are crypto owners naturally paranoid? - page 5.

CryptoCraze11

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Quote from: krusepig on November 12, 2021, 07:20:34 AM

It seems to me that it would be safer (and more convenient) to keep your crypto on an exchange (coinbase, blockfi etc) than cold wallet. Wouldn't the odds be greater that you mess up your cold storage than a large exchange being hacked or whatever (even if they are hacked, that wouldn't necessarily mean you would lose any coins, whereas if you are hacked that's a different story). I ordered a ledger nano X but it seems that the exchanges are still the way to go based on probabilities. What are your thoughts?

I too was great fan of wallets like Electrum until I lost my coins due to some hacking and worst part was I can see my coins going but I cant do anything to stop them. There is no way I can recover them. Exchanges like binance are safe in a sense that they provide features like 2 way authentication that keep your assets safe. Nonetheless, if you can take little bit care of your wallet (be it cold or any other) then go for it. Since you have the keys, you own the coins.

Taskford

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Quote from: nelson4lov on November 14, 2021, 02:05:48 AM

Quote from: krusepig on November 12, 2021, 07:20:34 AM

It seems to me that it would be safer (and more convenient) to keep your crypto on an exchange (coinbase, blockfi etc) than cold wallet. Wouldn't the odds be greater that you mess up your cold storage than a large exchange being hacked or whatever (even if they are hacked, that wouldn't necessarily mean you would lose any coins, whereas if you are hacked that's a different story). I ordered a ledger nano X but it seems that the exchanges are still the way to go based on probabilities. What are your thoughts?

In my opinion, it depends. Not everyone is paranoid enough to move their assets off an exchange to a private wallet only to misplace the keys. I've said it a couple of times to people that recently joined crypto in my location ~ Since cryptois designed to put the power and full control of our finances, we're supposed to take the safety and security of our assets very seriously because once crypto is lost via a private wallet (misplaced priv keys, mnemonic phrases, etc), it is near impossible to get back.

Not everyone is paranoid but there are certain occassions that experience trader got a fud news which can make the market collapsed and although this feelings might not affect the as a whole but for sure.

Also its really good to have safety nets towards this.

But also experience to know these things will result us a positive output since whatever market moves we will not get panic or do some negative decisions.

Rufsilf

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Quote from: lovesmayfamilis on November 12, 2021, 08:25:03 AM

You will become paranoid if you trust your bitcoins to an exchange. Just try it, but it doesn't have to be a small amount. Above there was already a very competent answer, are you ready to trust your money to someone if there are good ways to store it?
The only thing you need is knowledge of storing your passwords. There is a good proverb: "if you want to do well, do it yourself." There is nothing better than to rely on and always trust only yourself.

Yes, exactly! Why do you trust others to hold your funds when you yourself can do exactly the same thing or more safer and secured. It's okay to let those coins rest on an exchange platform but make sure you're ready to lose it or better yet no more than $2,000. Also, keep your passwords, seed phrases or recovery phrases and keys on hardcopy and not on softcopy to prevent from any other malicious intent. It's more safer when you yourself is the one who knows what is it and where is it. Being paranoid is quite okay because that's when you find answers to your questions on where to keep it safe.

KaliLinux

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Quote from: krusepig on November 12, 2021, 07:20:34 AM

It seems to me that it would be safer (and more convenient) to keep your crypto on an exchange (coinbase, blockfi etc) than cold wallet. Wouldn't the odds be greater that you mess up your cold storage than a large exchange being hacked or whatever (even if they are hacked, that wouldn't necessarily mean you would lose any coins, whereas if you are hacked that's a different story). I ordered a ledger nano X but it seems that the exchanges are still the way to go based on probabilities. What are your thoughts?

I don't think you really understand what having to Hold lots of Bitcoin means. We are not talking about owning a few satoshis in an exchange, but a major amount of Bitcoins. From this chart, you would realize that more Bitcoins are held outside the exchange. the white line is the price of BTC and the Blue line is the amount of BTC held in exchange wallets and it continues to drop meaning more people are storing their Bitcoin in other storage outside the exchange because they understand the risk with the exchange and for those that do this, they should understand the importance of keeping their private keys safe.

