Quote from: Fiasem20 on July 20, 2024, 12:48:10 PM

Storing Bitcoin/crypto is one of the most important topic in the crypto space.However,most folks believe that CEXs are the best platform to hold Bitcoin for a long term but it's the worst storage method to hold for a long term.Holding Bitcoin in an exchange is like trusting/relying on a third party to protect your digital asset for a long period of time which you never can tell the future of the platform.Before I proceed let's look at the meaning of centralized exchanges.

Centralized exchanges are digital platform that provides the ease for bitcoiners/crypto enthusiasts to sell,buy and trade digital assets.Most CEXs have hosted wallet where they manage/hold the funds of their users.CEXs are owned by some set of individuals or companies,they act as third parties in execution of trades.Centralised exchange was introduced in 2010,and there was a reputable exchange back then that was hacked(MT GOX) and over 850000 BTC were lost.
Non custodial wallets are best in regards to holding for a long term because it's users have ownership and control over their digital assets in essence users of non custody wallets hold their private keys.Hot & cold wallet are example of non custodial wallets.

Reasons why CEXs is not recommended in regards to holding for a long term;
1.Centralized exchanges can be filed for bankruptcy.
2.Centralized exchanges have all it takes to freeze it users coins for a long period of time.
3.Centralized exchanges are always a target to online hack.
4.Not your keys,not your coins.

Conclusion
Centralized exchanges have promoted the adoption of Bitcoin/crypto due to it users friendly/interface and their high trading volume.It is important to note that not all exchanges are reputable in the crypto space it's similar to a statement that says not all that glitter is gold.Currently, Nigeria government and regulators have been implementing VAT tax on CEXs and most CEXs have delisted Naira,so it's also confusing to some folks in terms of choosing a reputable exchange.I know most users will say this is a common topic,it's common and at same time important to those newbies that use the word exchange and wallet interchangeably.

No be lie way you talk but still on still the truth about the matter be say some person go still keep their funds for exchange and that's just the basic truth. You can even take trading and gambling for example, I mean despite the fact say it's never advisable to jump into trade as a newbie but many people still play ignorant to the advice and do and then later regret all their actions.

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