Bitcoin holders or users who have money in an exchange should only worry if the exchange decides to make a scam exit and decides to don't allow their users to withdraw their funds, but that doesn't happen in general, because an exchange that decides to close down its services will make an announcement and let their users know that they will be closing and the users should withdraw their funds before a specified date. So it is not that the exchanges you mentioned are going to run away with the funds of their users. Also, the closure of an exchange cannot be because of the market condition, but it can be because of a lack of users, because no matter what the market condition is, there will always be traders, see Binance as an example.

However, this doesn't mean people should keep their funds in exchanges. Wallets are created for a reason, they are created so that people can store their funds in them and have complete access to their funds without the fear of a loss or a closure, but then again, you have to use self custody, don't again use a wallet that is custodial and will have the possibility of shutting down in the future because then it won't be any different than keeping your funds in an exchange.

Hopefully it won't be because they're already leaving the market and there's no way that they'll want to receive more claims and cases from the users who would have problems in withdrawal. And this results to why we always say that getting a hardware wallet is significant and recommended. You're confident and will not think of anything as this that where you're storing it might collapse or announce closure. I guess that the thread has served its purpose as we get more repetitive answers about the whole point of using only a non custodial wallet.

I don't see any reason for Bitcoin holders to worry here. Why would they worry about this? Long-term holders never keep their funds on centralized exchanges, they keep them in decentralized wallets. However, those who choose centralized exchanges for long-term holding, I think they are stupid. You can say that traders can be worried here, but as far as I know, there is an opportunity for users to withdraw money from these exchanges.

Personally, I buy BTC from exchanges but transfer them to decentralized wallets. A few days ago I lost $155 on KuCoin exchange because my account was temporarily suspended.
Anyway, centralized exchanges or third parties are never safe, so never use centralized exchanges to hold Bitcoin, you use decentralized wallets.

Ahhh! They, need to worry. There funds are still stuck on the exchange, they are trying to slow down the process by asking for kyc requirements they have done some years back. This is what you get when you don't be your keys by the way.

I'm still not convinced enough why the sudden exit of the exchange, there are no reason why the exchange should quit working now. I check their volume in the last 2 years and the last weekly volume the exchange trades was in the range it traded in the last 2 years, which means if the exchange decided to quit that day, then it means they have been suffering for a very long time, they were not fit to be an exchange, they were just managing until now and decided to close down in this bear market. This doesn't affect Bitcoin in any way, I don't know why OP is afraid or relating it to Bitcoin.

The reason is obviously competition, these exchanges can no longer compete with the top tier exchanges, like Binance, Bybit, Coinbase and others. Their market share is on the decline, so is their revenue, you'd have to agree with them that the best course of action is simply to wind down operations.

Bitmart also suffered huge losses from hack in 2021, losses amounted to ~ $196m. It is hard to tell if they ever fully recovered from this huge loss, but i don't think they did and that could have played a part in their eventual end.

People that are holding their bitcoin on an exchange are the people that should be worried because the exchange can exit at any time and they will be running away with customer's funds but if you are holding your Bitcoin in your Non custodial wallet then you will not be affected. It has always been the best advice to hold your bitcoin in your personal wallet instead of trusting exchanges, centralized exchanges is just a medium for you trading and has no right to be holding your bitcoin for a  longer term as it should only be for the duration of your trade, If you decide to ignore this then it is your fault if you lose access to your Bitcoin.

In this case, personally, i’ve never left that much there, i transfer it to a non-custodial wallet as soon as it reaches a certain amount, especially right now, when things are chaotic, there’s so much bad news, and the economy is struggling. You need to think critically about how to secure your Bitcoin.


That's how it should be, an exchange is simply a trading platform. Keeping your Bitcoin on an exchange only increases the risk, it’s like entrusting your money to someone else/a third party and hoping it will remain safe forever. In reality, there’s no guarantee that the exchange will return your Bitcoin if things go south and the exchange is forced to shut down. So the best option is still to store it yourself.

An exchange is not a place to store coins. An exchange is a place to buy and sell, although some exchanges, such as Binance, do offer wallet features.
People worry that when an exchange experiences issues—as has happened with some exchanges in the past—it may not function as it should.
There is no recommendation for coin owners to store their coins on an exchange; instead, coins should be stored in a wallet that is not affiliated with the exchange.

It depends on you, the user. If leaving an exchange doesn't cause you any problems or make it difficult to do something related to your Bitcoin, then just leave it because there's no point in continuing to use an exchange. But if you frequently need to exchange your Bitcoin easily, then you still need it.

This is probably just me, just my feeling. But somehow, reading some comments here makes it feel like using an exchange wallet is somehow the wrong thing to do, when I myself am one of those people who still use an exchange wallet to store some of my BTC. It's just more convenient for me to receive BTC directly into my exchange wallet so I can trade it instantly. I use my exchange wallet address to receive my salary (USDC) and payments for the services I provide (BTC and stablecoins).

I am not saying I am against the "not your keys, not your coins" principle. I'm also not all in on using an exchange wallet. I still use a decentralized wallet to keep the BTC that I don't plan to touch in the short term.

I have experience with hacks. Two exchanges where I stored my coins were hacked at different times, but both exchanges are still operating today. They couldn't recover the coins that were stolen by the hackers, but they took responsibility for making the situation right. Their reserves were enough to cover the losses, and they continue to operate normally as if those hacks never happened. In this case, I was probably lucky to have chosen the right exchanges.

I also have experience losing the private key to one of my wallets. It didn't contain many coins, but it was enough to keep me thinking about it.

What I am trying to say is that whether you choose to keep your coins in a non custodial wallet or on a CEX, both always come with trade offs. It's also not something to compare because their main purposes are different, and there's no rule saying you must choose one over the other. Use both, one as a cold wallet and one as a hot wallet, just like many other people do.