Reason number 8291 why you should take your coins off exchanges: "Paper" crypto theoretically suppresses the price.

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by COINS NEWS 14 Views

So with all the FTX drama going on lately and exchanges not actually having full reserves and whatnot, it just made me realize yet another reason why everyone should be custodying their own coins and ALWAYS taking them off exchanges when they buy.

Basically, if an exchange or custody service is pulling some fuckery, you could give them your money thinking you're buying crypto, when in reality you're just buying an "I owe you" from them. On the back end, they may not even be purchasing the crypto you're paying them for, but just keeping tabs on what you have so that when you withdraw they may be able to give it to you. Obviously if the exchange is not actually purchasing the crypto, the price won't go up as people buy like it should.

This is why if you plan on hodling for any period of time you should ALWAYS take your coins off the exchange because they will be forced to buy the crypto you requested if they haven't done so yet.

Self custody is not only safer, but more bullish for crypto. As always not your keys, not your coins, but also not your coins, not your gains. I hope this helps anyone who is still "hodling" with coins on exchanges. Always take them off!

submitted by /u/WeeniePops
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