Do not use an exchange for everyday crypto transfers and payments
This is important. Remember it if you don’t want trouble. You don’t even have to break the law to lose your crypto. I’ll give some examples below and explain what you can do better.
CEX — centralized exchange/platform. Basically, it’s any platform where you register with your email, phone number, and upload your ID documents.
DEX — decentralized exchange/platform. Here you usually get a 12-word recovery phrase that you must save and never share with anyone. If you lose it, you won’t be able to access or recover your DEX wallet or exchange account.
Let’s talk about everyday transfers or receiving USDT. Nothing complicated — you just need a wallet to handle these operations.
Many people use exchanges for this.
What problems can happen with exchanges if you transfer crypto often or receive large amounts?
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The exchange may ask you to prove where your crypto came from. You’ll need to show documentation proving the funds are legitimate — like a bank statement, proof of trading profits, selling property, etc. They can make it really difficult for you to withdraw your funds. I’ve experienced it myself. They drained all my energy until I finally proved my money was clean. I had to send sales contracts, proof of buying USDT, and more. Eventually, they unlocked my account. But honestly, about 80% of people from CIS countries wouldn’t be able to prove it.
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If you regularly exchange crypto to fiat, things get riskier. Sometimes exchangers’ wallets are “flagged” because their addresses appear in different transactions. Authorities can send a request to the exchange for info on a flagged wallet. If you’re using Binance, for example, they officially cooperate with Kazakhstan’s authorities. They share your full personal info quickly. In Uzbekistan, Binance just blocks your account, saying their service isn’t available there, but they don’t refund your balance easily. Many people had their funds stuck with no way to resolve it.
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Dirty crypto. Imagine you receive Bitcoin worth $10,000–$100,000. The exchange could say your BTC came from “dirty” sources — stolen coins, illegal activity, etc. Then it becomes a nightmare conversation with bots. Understand that much of Bitcoin today has touched some dirty history. Exchanges keep “clean” BTC and circulate the rest. They might freeze your account if they detect a dirty trace.
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Multiple accounts. Some exchanges ban creating multiple accounts under the same name. Violating this can get your account locked.
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Breaking simple terms of use. Even using a VPN can sometimes be against an exchange’s rules. Not much to explain here.
Bottom line: If an exchange wants to block your crypto, they have plenty of excuses. Worse — if a government investigator gets involved and pressures you for money. Over the last few years, there’s been a real hunt for crypto holders. Some officials are eager to seize your assets.
That’s why you shouldn’t show your wallet address everywhere. It’s easy to check how much crypto you have sitting there.
I’m not saying you can completely hide your traces, but at least…
Set up a normal self-custody wallet like Trust Wallet, SafePal, MetaMask, etc.
They’re easy to use — even easier than exchanges. You can watch 2–3 YouTube tutorials or ask us for help.
At minimum, those wallets don’t store your personal info. If anything happens, you can just delete the wallet and generate a new one.
I’m not telling you to break any laws — just to protect yourself from thieves, scammers, and even corrupt officials.
PS. It’s better to spread your crypto across different wallets:
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Keep only what you trade or plan to use on exchanges.
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Hot wallet — your mobile wallet like Trust Wallet, SafePal, MetaMask, Exodus, for everyday transactions.
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Cold wallet — your hardware wallet, like Trezor, Ledger, or SafePal, for long-term storage.
It’s safer because exchanges can collapse. I personally lost a small amount during the FTX collapse — nobody expected the second biggest exchange to go down, but it did. It’s better to be cautious.
