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

[Jammy01]

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?

[Charles-Tim]

If an exchange can disappear anytime, where should we really consider keeping our coin?

It has a reason they are called exchanges, to exchange/trade cryptocurrencies.

Should we leave exchange completely and switch to a non custodial wallet?

Use noncustodial walle to gold your coins, not exchanges.

Although, those exchanges allow their users to withdraw their coins.

[Orpichukwu]

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.

[Dareo]

If an exchange can disappear anytime, where should we really consider keeping our coin?

I would say exchanges should not be completely eliminated, but their functions should be limited. Exchanges can be used for trading or quick purchases, but non custodial wallets are much more reasonable for long term Bitcoin holding.

Not your keys, not your coins is not just a slogan, but in such a situation its real importance is understood.

[Ziskinberg]

Even if they're not shutting down, still its not safe to keep our bitcoin in centralized exchange for long term. Anytime our bitcoin will be compromised and we may lost access on them entirely and just considered as lost funds once an exchange goes bankrupt and eventually collapse, or when they decide to freeze our withdrawals for their personal reasons.

So its best to keep our bitcoin on our non-custodial wallet, at least we can have full access on our bitcoin all the time. Centralized exchanges may stop their operation anytime, when losses are no longer bearable, so we shouldn't entrust our bitcoin to them to avoid future circumstances.

[KingsDen]

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

Hey!
There's no relationship between bitcoin hodlers and exchanges. Exchanges are for trading and not for long term storing of bitcoin

I will also appreciate if you look at the reasons the aforementioned exchanges stopped services individually and not wholistically.
Each reason differs and might not be related to the larger crypto market.

Has Binance shutdown? I have some coins there.

[Onyeeze]

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 Bitmart and Bitmex shutdown, that's not something that will put bitcoin holders into worry, if maybe that they shutdown for few countries it will not affect much, it's like Binance, it shutdowns in my country but that doesn't mean that everyone living in my country that's bitcoin holder will be living in fear, they're so many alternatives we can sell our bitcoin, so do not be afraid, nothing will happen to bitcoin. Before exchange reaches to the grassroots, people have being selling their Bitcoin wirh fiat currency or traditional currency on p2p even without using exchanges

[BitMaxz]

It's normal for me to see some exchanges shutting down; it also happened in the past unless you are holding some BTC from the exchange.

If you are holding BTC, an exchange shouldn't be a place to hold your holdings. You should have your own non-custodial wallet or cold storage wallet to keep your BTC away from unexpected incidents like this one.

I don't hold BTC there; I have few funds from the exchange, but I only use them for trading and nothing else. You should always keep all your holdings in a separate wallet or, better yet, a hardware wallet.

[Z-tight]

it maybe that they shutdown for few countries

No, both Bitmart and BitMEX are shutting down global operations, this is not related to any specific jurisdiction. After the final closure, these exchanges would be unavailable to anyone worldwide.

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?

If it is an orderly wind-down like in most situation, customers are given a specific period in which they have to withdraw their funds. E.G. in the case of Bitmart, all operations on the exchange will be closed on January 31, 2027, so customers have until then to withdraw their funds. However, it is advisable to withdraw as early as possible in situations like this, for obvious reasons.
I think i should add what cz had to say about Bitmart shutting down:

Changpeng “CZ” Zhao, founder of Binance, responded: “Tough times (again)! At least, it appears to be an orderly wind down where users can withdraw their assets. Pro tip: Self custody if you know how to keep your seedphrase safe (Trust Wallet). Or use the largest exchange (Binance) with staying power.”

Typical cz, anyway, do not pay any attention to the part i highlighted. Never store your funds in Trust Wallet, because it is a closed source crap wallet and obviously you should know better than to use Binance as a wallet.

[AVE5]

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?

Except for the platforms software system encounters error resulting to the system crash or the exchange had already been projected to scam its user's, definitely for a reputable exchange to shut down, the user's will surely be notified in a long durability that should be enough for the user's to pull out their fund's in the exchange.
Reliable exchanges don't just take instant response of shutting down without notifying the user's. If they do, then the authorities that issued them license to operate will hold them responsible for any lost and damages.
So, don't worry in term's like this but I'll still remind you, it's risky and not advisable to hold fund's that you're not spending any time soon on the exchange. Moreover you could still stand a victim spot for online hacker's therein.

[Ojima-ojo]

People holding Bitcoin for long time investment don't keep they Bitcoin on exchange, they knows better about freedom, privacy and control, which is why they keep they Bitcoin off from exchange and in their personal wallets.


Exchanges are just like bus stop where we bring one coin and exchange to another, is not meant to keep your coins because, exchanges are financial services providers that depend on liquidity and regulations to function and the absence of any of the above can affect their operations anytime. We should not be surprised when exchange announces a sudden closer.

[joniboini]

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

I think this is your biggest mistake. If someone introduced you to crypto tell you this, I think you should find another person to help you learn stuffs about crypto. If you're asking from forum members, most of them will tell you that storing your Bitcoin on exchange for no reason is a bad move. You don't trust them to safeguard your wealth, only use them for trading. You shouldn't keep your funds there unless you're prepared to lose them.

[X-ray]

Real bitcoin holders won't be worried because they do self custody and take care of their coins by themselves. Installing desktop wallet isn't that hard.

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?

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?

Trusting an exchange to take care of your money? it's like asking them to take your money, I won't really trust my money on the best crypto exchange and you won't see me entrusting my money to a low liquidity, abstract exchange headquartered outside your jurisdiction. Non custodial wallet is the way to go if you are seriously considering your security.

