. DYOR!

[Abu-Naim]

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?

The main point here is that he understand and knows the risk behind leaving coins in centralized exchanges, but ignored it because he trusted them. It’s fine, the trust is good, but he can’t blame anyone if anything happens since he knows exactly what he did and decided to keep his wealth in centralized exchanges.

Most times , these are lazy people that can’t afford to take their responsibility themselves, they instead intend given their responsibilities to someone to take which is bad. I wish they can know that in time and make amendment to secure their future wealth because no matter how long centralized exchange and how reputable they are, they can leave one day.

[bettercrypto]

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?

You know, others are right when they say 'not your keys, not your coins' when we use centralized exchange platforms; it’s really up to us. If we choose to store assets on an exchange for months or even years, it means we are prepared for whatever might happen to our assets.

It also means we are prepared to lose them, even on an exchange we trust. Like me, I’ve been using a CEX platform for several years now, and I keep assets there because I actively trade. However, I make sure to withdraw my profits and transfer them to non-custodial wallets where I hold the seed phrase and have full control over my assets. I’m just thankful to God that I haven't encountered any problems with the CEX platform I trust.

[serjent05]

You know, others are right when they say 'not your keys, not your coins' when we use centralized exchange platforms; it’s really up to us. If we choose to store assets on an exchange for months or even years, it means we are prepared for whatever might happen to our assets.

If we ever store our coins in exchanges for years, we must always keep ourselves updated on the exchange's policy.  I read about people who lost their coins due to the exchange's change in policy or in the worst case, missed withdrawing their funds when the exchange declared bankruptcy.

It also means we are prepared to lose them, even on an exchange we trust. Like me, I’ve been using a CEX platform for several years now, and I keep assets there because I actively trade. However, I make sure to withdraw my profits and transfer them to non-custodial wallets where I hold the seed phrase and have full control over my assets. I’m just thankful to God that I haven't encountered any problems with the CEX platform I trust.

Indeed if there is no activity on the centralized exchange, it is best to withdraw the fund in keep it in the wallet where we have access to the private key.  Having full control over our coins should not be compromised.

[Renampun]

I just don't want to put centralized exchanges as the bad guy here because honestly I also exchange or buy from those platforms, but the difference is I don't want to put my assets in the long term on a centralized exchange, I see that centralized exchanges are just a temporary place that can make it easier for us to make transactions, enter and exit the market quickly, while to store bitcoins in the long term we should still use a non-costudial wallet, that way when problems occur on the exchange we will not be the victims.

[Japinat]

Our investment, our rules. This is why we can't blame others if they chose to trust an exchange despite of the risk, because that's where they feel more comfortable and secured. They knew and understand the risk especially those who have huge accumulation, but we can't expect them to be doing things the same with us.

But one thing is certain, once they get scammed and lose their bitcoin, that's where they will start doing the right thing, and follow us and ignore those exchanges.

[Achalugo BTC]

We have nothing to say here. Your wealth, your custody. We can only inform him about the good and the bad. If he knows the risks of saving on exchanges and the benefits of saving in decentralized wallets but still takes the risky path, then he is responsible for his actions. We have no responsibility here and nothing to advise. We cannot change his mindset if he does not change himself.

Absolutely, as far as they already have the basic knowledge and understanding of  the risks involved, and still insist in going ahead, will be held accountable of their actions.
Because, every individual has the right to make any decision that is best for them, which is why its important not to ignore or neglect the red flags while taking action on their decision, which might turn out to be regret to their plans and to avoid that from happening is by being vigilant and must adhere to what will support you in achieving your purpose.

[Livingleged]

I just don't want to put centralized exchanges as the bad guy here because honestly I also exchange or buy from those platforms, but the difference is I don't want to put my assets in the long term on a centralized exchange, I see that centralized exchanges are just a temporary place that can make it easier for us to make transactions, enter and exit the market quickly, while to store bitcoins in the long term we should still use a non-costudial wallet, that way when problems occur on the exchange we will not be the victims.

Simply because it isn’t the bad guy (my own opinion though)even though it has it own flaws I think the features of the centralized exchanges attract lot of people by trying to to make bitcoin navigation much easier as compared to to the non centralized wallet. But then I think what should be done is defining the purpose of the bitcoin weather it’s for long time storage then I will go for non custodial wallet but if it for daily transactions I’ll pick custodial centralized exchanges because I use them often and it’s been lot easier for me to navigate

[JimaGod]

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.

Exchanges are better one to adapt with because they've enlisted most of these altcoins which some of these custodial wallets doesn't have. There are quite good numbers of altcoins that are very promising but with the current market condition, we set ourselves far away. For one to make it to the top, we ought to understand the risks involved and keen ourselves in making Ps. However, at the end of the day, people will take action on the alternative that best suits them. They're not bouncing back to prime because they know exactly what they're doing. It can either skyrocket them to the moon or simply make them forget the route to gaining freedom.

[Akuma_]

I just don't want to put centralized exchanges as the bad guy here because honestly I also exchange or buy from those platforms, but the difference is I don't want to put my assets in the long term on a centralized exchange, I see that centralized exchanges are just a temporary place that can make it easier for us to make transactions, enter and exit the market quickly, while to store bitcoins in the long term we should still use a non-costudial wallet, that way when problems occur on the exchange we will not be the victims.

You are right, if the exchanges are damaged in the future, our money will not be lost and we will be safe. Because in many cases, exchanges are damaged and many people have lost their money. Therefore, we want a solution to this problem.Therefore, it is better for us to be safe so that our money does not get lost.

