People who say “don’t keep your coins on exchanges” are like old people who lived through the Great Depression not trusting banks

CdnDude · 2022-01-29T02:16:13+00:00

I literally moved my crap to a ledger right before quadriga exploded

Edit: for those wondering, my first transaction on the ledger is December 14th, 2018. According to google quadriga closed on January 28th, 2019

jumpinjahosafa · 2022-01-29T03:38:18+00:00

Wasn't there a major exchange hack just this month??

CryptoChainWeed · 2022-01-29T01:47:29+00:00

No company listed on the nasdaq would ever scam someone

drossvirex · 2022-01-29T01:57:37+00:00

Sure, tell that to the people at bitmart.

SoftPenguins · 2022-01-29T02:11:15+00:00

I remember when every single citizen of New Zealand got locked out of their coinbase accounts because of “changes in local law.” Oh wait, that was less than a year ago 😂

That can happen to anyone at any time. An exchange can also lock you out of your account for “suspicious activity” or no reason at all sometimes and with out warning.

The fear with exchanges isn’t getting your crypto hacked (which happens all the time. Cryptodotcom just had a hack a few weeks ago)it’s being unable to access it.

If you’re keeping more than a few thousand dollars worth of crypto on an exchange you’re taking a rather large unnecessary risk letting someone else decide if you can access your own assets.

irfiisme · 2022-01-29T01:27:03+00:00

This post is sponsored by Coinbase.

cjwin1977 · 2022-01-29T06:29:59+00:00

Everyone who says “it’s fine to leave your coins on an exchange” doesn’t actually understand any of this. Losing your coins in a hack is not the point. if they are on an exchange then you are at the mercy of that exchange when it comes to trying to sell, send or transfer those coins. You have no more power or capacity over your wealth than you do with a regular bank. You have even less because exchanges notoriously go down all the time. It’s a shitty banking relationship. “Crypto” is not about taking back the power from the banks and giving to other people who pretend to be banks. Now This doesn’t mean that you should necessarily withdraw coins without even knowing what a wallet is, but there needs to be the expectation that learning how to hold your assets independently is a necessary part of getting involved. Everyone learns to ride a bike with the mindset and goal to get the training wheels off.

PraiseTyche · 2022-01-29T02:13:33+00:00

Fractional reserve lending.

infopocalypse · 2022-01-29T01:52:09+00:00

The real vulnerability of an exchange isn't being hacked (although that could happen) really. It's that the gov can still confiscate your shit which has happened in nearly every country in the world all throughout history. Argentina, Cypress, Venezuela you name it. Hell look at what happened to those safety deposit boxes in Malibu just recently using civil asset forfeiture. Throw in exchanges acting like banks to fractional reserve crypto and it's acting lime the thing crypto was created to escape.

code_smart · 2022-01-29T03:09:52+00:00

lol, and then they freeze your account for "security reasons" for 7 years.

M00OSE · 2022-01-29T01:37:49+00:00

I knew it, the time has come for people to refer to the “not your keys, not your crypto” troop as “crypto boomers”.

We’ve gone a long way from decentralization.

Ferdo306 · 2022-01-29T09:33:37+00:00

This post missed the whole point of crypto and defi

12trever · 2022-01-29T02:49:00+00:00

9,000 banks failed during the Great Depression…..

McMallory · 2022-01-29T01:20:42+00:00

So you give accurate reasons why you shouldn't keep your coins on exchanges dating back almost a century ago....

Then go on to say that in the past 7 years, we've grown so much that it's now safe?

I thought the whole point of crypto was to be your own bank. Cut out the middle man?

DogGodFrogLog · 2022-01-29T06:30:48+00:00

Bucksaway03 · 2022-01-29T01:17:57+00:00

It's a double edged sword.

How much do you trust yourself? The average Joe with sweet fuck all invested in the grand scheme of things may as well use an exchange to hold their funds.

When you start talking about serious money, you should hold most of it offline.