Source:
Bitcoin Exchange Flows

nelson4lov

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Quote from: krusepig on November 12, 2021, 07:20:34 AM

It seems to me that it would be safer (and more convenient) to keep your crypto on an exchange (coinbase, blockfi etc) than cold wallet. Wouldn't the odds be greater that you mess up your cold storage than a large exchange being hacked or whatever (even if they are hacked, that wouldn't necessarily mean you would lose any coins, whereas if you are hacked that's a different story). I ordered a ledger nano X but it seems that the exchanges are still the way to go based on probabilities. What are your thoughts?

In my opinion, it depends. Not everyone is paranoid enough to move their assets off an exchange to a private wallet only to misplace the keys. I've said it a couple of times to people that recently joined crypto in my location ~ Since cryptois designed to put the power and full control of our finances, we're supposed to take the safety and security of our assets very seriously because once crypto is lost via a private wallet (misplaced priv keys, mnemonic phrases, etc), it is near impossible to get back.

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Quote from: D-law on November 14, 2021, 01:24:09 AM

This has to do a lot with by taking preventive measures rather than been paranoid.
When one has a lot of wealth,he/her becomes more cautious and takes caution at every possible time.

With all the exchanges that suddenly go rogue, a Bitcoin holder can't just ignore the possibility that even a big exchange can also shut down without all of a sudden. There was even a rumor that authorities are looking for the servers of Binance for them to seize. Just imagine how this could change the market overnight.

Even if you only have altcoins like ETH or SOL, you'd rather be keeping that on your wallet where you keep the private key because you just can't say when it all happens. Call it paranoia but its all precautions.

davis196

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Taking care of your wealth doesn't mean that you are paranoid. Grin

I've heard many horror stories about people,who got scammed by centralized cryptocurrency exchanges and online crypto wallets.Not you keys,not your coins.
If you own a small amount of crypto,keeping it in a crypto exchange or online wallet is OK.If you are HODLing a large amount of crypto,then having a cold wallet and keeping your private keys is a must.
I'm "paranoid" even when it comes to keeping my fiat money in my bank account.I've never had any problems with my bank so far,but you never know what's gonna happen.

D-law

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This has to do a lot with by taking preventive measures rather than been paranoid.
When one has a lot of wealth,he/her becomes more cautious and takes caution at every possible time.

ancafe

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regarding this, I'm actually thinking the same thing. I would probably feel safer keeping my assets in popular markets like Binance, or Kucoin, because even if they get hacked, I'm pretty sure they'll replace it. it was different when my wallet was hacked.
however, so far, I don't keep my assets in the same 1 place. although I keep some tokens on the exchange, I only keep coins that I am ready to sell. however, for the coins I hold, I keep them in my wallet. maybe the percentage is 50:50. it's just that I'm more paranoid about storing my assets in a wallet because of some cases regarding lost assets and others.

josephdd1

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Quote from: krusepig on November 12, 2021, 07:20:34 AM

It seems to me that it would be safer (and more convenient) to keep your crypto on an exchange (coinbase, blockfi etc) than cold wallet. Wouldn't the odds be greater that you mess up your cold storage than a large exchange being hacked or whatever (even if they are hacked, that wouldn't necessarily mean you would lose any coins, whereas if you are hacked that's a different story). I ordered a ledger nano X but it seems that the exchanges are still the way to go based on probabilities. What are your thoughts?

You make a terrible mistake. If you lose your cold wallet, you will not lose your assets because as long as you remember your seed phrase, you can recover your coins in a new cold-wallet. In terms of exchange wallets, it is too dangerous. Even reliable exchanges can have some vulnerabilities and problems. For example, Binance has blocked the accounts of some users after a technical error caused by the Dogecoin update.

dogu17

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A paranoid is someone who knows a little of what's going on. A psychotic is a guy who's just found out what's going on.
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karanggatak

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i think, wallet have more probability to save your crypto than exchanger. big exchanger will pay attention every problem, they will solve or do the best what they can do to get trust from many people, and customer still use their things.
people will store their coin in exchanger to make easy the movement, when want to sell or buy or anything.