[melinoe]

I just don't want to put centralized exchanges as the bad guy here because honestly I also exchange or buy from those platforms, but the difference is I don't want to put my assets in the long term on a centralized exchange, I see that centralized exchanges are just a temporary place that can make it easier for us to make transactions, enter and exit the market quickly, while to store bitcoins in the long term we should still use a non-costudial wallet, that way when problems occur on the exchange we will not be the victims.

You are right, if the exchanges are damaged in the future, our money will not be lost and we will be safe. Because in many cases, exchanges are damaged and many people have lost their money. Therefore, we want a solution to this problem.Therefore, it is better for us to be safe so that our money does not get lost.

You meant "will be lost" right?

[yixichloro2xx]

So are you insinuating that Exchanges are bad, do you think that is everyone that understands Self custody wallet. Yes we know that Exchange are being regulated, prone to hacks. But that doesn't mean it's unsafe to keep your assets in there.  Most people begin their investments journey through exchanges especially when they want to deposit fiat currency to buy assets like Bitcoin. People have their preferences, I know alot of people who loves using exchanges , because they feel it's more understandable to them I.e buying and selling quickly . When you exchange make sure you use the big ones like Binance. I love using both exchange and wallets.

[Pablo-wood]

So are you insinuating that Exchanges are bad, do you think that is everyone that understands Self custody wallet. Yes we know that Exchange are being regulated, prone to hacks. But that doesn't mean it's unsafe to keep your assets in there.  Most people begin their investments journey through exchanges especially when they want to deposit fiat currency to buy assets like Bitcoin. People have their preferences, I know alot of people who loves using exchanges , because they feel it's more understandable to them I.e buying and selling quickly . When you exchange make sure you use the big ones like Binance. I love using both exchange and wallets.

Yes exchanges are bad and quote me anywhere. Keeping your coin in exchanges defeats the original idea of bitcoin creation which is and will remain been your own bank. Don't forget this quote "Not your keys, Not your coin". Having a coin that will be exchanged for fiat within a short period of time can be left in CEX but keeping an investment in that is possible targeted for a long term on a CEX is never and will never be a wise decision, if not for any reason the fact that anything could happen to the exchange and the future is never 100% guaranteed.

[fikrett]

So are you insinuating that Exchanges are bad, do you think that is everyone that understands Self custody wallet. Yes we know that Exchange are being regulated, prone to hacks. But that doesn't mean it's unsafe to keep your assets in there.  Most people begin their investments journey through exchanges especially when they want to deposit fiat currency to buy assets like Bitcoin. People have their preferences, I know alot of people who loves using exchanges , because they feel it's more understandable to them I.e buying and selling quickly . When you exchange make sure you use the big ones like Binance. I love using both exchange and wallets.

I would define it like this - we should keep the funds we are ready to assume may be influenced by said hacks on exchanges (CEXes, DEXes to a smaller extent).

So that even if it happens.. We would be ready for it and won't take a hit that would make our situation pretty bad.

[AmoreJaz]

So are you insinuating that Exchanges are bad, do you think that is everyone that understands Self custody wallet. Yes we know that Exchange are being regulated, prone to hacks. But that doesn't mean it's unsafe to keep your assets in there.  Most people begin their investments journey through exchanges especially when they want to deposit fiat currency to buy assets like Bitcoin. People have their preferences, I know alot of people who loves using exchanges , because they feel it's more understandable to them I.e buying and selling quickly . When you exchange make sure you use the big ones like Binance. I love using both exchange and wallets.

Exchange platforms are needed in this market as you can easily convert your coins to any currency that you want. But once you completed your trading, you can always get out of your funds from the trading platform. Exchanges are third party sites and so you really don't need to make it as a storage of your funds because of security concerns.

[shinratensei_]

You always have the choices, that's the beauty of bitcoin. If you choose your bitcoin to be dormant in exchange, who are we to tell you the opposite but just know that there are tons of people getting their account frozen for nonsense reason and losing control of their coin for many years.
Using self custody, you just prevent such thing from happening and gain full control and it also comes at risk such as losing seed phrase, losing private key, getting phished and some other risks.

With each option there is always pros and cons, it's up to you to choose which pros and cons that you would prefer more. One thing you need to remember, those exchanges aren't bank which got insured by government if collapse take place.
They are private company with their own emergency fund and some exchange consider any deposit made to their addresses as part of their company asset which why some people insinuated that not your key not your coins because you by legal contract agreed that your coin doesn't belong to you anymore.

I'm really hopeful you read their terms and conditions if you committed to holding bitcoin in their exchange.

[imthegreat]

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?

I completely agree with your opinion that those who don't know how to store their Bitcoin private keys shouldn't invest at all, because such an irresponsible person has no way to become rich.
Even if they somehow manage to accumulate a lot of Bitcoins, they'll ultimately simply lose them when they forget where they wrote down their wallet recovery phrase. I don't understand people like that; I don't think they should be Crypto users. Not only will a Crypto user never forget their recovery phrase, I know two people who even memorized their recovery phrases so they never lose control of their Bitcoins.

[Maslate]

No person would entrust a valuable amount of bitcoin into an exchange if its not intentional. It's actually intentional and part of the plan. And just like you've said, if the owner is not capable and secured enough to hold his bitcoin on his own wallet, then trusting an exchange would be the last option, especially if the said exchange is reputable and trustable.

He understands the risk and he's aware of the future consequence, and that's actually his choice. And until he's not experiencing yet losing his bitcoin in an exchange, he will stick to his choice for the time being.