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

[Haunebu]

Have never even heard of either of those exchanges if I am being honest. Exchanges go down and pop up all the time which is why this ain't really nothing new op. Seems like you are the one who is truly worried and is seeking external validation through this thread.

If you are worried about such stuff, this volatile environment isn't really for you. Also, as some posters above already pointed out, don't store your funds on any exchange regardless of how popular it is. Do your research.

[The Cryptovator]

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?

That’s the slogan we always try to promote: don’t store your funds in centralised exchanges. Storing your funds in exchanges is always risky; it doesn’t necessarily shut down. Anything would happen when your funds are put into exchanges; they might even freeze your Bitcoin.

Bitcoin is decentralised, but if you are holding it on the centralised exchanges and it shuts down without refunds users' funds, then probably you lost it. No doubts: a non-custodial wallet should be used by every Bitcoin holder. For more security, it’s highly recommended to use an open-source hardware wallet.

For a smooth trading experience, I have been using centralised exchanges, but only from the top and highly reputable. And after completing the trade, I move my funds into a hardware wallet. So you may do the same thing as well; I am not holding any big amount to the exchange.

[SilverCryptoBullet]

That’s the slogan we always try to promote: don’t store your funds in centralised exchanges. Storing your funds in exchanges is always risky; it doesn’t necessarily shut down. Anything would happen when your funds are put into exchanges; they might even freeze your Bitcoin.

They can charge very expensive withdrawal fees, for example.
Problems with Coinbase withdrawal fees.
They can freeze users funds.
[INFO] Updated Summary of malpractices and abuses of exchanges

They can ask KYC in your surprise.
OKX frozen my account and required me to KYC with a less than $1,000 deposit.

For a smooth trading experience, I have been using centralised exchanges, but only from the top and highly reputable. And after completing the trade, I move my funds into a hardware wallet. So you may do the same thing as well; I am not holding any big amount to the exchange.

Things can change very quickly with centralized exchanges from their sides like policy changes, scam activation or by newest regulation and stricter enforcements by governments.

The risk is we as users never know what will do by centralized exchanges in coming hours or tomorrow. If people cannot afford to lose money after funding their accounts on centralized exchanges, they should avoid such centralized platforms.
Events made you scare about custodial wallets, centralized exchanges.

[Ishicryptic]

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.

Exchanges have important functions in the crypto market meaning that they cannot be eliminated, they are essential third parties for crypto trading and peer to peer transactions, what they are not recommended for is for crypto holders to save their coins in them because we've heard incidents where exchanges where either hacked or they went bankrupt. Aside from freezing your coins for reasons that are justifiable to them if anything happens that would warrant them to shutdown your coins will also go down so it's not recommendable to leave large amounts that you don't intend to exchange in an exchange. " Not your keys not your coins" should be taken seriously therefore the best place to keep your coins are in none custodial wallets which only you have the keys.

[FinneysTrueVision]

The exchanges that are shutting down were not that popular anymore or were being run poorly. As a holder this should mean nothing to you because we should know better than to use an exchange for long term holding. These exchanges shutting down aren’t a systemic risk the way FTX was when it collapsed.

[Outhue]

Bitmart has been a Butmart for a long time, I've always doubted their existence because of how they lack liquidity most of the times, it's like they are holding on to their dear lives, honestly I am not surprised that this is happening to them, I saw it coming, even BitMex how have they been operating? They are lacking behind, ascendEX or what's the third one called? They are birds of same feather.

This will serve as an example to people who still choose to keep their coins on crypto exchanges, I've stop feeling sorry for such people today, warnings particularly about crypto exchanges collapsing all of a sudden is everywhere online, if anyone still get caught up in this mess it's because they chose to not listen.

[Taskford]

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?

Those reasons you have mentioned reminds people not to store their Bitcoins on any exchange, especially if they aim or decided to hold it for long term.

If it happens that those exchange decide to shutdown their operations. There's a possibilities that their users  may experience either balance losses or experience lots of stress due to withdrawal delays.

So treat exchange as trading platform only and not a storage to hide their Bitcoins. The safest and ideal option to use is the non custodial wallets, because they are the one have control on their keys.

