Some crypto exchanges are shutting down, should bitcoin holders be worried?

[Nrcewker]

This got me thinking about people that keep their bitcoin on exchanges

These are the dumbest people I have seen on the internet. Exchanges are meant for converting your coins into real cash not for storing your coins.

If you buy and keep bitcoin on an exchange, you trust them to keep your bitcoin safe and let you withdraw anytime you want to withdraw
But what happens when they shutdown?

First of all, you shouldn’t keep your coins on an exchange. Secondly, when an exchange shuts down it usually emails its users and asks them to withdraw any remaining coins before it completely closes. Even after that, many exchanges provide an additional grace period during which you can contact their support team to recover your coins.

So, I wouldn’t worry too much about exchanges shutting down. When one shuts down, another usually pops up and the cycle continues. Just make sure we use trusted and reputable exchanges.

[moneystery]

Why should Bitcoin holders worry about something that has nothing to do with Bitcoin? Exchanges aren't called exchanges for nothing, they're places where you trade your assets, not where you permanently store them.
Even if more exchanges close, it shouldn't be a big deal for Bitcoin holders. Those who understand Bitcoin wouldn't choose to store their assets on an exchange, but rather in a non-custodial wallet that doesn't rely on any centralized platform.
So, it's not Bitcoin holders who need to worry, but the people who put their assets on exchanges. They should be the ones who worry, as the platform they use could shut down for any reason.

[SeriouslyGiveaway]

Why should Bitcoin holders worry about something that has nothing to do with Bitcoin? Exchanges aren't called exchanges for nothing, they're places where you trade your assets, not where you permanently store them.

Because they did not understand purposes of exchanges or know about that but just used exchanges with their risky ways.

In addition, I'd like to emphasize that risk starts at a time you fund your exchange account, and it unlikely exists if you store your fund on exchanges permanently (I don't think people do that) or a long time.

Short time, long time or permanent storage of your coins on exchanges is risky. Clearly if people store funds on exchanges a long time and don't mind to regularly check that exchange operational status, their accounts, balances, it brings more risk.

Thoughts on secure storage of bitcoins and other crypto assets.

The number one rule to storing crypto assets is this: if you don’t hold the private keys, you don’t actually own the assets. As a result, I do not recommend ever storing crypto assets with custodial online services such as a web wallet or an exchange.

[JoyMarsha]

If an exchange can disappear anytime, where should we really consider keeping our coin?
Should we leave exchange completely and switch to a non custodial wallet?

There's no need to debate this; non-custodial wallets have been the best option for everyone, judging by what has happened with exchanges shutting down and withholding people's coins on short notice.

Someone who has had the experience or heard about how exchanges behave when shutting down wouldn't in any way consider leaving their coin on an exchange. They will prefer to have it non custodial wallet, where they will have full custody of their coin

[Findingnemo]

No one should keep their bitcoin in any exchanges, they can create a wallet and move their funds immediately from the exchange but many people just buy bitcoin and left it in an exchange because they used to the traditional custodial system which is backed by trust.

If the exchanges shuts down then they might give a time frame to withdraw the coins and if anyoenf ails to do in that period may not access their bitcoin at all.

[CryptoHeadlineNews]

If an exchange can disappear anytime, where should we really consider keeping our coin?
Should we leave exchange completely and switch to a non custodial wallet?

You literally just answered the question by yourself. Because if a crypto exchange can wake up one morning and announce that it will be shutting down, that alone is enough red flag to know that crypto exchange can never be trusted for th safety and security of our Bitcoin or any other altcoins in a long term period. However, strict and unfavorable government policies might also be one of the reasons why these exchange are closing down it's business, because if it was profits, these exchange usually charge a fee for transactions, and if you are to calculate how much they generate from transactions daily, it's likely to have been enough to run the business and pay its stuff every month, most especially these exchange that have been in the industry for a very long time now and have enough users. So it is obvious that policies is the major reason they are shutting down.

[Maslate]

People will only get worried if they still trust those exchanges to keep their bitcoin, but if they are already keeping their bitcoin on their non-custodial wallet and hold full access on it, then they're totally safe, particularly their bitcoin.

Reputable or not, trusted or not, crypto exchanges should not be holding our coins especially for long term case. Because if they do, and they have full access on its private keys, then maybe its not actually your bitcoin, its theirs. It becomes an exchange property once they have an access to it, once they personally keep it, especially if the exchange suddenly stop its operation and go bankrupt.

[blockman]

The effects of the fall of MtGox and FTX are typical examples.

The closure of the exchanges lately are in different reasons compared to FTX and Mtgox. Their volumes have gone low and the regulations made things harder for them to proceed and should have helped them increase their volume.

