Post
Topic
Board Beginners & Help
Re: Bitcoin withdrawal suspension saga: why self custody is the best
by
puloweh555
on 06/09/2025, 17:39:25 UTC
Most of us who used KuCoin and other exchanges to recieve payment need to take note that there are many risks involved because of some exchanges policy and it is best to use wallet and then probably move your bitcoin out from the wallet to exchange to sell. This is usually the best practice when Receiving bitcoin.
I want to think that people who still store their Bitcoins in a centralized exchange and continue to do their transactions or just save it there either one, do not know the inherent dangers or two know about it from the stories of others and are living in a fantasy they can't lose their Bitcoins to exchange just like the others. Or maybe they are trying to be smart like wanting to save some money on the transactions fees involved in sending Bitcoins from their wallet to their exchange app whenever they have to do a transaction.

If the sole reason for this is to save on transactions this is a flawed decision. It means they prioritize savings over security even though there have been numerous cases where exchanges can suspend transactions, and some have even gone bankrupt. I think this is a reckless choice, considering that the cost of sending transactions from a wallet to an exchange is not that high compared to security.

It's fortunate if the suspension is only for a small amount. What if a large amount of assets on an exchange is suspended? This is truly painful. So, from incidents like this, we can learn that asset security is more important than prioritizing saving transaction costs.