Some People Never Learn, Until they are forced to learn the hard way

[Fivestar4everMVP]

Yeah, I think the subject of this thread already says it all, most people in cryptocurrency seem not to want to learn the easy way, until they have to learn the hard way when they will have to suffer the lose of their funds to either a hack or other vices...

What exactly do I mean?

A very popular crypto YouTuber I believe many of us will know - The Moon, also known the "Moon Carl" asked a question on this telegram group with a poll, and the question goes "How do you store your Bitcoin?" he added five different options..
1. On an exchange
2. In a hardware wallet
3. In a software wallet
4. I use a combination of methods
5. I don't own bitcoin yet.

And amazingly, out of this five options, and out of the over 700 people that voted, the majority, at 32 percent said they store their bitcoin on exchanges, while 28 percent said they store bitcoin in a hardware wallet, 9 percent store their bitcoin in a software wallet, 15 percent said they use a combination of methods to store their bitcoin, and 16 percent said they don't own any bitcoin yet - this data is at the time of writing this post.

So, I kind of find it amazing that, with the whole campaign of NOT YOUR KEYS, NOT YOUR CRYPTO, bitcoin investors still trust centralized exchanges enough to hold their bitcoins in there, forgetting all the previous incidents where an exchange gets hacked, and investors lose all their funds..

I ask you the same question, where do you store your bitcoin?

[salad daging]

I HODL bitcoin on Trezor hardware.

Some of the friends I meet who are familiar with crypto, on average, store their assets on exchanges rather than non-custodial wallets, maybe it can be said that storing in software wallets is still better than exchanges but still they have high trust in exchanges rather than wallets that have private keys.

The reason I found why they store on the exchange, because it is more practical to trade at any time, can withdraw any coin just convert or stake on the exchange.

As far as we know, but they will never learn from mistakes if they have not experienced where the exchange collapsed as long as they are fine storing on the exchange then they will not think about the risk of third parties.

[Captain Corporate]

Storing it at exchanges depends on the exchange to be fair. Its not the same as keeping it at 800th ranked exchange versus keeping it in Binance. I have been keeping all of my coins at Binance for 5 years now and nothing happened to them so far. I mean not like I am someone you should hack, there is rarely any proper amount of money in it, the other day there was 25 dollars in it So why would anyone want to hack, that might be true. But if that's the case, then why would I need more security as well? If you are not worthy to get hacked like me, then Binance should be fine anyway.

[Fivestar4everMVP]

The reason I found why they store on the exchange, because it is more practical to trade at any time, can withdraw any coin just convert or stake on the exchange.

As far as we know, but they will never learn from mistakes if they have not experienced where the exchange collapsed as long as they are fine storing on the exchange then they will not think about the risk of third parties.

Well, you are absolutely right about the ease of trading when a user leaves his coins on the exchange, but isn't trading funds supposed to be different from one's investment? Investments are for long term long, which means, there should be no need to sell a coin that is already kept  or stored as an investment, leaving such coins on exchanges poses not just the risk of losing the coin if the exchange collapsed for whatever reason, but it also poses the risk of panic selling when one never planned to do such, and this could be one way to lose money is the investor doesn't exactly understand the market well, or guessed the market wrongly.

People should learn to keep their investments away from their trading funds, it's OK to leave trading funds on the exchange, but never OK to store one's investment on a centralized exchange.

[famososMuertos]

'It's none of your business.'
^{(it may sound shocking, but in good spirit.   It's to give context to the idea.)}

With the above, it must be said that starting by mentioning your preferences in a survey on Telegram is not good unless you simply "play" at mentioning any option and that in a certain way is measured in any type of survey that is done, not always the criterion that is collected is 100% consonant with reality.

 In any case I use paper and pencil.   

[Hamza2424]

Haha, dont worry they won't learn at least until they get some hits at their own decisions. As Custodial wallet users won't stop using them until they at least get the one-time freezer, Hot wallet users won't stop using them until they lose their precious key assets just because they stored their private key/seed on a computer. For those who still don't own Bitcoins yet they are already in regret because I don't want to rost the broken ones haha..

[UNIVERSE]

This is basic human nature. Indeed, sometimes, other people's experiences will not have much of an impact on us because no matter how painful the experience is, we are not the ones who feel it directly. And it's true, sometimes we are the ones who have to experience this experience so that we can wake up and be aware of how to fix it. Even when trading or investing, there have been many sharing experiences related to various things, including fake investments, scams, hacks, wrong wallet transfers, and others including losses in trading. but there are still people who do it exactly the same. So, this will be an evaluation for us, isn't it better to prevent than to undergo these bad things, right?

[aiviaa485]

3. In a software wallet
I ask you the same question, where do you store your bitcoin?

I only have a little Bitcoin and it was also obtained from the UniJoin signature campaign and I have kept it until now in Trustwallet.
Maybe for me this is just a wallet that is easy to apply to my life because if I had to store it in a hardware wallet then I couldn't buy it.

Many say that wallet software tends to be prone to hacking, but I am sure that as long as I store the phrase and private key safely, then my Bitcoin assets are also safe.
I am a simple person and I don't want to look for anything difficult in my life because this has been my way of life since I first got to know Bitcoin.

[Learn Bitcoin]

So, I kind of find it amazing that, with the whole campaign of NOT YOUR KEYS, NOT YOUR CRYPTO, bitcoin investors still trust centralized exchanges enough to hold their bitcoins in there, forgetting all the previous incidents where an exchange gets hacked, and investors lose all their funds.