I think i should add what cz had to say about Bitmart shutting down:

Changpeng “CZ” Zhao, founder of Binance, responded: “Tough times (again)! At least, it appears to be an orderly wind down where users can withdraw their assets. Pro tip: Self custody if you know how to keep your seedphrase safe (Trust Wallet). Or use the largest exchange (Binance) with staying power.”

Typical cz, anyway, do not pay any attention to the part i highlighted. Never store your funds in Trust Wallet, because it is a closed source crap wallet and obviously you should know better than to use Binance as a wallet.

CZ advertising for a self custodian wallet that experienced major incident resulting in 7 million loss could never be not funny.

[SilverCryptoBullet]

Some crypto exchanges have been shorting down lately
Exchanges like BitMart, BitMex.......
They have been around for some years now but somehow they shutdown

BitMEX, BitMart are not only two exchanges shut down their services in Bitcoin market and cryptocurrency market history. There are actually many centralized exchanges closed their services, scam exited or died by many reasons.

Cryptocurrency exchange graveyard.

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

They should not do that.
Reminder: do not keep your money in online accounts.

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?

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 are many other reminders about that, and people only need to search, read and understand available reminders.
Events made you scare about custodial wallets, centralized exchanges.

Holders with bitcoins on centralized exchanges have many reasons to feel fearful but they still have time for withdrawing funds to their non custodial wallets.
With holders who have bitcoins stored in their non custodial wallets, they don't have that fear, and about the market, in long term it will be bullish so no fear about market future too.

[Hewlet]

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?

Has it ever been considered a safe option saving your coin in an exchange even if they are not shorting down? An exchange shorting down is just one of the so many risk that is associated with leaving your coin in it and that is why we have always advocated for a shift from saving your coin in an exchange to doing so in a non custodial wallet. except you don't value the asset you are holding if not, i see no reason why you should rely on an exchange as a safe place to leave your coin. doing so means you are just claiming to be engaging in a decentralized system but not actually leaving it out and at the end, it is to your own hurt.

[stompix]

If Bitmart and Bitmex shutdown, that's something that put bitcoin holders into worry, it maybe that they shutdown for few countries, it's like Binance,

Stop posting crap!

https://www.bitmart.com/en-US/support/articles/7922665245339/39162120325403/53544595916059
https://www.bitmex.com/blog/bitmex-closure

Before exchange reaches to the grassroots, people have being selling their Bitcoin to fiat currency or traditional currency even without using exchanges

Seriously, stop!

I think i should add what cz had to say about Bitmart shutting down:

Changpeng “CZ” Zhao, founder of Binance, responded: “Tough times (again)! At least, it appears to be an orderly wind down where users can withdraw their assets. Pro tip: Self custody if you know how to keep your seedphrase safe (Trust Wallet). Or use the largest exchange (Binance) with staying power.”

Typical cz, anyway, do not pay any attention to the part i highlighted. Never store your funds in Trust Wallet, because it is a closed source crap wallet and obviously you should know better than to use Binance as a wallet.

Well, there is of course another way you can view this, you coins on an exchange are safer if the owner of the exchange is locked up in prison, right?  CZ is relly playing with fire,the guy hasn't yet realized how close was to spending a decade there, seems like he is pushing his luck lately with that mouth of his.

[Somegory]

What's there to be worried about? Something bad like this always happen after a big bull market, just like the FTX collapse, you will only become worried if you are storing your Bitcoin on a centralised exchange.

There is no big enough exchange that's worth your Bitcoin, even the biggest can go down any time, the safest place for your Bitcoin is a cold storage that only you has the key.

It's a simple warning for everyone, don't store your Bitcoin on a crypto exchange either big or small, don't wait until they start dying one after the other because there is no way to know which is next on the line.

[Shinpako09]

First of all, why would you hodl your btc or crypto in an exchange site? It should be in a non-custodial wallet or a hardware wallet, especially if you plan to hold it for the long term. Always remember, not your keys, not your coins.

Nothing to worry about with BitMEX and BitMart shutting down. They are just considered Tier B/C platforms. The price didn't even swing that much. The price just moved normally like it had nothing to do with them. It just shows there's nothing to worry about. It didn't even cause a ripple for me when I saw the news.

[Livingleged]

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 want a sincere answer? You’ll definitely lose those coins you have on that exchange if dey eventually shot down. that’s why it has been advised several time not depend on exchanges with your holding. get a self custodial wallet and keep your valuable hold there. exchanges aren’t that safe unless you don’t value your holding.

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?

If you’re used to Exchanges it might not be possible for you to abandon it completely, but it’s just wise that you don’t keep large amounts of holdings there because you do not have total control over them, and you can’t tell what happing next. It’s just safer you get a hardware wallet and keep your holdings on it, and use the exchange for your trading. With this you’re good.

[Vaskiy]

Scam Exchanges run for a short time, and they shut down without any prior intimation. If we hold our cryptocurrency in those exchanges, then it is lost forever. With trusted exchanges no need to worry about the holdings, because we'll receive notification regarding the shutdown of the exchange along with the timeline to withdraw the holdings. Further it is our responsibility to withdraw the funds within the provided timeline. Some even provide with additional time period. Most of the time users for the ease of trading hold the cryptocurrencies in the exchanges.

It is always good to have our holdings in a non-custodial wallet as most of the users suggested. Through this we don't need to face any such critical circumstances, as well as we have complete control over our holdings. In all way of holding/safeguarding of funds we have the highest responsibility. There are people who hold funds in non-custodial wallets and lose their private keys. We shouldn't be one among them.