Who noticed that our traditional bank are more safer than an exchange?

[Homemade-IQ]

As the title of this thread implies, who noticed that to keep our money in our traditional banks is even more secured than to keep it in an exchange?

With the way exchange is being hacked here and there it's a risk we should try to avoid because our crypto asset we stored in an exchange is not safe at all, and with what had happened in the past one year now is a testament of the fact that it's a risk we should avoid taking.

Storing our crypto asset in a self custodian wallet remains the best, because you are going to be in charge of your key, so your fate is basically in your hand. Though keep your money in fiat also have it own ups and downs, because inflation will gradually eat into your money but it's more safe than an exchange that are always a target to hackers, so what do you guys think about this?

[Ronsbit]

Self custody is absolutely the best and there is no argument about it. People who turn to exchange to keep their assets are doing so because they feel they would get the maximum protection from them but currently, the exchange are now failing them which is also showing that self custody is the only way out because only you know your private keys except otherwise.
Exchange are better used for trading p2p which it is best built or designed for but anything outside that, I think they are short of. Manage your assets yourself, do not entrust it to any third party because they too can not guarantee the safety of their platforms as we can see the recent happenings surrounding exchange hack which is obviously clear they are not a guarantee for safe keeping of crypto assets.

[Bitcoin-Forever]

Who told you all this?

I don't see a difference between the risk a bank can place on you and that of an exchange.

They are all third-party centralized platform that uses our money to run their own business and give us nothing in return. They also hold our assets as custodial storage without giving us full control over our financial assets. They can be attacked, hacked, or go bankrupt. You have a central authority and have our personal information with them through what they call KYC.

Now tell me how banks are better than exchanges?

[Stepstowealth]

As the title of this thread implies, who noticed that to keep our money in our traditional banks is even more secured than to keep it in an exchange?

With the way exchange is being hacked here and there it's a risk we should try to avoid because our crypto asset we stored in an exchange is not safe at all, and with what had happened in the past one year now is a testament of the fact that it's a risk we should avoid taking.

You should not be keeping money in an exchange for the purpose of savings or investment. This is why I agree that traditional banks are safer for savings and even their investment options than simply having cryptocurrency and keeping it on an exchange.

Storing our crypto asset in a self custodian wallet remains the best, because you are going to be in charge of your key, so your fate is basically in your hand.

If you are the type that will be careless with self custody, investing in bank options will be safer for you if you cannot learn to conscious about your security because successful self custody requires that.

[Cryptomultiplier]

At least with the traditional fiat banks, we have someone to hold responsible if something happens to our savings, we could get monthly interest return on our savings and we always command the respect of those working in the banking premises when we go in to complete a transaction since they can see some of your net worth in balance sheet and think you are rich or have influence enough to own much when the economy even seems depressing enough.

With exchanges though, the privilege I mentioned is absent and besides it being a system that can help you do across border transactions without a third party involvement, or swap currency that more of crypto currencies or stable coins and can help in other ways, using it to save us a big No. It's easy for scammers to get a hold of it or the exchange close up shop overnight and there's no one to give an explanation as to why.

[Decimetre]

As the title of this thread implies, who noticed that to keep our money in our traditional banks is even more secured than to keep it in an exchange?

With the way exchange is being hacked here and there it's a risk we should try to avoid because our crypto asset we stored in an exchange is not safe at all, and with what had happened in the past one year now is a testament of the fact that it's a risk we should avoid taking.

There's no way saving money in Traditional banks will be a better option because it already means that such person will have to store his money in Fiat which is not the best. Once fiat is involved, inflation continuously affects such amount and it goes on and on. It is true that currently hackers are on the rampage but that does not justify choosing a traditional bank over an exchange. One of the recent hacks which is the bitget hack that cleared several million dollars does not mean that users funds will be affected. Any loss due to users mistake: misplaced login details or its likeness is the loss that the user will bear, but any loss due to system error/hack does not affect users because every exchange has what they call proof of Reserve from where the exchange offsets every loss due to hackers.

https://x.com/bitget/status/2103236552482848927

Storing our crypto asset in a self custodian wallet remains the best, because you are going to be in charge of your key, so your fate is basically in your hand. Though keep your money in fiat also have it own ups and downs, because inflation will gradually eat into your money but it's more safe than an exchange that are always a target to hackers, so what do you guys think about this?

Self custody is the best at all time because it gives you privacy and frees you from any form of KYC at all time. With a non custodial wallet, you have your private keys and you are incharge of your coins, however it still doesn't keep you completely away from losses due to shared private keys or likes. The coldcard incident also shows that self custody may not guarantee 100% safety too. So in all you do, ensure you keep your keys safe and backup wisely. Avoid sharing login details with anyone.

In summary, saving money in Fiat is not an option, hence self custody is better than exchange and exchange is better than Traditional banks.

