{"id":444640,"date":"2022-05-10T13:00:00","date_gmt":"2022-05-10T10:00:00","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/analyst-claims-that-exchanges-sell-your-bitcoin-crypto-trading-platforms-respond\/"},"modified":"2022-05-10T13:00:00","modified_gmt":"2022-05-10T10:00:00","slug":"analyst-claims-that-exchanges-sell-your-bitcoin-crypto-trading-platforms-respond","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/analyst-claims-that-exchanges-sell-your-bitcoin-crypto-trading-platforms-respond\/","title":{"rendered":"# Analyst claims that exchanges sell your Bitcoin, crypto trading platforms respond"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_85 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a321a0f4347c\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a321a0f4347c\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-1'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/analyst-claims-that-exchanges-sell-your-bitcoin-crypto-trading-platforms-respond\/#%E2%80%9D_Analyst_claims_that_exchanges_sell_your_Bitcoin_crypto_trading_platforms_respond_%E2%80%9C\" >&#8221; Analyst claims that exchanges sell your Bitcoin, crypto trading platforms respond &#8220;<\/a><\/li><\/ul><\/nav><\/div>\n<h1><span class=\"ez-toc-section\" id=\"%E2%80%9D_Analyst_claims_that_exchanges_sell_your_Bitcoin_crypto_trading_platforms_respond_%E2%80%9C\"><\/span>&#8221; Analyst claims that exchanges sell your Bitcoin, crypto trading platforms respond &#8220;<span class=\"ez-toc-section-end\"><\/span><\/h1>\n<p><img decoding=\"async\" src=\"https:\/\/images.cointelegraph.com\/images\/840_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjItMDUvN2VjYjM3MzYtZmMxNy00ZTg4LWIwODUtMDQ1NGU4OWEyM2E3LmpwZw==.jpg\" \/><\/p>\n<div class=\"post-content\" data-v-2a0745c6>Security breaches and hacks often highlight the risks of storing Bitcoin (BTC) on centralized exchanges. One analyst even claims that keeping your BTC on exchanges is also a factor for price dips.<\/p>\n<p>Rufas Kamau, research and markets analyst at Scope Markets Kenya, explained his thoughts on how keeping BTC on an exchange lowers coin price. Kamau believes that buying BTC on exchanges only amounts to buying an &#8220;I Owe You&#8221; (IOU) which he describes as &#8220;paper Bitcoin.&#8221; <\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">If you buy Bitcoin at the exchange, you are buying paper Bitcoin, an IOU from your exchange that&#8217;s settled the moment you decide to transfer your Bitcoin outside the exchange. <\/p>\n<p>That explains the high withdrawal fees.<\/p>\n<p>2\/n<\/p>\n<p>\u2014 Rufas Kamau \u26a1 (@RufasKe) <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/RufasKe\/status\/1523223856030404608?ref_src=twsrc%5Etfw\">May 8, 2022<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><br \/>\nThe analyst also proceeds to point out that exchanges create many ways to discourage withdrawing BTC such as high withdrawal fees. On the other hand, exchanges encourage keeping BTC within the exchanges by providing staking services.\u00a0<\/p>\n<p>According to Kamau, this is done because the exchanges are able to sell Bitcoin that is kept within the exchanges to other buyers, while the owner of the Bitcoin IOU stays h<a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">app<\/a>y earning an annual percentage yield on their BTC. <\/p>\n<p>Because of this process, Kamau claims that investors who buy BTC and keep it within exchanges suffer a deficit as the process enables exchanges to \u201cprint\u201d Bitcoin and as the supply goes up, the price goes down. He also urged users to keep their holdings off the exchanges is the &#8220;logical thing to do if you want to change the world with Bitcoin.&#8221;<\/p>\n<p>While many liked and retweeted Kamau\u2019s thread on <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/social-mediaa\/\" data-internallinksmanager029f6b8e52c=\"1\" title=\"Social Media\" target=\"_blank\" rel=\"noopener\">Twitter<\/a>, not everyone agreed with his remarks. Twitter user Koning_Marc <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/Koning_Marc\/status\/1523553601645277185\">responded<\/a> to Kamau saying that his thread is &#8220;wild speculation at best.&#8221; Additionally, Twitter user Felipe Encinas also replied that if this was the case, exchanges are able to short BTC without having it. Encinas said that this \u201ccan\u2019t happen.\u201d\u00a0<\/p>\n<p><strong><em>Related: <\/em><\/strong><strong><em>Understanding staking pools: The pros and cons of staking cryptocurrency<\/em><\/strong><\/p>\n<p>Crypto exchanges did not deny that this may be happening with some exchanges. However, LBank Chairman Eric He told Cointelegraph that those exchanges that do this practice will be taught a lesson. He explained that:\u00a0<\/p>\n<blockquote><p>\u201cThe market will teach exchanges that sell users&#8217; Bitcoin a lesson because they will not be able to buy back the Bitcoin they sold. Exchanges like this will surely fail.&#8221;<\/p><\/blockquote>\n<p>He further explained that digital asset exchanges that are thriving and expanding at the moment are \u201cfirm crypto believers.\u201d They are those that believe that BTC can hit the $100,000 mark and therefore have been buying BTC instead of doing shady things like selling other people&#8217;s Bitcoin. <\/p>\n<p>Binance weighed in on the issue. In a statement, a Binance spokesperson told Cointelegraph that exchanges are not authorized to move their users\u2019 funds without consent. Within their company, they said that they do not take positions and that &#8220;users&#8217; crypto assets are safely stored and custodied in offline, cold storage facilities that are maintained within the exchange.\u201d<\/p>\n<p><template data-name=\"subscription_form\" data-type=\"markets_outlook\"><\/template><\/div>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong>\n<\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/general\/\" target=\"_blank\" rel=\"noopener\">General category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/cointelegraph.com\/news\/analyst-claims-that-exchanges-sell-your-bitcoin-crypto-trading-platforms-respond\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8221; Analyst claims that exchanges sell your Bitcoin, crypto trading platforms respond &#8220; Security breaches and hacks often highlight the risks of storing Bitcoin (BTC) on centralized exchanges. One analyst even claims that keeping your BTC on exchanges is also a factor for price dips. Rufas Kamau, research and markets analyst at Scope Markets Kenya,&#8230;<\/p>\n","protected":false},"author":1,"featured_media":444641,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/images.cointelegraph.com\/images\/1200_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjItMDUvN2VjYjM3MzYtZmMxNy00ZTg4LWIwODUtMDQ1NGU4OWEyM2E3LmpwZw==.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[74862,75917,117,70610],"class_list":["post-444640","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-bitcoin","tag-exchanges","tag-business","tag-finance"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/444640","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=444640"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/444640\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/444641"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=444640"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=444640"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=444640"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}