I keep seeing reasons to stay away from centralized exchanges.

[Glowy]

Decentralized exchanges should not be used for your Bitcoin investment or use it to keep big amount of money. When I started cryptocurrency investing, I have lost my fund to many exchanges that later withdrew their services form Nigeria such as OKX exchange, and Hotbit exchange, and sometimes there are other issues that could arise that will still jeopardize your investment. Many times, as we read through the news online, we do hear the story how exchanges are hacked, and how they have lost huge fund to scammers, with these kind of stories, Bitcoin investors or other cryptocurrency investors need to be very careful on how they should make use of cryptocurrency exchanges.

So far Bitcoin, and other cryptocurrencies exist, we cannot entirely rule off the the use of  cryptocurrency exchanges, as it is used for cryptocurrency trading, and little funds can equally be left there, but the storage of large Bitcoin assets should be avoided.

I can't agree less, using exchanges for storage is a dangerous gamble that one should dabble into with caution. Otherwise the scars are enormous and sometimes hard to forget. It could even make one to ignore profitable ventures

[Out of mind]

Centralized exchanges often carry risks notably, user accounts are frequently frozen. A few months ago, for instance, many individuals faced this issue on the KuCoin exchange, where their accounts were frozen. Ultimately, an exchange is never a truly safe place, as it is controlled by a third party, leaving accounts vulnerable to problems at any time. Therefore, using a safe and secure wallet is paramount, though Trust Wallet, while widely used, is not the most secure option due to the potential albeit low risk of hacking. For those seeking superior security, an open-source, non-custodial wallet is the ideal choice. Using a Strong, secure wallet like Electrum virtually eliminates the risk of hacking, ensuring your funds remain safe.

[Swift_tr]

I know Binance are just doing their job following there terms and conditions but matters like this can be resolved faster. 6 weeks is a lot of time to wait, this puts the user in a tight financial position. It’s advisable you put your crypto in a noncustodial wallet to avoid things like this. Also before you decide to use any exchange do well to read through their terms and conditions so you don’t start complaining.

[Agbam]

Decentralized exchanges should not be used for your Bitcoin investment or use it to keep big amount of money. When I started cryptocurrency investing, I have lost my fund to many exchanges that later withdrew their services form Nigeria such as OKX exchange, and Hotbit exchange, and sometimes there are other issues that could arise that will still jeopardize your investment. Many times, as we read through the news online, we do hear the story how exchanges are hacked, and how they have lost huge fund to scammers, with these kind of stories, Bitcoin investors or other cryptocurrency investors need to be very careful on how they should make use of cryptocurrency exchanges.

So far Bitcoin, and other cryptocurrencies exist, we cannot entirely rule off the the use of  cryptocurrency exchanges, as it is used for cryptocurrency trading, and little funds can equally be left there, but the storage of large Bitcoin assets should be avoided.

I can't agree less, using exchanges for storage is a dangerous gamble that one should dabble into with caution. Otherwise the scars are enormous and sometimes hard to forget. It could even make one to ignore profitable ventures

Exchanges shouldn’t even be used for storing assets. It wasn’t built to hold, their primary purpose is for exchanging assets and money, it should only be used for trading your coins.

Storing money for a long term there especially large amounts is ill advised. People have to start taking all this awareness and warnings seriously. Look at the recent Bitget exchange hack, about $351m down the drain, people’s hard work and life savings.

[New Judgement]

Seems like this particular user haven’t fully understood the risks that comes with closed sourced wallet especially Trust Wallet in particular, but to some extent he’s statement is justified because Trust Wallet can’t freeze his money if he used it for the transaction instead of Binance and that’s his point.

That’s why exchanges should be used for what they’re meant for which is to buy or sell rather than converting an exchange to a wallet where you keep your coins to avoid all these unforeseen circumstances and assuming the transaction is more than $200, imagine how he’ll react to the situation.

Some people will never learn till they learn the hard way. This person can’t tell me he is not aware that the centralized exchange is not a place to store coins, but he will think those talks don’t carry weight till they fall victim. But what if this user only used his Binance account to receive this fund with no intention of storing it there. Probably it’s an asset sent to him that he just want to sell or convert to another coin before withdrawing it to his personal wallet before the the account was locked

[Tongley]

Decentralized exchanges should not be used for your Bitcoin investment or use it to keep big amount of money. When I started cryptocurrency investing, I have lost my fund to many exchanges that later withdrew their services form Nigeria such as OKX exchange, and Hotbit exchange, and sometimes there are other issues that could arise that will still jeopardize your investment. Many times, as we read through the news online, we do hear the story how exchanges are hacked, and how they have lost huge fund to scammers, with these kind of stories, Bitcoin investors or other cryptocurrency investors need to be very careful on how they should make use of cryptocurrency exchanges.

