Six Reasons to Withdraw Your Bitcoin from Exchanges

If you are a person who is used to storing huge amounts of bitcoins on exchanges, here are six reasons why you’d better not do that. 1. If keeping your coins on an exchange, you are not allowed to spend them freely. You have to ask the exchange for permission to use them. Upon withdrawing the funds, you can pay for whatever you want, whenever you want, and at a suitable fee. Depending on the exchange terms, they may ask you to prove the source of income and send some identification documents or just block you because of going beyond the withdrawal limit. By keeping the coins in your possession, you can move any amount at any time and wherever you want. For example, there are no restrictions on playing in Bitcoin casinos or shopping online. 2. You may be misled that your coins are always available. The exchange promises to give them the moment you ask, but it may not be so. There are lots of unpredictable cases like the exchange hacked or the government interference when your coins can just disappear. It is crucial to understand that the bitcoins you can see in your account are just a number on the screen. As long as the exchange has a private key, you don’t have any assets. You have only a password and a login. 3. When left on the exchange, the coins can be used in fractional reserve lending. It is profitable for the exchange, as it inflates the supply of Bitcoin. In the process of mass bitcoins withdrawal, exchanges may not h...