What’s the safest option to hold BTC ?

[Faisal2202]

Following the recent situation surrounding some exchanges, it seems BTC is not safe to be held in CEXs wallet anymore. Take for instance, the recent Bybit hack which happened unexpectedly, billions of Ethereum was moved even though it was able to recover it through reserves and institutional loans.

This would have been another story entirely if the hack had been done to a Bitcoin reserve but in order to avoid future losses, i’ve been curious to know what the safest option to store BTC could be.

The safest place is to hold them in wallets to which you also own the keys, as if you don't own the keys the funds are not in your custody anymore, its like you are giving the ownership to someone else who own the keys (like exchanges) therefore we should hold our funds in exchange only when we want to trade them or sell them, but if we want to hold it for longer period of time then we should prefer non custodial wallets.

Speaking of exchanges, we can still prefer tier 1 good exchanges for long term holdings but taxation can be a big hurdle there too so non custodial wallets should be our first choice.

[salad daging]

Following the recent situation surrounding some exchanges, it seems BTC is not safe to be held in CEXs wallet anymore. Take for instance, the recent Bybit hack which happened unexpectedly, billions of Ethereum was moved even though it was able to recover it through reserves and institutional loans.

This would have been another story entirely if the hack had been done to a Bitcoin reserve but in order to avoid future losses, i’ve been curious to know what the safest option to store BTC could be.

The safest place is to hold them in wallets to which you also own the keys, as if you don't own the keys the funds are not in your custody anymore, its like you are giving the ownership to someone else who own the keys (like exchanges) therefore we should hold our funds in exchange only when we want to trade them or sell them, but if we want to hold it for longer period of time then we should prefer non custodial wallets.

Speaking of exchanges, we can still prefer tier 1 good exchanges for long term holdings but taxation can be a big hurdle there too so non custodial wallets should be our first choice.

At least for the long term, never store on the exchange because it is not safe....what if the exchange is hacked and users cannot withdraw their own funds? This will be a problem later on.

A non-custodial wallet is best but you should at least have a hardware wallet to make it even more secure.
But I know some people still believe in keeping large amounts of their assets on exchanges.

[Faisal2202]

At least for the long term, never store on the exchange because it is not safe....what if the exchange is hacked and users cannot withdraw their own funds? This will be a problem later on.

A non-custodial wallet is best but you should at least have a hardware wallet to make it even more secure.
But I know some people still believe in keeping large amounts of their assets on exchanges.

You are right, as this can happen as already happened with Kucoin as I remember when the SEC opened some lawsuit against them they delayed the withdrawals, and people were panicking over it, which was natural though but still it can shoot your BP very risky hehe.

Therefore we should save ourselves from the trouble and avoid holding coins on these exchanges and if we see some warnings, then we should move our funds ASAP.

Yeah, that's right even I have kept my finds on CEXs because I have to trade them hehe.

[vegasus]

You are right, as this can happen as already happened with Kucoin as I remember when the SEC opened some lawsuit against them they delayed the withdrawals, and people were panicking over it, which was natural though but still it can shoot your BP very risky hehe.

Therefore we should save ourselves from the trouble and avoid holding coins on these exchanges and if we see some warnings, then we should move our funds ASAP.

Yeah, that's right even I have kept my finds on CEXs because I have to trade them hehe.

This is one of our concerns if we hold a lot of assets on an exchange, compared to a personal non-custodial wallet. Indeed, one option is when we start hearing bad news about the exchange, we can immediately move our assets as soon as possible. But unfortunately, sometimes it is too late and it becomes impossible to withdraw due to certain reasons. This is why some problems when FTX and other platforms occur and investors are no longer able to move their assets because the option to withdraw directly is disabled.

[rizqillah]

You are right, as this can happen as already happened with Kucoin as I remember when the SEC opened some lawsuit against them they delayed the withdrawals, and people were panicking over it, which was natural though but still it can shoot your BP very risky hehe.

Therefore we should save ourselves from the trouble and avoid holding coins on these exchanges and if we see some warnings, then we should move our funds ASAP.

Yeah, that's right even I have kept my finds on CEXs because I have to trade them hehe.

This is one of our concerns if we hold a lot of assets on an exchange, compared to a personal non-custodial wallet. Indeed, one option is when we start hearing bad news about the exchange, we can immediately move our assets as soon as possible. But unfortunately, sometimes it is too late and it becomes impossible to withdraw due to certain reasons. This is why some problems when FTX and other platforms occur and investors are no longer able to move their assets because the option to withdraw directly is disabled.

Storing large crypto assets in an exchange wallet is highly discouraged because when it is dangerous, it is better to store it in a custodian wallet, because it is safer. We are often late in saving because we may not hear the latest news, the busyness of the real world is very time consuming. so be careful in storing our crypto assets.
but so far I have also stored assets in binance and Kucoin which are still safe.

