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

[Princess Leah]

 According to your subject, it depends on the exchange cause there's DEX and CEX, if you send it to CEX, (centralized exchanges) first you automatically lose full custody of your coin cause you sent it to a third-party wallet, giving them access to have control of your money. For those who love privacy sending coiin to CEX isn't a good decision, cause you’ll have to submit your details for verification and perform KYC.

 Another thing is that you stand a high chance of losing your coins to hackers cause most exchanges if not all are prone to being hacked, you could imagine the number of exchanges drained only this year. Bitcoin shouldn't be sent to a CEX if the owner plans on holding it for long term, it's very risky. You only make deposit to trade, not for long term holding.

[Freeveto]

To Honest, I most find it very difficult to comprehend what you are writing.
Please you should how to make use of your punctuation mark, full-stop and many other because I find it very hard to understand what you are writing, although it would have been more better you used pidgin English to make your post so that we go fit understand wetin you dey cap.
And yes, you could be very right in what you are saying but due to lack of the above things that I have mentioned made me to lose focused on what you are saying.

From the heading of the thread, I was expecting something about how exchanges take control of our deposited Bitcoin and how give them access to our Bitcoin, but I saw something about liquidity, KYC, and Bitcoin withdraws.
I understand that all exchanges needs liquidity to allow free flowing transactions to be able to allow buying and selling without wasting time. And kYC is needed in most of the exchanges to allow deposits and withdrawals.
Nevertheless, the liquidity is a knowledge been shared, I hope the OP can explain more about the topic.

[Kelward]

Nothing strange happens to your Bitcoin when deposited into a centralized exchange, you only get the portfolio and not been able to control over the funds because a centralized body is in control, you submit a kyc verification to enable you withdraw and then trade with other crypto pairs.

Nothing much, nothing strange, you just have to follow the instructions before using your Bitcoin properly.

Aside from not having a total control over your Bitcoin nothing much happens to it, it's not as if it becomes a shitcoin or something in a CEX, you simply put your coins in the care of a centralized exchange which they can freeze at any slight suspicions about your transactions, also a hack in the site will affect your coins. So nothing strange happens to your Bitcoin when it's in an exchange, they simply holds the key to your Bitcoin which is the opposite of holding it in a none custodial wallet where you hold the absolute keys to send and move your Bitcoin to another wallet or exchange account. It is preferable to leave your Bitcoin in a none custodial wallet than in an exchanges for obvious reasons that I have mentioned.

[Ronsbit]

To Honest, I most find it very difficult to comprehend what you are writing.
Please you should how to make use of your punctuation mark, full-stop and many other because I find it very hard to understand what you are writing, although it would have been more better you used pidgin English to make your post so that we go fit understand wetin you dey cap.
And yes, you could be very right in what you are saying but due to lack of the above things that I have mentioned made me to lose focused on what you are saying.

This is our local board and I think members should be encouraged to communicate with our local or pidgin language if they find it difficult using the English language here so they don't commit blunder while passing across their information. Or better still, they can use grammar checkers such as grammerly and other English language apps that check sentences and words spellings so they can see their errors and correct them before uploading it as that would help them alot and even make them know more how to write a correct statement.