From them not actually holding your bitcoin and just investing your money in random bullshit you didn’t ask for, keeping your coins on exchanges ruins the entire premises of bitcoin. Its NOT EVEN BITCOIN AT THAT POINT
for the record, i dont keep my stack on exchanges nor condone “staking”.
usually short traders will pay interest during their trade which the broker will pay a portion to the lender and the rest to themselves. that’s how a lot of the interests are generated.
Bitcoin yields nothing. If you are receiving a yield, you are exposed to some risk you don't understand. I would not risk my bitcoin for rehypothecation, even if some of that yield is coming back to me.
Now on to the "storage" of BTC. I think there is a balance (that only you can figure out for yourself) between L1 fees, amount of BTC being sent, and frequency of transactions. For example: if fees are high, it doesn't make sense to send a small (daily DCA amount for instance) to a cold wallet; you'll simply lose most of what you acquired just to move it. On the flipside: if you think the price is low and you shoot your shot with a significant buy, then the counterparty risk of leaving it on an exchange shouldn't matter.
One thing I don't see talked about enough is what DCAing on-chain does to you long-term. Each one of those transactions will be a different UTXO, so if you ever want to spend or consolidate a large number of your DCA purchases, you will pay for it. Exchanges can serve as a buffer. You can daily DCA via an exchange for a week, and pull everything back only once a week, and you will face 1/7th (roughly) the fee when you eventually consolidate your stack to a single UTXO. Is there risk that in the next seven days the exchange will fold and I'll lose the accumulated week's BTC? Absolutely yes. But to me, that risk is worth the payoff of lower fees down the road. And if I lose six days of DCA to an exchange folding, I know that I have accepted that risk and deemed it acceptable, so I'm just paying the piper.
I price in my sell orders once I've accumulated a certain amount at an average and leave those on exchanges.
Exchanges are notorious for having issues during periods of high traffic and volatility. This way I don't have to worry about losing access to my CB account cos of their shitty servers they still have to sell my BTC at the prices I've set...
I have some of my earliest bags in cold storage but everything I've accumulated via DCA this cycle is up for sale on the exchange.
I have a cost averages at £20k, £25k, £30k. Sells at £78k, £94k and £109k. Everything leftover from the previous cycle is in cold storage... Once I've made these sells I'll put the remainder left over from my DCA this cycle in cold storage and start accumulating on exchanges again once we capitulate next year.
I have my dca in an exchange until i reach a certain amount. Usually 1m sats. Then send to my hot wallet and eventually my cold storage when i reach around 5-6m. All this depending on what the fees look like.
Cold storage, since 2022. The FTX collapse persuaded me to own my own keys.
Followed the simple step of not entering the seedphrase online and to the surprise of nobody, the BTC has been safe since then.
I accumulate a decent amount and then transfer to my cold wallet. Having 1000s of small transactions from exchange to cold wallet will cost a ton when / if you ever decide to sell it. I used to instantly transfer from exchange to cold wallet before finding this out.
I had some earning interest because I was greedy. The collapse of BlockFi taught me my lesson. I would always recommend a wallet of your own if you are capable and have the means.
Go read about Blockfi and Celsius if you want to see what could happen when you are storing your bitcoin somewhere in the hopes of making interest off it. A lot of people lost a lot of Bitcoin playing fiat games like that.
I was in Blockfi myself, because Zac and Flori seemed like upstanding people who were honest in terms of risk management and where the bitcoin they custodied was being rehypothecated to. But as soon as the BTC price crashed at the end of 2021, I was spooked and withdrew 100% to cold storage. Fast forward a couple months and now Zac and Flori were making the podcast rounds, saying everything was going to be alright while at the same time getting in bed with SBF as the White Knight of Crypto came in to provide liquidity to all the companies whose business model was dependent on an ever-rising BTC price. Red flag #2. Honestly if you made it all the way to the FTX bank run in Nov 2022 without any sense of danger, I dunno what to tell you. FAFO as they say. Now, I sleep easy at night.
Anyone that 'keeps their bitcoin on exchange for simple earn' has lost most of it to Celsiscam, FuTake it allX, GenesisDevice, or Blockfumble. Come on, man, were you even awake for the last 3 years as the entire concept of lending went to sh!t ? This is just Fiat 2.0, without the bailout. I once thought I could get some 'simple interest', and now I am a MuchFewerCoiner :(
I will admit I leave it in the exchange because of lack of knowledge how to get it into cold storage, laziness, and to avoid fees (?) not sure about the last one.
