I thought after FTX investors would have been wise to know not your key not your coin but its far from it, People continue to fall for CEX drama but at least we will just continue to speak the truth not your key not your coin, those who will listen will listen while the others will later accept it after being victimised

Those people that keep their coins in an exchange are gambling with their coins, and I will say that they are the ones putting themselves into panic, because I don't see any reason why someone who is not a trader will turn deaf ears to the advise of using a noncustodial wallet, despite all the news about the flaws in exchanges, and still continue to keep their coins with third party.

Imagine assuming it wasn't a glitch, but an exit scam or a hack. These people will start blaming Coinbase, instead of blaming themselves for not learning from what happened in the past to FTX. I just hope that other investors who  still keeping their coins on exchanges will learn from this, and also these panicking Coinbase customers will also transfer their coins to a noncustodial wallet after the glitch is fixed. It is 50/50 using an exchange to keep your coins, and don't be a victim, because the risk is higher than what you benefit from the exchange. Anyone with High Blood Pressure might collapse, when he checks his account in Coinbase and sees $0

The learning curve of self-custody is rather steep and probably daunting for many.

Self-custody is a simple thing for me to do now because I have been doing it for so long (many years).
But it was not a simple thing to learn at first. There is definitely a learning curve.

Good thing there is now a spot ETF available that makes the buying and holding process much simpler for those who can't or won't get into the weeds of self-custody.


 

 

People can also easily be following lies. Example of the lie is when Binance former CEO CZ said funds on noncustodial wallet are not also that save that centralized exchanges are safe when he noticed high outflow of money from Binance to noncustodial wallet. Many people started not to send their coins from Binance to noncustodial wallet as the outflow reduced after he said that. Those words alone deceived many people.

What could be the reason? it's because their poor server can't hold high traffics?

Speaking of convenience, both of them are not really different.

When you use centralized exchange, you don't have to login because you've download their apps and login into your account, you will save your email and password in case you're forget.

When you use non custodial wallet, you also don't need to login anymore because you've import your seed phrase, and you've save your seed phrase.

The reason why people choose centralized exchange over non custodial wallet because they can stake their coins to earn interest, they're choose profit over security.

You don’t need to be a tech savvy person to relate to what OP said, if you’re knowledgeable enough to buy any coin from the exchange you’re knowledgeable enough to take them out to your wallet. Leaving coins at exchanges is more of a convenience thing than a knowledge thing to me


We are not distinguishing the use of CEX here, that’s a privacy issue. One can use any exchange they want to get a coin but the warning is never ever leave your coin on an exchange no matter how big or how much liquidity you think they have. Using of DEX is to avoid KYC for privacy oriented people

People are lazy. That's why. They must transfer their coins to a non-custodial or paper wallet for long-term safekeeping and storage.

Reminder: do not keep your money in online accounts
Bitcoin Q&A: Not your keys, not your bitcoins.

Many Bitcoin Spot ETFs chose Coinbase as their Custodian.
https://blockworks.co/bitcoin-etf

Are ETFs better than self custody?

Because of the responsibilities behind? Seriously, these people are used to be like that the same on the idea of how people handle their bank account/s — it's up to the banks now. They probably know what are the disadvantages but they just let it as they see more benefits of doing so in their POV, like insurance, assurance and whatnot like what banks do. Simply put they don't like the idea of "be your own bank".