Topic: are crypto owners naturally paranoid? - page 4. (Read 980 times)

Hmm you make a good point, but I think it also depends when you got started pre-2015 you had to do your own thing really, it was only after 2017 did we see measures taken in my opinion for exchanges to consider the individuals and the security of their assets. That might have something to do with regulation coming about.

I still do not trust the majority of exchanges, not just because of data, but also because of fees. Utilising my own wallet gives me a little more control.   

I am more paranoid when crypto is kept on exchanges. the risk of storing crypto on an exchange is higher than in a cold wallet. don't trust the exchange too much, they can freely steal your crypto and also risk being attacked by hackers.

A common line that we usually heard.
Bitcoin or crypto has value and is considered valuable stuff to us, I don't blame people if they are being paranoid about keeping their private keys.
So it is not the best practice to store bitcoin on a exchange which you don't have your own keys.

Because we have heard different cases of bitcoin lost every month or weeks, though we had that news just don't being paranoid because there is maybe a chance that your bitcoin getting lost and the password maybe you forget.

But I'd rather advise not to trust this huge amount in the 3rd party. if we are aware of the hacking issues that have been rampant these days, it was a safety precaution not to use online wallets in keeping huge amounts but rather to have a hardware wallet for safety assurance.

"Not your Keys, Not you Bitcoin" is the thing we have to consider. And we have to keep in mind that there we become careless the more it attracts other people to take advantage of us. If we don't have the reason for keeping it on the exchanges aside from holding (not staking) that seems useless.

Assuming you keep all your crypto is the most reputable exchanges... like coinbase or gemini and make sure your 2 factor authorization is not SMS and is google authenicator or authy, are there cases of your account getting hacked?


Now even if your phone was stolen or lost, as long as your iphone is locked with a passcode, then aren't your coins still going to be safe on coinbase or gemini though?  Thus if someone had access to your phone and its not locked and they see your google authenticator and authy, as long as they don't know what your coinbase/gemini username/password is... then its fine?  I know when i click on google authenticator on my phone, you see codes for coinbase/binance etc.


But the issue is if you lose your two factor authorization, how do you contact coinbase/gemini to fix the issue and get back your account?  Would having your passport and id documents be fine?  Or would you need your phone number tied to the account even though you use google authenticator or authy on it?

I think cold wallet is definitely safer if you take percussion and store your seed in two different physical places that you know for sure are safe. I dont think Binance or any other exchange guaranties you your money back if they get hacked. If you do decide to trust exchanges more, then its better to spread your coins trough few exchanges with best reputation.

Of course most bitcoin holder having tough time, as price keep going up, they are in two mind, sale it or hold it. I know personally lots of people who hold bitcoin Sold while it hit 50k or 60k. Now you see most holders are institution or big company, who won most of the bitcoin. When I had bitcoin, I had so many sleepless nights.

I totally disagree. From my point of view, self-custody of your own keys is not about being paranoid, it's rather about being a rational, self-sufficient, self-sovereign, financially responsible, independent, disciplined person. The other point is that exchanges, be they centralized or decentralized, aren't meant to be used as vaults or wallets, they are designed for making exchanges between individuals. Once an exchange is finished, there is no point (assume they are not active traders) for both parties to keep their funds on a platform any further. Okay, suppose they consider a particular exchange platform safer than, say, cold storage. Will it really be safer and more convenient? I don't think so. In the case you retain full control over your keys, you can always mitigate the risk of losing your keys by taking some precautions. For example, you can make multiple encrypted backups of your seed and store them in multiple media, locations, jurisdictions, or even planets. If one of your copies is lost or destroyed, you won't lose access to your funds. In the case you give up control over keys and hand your keys to an exchange, you become fully dependent on their decisions, which is both dangerous and antithetical to the nature of cryptocurrencies. In this case, there is no way you can mitigate the risk of losing keys because you don't have them in the first place.

