When does a Bitcoiner outgrow an Exchange?

[Antidote47k]

One event that has stayed with me was when Binance removed naira support from its platform in 2024. Nobody lost their Bitcoin because of that decision, but it reminded me how quickly things can change. Overnight, many Nigerian users had to find alternative ways to buy, sell or move their Bitcoin because the platform they had become used to no longer offered the service they depended on.

It also made me realize something else. I think at the beginning many of us unintentionally associate Bitcoin with the first exchange we use. So when something changes on that platform, it almost feels like something has changed about Bitcoin itself. In reality, the exchange is just a service built around Bitcoin. The network keeps running regardless.

When I first got into Bitcoin, I thought that as long as my balance showed up on an exchange, those coins were mine. It took me a while to understand what people meant by “Not your keys, not your coins.” The exchange holds the private keys, while you’re trusting them to give you access to your Bitcoin whenever you need it.

Now, I know most people on this board already understand self-custody, so this isn’t really about telling anyone to withdraw all their coins from an exchange. Centralized exchanges play an important role and, for many of us, they were our first gateway into Bitcoin.

What I’m really wondering is whether too many people stop at that stage.

Sometimes I wonder if many people haven’t actually adopted Bitcoin yet; they’ve simply adopted an exchange that happens to sell Bitcoin.

Personally, I think exchanges are a great way to enter the Bitcoin ecosystem, but they shouldn’t stop us from learning what makes Bitcoin different in the first place. Understanding wallets, private keys and self-custody gives you a choice. You may still decide to keep some or even all of your Bitcoin on an exchange, but at least that decision is an informed one rather than simply the most convenient one.

So I’d like to hear other opinions. At what point do you think a new Bitcoiner should start learning about self-custody? Should it be one of the first lessons, or is it better to let people become comfortable with exchanges before introducing those concepts?

[Livingleged]

One event that has stayed with me was when Binance removed naira support from its platform in 2024. Nobody lost their Bitcoin because of that decision, but it reminded me how quickly things can change. Overnight, many Nigerian users had to find alternative ways to buy, sell or move their Bitcoin because the platform they had become used to no longer offered the service they depended on.

The decision  to remove  naira support  on the  binance exchange didn't change anything  about the bitcoin  protocol  and could  absolutely  not affect  the security  of any holders  coin it only made selling  coin for naira  not possible  again on the platform, but it doesn't  change  anything  about the p2p transaction  you could outside  the platform.

It also made me realize something else. I think at the beginning many of us unintentionally associate Bitcoin with the first exchange we use. So when something changes on that platform, it almost feels like something has changed about Bitcoin itself. In reality, the exchange is just a service built around Bitcoin. The network keeps running regardless.

Exactly  just as I've mentioned  in the previous reply  above no matter  how the platform  want  to carry out their activities  they can't go out of the bitcoin  protocol, and I also agree that we tend to get familiar  with the exchanges  we first set our hands on and when thing are being  changed  we only get uncomfortable  but bitcoin  enthusiasts know nothing  could be changed  about  how bitcoin  was designed to work.

When I first got into Bitcoin, I thought that as long as my balance showed up on an exchange, those coins were mine. It took me a while to understand what people meant by “Not your keys, not your coins.” The exchange holds the private keys, while you’re trusting them to give you access to your Bitcoin whenever you need it.

Now, I know most people on this board already understand self-custody, so this isn’t really about telling anyone to withdraw all their coins from an exchange. Centralized exchanges play an important role and, for many of us, they were our first gateway into Bitcoin.

You could  still be careful  enough  not to keep your holding  for long on a centralized  exchange  since you already  know the implications of keeping your funds  in another  person  custody, self custody  should  be priorities most  especially  if you're planning  to keep the coin for long.

What I’m really wondering is whether too many people stop at that stage.

Sometimes I wonder if many people haven’t actually adopted Bitcoin yet; they’ve simply adopted an exchange that happens to sell Bitcoin.

I doubt, many people  didn't stop. because  we could  see the increase  in adoption  even after all those ban where implemented, what happened  was just a switch  from a particular  exchange  to another, then we also saw new exchanges  coming  up with the feature  that supports  naira  transaction. And I also  think you're right by saying  many people  haven't actually  adopted  bitcoin,  they just adopted  the use of exchange, but the good thing is there is adoption whether it's on a centralized exchange

[OsaiEmma]

Well self-custody is the heart of Bitcoin after-all. The day you truly understand what Bitcoin is and what it stands for; the problem it is solving, that's the day you understand what self-custody truly is.

It could take years, months, seconds, or never; it all depends on how you learned about Bitcoin IMO.

Self-custody or not, as Nigerians, we mostly need P2P to carry out transactions; so in one way or the other, we'll be needing these CEx services to onboard the space.

I know there are decentralized P2P services out there but ultimately, these CExs are more comfortable and easy to use, which is also important for some users.

