What Really Happens to Your Bitcoin After You Deposit It on an Exchange.

[God Tim]

When many individuals use a Bitcoin exchange they usually think buy and sell Bitcoin however there is a lot going on behind the since knowing how an exchange work can help users have better knowledge and avoid dangerous actions.
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‎1 Liquidity
‎Means how to easily Bitcoin can be sold without making a large change in its price exchange usually have on order book containing buy and sell order
‎An exchange with good liquidity can normally process big trade with loss price impacts on the next hand low liquidity can result in wider spread and big slippage.
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‎2 Kyc
‎Kyc mean knowing your customer many centralized exchange machines user to give information like the name, identity document and sometimes proof of address Kyc is connected to regulatory measures fraud security and anti money laundering procedures.
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‎3 Bitcoin with drawls
‎When you buy Bitcoin on an exchange you may see a Bitcoin balance in your account that does not really mean that the exchange has made a difference on chain transaction for you immediately
‎When you know a withdrawal process the plea and then sends Bitcoin to the address you have the transaction is then spread to Bitcoin network and processing time can vary depending on exchange and network current state

[BIT-BENDER]

First my brother use pidgin, you dey free to use pidgin for this board, I no go lie you but the post was hard to read and your message will be hard to grasp especially on the last point you made.
I will encourage you to go back again, read it, make the right corrections, use pidgin if you have to make we follow understand wetin you dey try pass.

[Doan9269]

The moment you identify yourself as someone who uses centralized exchanges, know that you are no longer in control of your assets, and there is no difference from someone who uses commercial Banks, because you will be regulated.

Everything that comes with the challenges of using custodial storage will also affect you in one way or the other. This will also mean that there is no difference between how you have been using banks and how you use crypto as a result of using a centralized exchange, except if you decide to use a decentralized one or have a non-custodial wallet

[devouring-DARKNESS]

First my brother use pidgin, you dey free to use pidgin for this board, I no go lie you but the post was hard to read and your message will be hard to grasp especially on the last point you made.
I will encourage you to go back again, read it, make the right corrections, use pidgin if you have to make we follow understand wetin you dey try pass.

And you think it would have been any different if God Tim had used pidgin? I don't think so, since you didn't understand what was written which is understandable because it wasn't an easy read, you could have just said you didn't understand what was written rather the using it as an avenue to push pidgin, make u sha know say no be everybody sabi write with pidgin, echo bad make person dey make mistake for correct English then you force am to speak pidgin e come still butcher that one too.

[promise444c5]

Well, most of what you listed isn’t related to what they actually do with it… and as a matter of fact, nobody really cares about what CEX do with it other than “not your keys not your coin”.

All you need to know is, once you deposit the Bitcoin(s) then it is no longer yours  until you request for a withdrawal and eventually get those Bitcoins back on a wallet you own the keys.  During the period is stays with them, they can do whatever they want with your coins including the ones you can personally opt in for .

[Ishicryptic]

Once you send your Bitcoin into your CEX account it still remains Bitcoin, nothing changes in that regard and if Bitcoin price fluctuates while it is in your exchange account it will show you it's current price. What actually changes when you send Bitcoin from your none custodial wallet into your exchange account is that you have lost a total control over your Bitcoin because the narrative of "not your keys not your coins" will apply to you. So your Bitcoin doesn't transform into a centralized digital currency, it still remains decentralized even in the custody of an exchange but you the owner doesn't hold the keys to your coins. A big exchange like Bitget recently got hacked, if they were to shutdown as a result of it or go bankrupt there is nothing you can do about your Bitcoin in their custody except to hope that they will recover and somehow release your coins.

[Nathrixxx]

The moment you deposited your coin on an exchange, then it is no longer at your own jurisdiction to know or determine how they are going to engage using it for their own benefits, that being said, you also stand the risk of losing it completely to them if anything happen unexpectedly with the exchange, as you don't have the private keys with you and the exchange will not bear full responsibility should in case of any hack or loss of asset in case the experience anyone or it hacked, so why should we now and trust our asset with them when they can still use it to run their own business and make more profit.