This newsletter is sponsored by PHEMEX, the world's best crypto exchange for both spot and leverage. Sign up with the link above and get some free Bitcoin. I really encourage you to check them out.IF YOU HAVE ANY ISSUE WITH THE NEWSLETTER OR YOUR SUBSCRIPTION, PLEASE CONTACT: PREMIUMSUPPORT@GETREVUE.COThere are a number of reasons to take your crypto off of an exchange.This advice is largely dependent your personal needs, but regardless of your position size or crypto IQ, there are a number of objective reasons to take control of your private keys. Bitcoin magazine wrote a thorough article on the 6 reasons why you should take your Bitcoin off an exchange. I am going to share their points below, but my own opinion is that this advice doesn’t make sense for everyone. If you have $20 on an exchange, or grandma needs easy access to her crypto, it is probably okay to leave it on an exchange, but that's the exception, not the rule. It is also becoming more popular for exchanges to partner with wallets, making the transition to self-custody simpler than ever before. If your money is still on an exchange, a partnered wallet is probably the simplest first step to consider. Below are the reasons to remove your Bitcoin from an exchange from Bitcoin Magazine.Reason #1 – If your coins are on an exchange, you need permission from the exchange to spend them. In your own custody, you can do whatever you want and pay whomever you want, whenever you want, at the fee you want. Withdrawal limits are decreasing, more verification is needed, recipient information is coming, etc. If you self-custody, all of the roadblocks disappear. Reason #2 – Your coins might not really be there. What you see is a promise that if you ask for your bitcoin, they will give it to you. But if the exchange gets hacked or if the CEO fakes his death and takes the private keys or if the government steps in, all coins could go bye-bye.This is what I call pseudo-Bitcoin, which I covered extensively in a recent blog. If you aren't allowed to withdraw the crypto, it technically isn't in your control and what you see isn't real Bitcoin.Reason #3 – If coins are left on the exchange, they can engage in fractional reserve lending, effectively inflating the supply of bitcoin. If there is a mass withdrawal by the public, exchanges can and have gone bust if they don’t have the coins that were promised. Coins go bye-bye.If you are gaining interest on your crypto, it's probably because your money is being lent out, whether you are aware of it or not. Lent crypto isn't your crypto. I am a fan of platforms that offer yield, but only with a determined percentage of my holdings.Reason #4 – One day governments may outlaw withdrawals to private wallets, leaving your coins stuck and vastly less valuable. The real bitcoin economy would consist of the open peer-to-peer market outside of the exchanges while the coins trapped inside exchanges would be useless.Governments are one of the most realistic threats when leaving crypto on an exchange. It could happen fast and be devastating.Reason #5 – Powerful people who want Bitcoin to fail MAY be naked shorting it on futures markets. If we, The Resistance, buy bitcoin and extract it from the trading pool, we will eventually enforce a decoupling of the price of paper bitcoin vs physical bitcoin.This feels like a stretch, as it would take a lot of buying power to make this shift happen. The decoupling of the market, in general, will just take time.Reason #6 Unless you take coins into your own custody, you will never fully appreciate how Bitcoin works.You can read about Bitcoin, but the best way to learn about Bitcoin is to use it.Here is the full article:https://bitcoinmagazine.com/culture/reasons-withdraw-bitcoin-from-exchangesMy Friday livestreams, at 2 PM EDT, will henceforth be named "Bullish On Bitcoin" and will feature a weekly guest. Today I am excited to host Peter Brandt!Tune in: https://www.youtube.com/watch?v=F9Z61oNwm2sIn This Issue:Taking Coins Off An ExchangeBitcoin Thoughts And AnalysisState Street Is Turning To CryptoPayPal Advances On Crypto OfferingMicroStrategy Plans To Buy More BitcoinBinance Shutting Down Derivatives in EuropeMy Recommended Platforms And Tools
The Wolf Den #297 - Taking Coins Off Exchange