[Mhizlove]

I believe that self custody is supposed to be introduced early, even though the person is not ready to move all the bitcoin immediately. Once a beginner understand the difference between having access thro6an exchange and owning bitcoin, they can make better decisions as they gain more experience. In the same time, no one should rush into self custody without having the understanding of how the seed phrase, backups and wallets works. Its better to learn it gradually instead of losing your coins because of a simple mistake. In everything you do knowledge comes first, then confidence follow, before you can move fully to self custody.

[Kelward]

So I’d like to hear other opinions. At what point do you think a new Bitcoiner should start learning about self-custody? Should it be one of the first lessons, or is it better to let people become comfortable with exchanges before introducing those concepts?

Exchanges na necessities for cryptocurrency matters, dem no de compulsory make we keep our coins inside dem but if di need arise for you to send your coins from your none custodial wallet to an exchange account e de ok to do so provided say you no get plans to hold your coins permanently for inside dem. Exchanges na convenient places to trade your coins and do p2p transactions to convert crypto to fiat and frankly without the existence of exchanges many people no go get di confidence to hold Bitcoin because of trust issues and transparency. So e no de necessary to outgrow di use if exchanges because dem be "necessary evil" for inside di crypto market because dem be necessary middlemen for crypto tradings.

Di best time for newbies to learn about self custody na from di beginning of dem Bitcoin journey and dat na why you go hear experienced members for dis forum de advice newbies to hold dem Bitcoin for inside none custodial wallets. From when I join dis forum as a newbie na im I don de hear about "not your keys not your coins" if you leave your coins for inside exchange and e go bankrupt or dem hack am your coins don enter voicemail be dat. So only send coins for inside an exchange when e de necessary.

[coinlary]

One event that has stayed with me was when Binance removed naira support from its platform in 2024. Nobody lost their Bitcoin because of that decision, but it reminded me how quickly things can change. Overnight, many Nigerian users had to find alternative ways to buy, sell or move their Bitcoin because the platform they had become used to no longer offered the service they depended on.

Nothing affected Bitcoin services on Binace, so all you mentioned was still intact . The only thing related to there Bitcoin is you can't buy using Naira or sell your btcs for Naira

So I’d like to hear other opinions. At what point do you think a new Bitcoiner should start learning about self-custody? Should it be one of the first lessons, or is it better to let people become comfortable with exchanges before introducing those concepts?

It's  a general basic knowledge  towards starting of Bitcoin investment.  People only use exchange for buying but for learning purposes a beginner can start out with exchange if privacy isn't a problem,  you probably won't worry about privacy as a beginner anyway.

That exchange you're using as a beginner hold all their entire funds(including yours) in a self-custody wallet , so what's  holding a beginner from learning right away. There's no problem with investing while learning, and you can use exchange for that  but make it a small bit don't  rush it.

It is hard to advise someone who'sbad at keeping things safe all by themselves, but self-custody is still the right way to hold those sats. You don't need to blame anyone, probably Bitcoin is not meant for you and you can try physical assets like investing in land/real estate .

Still feel like going ahead, then exchange could be much easier, the only thing to be aware is the risk.

Self-custody is not the last stop to keep your funds safe anyway, especially at this current technology age.

[Felicity_Tide]

So I’d like to hear other opinions. At what point do you think a new Bitcoiner should start learning about self-custody? Should it be one of the first lessons, or is it better to let people become comfortable with exchanges before introducing those concepts?

From a rational pov, I think it's difficult for a beginner to identify what to learn first because they have no clue of what exactly needs to come first. It's something they had no Idea about before they became interested in Bitcoin. I think what most beginners often come across is 'buying bitcoin', and that usually leads them to exchanges. Beginners often come across those articles or videos because they're the closest thing to the banking system which they're already used to. So the thing is, exchanges are most likely the thing to come across.

So, to answer the question... Anything that a user can learn first is definitely a good step to begin with, but what's more important is to never stop learning. If a beginner is opportune to learn about self custody first,.then that's a good one. Same thing goes for learning about exchanges first, but as long as you keep learning, you will definitely understand the main difference and identify the one to stick with.

Mind you, me giving a direct advice to someone who's just getting started is completely different from a beginner who's trying to figure out things on his/her own.

[Chinesebaby]

One event that has stayed with me was when Binance removed naira support from its platform in 2024. Nobody lost their Bitcoin because of that decision, but it reminded me how quickly things can change. Overnight, many Nigerian users had to find alternative ways to buy, sell or move their Bitcoin because the platform they had become used to no longer offered the service they depended on.

Ability to adapt in all situations is one of the distinctive qualities we have as humans, and moreover Nigerian in particular, because even before Binance made it's announcement of removing its NGN from the list of its paired currencies, there have been other crypto exchanges which offered that services conveniently, but just that Binance was a major player in the use of Bitcoin in Nigeria, and many people trusted their services. But it was quite unfortunate that the CEO had to make a drastic decision due to our government's unfavorable policies towards the crypto exchange. So when it comes to the question when does a Bitcoiner outgrow an exchange? Then the answer is simple, because the moment you start saving a large number of Bitcoin you intend to hold for a long term, avoid exchange, go and store it in a non custodial wallets where you have full control over its private keys.