An anonymous Bitcoin whale moves $151,261,609 in Bitcoin from Coinbase before investors remit their money to Gemini.
In a quest of liquidity, Bitcoin “whales” (investors with $10 million or more in BTC) routinely send Bitcoins between exchanges.
It will have a high price effect if the whales sell all of their Bitcoin on exchanges. On the exchange market, investors are expected to drive down the price of Bitcoin. Whales, on the other hand, can use exchanges to disperse funds and obtain sufficient liquidity. A demand for security is another reason why investors prefer Bitcoin in exchanges.
The best approach to keeping Bitcoin safe is to keep it in a hardware wallet, which is impossible to do with digital assets held on an exchange.
Certain exchanges, such as Coinbase, store investor funds in hardware wallets for them, providing an additional layer of security for your digital assets.
Why Self Custody is Vital to Bitcoin
Possessing your Bitcoin private keys gives you the ability to reap the full benefits of Bitcoin. No authorization is required to store, send, or receive Bitcoin. There are no know-your-customer (KYC) requirements with self-custody, and you may transact Bitcoin anonymously.
If you choose to store your Bitcoin on an exchange, you face the danger of being held prisoner by the exchange or the government. In addition, the exchange may be selling you Bitcoin paper and driving down the price.
Some exchanges can block your Bitcoin transactions, limit the amount you can trade, and even utilize your deposits as collateral to cover their exposures.
My own guideline for sending huge amounts of Bitcoin is to begin with a little quantity. Send the higher amount once you have confirmed that the transaction was completed. Notably, if you send Bitcoin to the incorrect address, there is no method to retrieve it and no customer assistance.