I get your point, mate. But I was responding to a post where the writer said that let all the exchanges collapse and even die. The case of FTX and Mt Gox is different because they collapsed without warning. Meanwhile, the current ones are not collapsing but winding up. They didn't just suspend withdrawals like FTX and others but gave users time to withdraw their funds. But you and I know that if all exchanges collapse, it wouldn't be good for the crypto industry. The shutting down of BitMart and BitMEX is no big deal since they are not major exchanges.

I agree, they're not major exchanges and their closure won't mean so much to the community. These exchanges have different reasons for their closure but it also shows the signs that we're really in this cycle of the bear market where bad news comes, exchanges closing, and no one knows if there will be some follow up closure from another tier 2 or 3 exchange due to the situation of the market.

Why should Bitcoin holders worry about something that has nothing to do with Bitcoin? Exchanges aren't called exchanges for nothing, they're places where you trade your assets, not where you permanently store them.

Because even if we tell these holders this explanation you've said, there will still be those holders that will continue to use them as their place to store their bitcoins despite this risk.

[mirakal]

No, if you are responsible on safekeeping of your own coins, and you prefer non-custodial wallet over trusting those exchanges, then there's no reason to worry. Because even if crypto exchanges will shut down, you won't be losing your bitcoin. Except for those who decide to leave their coins on their trusted exchanges, the risk to lose is always high, most especially that exchanges these days suddenly announce bankruptcy and stop operation without securing clear and valid reasons.

Prevention should be done in the first place. This is also the reason why those who decide to own bitcoin are knowledgeable and responsible enough to manage their bitcoin and ensure their safety and security 24/7 than seeing those crypto exchanges as their safe place for their cryptos.

[The Founding Titan]

Some crypto exchanges have been shorting down lately
Exchanges like BitMart, BitMex.......
They have been around for some years now but somehow they shutdown
This got me thinking about people that keep their bitcoin on exchanges

If you buy and keep bitcoin on an exchange, you trust them to keep your bitcoin safe and let you withdraw anytime you want to withdraw
But what happens when they shutdown?

You might have problem getting your bitcoin back depending on what's happening with the exchange
It also made me wonder if it is the current market condition that's making some of the exchanges struggle. When people are not really trading, making enough money to keep the business running can be hard

Am not saying it's the market condition that's making the exchanges shutdown, there could be other reasons too but for people that want to hold bitcoin for a long time it raises an important question

If an exchange can disappear anytime, where should we really consider keeping our coin?
Should we leave exchange completely and switch to a non custodial wallet?

From the name you should already know that exchanges weren't built for holding coin but for simply exchanging them, so while it's easy to buy coins in exchanges and even trade them for people who trade, it definitely wasn't built for long term holding so while newbie bitcoin investor can use exchanges to start holding bitcoin they shouldn't make the mistake of ultimately leaving their asset on an exchange because the truth is that they can shut down at any time.

[suhadi88]

From the name you should already know that exchanges weren't built for holding coin but for simply exchanging them, so while it's easy to buy coins in exchanges and even trade them for people who trade, it definitely wasn't built for long term holding so while newbie bitcoin investor can use exchanges to start holding bitcoin they shouldn't make the mistake of ultimately leaving their asset on an exchange because the truth is that they can shut down at any time.

That good narasi and If things get messy and you're unsure, it's best not to force it. Just transfer the funds to a personal address or hold them in your fiat account while you wait, as market conditions will be increasingly uncertain in the coming months. Unless you're buying BTC slowly on an exchange using the DCA method, and when you have enough, transfer it to a trusted personal wallet.

[tread93]

If an exchange can disappear anytime, where should we really consider keeping our coin?
Should we leave exchange completely and switch to a non custodial wallet?

Was there a time it have ever been best to keep your coins/tokens in an exchange before? That made you want to ask a public question between switching over from storing in a centralised exchange and a self-custody wallet. Self-custody has always been the best; centralised exchanges don’t give you full access. This is not even a question.

Would have to agree. Op get those coins off whatever exchange you have them on especially now. Also if you have a coin kite for a crypto wallet please make sure you get your coins off of there as well l since there is a known vulnerability

[omenswap]

This got me thinking about people that keep their bitcoin on exchanges

These are the dumbest people I have seen on the internet. Exchanges are meant for converting your coins into real cash not for storing your coins.

If you buy and keep bitcoin on an exchange, you trust them to keep your bitcoin safe and let you withdraw anytime you want to withdraw
But what happens when they shutdown?

First of all, you shouldn’t keep your coins on an exchange. Secondly, when an exchange shuts down it usually emails its users and asks them to withdraw any remaining coins before it completely closes. Even after that, many exchanges provide an additional grace period during which you can contact their support team to recover your coins.

So, I wouldn’t worry too much about exchanges shutting down. When one shuts down, another usually pops up and the cycle continues. Just make sure we use trusted and reputable exchanges.

It's really amazing that people are still making this mistake 13 years after Mt Gox lol