Why to hodl coins for custodial wallet dey risk

[Agathamay]

I know say many og's go understand this phrase  (not your keys not your coins) that na the perfect answer to why holding coins for constudial wallet dey risky.

I believe say many newbies supposed done understand wetin custodial and non custodial wallet be so i no go throw better light for  that one. As we move ahead, One of the reasons why Satoshi create Bitcoin na to boycott  third party system wey bank they offer, so eh mean say na we supposed dey in charge of our money.
now reason am, if them been create Bitcoin for that purpose, eh mean say people no suppose they save or keep  their coins for constodial wallet or  exchanges and s as eh dey very risky since you dey go against the concept of why Satoshi create Bitcoin and you go dey trust third party to secure your coins.

The repercussions na say your coins go dey expose to hackers and You no dey totally in charge of your coins cause the exchange or platform fit freeze your account or restrict you access anytime without even seeking your consent and dem fit also change their policy wey go affect you in future.

So my country people make una no forget to choose non custodial wallet over custodial, no also forget say "Not your keys not your coins".as below na link to previously hacked cryptocurrency platforms no no recover after the attack as most of them dey centralized if not all.
https://crystalintelligence.com/investigations/the-10-biggest-crypto-hacks-in-history/

[Justbillywitt]

This issue of storing coins in a custodial wallet has been one of the most talked about anywhere cryptocurrency is being discussed. Reason being that if you don't store your assets well you will lose it all at once and all your years of struggle to put up those assets will be worthless. No matter the temptation don't keep any meaningful money in a custodial wallet. Those who fell victim in the past never knew hack would happen, and there's no guarantee that hacks has stopped happening. To be on the safe side let's always keep our coins were we have absolute control.

[Uhwuchukwu53]

This issue of storing coins in a custodial wallet has been one of the most talked about anywhere cryptocurrency is being discussed. Reason being that if you don't store your assets well you will lose it all at once and all your years of struggle to put up those assets will be worthless. No matter the temptation don't keep any meaningful money in a custodial wallet. Those who fell victim in the past never knew hack would happen, and there's no guarantee that hacks has stopped happening. To be on the safe side let's always keep our coins were we have absolute control.

Yes all are facts but it's already been discussed in such a manner it's clear that newbie who lack what it takes in response to knowledge is not meant to engage in storing asset on custodian wallet or cold wallet where he will make regrettable mistake, the use of this wallet demand professionalism, by mastering all technically involved and handling this will all measure that safeguard user from any form of silly mistake that will leads to loss of assets.

[Gost ms]

Hardware wallets are the most secure. If you invest a lot of money, it would be great to use a hardware wallet. You can use decentralized wallets. If you keep your bitcoins in a custodial wallet, a third party will have control over your assets.

If you want, you can create a cold wallet and never connect that cold wallet to the internet. When your holding period ends, you can connect the internet to your cold wallet. There are many people who buy through the DCA method. They can buy a separate mobile for the cold wallet and keep your exchanger on another mobile. And when you buy bitcoins through the exchanger, you can send your bitcoins to your cold wallet at that time. If you use this method, it will be good for you.

[Joy_learns_crypto]

It is now all about not your keys not your wallet.
https://bitcointalk.org/index.php?topic=5572389.msg66327888#msg66327888 from yesterday I saw this post and the post is alike to this one the difference is the title on this is wallet and that is exchange but the closeness is visible.
This post for follow through the first post, this new post be like it came from reading the first post.

[casey15]

Apart from the risk if getting hacked, your assets in a custodian wallet isn't really yours.. you can be denied access due to some policies.. it could be because of KYC or huge amount transfer and so on... Custodian wallets restrict users a lot of times and there is nothing you can do about it because the private keys are t with you... Just like the popular phrase says.. Not your keys, nit your coin.. you really cannot take absolute control over your funds in a custodian wallet, it's still almost like a traditional bank system where you'll need to take permission sometimes to withdraw your money.. and once an hacker gets hold of a custodian wallet, it is almost inevitable that a lot of people will lose their money because their private keys are with the wallet instead of them

[Mayor of ogba]

Even though one of the reasons why Satoshi Nakamoto create bitcoin wasn't for us to have 100% control over our money, keeping your bitcoin in a centralized exchange is risky, and you can lose it if the centralized exchange is hacked or if the CEO of the centralized exchange declares himself or herself bankrupt. So for you to avoid losing your bitcoin to any centralized exchange, you should always keep your bitcoin in a self custodial wallet like the electrum wallet, which gives you full ownership of your bitcoin.