[Lembo69]

There is no problem if the exchange goes off and investors do not need to worry. They will only have to take their investments to self-custody from the exchanges that go off. Because self-custody is the safest for long-term holders. Long-term investors do not need to worry about these issues. If someone is thinking of investing for 4-10 years, then these are not an issue for them. Those who only trade should worry about these issues. But for a long-term Bitcoin holder, it would be better to use self-custody instead of using an exchange.

[bhadz]

Those who only trade should worry about these issues. But for a long-term Bitcoin holder, it would be better to use self-custody instead of using an exchange.

Like what OP has given as the situation, there are long term bitcoin holders who have confidence to keep their bitcoins on exchanges. They're in that situation that what if an exchange collapses and they are no given prior notice because they're hacked or their funds have been siphoned and ran by the owners. Those type of situations will have to make those who continue to keep their funds in exchanges. They'll learn things and lessons in the hardest and most expensive ways if they'll never take these things seriously and never change their habit of how to keep their funds in their custody.

[Sawera2255@]

If it is save to keep crypto money in exchanges then wallets will never be invent The main purpose of making wallets are that we kept our funds here. It is not first exchange which is going to close there are also many other exchanges which are closed . BitMAX is one of the old platform of crypto which is start in 2014 the interest of people become less in it liquidity is also became less that's why it is announced to close it in September 2026 . In 26 July 2026 as the news about the close of this exchange come to know the token of this exchange BMX is fall down 58% to 60% in 24 hours the price of this token is near to 0.31$ after the circulation of this  news the price of this coin is reached to the 0.057$. In last 7 days the price of this coin fall down near 80% and its price reached to 0.057$ .

[Iranus]

Bitmart has been a Butmart for a long time, I've always doubted their existence because of how they lack liquidity most of the times, it's like they are holding on to their dear lives, honestly I am not surprised that this is happening to them, I saw it coming, even BitMex how have they been operating? They are lacking behind, ascendEX or what's the third one called? They are birds of same feather.

This will serve as an example to people who still choose to keep their coins on crypto exchanges, I've stop feeling sorry for such people today, warnings particularly about crypto exchanges collapsing all of a sudden is everywhere online, if anyone still get caught up in this mess it's because they chose to not listen.

Both BitMart and BitMEX have been around in the market for a long time. BitMEX was founded in 2014, which means it's been around for 12 year now. BitMart is relatively newer, having been founded in 2017, but it has also been operating in the market for almost a decade. So i'm a bit surprised if you say you saw this coming.

Moreover, both of them clearly announced their closures and allowed users to withdraw their fund before ceasing operations, instead of suddenly collapsing like FTX.

So far, there haven't been any reported user losses, although there have been some report of withdrawal delays. So we shouldn't lump all of these cases together.

[Doan9269]

Be worried if you are one of those that have his assets on centralized exchange because you don't know when your own turn will come, except you are ready to move your coins from a centralized platform to a non custodial wallet, but if you already have your coins with you under a non-costodial storage, nothing to worry about in this regard than for you to maintain holding your keys in such a way that prevent any third party from having access to it, this is where we can learn more about security and privacy in Bitcoin wallet for our safety.

[Rockstarguy]

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

Exchanges are not reliable or safe for keeping bitcoin, and the first reason for this is that they do not meet the security standards for bitcoin investors: "not your keys, not your coin." An exchange can be reputable, but you don't know what may happen to it in the future, and this is why keeping bitcoin on an exchange is not advisable. There are many reasons why exchanges end up crashing, and one should not rely on just one.

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?

Exchange is not meant for keeping bitcoin; exchange is a place where bitcoin is traded "buy & sell." If exchanges are shutting down, I don't expect people to be worried about where to keep their bitcoin, and if people should be worried about the shutdown of exchanges, it should be because of buying or selling. A non-custodial wallet is the right place to keep bitcoin because this gives one full ownership and control of one's assets.

[YellowSwap]

It is non of your business if centralised exchanges are collapsing, let them all die but make sure you are running a non-custodial wallet, this is the only way to stay out of the crashes.

There are too many Bitcoin wallet in the world today, I will never understand why many people still choose to leave their Bitcoin on any exchanges and still be able to sleep peacefully at night.

