Quote from: CageMabok on Today at 03:47:36 PM

Quote from: Sonia_123 on May 23, 2025, 11:36:02 PM

It is not wise to keep your Bitcoin in an exchange, because it involves a third party, and if we can remember Bitcoin was not created to have a third party system, therefore it is risky keeping your coins in an exchange, and even if it's necessary it's should be a very small quantity that if denied access will not affect you.
It is better to keep your Bitcoin in your private wallet than in an exchange, where you can have access and control of it whenever you want it.

What you said is not wrong, but it will be a bit inconvenient for people who buy Bitcoins in small amounts through certain exchanges. Because every time the purchased Bitcoin is moved into a personal wallet, it will definitely require a small fee which if added up repeatedly will also be large. However, for those who can afford to buy in slightly larger amounts, I don't think it will be burdensome enough to always move it into a personal wallet every time they buy it from a certain exchange.

I also do not recommend storing any assets on an exchange to investors, but it may not be suitable for traders because they are more active on the exchange. But the best advice for everyone without exception is to keep it in a personal wallet and this does not only apply to Bitcoin, but also to other assets if the amount is large enough.

Sure you have the movement from the exchange to the private wallet, and then once each of the UTXOs is in the private wallet, there is a matter of dealing with such UTXOs.. In the case of Bitcoin.com97, he was transacting with $10 each time. Do you see the issue of having UTXOs that are $10 each?

Do you know how fees work? Anyone?

If you have 50 UTXOs that are $10 each, then you have $500, right? What if the transaction fees are $10? then how much do you have? You have zero, since each of the UTXOs of $10 each is going to cost $10... and you ain't got shit. At least if you have one UTXO with $500 then you would still have $490 after spending the transaction during times in which the fees might get up to $10.

Many guys seem to not understand the problem with multiple small UTXOs, even though they are proclaiming the purported evils of keeping coins on exchanges.

Don't get me wrong, I am not much of a fan of third-party custody, yet I am a fan of both practicality and attempting to understand what you are dealing with in terms of the tradeoffs.

So go ahead CageMabok. Tell us.

(Repeated message, version 4) So if Bitcoin.com97 was saying that every week he was going to be buying $10 worth of bitcoin, then how frequently are you suggesting that he withdraws his bitcoin from the exchange? Every week? month? quarter? twice a year? yearly? or something else?

If Bitcoin.com97 sticks to $10 per week, then monthly withdrawals would be $40 to $50 each time. Quarterly would be around $130. Twice a year would be $260. Yearly would be $520. What levels of withdrawal are you recommending CageMabok?