[Merit.s]

Banks are safer like you said OP, because we see them and will hold them responsible for our funds since, it's in their custody but who will you hold if you keep it in an exchange. It means that your coins are gone. Only treat exchange like a market place, after buying and selling move your coins to your noncustodial wallet for safety.

Self custody also comes with its own risk and don't forget to learn how to increase your wallet security because scammers are very desperate to steal your funds from anywhere.

[ZeroVinsonN]

Who told you all this?

I don't see a difference between the risk a bank can place on you and that of an exchange.

They are all third-party centralized platform that uses our money to run their own business and give us nothing in return. They also hold our assets as custodial storage without giving us full control over our financial assets. They can be attacked, hacked, or go bankrupt. You have a central authority and have our personal information with them through what they call KYC.

Now tell me how banks are better than exchanges?

In a sense they can be better,  they are less prone to get hacked than exchanges are (this isn't an argument about which is safer) because while you can practically tell that crypto has been moved you can necessarily tell who owns the account it was moved to, too much red tape to cross but with regular banks every account comes with a name and if it's capable to hold the kind of money these hacks are moving then you can be sure that tracing the owner of the account will be possible.
Basically it's easier to track transferred funds from regular banks than to track funds transferred from crypto exchanges, personally I would rather have my money in a bank than in an exchange as long as the intention is just to save money, there is no logic to saving money in an exchange.

[Karl_3000]

I don't see a difference between the risk a bank can place on you and that of an exchange.

A bank that is registered and approved by the CBN is better than exchanges that do not have protection funds. But I think exchanges that have protection fund is good only for trading. What the topic poster said is still true because his advise are for people not to be storing their cryptocurrencies on exchanges.

Now tell me how banks are better than exchanges?

You can use self-custody wallet to store your cryptocurrencies and have total control over your cryptocurrencies than using exchanges, but you can not have huge amount of cash at home than taking it to bank. The naira is risky at home than taking it to bank. It is safer in the bank despite that the banks are centralized. Your naira is also CBN protected if the bank registered under CBN.

[Pi-network314159]

I agree with you that the best place to store your asset is the non custodial wallet instead of exchange. but comparing bank and cex doesn't make sense to me at all because both are almost thesame thing. If bank is hacked or the robbery is much, it will make the bank to fold if they can't guarantee the amount stolen. In exchange there is a secure fund incase of situation like this so they can guarantee fund refund. But if not possible, it will lead to bankruptcy. For me neither is safe because anything that is under central authority can be controlled and manipulated unlike the decentralized system which includes the non custodial wallet.

[BluebloodCXVI]

Well keeping fiat in a proper traditional bank is generally more safer for principal thanks to deposit insurance, although inflation is gonna be there to eat at it, but hey! different tools for different jobs right?

Just don’t keep large holdings of your bitcoin on an exchange longer than it is necessary, in short just do self custody for your coins, that’s the better option as long as you can handle it.

[Ndabagi01]

Do you think that banks are not also targeted by hackers or don’t face bankruptcy like exchanges do? They’re all the same thing and it is just a paradigm shift now that exchanges are the target because of the big money that is flowing in crypto everyday. Can’t you see the overall liquidity in crypto daily, that makes them the new target for hackers and that’s why we see less attacks on traditional banks these days. They’re only advantage I can think of using a commercial bank is that before a commercial bank comes into action, there is always a certain amount of money deposited in the central bank in case of bankruptcy to use and settle customers if case of bankruptcy occurs.

[SmartCharpa]

Who told you all this?

I don't see a difference between the risk a bank can place on you and that of an exchange.

They are all third-party centralized platform that uses our money to run their own business and give us nothing in return. They also hold our assets as custodial storage without giving us full control over our financial assets. They can be attacked, hacked, or go bankrupt. You have a central authority and have our personal information with them through what they call KYC.

Now tell me how banks are better than exchanges?

Op talk no dey really bad though. Some people might mistake his words to mean that keeping our money in local bank is more safer than holding crypto. Sure, banks can also get hacked, and our money is not safe anywhere. It just depends on how you keep your money safe. Scammers can call from nowhere, trying to get access to your bank account. You can see that some people fall for their traps and give them the information they need to get access to their bank accounts.

The reason why Op talked about this is because of the exchanges that are getting hacked these days. If your assets are kept in self custody, no exchange can control over your Bitcoin. But anything that happens to your wallet, you are responsible for it because you are to keep your wallet safe. If anything makes you lose your seed phrase, you will lose access to your wallet.

[CryptopreneurBrainboss]

Self custody is absolutely the best and there is no argument about it. People who turn to exchange to keep their assets are doing so because they feel they would get the maximum protection from them but currently, the exchange are now failing them which is also showing that self custody is the only way out because only you know your private keys except otherwise.