[Doan9269]

A custodial wallet s not save at all for use, we have to understand the necessary things that must have been in place in other for us to enjoy full control over our assets, it begins with the level of information we have and how determined we are to learn more about these necessary steps to privacy, what is best for our use is a non custodial storage and not a custodial storage, when we learn their difference, we are going to understand the reason why.

[Joy- maker]

So my country people make una no forget to choose non custodial wallet over custodial, no also forget say "Not your keys not your coins".as below na link to previously hacked cryptocurrency platforms no no recover after the attack as most of them dey centralized if not all.

Self custodial wallet is the best when it comes to Long term holding. Because leaving your coin in an exchange is at own risk since anything can happen to the exchange anytime any day. so is either the exchange may got hacked one day which recovery does lost funds are not guarantee. Secondly exchange can vanish with users fund's, just the same way exchanges vanished with early bitcoin users funds till date. Exchange can also inconvenience users by freeze withdrawals, or lock users funds during maintenance or investigation.

And I recommend cold wallets for long term storage instead of hot wallets, why because if you use cold wallets to store your coin, your coins will be stored offline, you can only connect them to your device when you want make use of them. But hot wallets are connected to the internet making it vulnerable to attackers, so for that reason  it is not really advisable for long term holding, especially when you want to hold for life time.

[Fiatless]

The repercussions na say your coins go dey expose to hackers and You no dey totally in charge of your coins cause the exchange or platform fit freeze your account or restrict you access anytime without even seeking your consent and dem fit also change their policy wey go affect you in future.

Keeping your coin for non custodian wallet no mean say you dey free from hacks.  You still get the responsibility of keeping your wallet safe by adhering to security measures. You no go expose.your seed phrase to scammers because them go fit use am run you street. Make you no also expose your wallet to other things and things for internet way fit give these criminals that opportunity to steal from you.

[Agbamoni]

The truth is, people are not really scared of keeping their coins in custodian wallets because attacks on these exchanges dont happen frequently. They would want to make sure they hear news relating to atacks on exchanges before taking pracaution.

However, most of them become victims of this thing, and I really dont sympathize with them because they deserve it.

[Nwadiche]

Normally anybody wey keep him coin for exchange don losguard, because if anything happen, otilo e don go. Dats why Dem dey always warn peysay make Dem use non custodial wallet to keep their coins to avoid to much story. For the past many exchange don experience the biggest hack in history and them leave their customers speachless. Because all thekneg wey Dem get for exchange don go and na non refundable. But if you hold the seed where your Bitcoin dey, you no get problem because you go withdraw your coin anytime anywhere. The fun part be say even if you Lost your phone or or anything happen to am, you go still import am for any new phone wey you buy. Custodial wallet naim be the best bro, you me need to talyam two times.

[Princess Leah]

The truth is, people are not really scared of keeping their coins in custodian wallets because attacks on these exchanges dont happen frequently. They would want to make sure they hear news relating to atacks on exchanges before taking pracaution.

However, most of them become victims of this thing, and I really dont sympathize with them because they deserve it.

You're right, snd it makes no sense cause it's best to secure your asset than waiting for it to be stolen or restricted from the centralised platform that it's stored in before taking precautions, that's medicine after death and I'll never support such lifestyle. Many people have lost their asset due to silly errors they overlook yet they don't learn from it.

 It's fair to say that they deserve it cause people don't learn, just like the Op said, Satoshi wasn't foolish to make Bitcoin decentralised they're putting people in charge of their security, so I wonder why they'll trust a third party system which doesn't support decentralization.

[Lembo69]

There are several risks to keeping money in a custodial wallet. One of the major reasons is that the exchange may suddenly shut down. Apart from hacking, there are many other risks involved. If you cannot store your money in a secure wallet, it becomes difficult to stay mentally stable and make the right decisions while investing.

Therefore, it is always best to use a non-custodial wallet. An investor never wants to put his investment at risk. But many times they cannot understand what is wrong and what is right. That is why many people keep their investments in a custodial wallet. But in reality, custodial wallets are very risky.

[Cryptomultiplier]

The truth is, people are not really scared of keeping their coins in custodian wallets because attacks on these exchanges dont happen frequently. They would want to make sure they hear news relating to atacks on exchanges before taking pracaution.

