Replying to Avatar Dr. Bitcoin, MD

The point of the vault is to not trust them.

Ever wonder why all exchanges for anything don’t handle well under pressure? It took me a while to figure this out.

Doesn’t matter if it’s GME or bitcoin…

Exchanges make everything seem like it’s happening in real time. But it’s not. It takes time to settle a trade. During that time the exchange takes on risk, because the UI you see makes it look like the transaction already happened. If exchange sees many buy (or sell) orders, that risk can only grow so big before they have to halt trading (to one side; risk decreases if trading starts going the other way).
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unit 1y ago

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Dr. Bitcoin, MD 1y ago

Thx for the heads up…I always keep a little on exchange until fees make sense compared to value. But now is time to zero it out.

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Dr. Bitcoin, MD 1y ago

Might explain why swanbitcoin changed custodians but did not automatically move funds to new custodian like they did a few years ago before their former custodian collapsed.

Does this imply their former custodian can’t make good on all customer funds?

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BitLo 1y ago

River is about the only exchange I trust these days.