Bro, this is not new. In fact, the percentage of users who hold their Bitcoin on exchange was bigger than this. I understand that these are the stats of a group only. Probably they are English speakers or understand English well. But, if you talk about countries like Bangladesh or India, Even if they understand English well, they do not read what they see.

I believe over 90 percent crypto/Bitcoin users hold their Bitcoin on exchanges. Either Binance, Kucoin or some other exchange. The frustrating part is, if you try to tell them that you should not store your Bitcoin there and explain why they should not do it, they will explain what benefits they are getting and why you should store your Bitcoin on exchanges as well. 

[Lucius]

~snip~
And amazingly, out of this five options, and out of the over 700 people that voted, the majority, at 32 percent said they store their bitcoin on exchanges...
---
So, I kind of find it amazing that, with the whole campaign of NOT YOUR KEYS, NOT YOUR CRYPTO, bitcoin investors still trust centralized exchanges enough to hold their bitcoins in there, forgetting all the previous incidents where an exchange gets hacked, and investors lose all their funds..

Do you know why people store their cryptocurrencies where they bought them? Some for the reason that they think that it is a crypto-bank and that they are safe there, and some others because everything else is too complicated for them. However, if 1/3 of the owners are wrong, it is much better than 5+ years ago when that percentage was very likely above 50%, which means that the situation is improving.

I ask you the same question, where do you store your bitcoin?

Anywhere I have full control over my private keys, because any other option is completely unacceptable. Larger amounts simply must be in hardware wallets or even better airgapped wallets, and everything else in hot wallets on devices that are not at risk of malicious programs. This would mean that it would be ideal to have a computer/smartphone that is used only for cryptocurrencies, recommended with Linux OS as a far better alternative to Windows OS.

[Faisal2202]

I ask you the same question, where do you store your bitcoin?

I got your point here, but it is not necessary that those who said they store their Funds on CEXs are using CEXs for holding purposes, they might be using CEXs wallets for trading purposes, but considering the question, I can say they are using CEXs and the only reason come to my mind is most of the newbies trust CEXs because they think CEXs give them some kind of insurance that their funds are safe.

For example, those who lost funds in MT Gox are given the assurance that there funds are recovered and will be returned, and now those funds are worth a fortune. The point is, people think storing funds on CEXs will give extra security and a insurance to the funds if anything happens, exchange will be sued or asked first by the user. Most newbies are not ready to take the full responsibility of there acts, that's why they prefer custodial wallets.

[salad daging]

The reason I found why they store on the exchange, because it is more practical to trade at any time, can withdraw any coin just convert or stake on the exchange.

As far as we know, but they will never learn from mistakes if they have not experienced where the exchange collapsed as long as they are fine storing on the exchange then they will not think about the risk of third parties.

Well, you are absolutely right about the ease of trading when a user leaves his coins on the exchange, but isn't trading funds supposed to be different from one's investment? Investments are for long term long, which means, there should be no need to sell a coin that is already kept  or stored as an investment, leaving such coins on exchanges poses not just the risk of losing the coin if the exchange collapsed for whatever reason, but it also poses the risk of panic selling when one never planned to do such, and this could be one way to lose money is the investor doesn't exactly understand the market well, or guessed the market wrongly.

People should learn to keep their investments away from their trading funds, it's OK to leave trading funds on the exchange, but never OK to store one's investment on a centralized exchange.

If they understand financial management then they will separate trading and investment funds, but they don't think like that, they just want to accumulate all assets in one exchange which are stored there, so it's just because of convenience and not having bad experiences, that's what they haven't realized it yet.

Besides, they don't discuss much about financial management procedures, they are just too focused on earning income in any way, that's a good thing, but once again there are still many who put aside their funds to separate them.

It's enough for us to know about this ourselves because after all it's better to anticipate before something bad happens.

[Cryptsafe]

So far my experience and would never allow me store my Crypto assets with third parties or centralised exchange. I think that would be the last thing I would ever do. I have heard of many giant exchange that collapsed as a result of hack and scam till date they have not yet recovered from their losses. That alone should serve as a lesson and eye opener for crypto enthusiasts who are desperate to use  the service of third parties.

As for me, I stick to the not your keys, not your coin slogan and that is it. I do mk ot see it convenient transferring or keeping my assets under the watch of a Crypto exchange which I have  no access to my assets of anything should happen for me.to act swiftly. It is not ideal and safe for me to do so.

Looking at the statistics, it shows that many people are still not wary of third parties even after seeing the showdown with many big names in the industry, they still find it convenient keeping their assets with third party exchange for safety. I wonder as they undermine their own personal safety and custodial to third parties which can.not be trusted to handle safely their facilities and services.

[Sim_card]

What I observed about those people that store their coins on exchanges might not know that there is a self-custody wallet. This is because they went into crypto for trading, due to what they have heard from influencers that are advertising an exchange, that trading is easy. I met a neighbor of mine, and when I discovered that he us into crypto, the first thing that I asked him was, is he into bitcoin, and he said yes. Next was where does he store his bitcoin, he said in Binance. I told him the disadvantages of keeping his coins in an exchange, but he told me that his coins are safe and that is the best way to keep his coins safe. I ended the advice immediately. Some people will never learn from other people mistake until it happens to them.

[electronicash]

its not that these people are not aware of FTX or other exchange that turned scam but it think because having the coins in the exchange is easier for them to trade. they are not storing for the most part. but some of them are ready to sell when the price target is achieved.

but if i have to store in a wallet. it will just be in my electrum where i have the keys. but like them. i have half of my portfolio on the exchanges not because i'm trading all the time, its just right in the exchange because whenever i needed quick cash i can convert the usdt fast.