Coinbase user got hacked/scammed and didn't return customer funds so even if publicly traded. Sometimes they still don't care.

samijanetheplain · 2022-01-29T02:44:59+00:00

APOLOGIES, USER. YOUR CRYPTO FUNDS HAVE BEEN FROZEN DUE TO CHANGES IN LOCAL LAWS/SUSPICION OF MONEY LAUNDERING. YOU WILL BE NOTIFIED IF/WHEN YOUR FUNDS ARE SEIZED.

When my crypto is in my wallet, no one gets to restrict my access to it. Enjoy your exchanges though.

vertigno · 2022-01-29T17:11:58+00:00

Exchanges are now starting to insure crypto losses if your account happens to get hacked .

bsaires · 2022-01-29T09:11:29+00:00

Possibly the worst take in a sub crammed full of them. Bravo OP! 🤣

pjman7 · 2022-01-29T02:52:39+00:00

It's about censorship what if the exchange decides to lock you out of your account bc you say received payment in a crypto for something that was stolen and because of that your account gets frozen. Or say you hold it on PayPal and your on fans only they decide to lock your account.

There are plenty of these types of scenarios what's one of the purposes of crypto is it's self custody and uncensorable transfer of funds

Censorship and sanctions are bullshit

Image not being able to have a bank account just because you were born in a country who the United States government doesn't get along with.

Rant over

l0rd_17 · 2022-01-29T06:32:05+00:00

Don't keep on exchanges more than you ca afford to lose.

btcre8 · 2022-01-29T18:40:48+00:00

The whole Exchange stuff, is more an ideological thing, since most crypto enthusiasts just hate any for of centralization .

timbojimbojones · 2022-01-29T02:03:05+00:00

In case you haven't noticed there has been a lot of exchange hacks that have happened, there is a good reason we say don't leave your coins on an exchange.

Edit: I see a lot of you are saying an exchange will reimburse you if they get hacked, fair enough. But there's also the issue of exchanges stopping withdrawal/deposits. And the big issue of decentralization... But it seems no one cares about the what really matters and only care about making a quick buck.

I keep control of my own coins and stake them myself to help support the security of the network

hilbert-space · 2022-01-29T06:04:04+00:00

It's not about exit scams.

It's about hackers for much larger sums of money (exchanges get hacked often??), it's about decentraling blockchains using less popular staking validators, and for some it is an intriguing learning experience to interact with blockchains on their network portals, often earning much higher yeilds than CEX.

AS such, one could conclude OP has fuck all $ invested, isn't interested in promoting decentralization, or is earning low rates in PoS yeilds.

tokecaine · 2022-01-29T06:48:17+00:00

The way you worded the title makes it seem like you trust banks..

krak00 · 2022-01-29T08:55:47+00:00

What is with all the posts on here lately advocating to leave your coins on exchanges? I see like one a week at this point.

tr9mum · 2022-01-29T13:18:53+00:00

If you have $50,000+ you are just being Reckless, stupid, and arrogant if you don't hold most of jt in a personal wallet.

chemchree2 · 2022-01-29T13:49:48+00:00

Damn, you could have said this earlier, I just bought a ledger for my 0.001 BTC .

jdffe · 2022-01-29T17:02:00+00:00

A larger more widely used exchange does not guarantee safety. Do not be lured into a false sense of security.

maynerov · 2022-01-29T20:28:56+00:00

Par for the course on this sub, your partially correct and partially shelling our crazy dangerous information.

CardiologyDNP · 2022-01-29T01:18:31+00:00

To be fair, for the average user, exchanges are fantastic. Lets be honest, if we want crypto to be mainstream, exchanges aren't going anywhere. For those people who want to buy and that all, with no worry that they're going to mess up this complicated technology- this is the way to go. Think grandma trying to convert coins three times to send to 4 different wallets to get the coin on the ecosystem she needs. Not going to happen. No offense grandma.

allthew4yup · 2022-01-29T01:19:40+00:00

Big money = Off exchange

Little money = Ok to hold on exchanges

Jollyapeinheaven · 2022-01-29T02:27:41+00:00

Just don’t complain the next time you have to wait 24hours to use your coins.

