Exchanges sell BTC

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, 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 “I Owe You” (IOU) which he describes as “paper Bitcoin.” If you buy Bitcoin at the exchange, you are buying paper Bitcoin, an IOU from your exchange that’s settled the moment you decide to transfer your Bitcoin outside the exchange. That explains the high withdrawal fees. 2/n — Rufas Kamau ⚡ (@RufasKe) May 8, 2022 The analyst also proceeds to point out...