Monday, 13 April 2020

PSA - Reminder: You do not "have" coins on any exchange. Coins on exchanges are not really "yours". Let me give you a good example:

Coins held by you on exchanges are not really coins, but "I-Owe-You" notes.

For example: If I say I give you a Lambo tomorrow, is it the same good as a Lambo standing in your garage right now?

Obviously not, this is only promise of a Lambo (I-Owe-You-A-Lambo), the same as coins you hold on exchanges, which are promises of coins, which will probably be fulfilled [unless something unexpected happens, like hard crash, bankruptcy, hacking or simple thievery by the owners of the exchange].

The reason why Bitcoin(Cash) was created - to free you from the need to hire people(banks) to hold your coins for you, like exchanges do now. Exchanges are the new banks.

submitted by /u/ShadowOfHarbringer
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source https://www.reddit.com/r/btc/comments/g0fcpj/psa_reminder_you_do_not_have_coins_on_any/

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