Samething happening to CEX are happening to the Nigerian banks, say e never happen to you na why you they think like this. If something do you ehh then you go know say the banks aren't different. Your money can be stolen from your account and the banks will have no explanations for it. When you report then e go take them forever to investigate and solve your problem.

if you get lucky them find people wey thief the money na your luck and most times, someone in the bank always is involved. Accounts are being monitored and targetted just as how it happens on exchanges. As you they read millions for crypto hack na so millions dey go down with banks oh.

All CEX are the same, Incompetence, lack of proper security of funds and just general disadvantages/challenges of using a centralized service to hold your money are associated with both the banks and CEX, just say make e no happen to you.

[Homemade-IQ]

Now tell me how banks are better than exchanges?

They are basically the same in the sense that they are both centralized, but exchange is not as secured like our traditional banks. How many times have you heard that first bank, fcmb, gtb or any other of our micro finance hacked, and they went away with people's funds?

Don't you know that money stolen from the bank can be easily traced to the hackers than our crypto asset?
You may argue with me all you want but when it comes to security, our traditional banks is more better than an exchange.

[Tetu100]

Who told you all this?

I don't see a difference between the risk a bank can place on you and that of an exchange.

They are all third-party centralized platform that uses our money to run their own business and give us nothing in return. They also hold our assets as custodial storage without giving us full control over our financial assets. They can be attacked, hacked, or go bankrupt. You have a central authority and have our personal information with them through what they call KYC.

Now tell me how banks are better than exchanges?

You aren't far from the truth. Because they are all third parties that are literally trading with our funds without granting us the total freedom towards it. However, while I prefer banks to be some how better than an exchange even though they could share the same disadvantages is that, banks are more difficult to heard that they are closing just the way you see exchanges folding and being hacked by the day.

Secondly, since I realized how saved a self custodian wallet is, and how I can be assured of being totally in charge of my funds. I see no reasons saving my money on an exchange or even in our local banks. Maybe, only when I'm in need of fiat is when I have business with an exchange and the bank, otherwise we both aren't going the same way.

[Barikui1]

The truth of the matter be say, both of them na the same thing, just that the security lapse for exchange dy too much, and na because of their carelessness them dy fall victim to hacking any how.

As the op don talk already, I no fit remember when a bank announced a major hacking into their system and withdraw people money, except some bankers wey be criminals, wey dy steal individual money systematically. Sometime this staff go just dy target a few top customers wey if them collect like 2k from their account, them no go even notice am, so na their own security problem be that, but if na major hacking like the one exchange dy experience on a steady basis, you go hardly hear say e happen to bank.

[Marvelockg]

Storing our crypto asset in a self custodian wallet remains the best, because you are going to be in charge of your key, so your fate is basically in your hand. Though keep your money in fiat also have it own ups and downs, because inflation will gradually eat into your money but it's more safe than an exchange that are always a target to hackers, so what do you guys think about this?

We all know the limitation that comes with using crypto exchanges especially for saving bulk asset, no matter how reputable the exchange is, we have seen them getting compromised and that should be a thing of serious concern. to be at rest, do self custody for any asset you are keeping for the long term and use an exchange for a frequently used asset while the bank can still serve your day to day activities. in a way, these three should coexist in such a way that they complement themselves and not completely exclude the other.

[Sticky Bomb]

They’re only advantage I can think of using a commercial bank is that before a commercial bank comes into action, there is always a certain amount of money deposited in the central bank in case of bankruptcy to use and settle customers if case of bankruptcy occurs.

This is not an advantage actually, reputable exchanges have a good sum held as User protection funds in case of any financial disruption and we can see that from BYBIT & BITGET  hacks and how they were able to replace stolen funds asap and resume normal operations. It boils down to the exchange you are using and if they have those insurance funds available.

I am not in the mood to compare two centralized financial institutions. It is better to hold coins in open-source non-custodial wallets so that you're sure you are in full custody of your coins.
Although being in full custody can be subjective, someone holding stable coins in even the best non-custodial multicoin wallet has no guarantee of self-custody since it comes from a centralized issuer.

[Finebone]

This is not an advantage actually, reputable exchanges have a good sum held as User protection funds in case of any financial disruption and we can see that from BYBIT & BITGET  hacks and how they were able to replace stolen funds asap and resume normal operations. It boils down to the exchange you are using and if they have those insurance funds available.

You made a very good point here, and by the looking of things, they are both the same thing, the only advantage our regular banks gives us is that you have someone to go for, in other to retrieve your money, unlike an exchange where you may only know those in charge of it, but cannot formally take your complaint to their face, since they don't have an office or may not reside in Nigeria in person. And it's because of this people still prefer to keep money in our traditional banks than in micro finance banks that don't have a visible office to take their plight to

I think the that the op's sentiment boils down to what has been happening in the crypto space in the past year now, and because no such thing has struck the bank now, he thinks that they are safer, but that is not true.