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

[tbct_mt2]

Bitcoin should not defend on exchanges because bitcoin was created before exchanges come into existence, there is no reason to worry if exchanges keep disappearing as long as you use them the way you are supposed to use them.

Bitcoin needs Bitcoin exchanges and exchanges need Bitcoin existence, between them there is a thing like mutual relationship. There were many big reasons why people in the past felt super excited with first Bitcoin exchanges, then Bitcoin Futures in 2017 and 2018 with CME and CBOE for example.

However there are many ways to trade Bitcoin, and exchanges are only one of available ways. They can trade bitcoin peer to peer, in person too.

Exchange have a sole purpose which is to be used for exchange of coins, and almost, if you use the exchange to buy and sell or convert your crypto to fiat only, you will not panic because you will not have your coins stocked in an exchange, instead your wallet should be a home to your bitcoin.

It's right but even people only want to use exchanges for trading, risk still exists. At the time they fund their accounts with Bitcoin deposits, they have risk of losing their bitcoins. Because exchanges can say they don't receive anything, the account broke exchange's ToS, and they don't allow user withdrawing that fund. Risk of losing your coins immediately starts and does not need to wait till one hour or days, weeks later.

Deposit coin, trade it, withdraw the fund after finishing that trade, it looks fast and perfect but you still have risk of can not withdraw the fund.

[LFC_Bitcoin]

We’re in a bear market, there are always casualties but just like in life, the strongest survive. It is no great loss to see failing businesses  wind down.

At least Bitmex are shutting down in an orderly fashion and not scamming their users like we have seen in previous cycles with the likes of FTX and formerly Gox.

This is capitalism for you, no bail outs. The failing businesses are being weeded out. This is also why we self custody, take away the risk of closing exchanges. Not your keys, not your coins.

[Mate2237]

This is no news if you ask me, that exchange are getting shutting down this has nothing to do with Bitcoin holders. The reason is because exchange are not ment to hold Bitcoin but is surely for the purpose of transacting Bitcoin. Anyone who is keeping his bitcoin in an exchange is risking his assets because that is not encouraged. Because when you keep your Bitcoin in  an exchange you don't actually have full control over your Bitcoin. It's like someone is holding your bitcoin for you so the probability of you losing access to Bitcoin is high.


That exchange are shutting down should be a lesson, when trying to chose an exchange we should always make sure that the exchange we are using is trustworthy. Because these days there are allot of exchanges that one can easily download online that are not reliable. Again scammers too has learned to use this type of method to to siphon money from unsuspecting crypto users, so we need to be more careful when trying to choose an exchange.

[BALIK]

We’re in a bear market, there are always casualties but just like in life, the strongest survive. It is no great loss to see failing businesses  wind down.

At least Bitmex are shutting down in an orderly fashion and not scamming their users like we have seen in previous cycles with the likes of FTX and formerly Gox.

This is capitalism for you, no bail outs. The failing businesses are being weeded out. This is also why we self custody, take away the risk of closing exchanges. Not your keys, not your coins.

In fact, no matter how big an exchange is, it should never be used as a wallet. The job of an exchange is trading, not custody. If I want to hold Bitcoin for a long time, then the private key should be under my control. The saying "Not your keys, not your coins" is not just for scams like FTX. Even an honest exchange can one day close operation due to regulatory pressure or financial reason.

Another thing, those who use exchange also have way to reduce risk. Withdrawing coin quickly when trading is finished, keeping their recovery seeds safe and keeping only what is needed for trading on the exchange, these should be made habit. I cannot control whether the exchange will fail or not. But the decision of whose custody my Bitcoin will be is entirely in my hands.

[snowpega]

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
...

This is the biggest reason why I also don't like exchanges in terms of holding long-term funds on them.
I was reading a message today from a friend who was alerting that if anyone is holding funds on these two exchanges. They should withdraw as soon as possible. This is exactly the biggest reason the majority of people don't trust exchanges for holding their long-term funds. Because you never know when will they shoutdown their services without letting you know about it.

The big thing is that exchanges are also part of shady business, which, if caught by authorities, they have to shutdown thier services.
And if they are scamming, then the chances are higher that the service users are going to lose all the funds on that exchange. This is why use only an exchange for a moment when it is really needed and hold major funds in wallets.

[AmoreJaz]

We’re in a bear market, there are always casualties but just like in life, the strongest survive. It is no great loss to see failing businesses  wind down.

At least Bitmex are shutting down in an orderly fashion and not scamming their users like we have seen in previous cycles with the likes of FTX and formerly Gox.

This is capitalism for you, no bail outs. The failing businesses are being weeded out. This is also why we self custody, take away the risk of closing exchanges. Not your keys, not your coins.

That's the good part, they don't just disappear without a warning. At least, they have informed their clients about their plans to exit the business.