Topic: Another reason and proof to keep funds in your wallet not in an exchange - page 2. (Read 426 times)

That's a shocking news and we have heard such shocking news many times before but still some people really don't understand the importance of having their own personal wallets instead of relying on those centralized exchanges custodial wallets.

The hackers always try to find a flaw in exchanges and whenever they successfully get one the hack most of the coins from the vulnerable exchanges. Sometimes exchanges just made up a story of such hacks and steal coins of the users themselves. That's why it's always better to store your coins in your own software wallets like Electrum, and make those wallets cold ones by disconnecting them from internet.

I hate to explain this but if you didn't know there's a quote saying "NOT YOUR KEYS NOT YOUR COIN" which already an explanation that tells you when you store a crypto where you don't have the access to the wallet itself but only use an account so you can take action like send/doing transaction which means it is custodial and custodial means someone is keeping it for you instead of doing it yourself. I agree with some post here that your advice is not complete and choosing wallet is not as easy or fast as you may think. There are precautions on choosing wallets and first of it is a wallet that is open source which means the source code of the wallet is available to public unlike closed source which it isn't public or only the creator/team or the provider of the wallet knows it hence the name. It is better to be safe than sorry. Don't wait for bad situations before using non-custodial wallet that is open source if you can't afford to pay for a wallet that is more secured.

Most people think storing their assets on the exchange will be safe. They may not have heard the news of the hack or they may have known about it but kept their assets on the exchange. Well, each person must have their own reasons and we cannot force what we suggest on them.

And even if they have implemented all the security recommended by the exchange, it still will not guarantee that the assets can be protected safely. They must remember that nothing is 100% safe on the internet, so they must know and protect it and be responsible for their assets.

But if they can accept all the risks that could occur, they can still keep their assets there. Maybe they think that if a pump comes to one or more of their coins, they can immediately take action by selling them. But that's up to them.

That is what they always say, basically because they don't want their users to panic, but the truth is that when the process starts, it could take as long as possible without the victims getting their compensation or a refund. CoinEx would definitely struggle to offer any compensation here, even though they posted that what was lost is only a "small amount". I don't take what they say seriously anyway, because anybody can check what their daily trading volume was before this incident, as well as what their 'reserves' held, it is obvious that the amount lost is substantial to CoinEx and what they are saying is bullshit. If you had coins in CoinEx, i'm afraid it is going to be a long and frustrating process, which might not yield anything positive.

There have been so much threads created that kick against the use of Centralized Exchanges, but people seems to ignore all the thread is saying until they fall victim of one.

Trading is good in Centralized Exchanges but leaving our coin in the exchanges is the risk because no one knows when the security will be bridged and no one is certain if they will be refunded if the exchange is hacked.

First, you need to edit your post, so many errors and the link to your source is not in clickable format as did in my quoted post. Again, you added that it didn't happen to "our", the 'our exchange', do you have an exchange or you are making your report in active voice?

There is nothing like the first time, a crime is a crime and that is not supposed to happen in the first place, don't leave your coins on any exchange, it is as simple as that. You should avoid centralized exchange like a plaque, they are not to be hack and if other centralized exchanges continue to operate like this, expect more hacks from the future, it is unavoidable but you can be part of the people who don't want use such kind of exchanges, always remember not your keys not your coins.

Every centralized sites are prone to get hacked, no need to repeating this exchange get hacked, this lending site get hacked, this casino get hacked etc. So many users already advising to use non custodial wallet to hold your coins and never use centralized site, I believe every users already know it.

However some users will argue if leaving coins in exchange isn't bad as long as they're traders, so well they already understand the risk.

Depend on trader or investor typical for holding assets in wallet not in exchange account, for short term trader with scalping in daily day not profitable for holding assets or fund in wallet because need time and paying fees every transaction sending assets. Difference with position as long term holding investment most secure when saving fund in wallet not recommended use CEX exchange for saving funds.
We are facing with many exchange have been scam and not guarantee with refund our assets, although several exchange like MTGox ever confirmed will refund user assets until right now they not refund yet. Better use exchange with good reputation for holding assets but as short term trader move your profit assets to exchange wallet and fund in exchange as capital for trading only not for long term holding.

it will be better to store your crypto in self custody wallet or hardware wallet if the funds are big. I am not very concerned about using CEX to store crypto. because i mostly trade with very small amount so i don't worry about it, and if i tried to store in self custody wallet it will eat my half of the crypto in transaction fees.

It is indeed a bad habit to store funds on an exchange for an extended period. When actively trading, you have more time to move your funds before such hacking incidents occur. However, there are no exceptions if the exchange itself is hacked. Regardless of how secure your account is, it won't matter if the exchange itself falls victim to a hack. This is why choosing reputable and reliable exchanges is crucial.