So far Bitcoin, and other cryptocurrencies exist, we cannot entirely rule off the the use of  cryptocurrency exchanges, as it is used for cryptocurrency trading, and little funds can equally be left there, but the storage of large Bitcoin assets should be avoided.

I can't agree less, using exchanges for storage is a dangerous gamble that one should dabble into with caution. Otherwise the scars are enormous and sometimes hard to forget. It could even make one to ignore profitable ventures

Why would we keep our money with a second person? Because the main goal of creating Bitcoin was to remove the second and third party interference from our financial situation and decentralize the entire financial management. If a person buys Bitcoin and if he keeps that amount of Bitcoin in a centralized exchange, then of course that person is depositing his holding with one person and there is a possibility that his holding will be stolen. So why would a person create a risk by keeping his money in a centralized exchange.

Exchanges need to be considered as a medium of exchange and when someone considers more than that, it may be a risky decision for him. It is necessary to create as much security as possible to protect their assets. For example, they can use a hardware wallet or they can use a decentralized wallet. Using an exchange for holding is a foolish thing.

[AmaGold70]

Although everybody knows say exchanges no be wetin Bitcoin or cryptocurrency investors go come lay their trust on, danger full inside, and nobody wey know when even the danger go come. Apart from this very one wey concern frozen of account for further verification, hackers de target exchanges every time, and this na why we de hear every time sey de don hack so so exchange, and when eh happen so people money don go, and sometimes the exchange go just shut down. Another thing wey happen be sey , as we no dey advice anybody to keep him own investment for any exchange, binance de among the exchanges wey many Nigerians dey use because dem feel say dem de a bit trustworthy. Also, maybe e fit be sey another person dey try to tamper this account, and the person no fit provide the login details appropriately, then dey decide to froze the account for further verification.

[Derekfunds]

I know it is not advisable to save or store money in exchange because they are almost same thing as bank since they can deny someone access to their asset or money however, saving money in wallet is very good but remember, you can not trade your money in Wallet ( p2p trading) unless you are trading with a known friend which means that you will still transfer the asset back to your exchange to trade it and so this can still happen perhaps, we should pray not to be a victim of this because it is not just about storing in wallet one can be trap anytime.

[CryptopreneurBrainboss]

I know Binance are just doing their job following there terms and conditions but matters like this can be resolved faster. 6 weeks is a lot of time to wait, this puts the user in a tight financial position. It’s advisable you put your crypto in a noncustodial wallet to avoid things like this. Also before you decide to use any exchange do well to read through their terms and conditions so you don’t start complaining.

They don't care about us, if they did then they'll put our priorities first but they don't because why on earth will they hold your money for more than a month? few hours is fine and max days to do their verifications. I don't see any concerns that'll require that long to investigate and I'm sure that amount isn't that much to make them take that long.

Exchanges know we'll  still come back to them that's why they're doing their thing without putting our feelings into consideration, boycotting them is what we should be doing so they know that the power is in our hands and not theirs. If enough people stop making use of their exchange then they'll have no reason than to change in trying to get back their customers.

CEX are the worst but right now it looks like we can't do without them because we still need fiats and they're looking like the best options to use right now but that doesn't mean we can just trust them and keep our Bitcoin on their platforms or we should get ready to experience the same fate.

[Hypnotizer]

But what if this user only used his Binance account to receive this fund with no intention of storing it there. Probably it’s an asset sent to him that he just want to sell or convert to another coin before withdrawing it to his personal wallet before the the account was locked

There’s a probability of that actually occurring and that’s why he concluded that Trust Wallet could have been a better choice if he had use it for the purpose rather than using Binance because trust wallet also offers an option to convert to other coins and to local fiat Using third parties directly on the Wallet.

I know it is not advisable to save or store money in exchange because they are almost same thing as bank since they can deny someone access to their asset or money however, saving money in wallet is very good but remember, you can not trade your money in Wallet ( p2p trading) unless you are trading with a known friend which means that you will still transfer the asset back to your exchange to trade it and so this can still happen perhaps, we should pray not to be a victim of this because it is not just about storing in wallet one can be trap anytime.

