As a newbie it is better you take custody of your coins - page 2.

Ojima-ojo

sr. member

Activity: 700

Merit: 429

Quote from: Marvelman on January 11, 2023, 06:28:09 AM

What do you think? Are we all just sitting ducks waiting to be plucked by crafty cybercriminals, or are some folks just too naive or ignorant?

I think some forks are just ignorant and naive to have lose the security when i read avout the hack of the personalwallet of the user i also blame them for not using a cold wallet and have chosen to store large funds in an online wallet.

But that being said, self-custody in the proper manner is what makes for total freedom in the cryptocurrency space, bitcoin gives has the opportunity of being your own bank but that comes with it high responsibility.

Because your security is left for you to control and weather or not you get hacked, that is your obligation.

Lucius

legendary

Activity: 3234

Merit: 5637

Blackjack.fun-Free Raffle-Join&Win $50🎲

Quote from: Marvelman on January 11, 2023, 06:28:09 AM

~snop~
What do you think? Are we all just sitting ducks waiting to be plucked by crafty cybercriminals, or are some folks just too naive or ignorant?

Regardless of how much you are aware of the risks and how much you invest in personal safety, you are always a sitting duck only with a big difference in how close or far you are from the hunter. If you are careless, leave traces and think that nothing can happen to you, then you are an easy target, regardless of whether it is an amateur hacker or a professional. If, on the other hand, you are very careful, you know all the risks and you constantly work to reduce them, then you are a very difficult target for which the hunter will probably not waste his time.

Everyone should learn to be their own bank from the beginning, because if you acquire bad habits, it will be difficult to get rid of them. What I would perhaps emphasize is that many people think that their coins are safe in non-custodial wallets, which is true - but with the exception of most stablecoins, which can be frozen even if they are in a non-custodial wallet. Keep this in mind if for some reason you store your digital assets that way.

Taskford

hero member

Activity: 2520

Merit: 783

Quote from: Ojima-ojo on January 08, 2023, 05:59:48 PM

This advice is not only suitable for newbies but even old members need ro hear this again to take action.

Since the entire cryptocurrency market is an interconnected digital financial web, that comes with high security and risk since we know that once transactions are sent it is irreversible so the need to pay close attention to our actions in this space is very important.

My advice to others most especially newbies is that, make sure you are holding your asset in your wallet and never trust any cryptocurrency third parties entity with custody of your coins until you have enough knowledge to manage the risk that is associated with such services.

Its basic and its important to have a full control on our coins because we don't know what those platform do if we decide to deposit our funds there, and beside to many scamming happen even if they are reputable before like FTX so much better if we save our funds on our personal wallet and transact only when we need something on the platform we want to use.

Marvelman

full member

Activity: 994

Merit: 137

★Bitvest.io★ Play Plinko or Invest!

Upon reading about the recent case of an experienced member of this forum: I've been hacked, it appears that the self-custody of one's coins may not be appropriate for all. Some people may lack the necessary knowledge or simply don't care enough about the security measures required to properly protect their assets. I fear that some folks just aren't cut out for the task and I can only imagine with the influx of digital natives, we'll see more tales of woe like this.

What do you think? Are we all just sitting ducks waiting to be plucked by crafty cybercriminals, or are some folks just too naive or ignorant?

Plaguedeath

hero member

Activity: 672

Merit: 557

Quote from: Gozie51 on January 11, 2023, 05:30:10 AM

the difference with exchange is that it is not secured or backed by government like banks incase of any crash or scam like FTX.

This is the point why anyone must not leave their coins on exchange including Binance, most people think Binance is safe since it's regulated and licensed, SEC has been audited Binance and Binance has SAFU. But there's no transparency about how much the SAFU that Binance own currently and does they have tricky rules like Celsius where they wouldn't refund their customers if they don't have any money left.

Gozie51

hero member

Activity: 2478

Merit: 621

Leading Crypto Sports Betting & Casino Platform

Quote from: Ndabagi01 on January 09, 2023, 07:48:52 PM

Quote from: jackg on January 08, 2023, 09:23:31 PM

You're also missing the point of crypto if you're keeping funds on an exchange as you're not really investing in it (you're just investing in an exchange as they'll leverage your assets).

You said an exchange will leverage on one’s assets with them. Does that mean the funds being kept in the exchange with them will be used for trading and other purposes without us being aware of it, just like the way local bank does with our funds being kept with them?

That is the point here. Exchanges are like banks and banks use customers deposit for other businesses including giving as loan to others, doing all sort of businesses to gain some profit on the capital you dropped with them. This is same with exchanges. Binance have a lot of coins that are stakable and if you do that of course they use your coins for other businesses. I don't think banks inform the customers about what they will use their money for if they deposit them but all you know is to get your money when you need it and the difference with exchange is that it is not secured or backed by government like banks incase of any crash or scam like FTX.

Hyphen(-)

hero member

Activity: 812

Merit: 725

Quote from: Ojima-ojo on January 08, 2023, 05:59:48 PM

My advice to others most especially newbies is that, make sure you are holding your asset in your wallet and never trust any cryptocurrency third parties entity with custody of your coins until you have enough knowledge to manage the risk that is associated with such services.