Someone I know have $300 Bitcoin on Bitmart, still not sure if later got it out by now.

[Rockson1]

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?

We do not know why some exchange are exiting, they are in good position to anwer any question to that effect, however, For Bitcoin investors whose Intention is to hodl Bitcoin for a long-term, i don't think there should be any cause for alarm, whether exchanges are leaving or not, exchange has never and will never be a good option for anyone to hodl Bitcoin for a long-term with, many comments has suggested non custodian wallet as a good option for that purpsoe, it means I will not be repeating that again.

Unless you are new to Bitcoin that is when you will ask if investor are to abandon exchange entirely, if it for hodling your Bitcoin,it is not adviceable to use them, but for p2p yes, but you must look for some how reliable ones, I said reliable because exchanges are not to be completely trusted.

[maydna]

I buy Bitcoin at the exchanges but I don't keep on exchanges. It is not a wise decision as exchanges can shutdown at any time and we see that happens. Many reasons for those exchanges shutdown their operations which we don't know the truth.

Perhaps more exchanges will shutdown but I am not too worried because I am sure more exchanges will release and replace the old exchanges.

You should keep your coins in your own wallets. You don't have to worry with the shutting down of the exchanges, you control your coins and send it to other exchanges to sells.

[Dr.Bitcoin_Strange]

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?

If you have been following up with the history of centralized exchange on this crypto space, you would understand that there are some exchanges that have failed in the past, and that caused some investors to lose their money because they stored their coins on the exchange. Bitcoin is not to be stored on a centralized exchange, but for your own good, it is to be stored in a self custodial wallet.

If you don't store your coins on an exchange, whether it shuts down or not, you won't be affected in any way. There are many exchanges out there.

A reputable exchange can fail if it encounters some challenges that affect it so badly. It's only a scam exchanges that disappear without warning, but storing your coins on an exchange has never been considered the best option in the Bitcoin community.

We have been advised here time and time again by some experienced members, telling us never to store or hold our Bitcoin on centralized exchanges or other centralized platforms. If you want security, it's best you start using a self custodial wallet, like BlueWallet, which is compatible with mobile phones, and Electrum wallet, which is compatible with Windows.

[Z_MBFM]

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

By keeping your coins on a centralized exchange, you are keeping them with someone else. If those exchanges go down and they refuse to give you your Bitcoins, you will never get them back. That is why you should always use a decentralized wallet. If you are buying Bitcoins to hold, why would you keep them on a centralized exchange? People only keep their money on a centralized exchange when they are trading there regularly. And when you are trading on an exchange regularly, you should know all their updates and immediately withdraw all your funds from that exchange. I don't think those who invest in Bitcoin and hold it on a centralized exchange for long-term holding are very serious about holding it. Because holders always use non-custodial wallets which are completely safe.

[Hatchy]

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?

Like many must have said already, not your key, they are never your coins. Don't let the fact that exchanges seems to make storing your keys simple and eliminate the idea of losing your keys to deceive you. There's no other safe heaven than storing your keys and leaving your funds in a custodial wallet. People who still leave their funds in exchanges are simply ignorant and have not yet been victims of exchange hacks or shut down where they will be deprived of their funds. Exchanges are not wallets, they are ment for trading your coins. They can't be trusted with your money and it's very much risky. Over the years we have seen different news of exchange been hacked and only a few of those money were recovered. Some users never got refunded..

[Muba20]

It depends on the purpose of an investor. The first thing to consider is what is the best place for an exchange platform. For some people who conduct regular trading, an exchange platform is the best place. For those who want to hold for the long term, it is definitely better to use a non-custodial wallet. If you do not have your own keys, then it will be uncertain to retain ownership of that asset in the long term.

When asset is kept in an exchange wallet, even if you claim ownership of that money yourself, the exchange basically is the owner of the asset. If for some reason the exchanger freeze the asset or they go bankrupt or are hacked for some reason, then there is nothing that an ordinary investor can do. Not all exchange platforms are good. Moreover, not all of them will be good for everyone's business.

Low-quality exchange platforms are likely to close at any time. To protect the assets, the investor must use a suitable platform. I would definitely recommend using a cold storage wallet for long-term holding. And for those who will be trading regularly, it is better to use top exchanges.