[Azharul]

Following the recent situation surrounding some exchanges, it seems BTC is not safe to be held in CEXs wallet anymore. Take for instance, the recent Bybit hack which happened unexpectedly, billions of Ethereum was moved even though it was able to recover it through reserves and institutional loans.

This would have been another story entirely if the hack had been done to a Bitcoin reserve but in order to avoid future losses, i’ve been curious to know what the safest option to store BTC could be.

Actually, I think that you could express a best opinion in your comment. I think that follow in safest option is very important for hold BTC. We also know that Bybit hacked is recent information in this time. So if we use carefully as non-custodial wallet is very safety for reserve our important asset. So when we want to hold our valuable crypto asset, we should trying to consider for saving. So we can use Binance, Cucoin etc also maybe safety for us. Which will be very prefer for all crypto users in cryptocurrency world.

[God Of Thunder]

Storing large crypto assets in an exchange wallet is highly discouraged because when it is dangerous, it is better to store it in a custodian wallet, because it is safer. We are often late in saving because we may not hear the latest news, the busyness of the real world is very time consuming. so be careful in storing our crypto assets.
but so far I have also stored assets in binance and Kucoin which are still safe.

I guess another forum member already mentioned what happened to a Bybit user lately. They created a scam accusation thread on Bitcointalk forum about it and I guess some of you noticed that. Basically, the guy used a mixer and then withdrew the funds to his Bybit wallet, and it happened 5 years ago. He did not move the funds in the last five years.

Lately, he has tried to move the funds, and bybit is now asking him to provide the source of funds. In case of a transfer from a wallet, he has to share a video recording with Bybit to prove that he owns the funds, which is impossible.

So, the funds on exchanges are not always safe. Not your keys, not your coins.

[snowpega]

The safest place is to hold them in wallets to which you also own the keys, as if you don't own the keys the funds are not in your custody anymore, its like you are giving the ownership to someone else who own the keys (like exchanges) therefore we should hold our funds in exchange only when we want to trade them or sell them, but if we want to hold it for longer period of time then we should prefer non custodial wallets.

Speaking of exchanges, we can still prefer tier 1 good exchanges for long term holdings but taxation can be a big hurdle there too so non custodial wallets should be our first choice.

Well said, mate. I was holding my funds in a tier one exchange from a very long time, but now there has been an issue that occurred in my account, so I have to move my funds to another exchange. The funny thing is that I am still holding my long-term funds on the exchange, haha.

I have enabled that Exchange 2FA, but there can be some other probabilities, like the exchange scamming the users or putting restrictions on user accounts. So, I also think the thing is here is that we should go for non-custodial wallets for long-term holdings.

[SamReomo]

So, the funds on exchanges are not always safe. Not your keys, not your coins.

Yes, they're safe anytime, and we all know that. It's okay to keep some funds at exchange for Dcaying purpose or for trading but it's not okay to keep all your crypto assets at an exchange. Your own personal wallet is the way to go, and that's 1000x safer from any exchange in the world.

[pawel7777]

I guess another forum member already mentioned what happened to a Bybit user lately. They created a scam accusation thread on Bitcointalk forum about it and I guess some of you noticed that. Basically, the guy used a mixer and then withdrew the funds to his Bybit wallet, and it happened 5 years ago. He did not move the funds in the last five years.

Lately, he has tried to move the funds, and bybit is now asking him to provide the source of funds. In case of a transfer from a wallet, he has to share a video recording with Bybit to prove that he owns the funds, which is impossible.

So, the funds on exchanges are not always safe. Not your keys, not your coins.

That's insane, most countries wouldn't expect individuals to hold their accounting records for longer than 5 years, so it's bizarre that bybit would require that.
I guess he could still take legal action if ByBit operates legally in his jurisdiction.

I had somewhat similar problem with mycelium exchange which adverise themselves as non-KYC but required me to provide proof of funds and do the KYC to unfreeze my funds:
https://www.altcoinstalks.com/index.php?topic=328709.0

[Fivestar4everMVP]

So, the funds on exchanges are not always safe. Not your keys, not your coins.

Yes, they're safe anytime , and we all know that. It's okay to keep some funds at exchange for Dcaying purpose or for trading but it's not okay to keep all your crypto assets at an exchange. Your own personal wallet is the way to go, and that's 1000x safer from any exchange in the world.

I guess you meant to say they are not safe anytime, but all the same, you are right with your comment, I agree with you.

As an active crypto person who is always online looking for opportunities, it's not a bad idea to leave some funds on reputable and top exchanges like Binance, bybit (both exchanges have been hacked and they managed to prove that  they can be trusted by making sure no customer funds was lost) as a means of easily taking advantage of opportunities when they show up..

Experienced traders will agree with me that there are sometimes an opportunity show up in the market, and before you try depositing money from your private wallet to the exchange and wait to get the number of required blockchain confirmation before the deposit is credited, the opportunity is far gone..

