Why You Have To Withdraw Your Crypto From Exchanges Right NOW
Cryptocurrency exchanges currently do not maintain enough reserves to back the assets they sell.
They can not cover withdrawals with their available fiat liquidity or cryptocurrency reserves.
The possibility of a financial gap in another major exchange is high.
Exchanges have depleted their fiat pools in banks and replaced them with USDT.
Crypto exchanges have been experiencing a reduction in money flowing into the ecosystem for nearly two years.
We’ve seen time and again exchanges mismanaging funds, and even those advertised as having fundamentals and connections to finance.
FTX was only the tip of the iceberg.
We’ve seen it with Binance, but this is not the only exchange lacking liquidity. We shouldn’t exclude any exchange, but consider all of them vulnerable.
Control Your Keys
Without keys, you will own nothing and be happy.
The cryptocurrencies you think you hold at an exchange do not belong to you.
You place your trust in a website and anonymous employees.
You talk to support-people named Bob and Alice who have access to your private details, and you don’t even know their surnames.
Bitcoin eliminated trust, and other trustless blockchains followed.
The modern Bitcoiners supported custodial LN wallets that brought back the system of trusted third parties, and laser-eyed maxis like Adam Back supported centralized stablecoin Tether and custodians like Celsius.
The new exchanges ignore their position, but they will always be just a ramp from the legacy fiat system to a crypto-based economy.
Binance, Coinbase, Kraken, are not crypto. They are ramps that facilitate the transition.
We have valid grounds to suspect the current model of exchanges with stablecoin Tether ($USDT) and the fractionalization of reserves is unstable and vulnerable.
It is no secret that nobody trusts crypto exchanges or their supposed transparency mechanisms.
Only the blockchain is the single verifiable truth.
We only own cryptocurrencies when we control the private keys.
We can protect a large proportion of our cryptocurrencies using hardware or paper wallets and securely store our private keys.
We can use a hardware wallet as a savings account and mobile (non-custodial) wallets for everyday transactions.
Leave the custodians for institutions and have them take the risk.
Here is a list of cryptocurrency exchanges that were hacked so far:
The legacy financial establishment has been trust-based since the beginning.
Soon, this establishment will be obsolete, since trust is the vulnerability that destroys it.
What we propose since the whitepaper is the elimination of trusted third parties. A decentralized Peer-to-Peer electronic cash system that boosts commerce, promotes financial freedom and creates value for our societies. A system nobody can tamper with or control. An immutable and transparent public ledger.
However, Bitcoin also faces its own demons with the current development team in control since 2015 (Core) stagnating scalability and limiting the money aspect. Other solutions exist, though, with Bitcoin Cash leading the competition and Ripple, Monero, ZCash, Dash, Dogecoin, and more all fighting to compete in a quadrillion-dollar sector (payments).
Conclusion
Centralization is the vulnerability that hinders the growth of the financial sector.
Centralization is detrimental to any cryptocurrency that doesn’t follow decentralized procedures and allows control of even a part of it.
Centralization in developments with a team controlling and dictating changes is equally harmful as mining centralization.
Custodians, exchanges, and stablecoins are diverting from the permissionless features and presenting censorable centralized platforms.
Any of these platforms and their tokens can exit scam or get attacked, and money will be lost.
Withdraw from exchanges and start using cryptocurrencies.
The alternative is losing money to the next Celsius, BlockFi, FTX, and MtGox.
The next crypto collapse is always lurking right around the corner.
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I installed coinbase and binance on my tab... however, I never had a chance to use them. So, I guess... I have nothing to worry about in this matter. :D.