Very risky to trust exchanges for holding your coins for a long time, how can you be so sure that they can replace it immediately incase another hacked happened? This two exchanges already hacked before the most recent is from Kucoin, online exchanges are very vulnerable to hacking since they are holding huge amount of money, even if they are mostly updated from security features, if an inside job happened all you hard earned crypto will be lost and possible can't recover anymore and you cant do anything about it. 

While they are less likely to lose your funds, they are more likely to be hacked. You gotta run the risk;reward simulation for yourself to see which is worth it. I think most who got into crypto, generally disliked the banks anyways. So it was a natural progression for us to hold our money. But who knows, that could change one day and in 10-15 years from now we could have crypto banks. Oh how that would be so backwards and would suck.

OP, not your keys, not your bitcoin. The warning should not only be addressed to those who have large amount of bitcoin but to anyone who is concerned about the safety of the bitcoin they own regardless of the amount. If you are not a trader then you should never entrust your bitcoin to a third party (any exchange) as you never have full control over the bitcoin you deposit on the exchange. The potential for hacking will always be there for any exchange regardless of how secure their system is, you should start checking which exchange have been hacked in the past.

If you are buying bitcoin for long term investment purposes then get a secure wallet for them where you have a private key that gives you full access to your bitcoin stored on the blockchain. You should be fully aware of how valuable this asset is to hackers, so take precautions to keep it safe.

I have been using this wallet for a long time and have never had any complaints about it. Probably your losses were not the fault of the developers, but due to your inattention and maybe inexperience. I trust more the storage of my assets in the wallet than on the most, as it may seem, a trusted and safe exchange. As you yourself write that, not your keys, not your money, it only says that all responsibility should completely fall on the owner.

Whether you are using a cold wallet or an exchange, risks is necessary so we all should get ready for any funny outcome. If you lose the recovery phase of your wallet...crypto assets all gone, but when it comes to exchange, you can recover your account back if you eventually lose your password.
If an exchange is hacked, there is good chances that your funds are gone.

very true as you said especially for binance now I think it is quite safe when we receive unwanted things because it reflects on a case that happened some time ago where the wallet was hacked but can still be tracked with binance and can be returned safely .
On the other hand, storing assets in several wallets can actually reduce the risk of loss and minimize unwanted things.

Why would anyone panic on hearing or seeing fud enough to throw away access to their private wallets? I don't really see why though. Whenever one creates a wallet, there's usually a note to safeguard those access methods. This goes to show how important these things are. It's also what pointing out that crypto isn't really for the weak. You have to be able to take on risks and also not come for shitcoin and memecoin pumps otherwise you will be disappointed.

Why you disagree but it's like that you're agreeing? Well, anyway having your assets stored into a hardware wallet is one of the safest measure that we can do to protect our crypto assets. The thought of being overthinking is because when there are news about hacks, people tend to think that it can also happen to them in an instant if they're not using a hardware wallet. But be someone who's aware of security measures and you're not the type that just downloads malicious application for which could contain the problem.

Those who don't have enough knowledge about bitcoin tend to be paranoid about uncertainty regarding the hacking attempts.
Another thing to note is that these people also don't always have well protected computers or are overly cautious which is good but not doing research or making mistakes that are already made in past is bad.

Never heard of that exchange, but reading that from your experience scares me to even deal with any exchange.
I never held my crypto coins anyway in any exchange, maybe I had some in a custodial wallet, but mostly they are off for purchasing some goods that I need to buy and others are already held in my Electrum wallet. I have not bought hardware wallets yet, since I am not that big of a holder right now.

I should just make you paranoid your bitcoin and give you to exchange that anything done for you, there is no better way than to rely on ,, so of course just trust ourselves and keep safe with our bitcoins now make it secured  all so as not to experience a mistake and you will be scammed and that is the beginning of our paranoid, it is only natural that we feel that way, but will you experience that?  so means just be careful.

It seems you don't have much holding, the lower the holdings, the less important the security. I have been holding a few bitcoins in my old wallet for years, I wouldn't be foolish enough to keep such a valuable asset on the exchange.

You may have heard the name of Bilaxy Exchange, I had some usdt on this exchange, now I can't withdraw it, they have turned off the withdrawal option. So how can you rely on the exchange?