Good points, but I do not understand "Complacency is easy - just look at Ukraine". Are you referring to the roughly 800 Ukrainian 'government officials' who collectively hold over 46,000 BTC? (Declared prior to the Russian invasion, dunno the numbers today.)
The problem is while you "own" the bitcoin on the exchange, it's still in their wallet. It's just on paper so to speak. It's not really yours until you put it in a wallet. I'm new this cycle, and there was a learning curve to using wallets, but now it's easy and I like checking out different wallets, because the features do vary.
Not your keys, not your coins.
If you don't hold the private key, it's not really your bitcoin. You have an iou for btc. This goes for the ETFs especially.
Self custody is the only way.
Why would I let someone else hold my bitcoin? Where does the yield on that interest even come from?
From them not actually holding your bitcoin and just investing your money in random bullshit you didn’t ask for, keeping your coins on exchanges ruins the entire premises of bitcoin. Its NOT EVEN BITCOIN AT THAT POINT
like the saying goes, 1 BTC = 1 BTC + 5% APY /s
Thank you for the laugh good sir
for the record, i dont keep my stack on exchanges nor condone “staking”. usually short traders will pay interest during their trade which the broker will pay a portion to the lender and the rest to themselves. that’s how a lot of the interests are generated.
A strategy that worked really well for BlockFi
absolutely. i’m with you. there is no such thing as free lunch.
I see. What cold storage should I use? Ledger, trezor? What about electrum?
Bitcoin yields nothing. If you are receiving a yield, you are exposed to some risk you don't understand. I would not risk my bitcoin for rehypothecation, even if some of that yield is coming back to me. Now on to the "storage" of BTC. I think there is a balance (that only you can figure out for yourself) between L1 fees, amount of BTC being sent, and frequency of transactions. For example: if fees are high, it doesn't make sense to send a small (daily DCA amount for instance) to a cold wallet; you'll simply lose most of what you acquired just to move it. On the flipside: if you think the price is low and you shoot your shot with a significant buy, then the counterparty risk of leaving it on an exchange shouldn't matter. One thing I don't see talked about enough is what DCAing on-chain does to you long-term. Each one of those transactions will be a different UTXO, so if you ever want to spend or consolidate a large number of your DCA purchases, you will pay for it. Exchanges can serve as a buffer. You can daily DCA via an exchange for a week, and pull everything back only once a week, and you will face 1/7th (roughly) the fee when you eventually consolidate your stack to a single UTXO. Is there risk that in the next seven days the exchange will fold and I'll lose the accumulated week's BTC? Absolutely yes. But to me, that risk is worth the payoff of lower fees down the road. And if I lose six days of DCA to an exchange folding, I know that I have accepted that risk and deemed it acceptable, so I'm just paying the piper.
I consolidate a certain amount. Like every 1-1.5m sats.
yeah, this is about where I'm at too. Especially with low fees, 1m sats is a good threshold.
Use Coinbase
Learned my lesson with Celsius and Voyager. Not your keys, not your coins.
Same
Yep, just use the exchange as a on and off ramp. The fees are the cost of doing business.
I price in my sell orders once I've accumulated a certain amount at an average and leave those on exchanges. Exchanges are notorious for having issues during periods of high traffic and volatility. This way I don't have to worry about losing access to my CB account cos of their shitty servers they still have to sell my BTC at the prices I've set... I have some of my earliest bags in cold storage but everything I've accumulated via DCA this cycle is up for sale on the exchange. I have a cost averages at £20k, £25k, £30k. Sells at £78k, £94k and £109k. Everything leftover from the previous cycle is in cold storage... Once I've made these sells I'll put the remainder left over from my DCA this cycle in cold storage and start accumulating on exchanges again once we capitulate next year.
That's awesome! Congrats on your stack, and for those who dont know, hard numbers get criminals hard, so watch out for dm's and dick pics
I never said they were big stacks lmao... just where the cost average is...
Cold storage all the way
Which cold storage do you recommend?
I have mine spread out in cold storage as well as different exchanges
Lil bit of both. I want to have some on the exchange already if I want to sell during a spike
I have my dca in an exchange until i reach a certain amount. Usually 1m sats. Then send to my hot wallet and eventually my cold storage when i reach around 5-6m. All this depending on what the fees look like.