The Wolf Den #297 - Taking Coins Off Exchange
The Wolf Den #297 - Taking Coins Off Exchange
This newsletter is sponsored by PHEMEX, the world's best crypto exchange for both spot and leverage. Sign up with the link above and get some free Bitcoin. I really encourage you to check them out.IF YOU HAVE ANY ISSUE WITH THE NEWSLETTER OR YOUR SUBSCRIPTION, PLEASE CONTACT: PREMIUMSUPPORT@GETREVUE.COThere are a number of reasons to take your crypto off of an exchange.This advice is largely dependent your personal needs, but regardless of your position size or crypto IQ, there are a number of objective reasons to take control of your private keys. Bitcoin magazine wrote a thorough article on the 6 reasons why you should take your Bitcoin off an exchange. I am going to share their points below, but my own opinion is that this advice doesn’t make sense for everyone. If you have $20 on an exchange, or grandma needs easy access to her crypto, it is probably okay to leave it on an exchange, but that's the exception, not the rule. It is also becoming more popular for exchanges to partner with wallets, making the transition to self-custody simpler than ever before. If your money is still on an exchange, a partnered wallet is probably the simplest first step to consider. Below are the reasons to remove your Bitcoin from an exchange from Bitcoin Magazine.Reason #1 – If your coins are on an exchange, you need permission from the exchange to spend them. In your own custody, you can do whatever you want and pay whomever you want, whenever you want, at the fee you want. Withdrawal limits are decreasing, more verification is needed, recipient information is coming, etc. If you self-custody, all of the roadblocks disappear. Reason #2 – Your coins might not really be there. What you see is a promise that if you ask for your bitcoin, they will give it to you. But if the exchange gets hacked or if the CEO fakes his death and takes the private keys or if the government steps in, all coins could go bye-bye.This is what I call pseudo-Bitcoin, which I covered extensively in a recent blog. If you aren't allowed to withdraw the crypto, it technically isn't in your control and what you see isn't real Bitcoin.Reason #3 – If coins are left on the exchange, they can engage in fractional reserve lending, effectively inflating the supply of bitcoin. If there is a mass withdrawal by the public, exchanges can and have gone bust if they don’t have the coins that were promised. Coins go bye-bye.If you are gaining interest on your crypto, it's probably because your money is being lent out, whether you are aware of it or not. Lent crypto isn't your crypto. I am a fan of platforms that offer yield, but only with a determined percentage of my holdings.Reason #4 – One day governments may outlaw withdrawals to private wallets, leaving your coins stuck and vastly less valuable. The real bitcoin economy would consist of the open peer-to-peer market outside of the exchanges while the coins trapped inside exchanges would be useless.Governments are one of the most realistic threats when leaving crypto on an exchange. It could happen fast and be devastating.Reason #5 – Powerful people who want Bitcoin to fail MAY be naked shorting it on futures markets. If we, The Resistance, buy bitcoin and extract it from the trading pool, we will eventually enforce a decoupling of the price of paper bitcoin vs physical bitcoin.This feels like a stretch, as it would take a lot of buying power to make this shift happen. The decoupling of the market, in general, will just take time.Reason #6 Unless you take coins into your own custody, you will never fully appreciate how Bitcoin works.You can read about Bitcoin, but the best way to learn about Bitcoin is to use it.Here is the full article:https://bitcoinmagazine.com/culture/reasons-withdraw-bitcoin-from-exchangesMy Friday livestreams, at 2 PM EDT, will henceforth be named "Bullish On Bitcoin" and will feature a weekly guest. Today I am excited to host Peter Brandt!Tune in: https://www.youtube.com/watch?v=F9Z61oNwm2sIn This Issue:Taking Coins Off An ExchangeBitcoin Thoughts And AnalysisState Street Is Turning To CryptoPayPal Advances On Crypto OfferingMicroStrategy Plans To Buy More BitcoinBinance Shutting Down Derivatives in EuropeMy Recommended Platforms And Tools