There are other decentralized options for P2P trading though, but most of them don’t have much liquidity that’s why many people heavily rely on these CEX for converting their coins to fiat. What you’re saying is actually true in this regard, so you should pray you don’t fall victim of this and try to follow the rules of these exchanges to avoid getting into it.

[Sammysmart001]

I know it is not advisable to save or store money in exchange because they are almost same thing as bank since they can deny someone access to their asset or money however, saving money in wallet is very good but remember, you can not trade your money in Wallet ( p2p trading) unless you are trading with a known friend which means that you will still transfer the asset back to your exchange to trade it and so this can still happen perhaps, we should pray not to be a victim of this because it is not just about storing in wallet one can be trap anytime.

The P2P part need a little clarification, Bitcoin can actually he trade from a noncustodial wallet with not necessarily people you may know personally, depend on method use or P2P platform being used. Wallet itself gives control over private keys it doesn’t prevent P2P trades.
Convenience and trust is the bigger issue here. Buying and selling can be easier with the exchanges but keeping funds under a third party comes with convenience. So instead of having to keep everything on exchange, you can decide to keep your long term investments in self custody and when you wavt to trade you remove the amount you intend to trade with when it necessary.

[PremiumcryptoHub]

Decentralized exchanges should not be used for your Bitcoin investment or use it to keep big amount of money. When I started cryptocurrency investing, I have lost my fund to many exchanges that later withdrew their services form Nigeria such as OKX exchange, and Hotbit exchange, and sometimes there are other issues that could arise that will still jeopardize your investment. Many times, as we read through the news online, we do hear the story how exchanges are hacked, and how they have lost huge fund to scammers, with these kind of stories, Bitcoin investors or other cryptocurrency investors need to be very careful on how they should make use of cryptocurrency exchanges.

So far Bitcoin, and other cryptocurrencies exist, we cannot entirely rule off the the use of  cryptocurrency exchanges, as it is used for cryptocurrency trading, and little funds can equally be left there, but the storage of large Bitcoin assets should be avoided.

I can't agree less, using exchanges for storage is a dangerous gamble that one should dabble into with caution. Otherwise the scars are enormous and sometimes hard to forget. It could even make one to ignore profitable ventures

Exchanges shouldn’t even be used for storing assets. It wasn’t built to hold, their primary purpose is for exchanging assets and money, it should only be used for trading your coins.

Storing money for a long term there especially large amounts is ill advised. People have to start taking all this awareness and warnings seriously. Look at the recent Bitget exchange hack, about $351m down the drain, people’s hard work and life savings.

Exchanges should not be used for holding Bitcoins or cryptocurrencies maybe everyone knows it but I think after hacking of hardware wallets like Cold Card, many inexperienced investors are skeptical about non-custodial wallets as well, that even here Bitcoin holdings may not be completely safe. See it seems to us crypto exchanges basically buy and sell bitcoins or other cryptocurrencies and acts as a safe and easy online market or platform to exchange with each other.

Basically holding bitcoins on exchanges is controlled by a third party, and they can suddenly be hacked, leaving people's hard-earned money at the hands of fraudsters, like Bybit, MT-Gox,FTX and many other exchanges have been hacked. It just recently lost $351 million due to the Bitget hack but they have promised to try to refund hacked users from the protection fund.

[casey15]

Just like you said .. he has been using the service for over 6 years.  And Binance being an exchange, they made it easier for him to swap his coins for fiat. And dint forget that six years ago, in terms of user experience and functionality decentralized exchanges were not as convenient as they are today it was just decentralized wallets that were quite easy to use hence the reason why many people opted for centralized exchanges. Infact a lot of people first Bitcoin was gotten through centralized exchanges. Now that things are different and he knows better, he should move his funds to a decentralized wallet or exchange

[Abu-Naim]

Exchanges need to be considered as a medium of exchange and when someone considers more than that, it may be a risky decision for him. It is necessary to create as much security as possible to protect their assets. For example, they can use a hardware wallet or they can use a decentralized wallet. Using an exchange for holding is a foolish thing.

Centralized exchanges are created for purpose of exchanging cryptocurrencies and to also exchange crypto to fiat. Some people are afraid of using DEX, they will prefer to use centralized exchanges so that they will have safe transactions, but some of them are over using it for different purposes; they save money in the exchange wallets for long which is not proper, they are suppose to be for temporary savings while long term holding should be in our personal wallets that we have the private keys in our custody.
Relying on centralized exchanges is not good, if the exchange got hacked, you can’t have access to your crypto coins until the wallet approved which means you can’t use it when you wanted it.