However, most of them become victims of this thing, and I really dont sympathize with them because they deserve it.

Cryptocurrency interest has evolved to a point where leaving some coins on the exchange wallet would save you stress and ease a transaction that would have taken longer.
Long term holders of Bitcoin and crypto currencies users and traders, always leave like 10% of their savings on the exchange wallet for easy use and trade.
Many exchanges today have evolved due to licence policies and regulations, they don't just crash like new entrants into the business, because there have been stories like this in the past and owners of such exchanges use better developers to better their business models to prevent a repeat of past mistakes.

Use a cold wallet for long term DCA plan, if possible, an air gapped wallet that uses QR code would serve deeper and disciplined hodling plan as compared to cold/hardware wallets like Trezor or Ledger wallets that must require USB or Bluetooth connectivity to the online device you use.

[Mhizlove]

This issue of storing coins in a custodial wallet has been one of the most talked about anywhere cryptocurrency is being discussed. Reason being that if you don't store your assets well you will lose it all at once and all your years of struggle to put up those assets will be worthless. No matter the temptation don't keep any meaningful money in a custodial wallet. Those who fell victim in the past never knew hack would happen, and there's no guarantee that hacks has stopped happening. To be on the safe side let's always keep our coins were we have absolute control.

Yes all are facts but it's already been discussed in such a manner it's clear that newbie who lack what it takes in response to knowledge is not meant to engage in storing asset on custodian wallet or cold wallet where he will make regrettable mistake, the use of this wallet demand professionalism, by mastering all technically involved and handling this will all measure that safeguard user from any form of silly mistake that will leads to loss of assets.

I agree with you because wallets isn't something that is straightforward or simple tools, so before you go into storing your assets go go a d learn the basic techniques and also it's very important to practice security it will help you more about the wallet. With all this once you've understand and learn how everything works and you can handle it with care then these wallet are safe but without the basis the wallet will turn out to become a risky one even though it's the best of them all.

[abaeze]

Just as we do not want to give our wealth account to people, we do not share our passwords with others. But due to some mistakes, our hard-earned money falls victim to hacking. Many people may suffer the loss caused by mistakes without making any mistakes. In a word, we have to bear the loss of mistakes without making any mistakes. And one of such mistakes is keeping Bitcoin in custodial wallets. Because many people have been victims of hacking in the past by keeping Bitcoin in these wallets. Therefore, keeping assets in non-custodial wallets is safer than keeping assets in custodial wallets, and just as your password is safe with yourself, this wallet is also safe.

[adultcrypto]

So my country people make una no forget to choose non custodial wallet over custodial, no also forget say "Not your keys not your coins".as below na link to previously hacked cryptocurrency platforms no no recover after the attack as most of them dey centralized if not all.
https://crystalintelligence.com/investigations/the-10-biggest-crypto-hacks-in-history/

As e be say na newbies dey your mind when you write the post, you for kuku add examples of custodial wallet and non custodial wallet so them go start from there. You fit even forget to add that example and just suggest the wallet wey you think dey ok for them to use. A good number of this forum members use Electrum wallet wey be non custodial wallet and e also get plenty things to take hold and manage bitcoins. E get others too wey make sense but e good make newbies begin with the one wey dey easy for them make them for no lose their money because mistake fit happen.

[Judith87403]

The point wey you dey give e clear come make sense. You are aligning with the original Bitcoin spirit, which is self custody without middleman. Custodial wallets and exchanges can be convenient, but the inside is plenty. Hacks, frozen accounts, change of policy, or even crash of platform can lock a person's funds permanently. History has revealed how many centralized platforms cannot recover after being attacked, and users get to suffer it.

For newbies, exchanges can serve as a starting point, though storage for long term serious funds is meant to be non custodial wallets where you are in charge of your keys. Security and control is not expected to to be replaced with convenience. Like the OG said, "not your keys, not your coins" this not just a slogan but also a warning. Anyone who has value for their Bitcoin has to take seriously self custody.

[Mehmet69]

Casterial wallets are controlled by third parties. If you hold a lot of coins, the data is stored with a third party. If it is ever hacked, your wallet can be at risk. So it would be wise not to use our casterial wallet.

Also, casterial wallets are not always under their own control. For example, your personal keys are not with you but inside the wallet. Many times, your account will be blocked for KYC. To find out, you will have to suffer a lot of harassment. That is, even if you want, you cannot withdraw your money without their permission. So keeping coins in casterial wallets is risky.