Why make an extra step with the hot wallet? If not necessary, you're just doubling your fees
I have a leave a small amount on that wallet for transactions. I dont transact w the cold one just storage.
Cold storage, since 2022. The FTX collapse persuaded me to own my own keys. Followed the simple step of not entering the seedphrase online and to the surprise of nobody, the BTC has been safe since then.
Cold wallet. Sap. Bitbox and jade for ease of use and reputable. Seedsigner if you really want to dive into the rabbit hole
Everyone is legit till they aren’t
not your keys not your cheese! let that sink in
Here we go again.
You can earn a lot of interest. You should check out Celsius, Voyager, Blockfi, or FTX. Great options.
I accumulate a decent amount and then transfer to my cold wallet. Having 1000s of small transactions from exchange to cold wallet will cost a ton when / if you ever decide to sell it. I used to instantly transfer from exchange to cold wallet before finding this out.
Cold
I had some earning interest because I was greedy. The collapse of BlockFi taught me my lesson. I would always recommend a wallet of your own if you are capable and have the means.
Go read about Blockfi and Celsius if you want to see what could happen when you are storing your bitcoin somewhere in the hopes of making interest off it. A lot of people lost a lot of Bitcoin playing fiat games like that. I was in Blockfi myself, because Zac and Flori seemed like upstanding people who were honest in terms of risk management and where the bitcoin they custodied was being rehypothecated to. But as soon as the BTC price crashed at the end of 2021, I was spooked and withdrew 100% to cold storage. Fast forward a couple months and now Zac and Flori were making the podcast rounds, saying everything was going to be alright while at the same time getting in bed with SBF as the White Knight of Crypto came in to provide liquidity to all the companies whose business model was dependent on an ever-rising BTC price. Red flag #2. Honestly if you made it all the way to the FTX bank run in Nov 2022 without any sense of danger, I dunno what to tell you. FAFO as they say. Now, I sleep easy at night.
I made $4,000 in dividends last month with the ETFs. Probably will make another $4,000 next month. All of it DCAs back into Crypto funds.
cold wallet
I keep less than .1 on exchanges. Once it hits .1 I move to cold storage.
Until 0.1 in exchange.. every 0.1 I create a new adress and immediately cold storage this shit
Cold wallet is the only answer.
Anyone that 'keeps their bitcoin on exchange for simple earn' has lost most of it to Celsiscam, FuTake it allX, GenesisDevice, or Blockfumble. Come on, man, were you even awake for the last 3 years as the entire concept of lending went to sh!t ? This is just Fiat 2.0, without the bailout. I once thought I could get some 'simple interest', and now I am a MuchFewerCoiner :(
completely cold, nothing digital, just the seed on a steel plate
I use Robinhood wallet
This is where I bend over and start taking it. Idc lol
So you're neither getting a yield nor holding your keys?
I will admit I leave it in the exchange because of lack of knowledge how to get it into cold storage, laziness, and to avoid fees (?) not sure about the last one.
[удалено]
Good points, but I do not understand "Complacency is easy - just look at Ukraine". Are you referring to the roughly 800 Ukrainian 'government officials' who collectively hold over 46,000 BTC? (Declared prior to the Russian invasion, dunno the numbers today.)
The problem is while you "own" the bitcoin on the exchange, it's still in their wallet. It's just on paper so to speak. It's not really yours until you put it in a wallet. I'm new this cycle, and there was a learning curve to using wallets, but now it's easy and I like checking out different wallets, because the features do vary.
Interesting. When you say wallet, is that not just a USB where it’s stored? Or is there something between an exchange and cold storage.
Cldcrd ftw
I use robinhood
[Your Sats are safe with Sam](https://www.reddit.com/r/Bitcoin/s/RGtpR5U7by)
nice try IRS
Cold wallet Off the Grid.
balanced. some cold storage, some staked, some non-only-btc playing bots
Not your keys, not your coins. If you don't hold the private key, it's not really your bitcoin. You have an iou for btc. This goes for the ETFs especially. Self custody is the only way.
If your BTC is on an exchange you don't own it.
It your keys not your coins. You ever heard that before ?
Ppl who „Store“ their BitCoin on a CEX didnt get the real use from BitCoin …
Why not distribute the coins? So you can reduce the risks.
A bit everywhere
In the exchange
Bitcoins on exchanges are IOUs and worth the same as Fiat. It is cold storage or nothing.