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Quote from: krusepig on November 12, 2021, 07:20:34 AM

It seems to me that it would be safer (and more convenient) to keep your crypto on an exchange (coinbase, blockfi etc) than cold wallet.

That's because you understand that these exchange sites also operate in the same manner as bank and whats the point of decebtralization if you cant keep your coins by yourself.

Quote from: krusepig on November 12, 2021, 07:20:34 AM

Wouldn't the odds be greater that you mess up your cold storage than a large exchange being hacked or whatever (even if they are hacked, that wouldn't necessarily mean you would lose any coins, whereas if you are hacked that's a different story).

I don't know maybe you're from Mars because a lot of exchange users have lost their coins to exchange hacked. The best option is to be your own bank

Quote from: krusepig on November 12, 2021, 07:20:34 AM

I ordered a ledger nano X but it seems that the exchanges are still the way to go based on probabilities.

I think you're unclear about the ease of using exchange and the benefit of using cold storage.

krusepig

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Does anyone know the breakdown of retail crypto that is kept on exchanges vs cold wallets?

I'm guessing majority (>>50%) is kept on exchanges, especially now with Robinhood and Coinbase which are two multibillion dollar publicly traded companies.

Also is it fair to say that if you have let's say 100K in Crypto, that the paper your pass phrase is written on is the equivalent to a 100K bill, you lose it or it gets stolen then POOF. The hardware wallet key fob itself is worthless.

Yamifoud

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Quote from: n0ne on November 13, 2021, 12:55:45 PM

With the available technology and security features it is possible to keep the crypto holdings in a much safer way. There is nothing to be paranoid, if you've made the holdings secured in a well planned way. Hacks are common, and for the same no need to worry that it'll happen with everyone. Rather than hacks these days phising sites resembling the original platform is the way to take control of user wallets. So, it is good that we use only the trusted link to enter any crypto platform.

Not anymore, even you use a hard wallet, that couldn't give the 100% safeguard of your accounts as hackers might find a leak that leads them to track and get your funds. It is really becoming serious, hacking has been our biggest threat and we can't underestimate these people as they are really smart and have the highest level when it comes to computers. Every single mistake that we have, that certainly their pathway to success and that we need to avoid, perhaps, it was really hard.

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Quote from: TheGreatPython on November 13, 2021, 04:26:13 PM

Quote from: krusepig on November 12, 2021, 07:20:34 AM

It seems to me that it would be safer (and more convenient) to keep your crypto on an exchange (coinbase, blockfi etc) than cold wallet. Wouldn't the odds be greater that you mess up your cold storage than a large exchange being hacked or whatever (even if they are hacked, that wouldn't necessarily mean you would lose any coins, whereas if you are hacked that's a different story). I ordered a ledger nano X but it seems that the exchanges are still the way to go based on probabilities. What are your thoughts?

Yes, in a way you’re kind of right. But it’s all about whether you’ll be able to manage the hardware wallet by yourself. If you'll be able to do that, then it wouldn’t be bad to have your own cold storage where you will be storing your crypto currencies and knowing that it would be safe from being hacked by anyone.

The reason why a lot of people prefer cold storage is because exchanges are usually a target for hackers, they would always go for any exchange that doesn’t have a good enough security and once they have the access, they steal the money from the exchange.

A lot of exchanges has been shut down through this means, when they lose customers’ funds they are unable to continue their business and that also results to their users losing their money as well. Then as for you not being able to keep your hardware wallet safe, if you misplace it,that’s another problem again. So, you should learn how to keep it safe and where to keep it in your house and not carry it around.

That is true , technology here to help youdoing things easier and cold wallet is your whole answer.
but still there is like a boomerang , you can get hit even harder! so becareful using any kind tech savvy stuff.

aand crypto itself full of techy stuff. So .. ready or not , you need to learn how to store your coins safely other than making an exchanger even richer!
too much risk and putting your coins at very high risk to lose / hacked. lets not use that option , nobody recommend it.

TelolettOm

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Quote from: krusepig on November 12, 2021, 07:20:34 AM

are crypto owners naturally paranoid?

