Another (same old) reason to avoid centralized exchanges - page 2.

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Quote from: Upgrade00 on November 01, 2021, 11:29:08 AM

...do not store funds there, only pass them through (deposits and withdrawals).

If you are engaged in trading on the stock exchange, then such an option as the constant movement of coins from the exchange to the wallet and vice versa is not a solution to the problem. The only solution to the problem that will reduce the risks is to keep exactly as many coins on the exchange as you need to trade.

CryptopreneurBrainboss

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Quote from: Porfirii on November 01, 2021, 03:58:34 PM

But hodling your coins in a centralised exchange you can get some interest for your coins. Is there any solution to this? I mean, somewhere else you can put your coins and get interest for them (BTC or less than 32 ETH). You can stake other coins like ICON, BAND or ZILLIQA, while keeping your keys, in Atomic Wallet for example and I wonder if there is something similar for Bitcoin.

How much is the interest, ask yourself that question and evaluate if it's worth the risk of losing your coin for them. What if the exchange gets hacked and there's nothing they can do to refund their customers immediately and causes them some loss when they finally do assumptions they do and not exist scam.

When you think about it, by just holding Bitcoin in your private wallet and maybe some of those altcoins, already gives you an interest as your initial investment tends to increase over time providing the value of the coins increase in the market.

Exchanges offers this different packages just to get hold of your Bitcoin that's to tell you how valuable they're. Also you tend to get the feeling of selling during fud if your coins are on exchange therefore to minimize that, you're better off getting them off exchanges.

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Binance lost it a long time ago. I see people complaining about the exchange freezing and having their positions liquidated as a result of not being able to put stop loss orders. A wise trader would avoid Binance and look for budding but reputable exchanges.

Also, Never use an exchange as your wallet. Anything can happen.

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The thing is, exchanges like that make it easier to do transactions on the fly, so that is a reasonable reason why people are holding money on it, but it's interesting how, at the end of the day, no decentralization can work without some amount of centralization. Maybe it has to be that way, but also maybe we can find some way to flip everything back to decentralised.

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But hodling your coins in a centralised exchange you can get some interest for your coins. Is there any solution to this? I mean, somewhere else you can put your coins and get interest for them (BTC or less than 32 ETH). You can stake other coins like ICON, BAND or ZILLIQA, while keeping your keys, in Atomic Wallet for example and I wonder if there is something similar for Bitcoin.

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Quote from: Upgrade00 on November 01, 2021, 11:29:08 AM

...or if you already use a centralized exchange: do not store funds there, only pass them through (deposits and withdrawals).

That's the way those platforms are supposed to be used hence the name "exchange". Unfortunately, too many people who can't bother to spend some time to create safer crypto storage options use them as wallets for their coins. When something bad happens, than it's everyone else's fault, crypto and bitcoin sucks, and the whole movement is a scam.

Quote from: jackg on November 01, 2021, 11:37:19 AM

...a lot of money in an exchange is likely more secure than a lot of money in a Web wallet or even, in some cases, on a desktop one.

Keeping your coins in a web wallet is equally bad as storing them on an exchange if you ask me. An open-source and non-custodial desktop wallet with a proven track record that is installed on a malware-free computer is clearly a better option.

Quote from: mk4 on November 01, 2021, 12:59:41 PM

Binance is simply one of those exchanges that I won't be surprised if they managed to piss off most regulators lol.

That's for sure. I don't think they are happy with the restrictions they were forced to place on their customer's accounts. But they were pushed into a corner and simply have to comply. Now it's a gamble who will be the next exchange to face a similar fate.

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If you absolutely need to use an exchange, like for day trading, probably Binance isn't the best choice even if it's the biggest. Since you're going to submit AML/KYC anyway, probably use the ones that seems to not be continuously pursued by authorities. Binance is simply one of those exchanges that I won't be surprised if they managed to piss off most regulators lol.

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Quote from: jackg on November 01, 2021, 11:37:19 AM

There's a point in storing as much as you're competent to store on your own, a lot of money in an exchange is likely more secure than a lot of money in a Web wallet or even, in some cases, on a desktop one.

Webwallets are generally not a good option to store bitcoins, a desktop wallet is better but still poses a significant risk if the desktop is regularly used.
Also, your account on an exchange is only as secure as you can keep it, if you are not competent to secure your passwords and email, you can still loss your funds.

Quote from: NeuroticFish on November 01, 2021, 11:49:55 AM

If people would go more by this and would keep at exchanges only small funds for short time, they would not freak out for every announcement like this. I wish to see those days...

It seems such a day is becoming less likely; more crypto users are getting comfortable using centralized exchanges which takes away the responsibility of building their funds themselves, at the cost of their privacy.

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Quote from: Upgrade00 on November 01, 2021, 11:29:08 AM

due to "backlog"

I find this funny. I guess that they're extensively logging users' every step if the logs have became too big to handle Cheesy

I guess that the logs filled up some disk space that was shared with other services involved in withdrawals - I don't exclude an instance of bitcoin core either.

Quote from: Upgrade00 on November 01, 2021, 11:29:08 AM

Not your keys, Not your coins!

If people would go more by this and would keep at exchanges only small funds for short time, they would not freak out for every announcement like this. I wish to see those days...

jackg

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You can always distribute exchange holdings if you're wanting to feel more secure also but don't trust yourself with bitcoin/other cryptos yet (especially for newbies).

There's a point in storing as much as you're competent to store on your own, a lot of money in an exchange is likely more secure than a lot of money in a Web wallet or even, in some cases, on a desktop one.

(obviously the best solution is to get a hardware wallet (airgapping or otherwise) and/or making your systems. More secure and yourself less susceptible to attacks - stop downloading random freeware).

Upgrade00

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Earlier today Binance announced on Twitter that they were disabling Bitcoin withdrawals on their platform due to "backlog", this started a roller coaster ride where it was resumed with a clause that there would be a delay, closed again and finally fully opened back up;

To users of centralized exchanges, this is not major news. Exchanges can limit withdrawals, block accounts etc, for whatever reason they deem fit and one would be prevented from using their funds deposited there.
In the spirit of customer satisfaction exchanges try to avoid doing those often, but it's still a major issue, along with how personal information can be misused or stolen.

Not your keys, Not your coins!
Bitcoin was designed so no third party would have any sort of control over your funds and it operates without an intermediary.
The best solution would be to use actual non KYC exchanges which are decentralized, or if you already use a centralized exchange: do not store funds there, only pass them through (deposits and withdrawals).

Topic: Another (same old) reason to avoid centralized exchanges - page 2. (Read 279 times)