A friend who just started using crypto asked me if it's ok to have his Bitcoin and USDT on Binance or other exchanges for a long time. He was worried about safety, government issues, and whether it's better to move his crypto to a personal wallet.
Honestly, I didn't have a clear answer for him, so I thought to ask here.
Do you leave your crypto on exchanges or do you move it immediately?
What risks should people in Nigeria consider when deciding?
Is there any safety to use for exchanges or wallets?
I believe, your advice will not just help him but others here too who may have the same question.
First, you need to understand what an exchange is. An exchange is an online platform where all types of cryptocurrencies can be bought or sold, fiat to cryptocurrency, coin to coin and any crypto to fiat. It is like a local store. You go to the store, pay and purchase the product. Similarly, if you deposit money on an exchange, you can buy any coin of your choice.
If you deposit your money at your local store, the storekeeper has control over that money. Similarly, if you deposit Bitcoin on an exchange, the company has full access to it. So they can control your wallet without your permission.
But the main purpose of using crypto is financial freedom, complete control and privacy of your money. Which is never possible on an exchange. For long-term holding, decentralized wallets should be used.
The seed phrases for controlling the wallet should be kept in a safe place and under your control. Because we believe, Not your keys, not your coins.