So, as much as it is better to keep our funds on a wallet we are in full custody of, it's also a great idea to always have some funds on a good exchange as a tool for hunting opportunities as an active trader.

+1 karma

[Stuart]

I totally feel you on trying to figure out how to keep your crypto safe but still easy to trade, I've been down that road myself. A while back, i used to leave all my coins on exchanges since it was so convenient for buying and selling but then I saw what happened with bybit getting hacked and ftx totally crashing. It freaked me out, honestly, because I realized even the big names can get hit with hacks or just go belly up. So now I only keep a little bit on the exchange for quick trades and I've got the rest tucked away in a hardware wallet, it's one of those where i'm the only one with the keys which makes me feel way better. I also set up multi factor authentication to lock it down and I sleep a lot easier knowing my stuff isn't just sitting out there where it could disappear.

Only in FTX case people lost everything. ByBit hack hasnt affected users balances at all. Lets not forget, that those who have lost money in FTX slowly getting them back. Have you though on following - when CEX got hacked or owners try to scam, there are always resources, lawyers that will try to get your money back. If same thing happens to your own wallet, you are on your own to try to catch hacker.

Yes, that is true when it comes to getting back your assets which were kept in exchanges, there are resources that will get back your assets, it might not be 100% complete, but won't be 100% lost.

I had an experience of such years back, having lost my exchange login authenticator and all my holding were there. With the support of the customer service, I could login again. If it were my wallet authenticator that had such issue, maybe there won't be a way out, except safe keeping everything manually.

[Aanuoluwatofunmi]

This would have been another story entirely if the hack had been done to a Bitcoin reserve but in order to avoid future losses, i’ve been curious to know what the safest option to store BTC could be.

Bitcoincore is the best and safest solution, run this software client on Tor and try as much as possible to see that you understand the whole procedures involved, we can also make use of a non custodial means of storage, this will help us to have our keys with us, but we must also never forge to diversify on the means through which we may adopt in saving or keeping these keys in other to have a backup for them in getting hold of our asset anytime.

[Rubel007]

I totally feel you on trying to figure out how to keep your crypto safe but still easy to trade, I've been down that road myself. A while back, i used to leave all my coins on exchanges since it was so convenient for buying and selling but then I saw what happened with bybit getting hacked and ftx totally crashing. It freaked me out, honestly, because I realized even the big names can get hit with hacks or just go belly up. So now I only keep a little bit on the exchange for quick trades and I've got the rest tucked away in a hardware wallet, it's one of those where i'm the only one with the keys which makes me feel way better. I also set up multi factor authentication to lock it down and I sleep a lot easier knowing my stuff isn't just sitting out there where it could disappear.

Only in FTX case people lost everything. ByBit hack hasnt affected users balances at all. Lets not forget, that those who have lost money in FTX slowly getting them back. Have you though on following - when CEX got hacked or owners try to scam, there are always resources, lawyers that will try to get your money back. If same thing happens to your own wallet, you are on your own to try to catch hacker.

Yes, that is true when it comes to getting back your assets which were kept in exchanges, there are resources that will get back your assets, it might not be 100% complete, but won't be 100% lost.

I had an experience of such years back, having lost my exchange login authenticator and all my holding were there. With the support of the customer service, I could login again. If it were my wallet authenticator that had such issue, maybe there won't be a way out, except safe keeping everything manually.

If the amount of Bitcoin is not very large, then if someone holds their Bitcoin in a CEX wallet, then there is no problem. But if the amount of Bitcoin is large and there is a plan to hold it for a long time, then it is better to take maximum security measures. It is not that an investor's money will be stolen by keeping money in CEX wallets, but in the long run, it is recommended to use a non-custodial wallet to avoid any accidents. Although it is relatively easy to deposit Bitcoin in CEX wallets, anyone who has the opportunity to easily deposit and withdraw money should definitely avoid them when considering security issues.

[salad daging]

At least for the long term, never store on the exchange because it is not safe....what if the exchange is hacked and users cannot withdraw their own funds? This will be a problem later on.

A non-custodial wallet is best but you should at least have a hardware wallet to make it even more secure.
But I know some people still believe in keeping large amounts of their assets on exchanges.

You are right, as this can happen as already happened with Kucoin as I remember when the SEC opened some lawsuit against them they delayed the withdrawals, and people were panicking over it, which was natural though but still it can shoot your BP very risky hehe.

Therefore we should save ourselves from the trouble and avoid holding coins on these exchanges and if we see some warnings, then we should move our funds ASAP.

Yeah, that's right even I have kept my finds on CEXs because I have to trade them hehe.

Yeah if you're trading it's not a problem because you're definitely doing routine trading activities, so if you're trading assets here and there it's a bit complicated.

But in the long run it's better to have a non-custodial wallet because we don't know which exchange is going to collapse?

Just learn from the FTX case that took many victims.