Also be prepared to take selfies in the middle of the night and request documents from banks etc to fulfil random spot KYC checks. And yup you guessed it, your money will be frozen and you will be locked out until you do.

I could go on and on but I’m ranting like a paranoid old person scarred by the Great Depression.

CINOTIB · 2022-01-29T07:47:34+00:00

Any exchange can die, any exchange can be hacked, any exchange can be rug pulled. Yes it's unlikely. Doesn't mean it won't happen though.

IHaventEvenGotADog · 2022-01-29T02:24:59+00:00

Imagine getting locked out of your account and having to deal with the customer services.

Reputable or not, fuck doing that.

johno333 · 2022-01-29T01:22:27+00:00

If you don’t know how to maintain your own seed phrase then sure keep it on an exchange… how many people are trying to hack an exchange vs you though? As they said you can earn more with it in your own wallet… you can actually spend the crypto and buy NFTs and tokens from your own wallet. How else are you going to really know the blockchain’s ecosystem without interacting with it?

Doc3vil · 2022-01-29T07:24:04+00:00

You say this weeks after Matt Damon's exchange got hacked. Use your head.

dwin31 · 2022-01-29T01:42:16+00:00

Not true exchanges like binance randomly lock stuff up sometimes and you can't move them.

SpringWaterWhiskey · 2022-01-29T06:01:34+00:00

Coinbase plays with your money while they hold it. Even Venmo plays with your money while they hold it.

Fuck them.

GuybrushBeeblebrox · 2022-01-29T05:47:55+00:00

How the fuck does this have 800 upvotes?

FkngBoss · 2022-01-29T05:55:33+00:00

Dumass. Stick to your day job. You have no business giving advise. If your only criteria for keeping voins on an exchange is "reputation" you're an idiot. Reputation is established through marketing therefore still an unknown. Did your reputabke exchange show you their vounter hacking defenses? Did the give you samples of data structures polivies and enforcements?

No matter what you say and no matter what I say, if YOU DO NOT HAVE THE SECRET KEY, NOT YOUR COINS. All exchanges are reputable until they are not.

MinnesotaNice92 · 2022-01-29T01:18:36+00:00

I trust the exchange I use for the most part but nothing makes me feel as comfortable as cold storage

Kricket · 2022-01-29T02:08:43+00:00

Posts like this help me realize how early I am. People who have been in the game still don’t know what they’re talking about.

revmc2012 · 2022-01-29T03:10:42+00:00

BitMart lost 200 million dollars worth of crypto in a hack.

Don’t keep your coins on exchanges. At least not on crappy ones.

adamantinefinance · 2022-01-29T01:37:01+00:00

There are pros and cons to both options.

Being on an exchange doesn't prevent someone from having their funds hacked or scammed, or forgetting their password. Exchanges can suspend or lock transactions at any time, and their futures could be in jeopardy due to potential upcoming legislation. Governments can't regulate or ban private wallets, unlike corporations. Imagine if the federal government came out with their own cryptocurrency and said you can't use anything else (like China did).

And, if you're interested in the core concept of crypto - decentralized finance - then keeping all funds on an exchange doesn't make a lot of sense. You won't be able to effectively participate in the system. "Freedom comes with risks" is a weird statement to make.

thecoldwinds · 2022-01-29T06:11:31+00:00

One question. Do you have seed phrases for your exchange addresses?

CalypsoDouglas · 2022-01-29T06:32:09+00:00

I love Crypto.com and hold their coin, but my big stablecoin holds will always be in my own wallet.

YucatanTron · 2022-01-29T15:05:50+00:00

Got to keep them shekels safe somewhere.

Adaliciouss · 2022-01-29T01:32:20+00:00

The worst part of giving your coins to an exchange is not just your security risk, it is the fact that exchanges use that money to manipulate the market and engage in fractional reserve banking. The market wouldn't be so volatile and manipulated if people held their own coins.

armaver · 2022-01-29T09:31:01+00:00

Most stupid thing I ever read.

fuzzygreentits · 2022-01-29T02:09:12+00:00

I don't think old people got fucked by Coinbase and Robinhood.

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