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

[Zaka1221]

There is nothing wrong if any exchange is going because new ones are also coming; it's all part of life and business. No one is going to stay here forever. In the last 18 years, hundreds of exchanges came and then, after completing their time, ended their business for new ventures.
Bitcoin is having enough depth to keep going without these centralized exchanges just do one favor to yourself never keep your coins because this can ruined you mostly when they are going to be packed their business they give time for withdraw your all assets but in few cases things are not favorable because they have no enough time or something other happen which never allow to give specific time for doing this.
Bitcoin holders are never been worried about things like these they are well prepared to live without them as well now there is enough chances to be live without them and having use of your bitcoins its now doing impressively for everyone.

[Antotena]

Well i know that once you store your bitcoin in a non-custodial wallets that it is safe since you will be in full control of the private keys/security but can we really rule out the fact that if most crypto exchanges shut down especially the major top 10 exchanges for example that bitcoin holders won’t be a bit worried? I don’t think so because this exchanges play a major role in crypto transactions, i might be wrong and i stand to be corrected but i just feel that their is a possibility that if certain crypto exchanges shutdown that it can pose some fluctuations in the market which might be of a concern or worry to certain bitcoin holders. Some bitcoin holders might be curious and anxious to know the reason why this exchanges are shutting down knowing fully well that this exchanges have been functional for quite a period of time and this might create some form of unrest.

I look at Bitmart handles and it seems that some people are getting their withdrawals that were requested some past weeks. It seems they are getting the pressure and they are afraid of jail too. The way FTX exited and run away with customers money, the judgement and 20 years jail that he served will come to them too because if you can't learn from a person that did bad and you later do the same, it means it was even done on purpose.

You know what's so good about custodial wallet is that you can do everything within your without going outside the wallet or deposit to an exchange before you can exchange coin for another. There are some wallet that supports multi wallet, they let you have any coin you like and you can manage them with one seed phrase unlike then that you have to separate Bitcoin, Solana, monero and other EVM wallet, they are simple without need for an exchange.

[Smartvirus]

I look at Bitmart handles and it seems that some people are getting their withdrawals that were requested some past weeks. It seems they are getting the pressure and they are afraid of jail too. The way FTX exited and run away with customers money, the judgement and 20 years jail that he served will come to them too because if you can't learn from a person that did bad and you later do the same, it means it was even done on purpose.

The lesson that should be learnt here is on the part of Bitcoin investors who, despite warnings and several occurrences still chooses to leave their coins on centralized exchanges. It’s okay to assume they knew the risk and decided to go with it.

Ain’t no way the CEOs of these exchanges don’t know they are playing around with people’s money when they utilize it for their own purposes and they know the consequences as well since, most of them are regulated by the government.

When investors chose to be ignorant or turn a blind eye, it’s them that should be blame in these exit situations.

[Faisal2202]

apparently, users have begun to realize that holding crypto assets on small exchanges is dangerous and started gradually switching to either larger exchanges or non-custodial/hardware storage. this has led to a wave of closures of these platforms as they cannot work properly without liquidity and users. this is likely a kind of evolution of the crypto industry.

That is a good point. When everyone eventually starts moving to Tier 1 exchanges from Tier 3, then these Tier 3 exchanges will eventually have to go bankrupt, and the last one to take action can become a victim. But this does not mean they should go bankrupt. I believe an exchange should always have more funds than the ones they manage, but that can never happen, as far as I checked, but I can be wrong, though.

Because I think Binance has fewer reserves than what they manage. I have not checked, but please double check it from your side.

But the point still stands that this can cause mass closure of old and low liquidity exchanges, and that's not good. So what do you think should be the best way to tackle this situation?

[Z-tight]

There are some wallet that supports multi wallet, they let you have any coin you like and you can manage them with one seed phrase unlike then that you have to separate Bitcoin, Solana, monero and other EVM wallet, they are simple without need for an exchange.

I know that some people would appreciate the ease and convenience that comes with managing their funds in one multi-coin wallet, but i do not like to do things that way. It may not mean much to some, but i prefer to store my BTC in a BTC-only wallet, and altcoins can go in together in a multi-coin wallet, that's the setup i recommend to users as well.

[Renampun]

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The closing of the exchange does not mean that it will have a big impact on Bitcoin, but rather, it may cause a temporary decline due to those exchanges. However, Bitcoin will never go into a long-term decline due to the closure of such exchanges, and investors have nothing to worry about.

It depends on how large the exchange is.. back when FTX shut down, it caused panic in the market and had such a significant impact on Bitcoin prices.. since FTX was one of the largest exchanges in the market at the time, its collapse had a major impact on the market. However, if it were a smaller exchange, the impact wouldn't be as significant, for example, like Bitmart and similar exchanges.. when those exchanges closed, the price of Bitcoin was not affected at all.

But yes, if there are any impacts from the exchange closure, they won't affect Bitcoin's price for long, only in the short term.. after investor confidence returns, the price will recover.

[Obari]

I don't think any exchange would shut down without letting their customers withdraw their money before they do except such exchange is a scam exchange and let me remind you that exchanges are not for holding coins but rather to exchange  them for other currencies.

I don't think the market conditions would be any tangible reason to make an exchange quick for the market because the market has no direct impact on them.

There are also several other exchanges that are still very functional, so we having two or within these range quitting the market isn't something we should be so much worried about.

[ZAINmalik75]

I look at Bitmart handles and it seems that some people are getting their withdrawals that were requested some past weeks. It seems they are getting the pressure and they are afraid of jail too. The way FTX exited and run away with customers money, the judgement and 20 years jail that he served will come to them too because if you can't learn from a person that did bad and you later do the same, it means it was even done on purpose.

I believe as long as a business is running well, it won't think of making an exit from the scene because they are already making good money from it, but if things go bad and the business starts losing customers and almost start to lose money because they have to spend more than they are earning, then they might think of making an exit like that. Some might think of the possible consequences, but some might not think about it, and think they can handle it.

You know what's so good about custodial wallet is that you can do everything within your without going outside the wallet or deposit to an exchange before you can exchange coin for another. There are some wallet that supports multi wallet, they let you have any coin you like and you can manage them with one seed phrase unlike then that you have to separate Bitcoin, Solana, monero and other EVM wallet, they are simple without need for an exchange.

Other than the fact that custodial wallets won't ask you for KYC, I don't tthink there are a lot of differences between an exchange and a custodial wallet, especially when the wallet allows you to swap your cryptocurrencies within the wallet. Those who care about their coins and prefer privacy, they would only use non-custodial wallets where they are the only ones in control of their assets.