It is not about paranoia, it is about carefulness and also take the responsibility for our own assets.
You may talk about that so easily, but it will be different from other people's cosniderations.
Crypto is technology, every wallet will have the risks, whether hot or cold wallets. But what we can pick here is how high the risks are.
So far, online wallet or wallet on exchanges, platforms, and similar others will have risker than in hardware or cold wallet.
If we only have little amount of BTC, we may consider only put it in software wallet, electrum or even in exchange wallets. Moreover, if we are trading them.

however as other said, we talk about long term investment, mmany amount of BTC,a nd others.
So, if we think that cold or hardware wallet is better and less risks, why should be said as paranoid?

TheGreatPython

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Quote from: krusepig on November 12, 2021, 07:20:34 AM

It seems to me that it would be safer (and more convenient) to keep your crypto on an exchange (coinbase, blockfi etc) than cold wallet. Wouldn't the odds be greater that you mess up your cold storage than a large exchange being hacked or whatever (even if they are hacked, that wouldn't necessarily mean you would lose any coins, whereas if you are hacked that's a different story). I ordered a ledger nano X but it seems that the exchanges are still the way to go based on probabilities. What are your thoughts?

Yes, in a way you’re kind of right. But it’s all about whether you’ll be able to manage the hardware wallet by yourself. If you'll be able to do that, then it wouldn’t be bad to have your own cold storage where you will be storing your crypto currencies and knowing that it would be safe from being hacked by anyone.

The reason why a lot of people prefer cold storage is because exchanges are usually a target for hackers, they would always go for any exchange that doesn’t have a good enough security and once they have the access, they steal the money from the exchange.

A lot of exchanges has been shut down through this means, when they lose customers’ funds they are unable to continue their business and that also results to their users losing their money as well. Then as for you not being able to keep your hardware wallet safe, if you misplace it,that’s another problem again. So, you should learn how to keep it safe and where to keep it in your house and not carry it around.

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Quote from: batang_bitcoin on November 13, 2021, 03:44:05 PM

It's the opposite, having your crypto assets stored on a hardware wallet is much safer than what you're thinking. I've been doing that ever since I've stepped on this market and realized that it's better to have it there than into an exchange. I'm more paranoid when I've experienced a system down to the exchange where I've stored my crypto assets and can't access it in hours. I thought that it's already gone, the life savings that I've got in crypto and that's why it taught me that it's better to hold your own crypto through hardware wallets.

Being paranoid with security isnt really that bad but it turns out that you do end up on that exaggerated way or wrong kind of belief that exchange are good storage for your
coins rather than on storing it on a hardware wallet which i do totally disagree on because nothing beats out when you do store out your assets on a hardware wallet since
you do have the full control of that wallet since you do possess its keys not like when you store up on an exchange then you do really have that control
which it cant really be hacked as long no one really knows about your keys.

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Quote from: krusepig on November 12, 2021, 07:20:34 AM

It seems to me that it would be safer (and more convenient) to keep your crypto on an exchange (coinbase, blockfi etc) than cold wallet. Wouldn't the odds be greater that you mess up your cold storage than a large exchange being hacked or whatever (even if they are hacked, that wouldn't necessarily mean you would lose any coins, whereas if you are hacked that's a different story). I ordered a ledger nano X but it seems that the exchanges are still the way to go based on probabilities. What are your thoughts?

My thoughts about your opinion is that you're wrong, you obviously need to do more research into these things to understand things much better, in a network were you're not meant to trust anyone, it's definitely much better to trust yourself with your funds than anyone else, including exchanges. Remember the rule of thumb that states that if it's not your keys, then it's obviously not your coins, you can't keep your funds in an exchange and obviously not have the private keys and yet feel safe, except what's in the exchange wallet is a very small amount of money.

Having said that, what you should do is learn the security protocols in the network, exactly how to keep your coins safe which is pretty easy, I've been holding my coins for years now and I have not lost anything, if exchanges gets hacked and you're affected, you're going to lose your funds, you can also 'lose' your private info to the black market, which can also be dangerous.

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