Quote from: Wind_FURY on Today at 09:11:54 AM

Quote from: JayJuanGee on Today at 03:51:31 AM

Quote from: reagansimms on Today at 03:38:14 AM

Quote from: JayJuanGee on July 11, 2024, 11:51:26 PM

Quote from: SOKO-DEKE on July 11, 2024, 09:24:11 PM

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Sure. I agree that there are risks with exchanges, yet I still was making the point that it is probably better for a newbie investor to get started investing in bitcoin rather than worrying about self-custody, even if there we all know that there are benefits (and advantages) to self-custody, I doubt it is helpful to not invest into bitcoin merely for some prerequisite that self-custody needs to be learned prior to investing into bitcoin. In other words, I am suggesting to get started and figure out self-custody later.

I hope newbie investors read this post as a reference in increasing knowledge in investing in Crypto assets and also how to store assets that are truly safe. Storing assets on the Exchange is certainly very risky, but if you store assets on the Exchange in small amounts to avoid the large fee burden that must be borne and make it easier to disburse funds when needed, this can be done especially for investors who use the DCA strategy.
Newbie investors need to increase security to protect the assets they own and need to avoid storing long-term assets on exchanges, because this action is not recommended. They must always be consistent in developing their knowledge and love every process they go through, this method will take them further and last longer by enjoying maximum results than investors who only focus on the results.

I hate the idea of a large number of coins being held on exchanges and through third parties, yet we need to attempt to be practical when it comes to newbie investors, and some of them are ONLY buying $10-$100 at a time and maybe that could be weekly or monthly, and so surely in the last year and a half, I have been a pretty BIG advocate for trying to lessen the likelihood that newbies are going to end up with a whole bunch of unspendable transactions during periods of time merely because they end up having a bunch of small UTXOs, which ended up defeating part of the reason to get into bitcoin in terms of being able to store assets that go up in value, but if later down the road your asset becomes uneconomical or fees greatly dig into any transaction that you might send at any given time, then you may well have had not gotten some of the value out of your having had gotten into bitcoin..... so there is another reason not to rush into sending a bunch of small UTXOs to yourself, and maybe learning enough about bitcoin, even while getting started investing into it right away, to manage your UTXOs, and sure maybe you might have some UTXOs that are relatively small and under $100, but maybe you will come to a reasonable conclusion that you ONLY purposefully send transactions to yourself when the reach a certain value, such as greater than $500. Or maybe if you are transacting with others, you might have some transactions on lighting network, especially if under $100.. and yeah fees have come back down to reasonable rates in recent times, but we still should try to know about UTXO management, even though that might not be very much a beginner topic, yet a beginner should still try to get involved in bitcoin sooner rather than later, even though UTXO management could well end up affecting the value of his investment, especially if he is frequently buying small amounts of BTC and he ends up transferring those small amounts to private wallets and then ending up with a bunch of small UTXOs later down the road when transaction fees might end up being higher than they are now. and maybe even certain size UTXOs become unspendable or uneconomical to spend on the main chain (absent some tools that might help to fix these matters in the future, perhaps? perhaps? or maybe poor people continue to get screwed? what else is new?).

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Good, practical advice. But newbies should immediately start "practicing" self-custody with a small amount, and actually get themselves used to sending/using their Bitcoin with small transactions. - Get them to know with what's being shilled to them. Hahaha. Cool

Although, users could also continuously buy the DIP/DCA, then send their coins immediately to their wallets, and consolidate those outputs regularly especially if fees are low. The fees paid will absolutely be less than losing all of your coins stored in a centralized exchange.

¯\_(ツ)_/¯

I think using a noncustodial wallet in the beginning to keep your small UTXO depends on the amount that you are buying always. The reason why I said this is because for someone that is buying $50 bitcoin and above every week or month can transfer after buying to his noncustodial wallet regularly because the transaction fee will not be affect what he will have as his balance that much and when fee are cheap he can consolidate all his transactions to one output.

However, I just thought of it that it will not be the best practice and will not be important because when transaction fees are extremely high exchange will charge high for the transaction fee of $50 and above which will be very discouraging and will kill purpose of trying to always keep your funds in a self custody wallet. It means that such person will have no option than to still leave his bitcoin in an exchange for it to accumulate up to $500 and above before sending it to an exchange.

It is only if the investor is being paid in bitcoin and he gave his employer his self custody bitcoin wallet address that when the transaction that he will always think of consolidating his transactions with small UTXO when the fee is low. So I agree with everything that JJG said about newbies leaving their coins in exchange when buying with DCA regularly to accumulate it to a bigger amount before sending to self custody wallet to avoid damaging the value of their bitcoin investment profit in future when fees are damn high.

Most newbies don't even know the difference with a self custody wallet and an exchange, in the beginning they do feel that exchanges are wallets and they are cool keeping their coins there but as time goes on when they have begin to increase their bitcoin with regular DCA weekly, they will want to learn on how to keep their coins more safer which will make them know about self custody wallet. When I was a noob, I didn't know this too.