I also hear the news about the CoinEx now according to rekt.news they got rekt across thirteen chains with whooping 54 million usd from their hot wallet and now CoinEx assures users that the missing coins make up “just a very small portion of CoinEx’s total asset”, and that losses will be covered. Deposits and withdrawals are currently suspended. - https://rekt.news/coinex-rekt/

What crazy mess yes we should keep our LONG TERM HODLLL coin in wallet not in an exchange, but worth the mention is how the hacker can manage all the private key from dozen ton of chain. Something fishy is going on here

By now, most crypto investors should know better the risk associated with non-custodial wallets and how stupid it sounds to hold huge some of money in an exchange wallet, This is the most pathetic practice ever and anyone who indulges in such moves has the right to complain if anything goes wrong on those exchanges, in recent time, there have been a lot of scary news around exchange and other services providers like casino who have been hacked and this raised a lot of concern, and also the awareness to hold your coins in your wallet and not on an exchange.

Same story we have been hearing since cryptocurrency exchange went mainstream, most exchange aren't worthy of been used because they have zero security features and aren't different from those that have been compromised in the past. Most exchanges just copy codes from other exchange and use for their platforms which means if the copied platforms got exploited, there's every tendency that they'll be exploited as well. Keeping coins on exchanges aren't not wise, this isn't going to be the first time an exchange is getting exploited and it won't be the last because hackers are constantly improviny their skills to steal and the exchanges aren't doing things necessary to keep their platforms safe (because there isn't much they can do since they're already using a centralized server).


Both the decentralized exchange aren't recommend to store coins on their platforms. You don't have to store coins on exchanges because most of them are centralized, you don't do that because it isn't safe and exchanges has their own services that they offer which acting as a wallet isn't one of them. Your coins should be store on a wallet that gives you full control. We should be the ones protecting our coins so we can hold ourselves responsible for anything that happens to them and not be in a situation were you lose your coins because of others mistakes. Centralized exchange are always liable to attack because they're perfect target to hackers.

Funds safety is summarized in this phrase "not your keys, not your coins". Never trust a centralized exchange with the safekeeping of your funds as many things could go wrong. The exchange could be hacked, it could go bankrupt or your assets could be freezed as a result of one reason or the other. There have been many cases of these ugly occurrences in the past and sadly people are still making the same costly mistakes. CoinEx hack is not going to be the last, there's always going to be another exchange that will fall prey to hackers, the reputable exchanges are not exempted from the list either. Self custody is the best; get a hardware wallet or a good open source wallet and store your funds.

Hacks of centralized exchanges is no longer a new thing. Anyone who did not know what happened to MtGox would have known what happened to FTX. Anyone who is opportune to be in this forum but still store funds in centralized exchanges deserve whatever happens to those funds.

A lot of experienced guys have done justice to this topic; suggesting different wallets that are safe and easy to use. Those suggestions are not jokes because the pain of loosing one's fund to hack excruciating. 

Exchange words to describe its meaning. An exchange is a platform to transfer your assets with one another with security. It's a middleman that helps you to trade nothing more. Exchange is not for storing your assets. As long as your funds are in exchange you will not be in full control. Exchange can be hacked, stop withdrawals, and do other activities to seize your assets. So using a non-custodial open source wallet is advisable to store your assets that give top-notch protection.

Storing your Bitcoin in a centralized exchange is never a good option because anything that happens to the funds of the exchange will make you lose your money. When you want to store your Bitcoin you can use a noncustodial wallet like Electrum wallet where you will have full responsibility for your Bitcoin and also learn to back up your seed phrase and private key on USB or paper and keep it in a safe place. You can keep a little Bitcoin in a centralized exchange for running your day-to-day life.

If we talk about the loss of coins, because someone was hacked, it cannot only refer to exchanges. Yes, the most frequent and noisy hacks happened on exchanges, some real hacks, some faked by "victims".
However, such things can also happen in personal wallets, so in such guides, I would not be exclusive only to exchanges.

Exactly, and i second that. Of course banks do not get hacked as easily as centralized exchanges, they are much more secured, and not only that, the money you keep in the bank is insured, at least up to a certain amount. Thus even if the bank fails, you wouldn't lose everything you have kept with them, as you'd be paid back some, based on the amount that's insured.

Being your own bank comes with certain responsibilities that quite a lot of people are not ready to take, so instead of them being their own bank, they push that responsibility to centralized exchanges.

Finds it’s a little difficult to understand what you are entirely saying base on the grammar arrangement. Base on what I understood your entire content is just Warner users to be careful with centralized platforms, they should mind the kind of money they keep with them and how long those money are kept on those centralized sites using the hack of coinex to remind us about the danger of keeping funds in an exchange. Well thank you for the reminder, every with the warning which is being spread across the forum and other places regarding the way and manner user can protect their funds from hack, it still appear that most people are too lazy to take those warnings serious, it’s hard for them to just see their self being in full control over their own wealth, they trust third party to safe keep their funds for them more than they can do it them self.

With the amount of hack which we have been reading and hearing about recently, their has always been victims of many kinds, if the hack don’t happen we never we know how much and who actually have their coin stock in an exchange account, is it that those people who do this are not aware of the risk, is is it as a result of them always having an active order? Because if not for a day to day trading and watching of some favorite coins to know when to enter and when not to enter and to save one the fee of withdrawing and depositing all the time when you want to to trade, I don’t see any reason why we should leave our coins in an exchange account. Another hard way have been used to remind users of the danger which exchanges holds.