My friend wanted to buy #Bitcoin for the first time
But
He ended up in #Binance
I said, you still don't have any #Bitcoin until you take it out into self-custody
At that point, he got confused...
How would you explain the last part to a newbie?
Discussion
Maybe that it’s like buying a car and leaving the keys at the dealership so they drive away in your car whenever they like
You give a friend which you trust your money to buy some good weed for you.
He call you and tell you he got it and will wait for you to come to take it.
As you are on the way to him to take your weed your friend smoked all alone and wont open you the door.
Now you lost your money, your weed and the trust in your friend.
Better buy the weed KYC free P2P and take it home to you where you have full control over it and enjoy it by yourself.
The same with the bank. You dont own the money until you withdraw them into physical cash.
If you hold bitcoin on exchange you are lending it to the exchange, usually interest free. They usually lend your bitcoin out to traders and earn a rate. The traders gamble with it.
Banks do this with your money too but at least they pass through some of interest earned and their financials are of public record.
So you are lending your bitcoin to binance, interest free, with no proof that they hold your bitcoin. Sound like a good deal?