There is no point in going back to exchanges or any third party just because you have acquired a good knowledge of risk management.

Your personal wallet is your freedom because you have no security tension since you have your private key stored with you; even if all the cryptocurrency exchanges are having security threats, you shouldn't panic because you are in control of your coin.

cryptoaddictchie

legendary

Activity: 2072

Merit: 1315

Quote from: Ndabagi01 on January 09, 2023, 07:48:52 PM

You said an exchange will leverage on one’s assets with them. Does that mean the funds being kept in the exchange with them will be used for trading and other purposes without us being aware of it, just like the way local bank does with our funds being kept with them?

The funds are in your control there when they reflect on your account balance. He meant is if you are just gonna stay put your money there then its at risk of being freeze or what, at least if you gonna put your funds there use it for exchange or trading to make profit, or to increase your asset value. Thats only my interpretation of what he said.

Piesel

sr. member

Activity: 672

Merit: 273

Quote from: Ndabagi01 on January 09, 2023, 07:48:52 PM

Quote from: jackg on January 08, 2023, 09:23:31 PM

You're also missing the point of crypto if you're keeping funds on an exchange as you're not really investing in it (you're just investing in an exchange as they'll leverage your assets).

You said an exchange will leverage on one’s assets with them. Does that mean the funds being kept in the exchange with them will be used for trading and other purposes without us being aware of it, just like the way local bank does with our funds being kept with them?

I think that is what most excganges do, just lime the cebtralized traditional bank trade with customers' money and even borrow some from clients to receive interest on them.

Some practices are also engaged with cryptocurrency exchanges take FTX issues for instance some of the customer's money is lent to others without the customer's permission so source practice exists with crypto exchange

Ndabagi01

sr. member

Activity: 560

Merit: 287

Quote from: jackg on January 08, 2023, 09:23:31 PM

You're also missing the point of crypto if you're keeping funds on an exchange as you're not really investing in it (you're just investing in an exchange as they'll leverage your assets).

You said an exchange will leverage on one’s assets with them. Does that mean the funds being kept in the exchange with them will be used for trading and other purposes without us being aware of it, just like the way local bank does with our funds being kept with them?

qwertyup23

hero member

Activity: 2212

Merit: 786

Quote from: jackg on January 08, 2023, 09:23:31 PM

It's a great idea to take custody of your funds from the start (especially if you've only got a small investment) because you're going to be risking less when you really do need your funds in your own wallet (there was some warning FTX was going to collapse before it did, if you know how the network works, you'll be better at taking your funds out as early as possible).

You're also missing the point of crypto if you're keeping funds on an exchange as you're not really investing in it (you're just investing in an exchange as they'll leverage your assets).

This is very interesting to point that exchanges are jut leveraging your assets given that most of them have conversion rates that are abysmal.

I am actually guilty of this- I keep most of my BTCs inside our local exchange (coins.ph) due to the convenience that it provides. The downside is, whenever I convert my BTCs to our desired local currency, the conversion rates are relatively high to the point that it eliminates the point of investing it. In addition, this also puts me at the risk of the exchange losing my BTCs in the event that they are scammed, which I am hopefully not wishing it to happen.

Piesel

sr. member

Activity: 672

Merit: 273

This is absolutely correct, the discussion of self custody have been on the rise lately since the aftermath of the FTX collapse that dealt a heavy blow on the entire msrket for some time now, but then we still have some investors who are adamant to take action on time.

One thing i have noticed is that, befor any project scams investors, there is always early warning, but investors will choose not to pay close attention to such warning.
But for those with adequate knowledge, self-custody is the best form of storage and fhe real essence of Bitcoin, your coins, tour wallet and your bank= total freedom.

sunsilk

hero member

Activity: 2884

Merit: 620

Your advise should always be taken note by everyone, we keep on telling this so that everybody is aware that we should be the one holding our funds and not the exchanges.

But even how badly we keep on telling this tip and reminder to everybody, there are still a few people that ends up badly by not having the custody of their own coins and soon they'll share their bad experience about an exchange or an unknown wallet.

Quote from: Ojima-ojo on January 08, 2023, 05:59:48 PM

inreviseable

Just a minor correction, maybe you're typing too fast and haven't noticed it. It should be "irreversible".

freedomgo

legendary

Activity: 3080

Merit: 1144

Quote from: Ojima-ojo on January 08, 2023, 05:59:48 PM

This advice is not only suitable for newbies but even old members need ro hear this again to take action.

Since the entire cryptocurrency market is an interconnected digital financial web, that comes with high security and risk since we know that once transactions are sent it is inreviseable so the need to pay close attention to our actions in this space is very important.

My advice to others most especially newbies is that, make sure you are holding your asset in your wallet and never trust any cryotoxurrency third parties entity with custody of your coins until you have enough knowledge to manage the risk that is associated with such services.

This goes for everyone most especially for newbies who have less knowledge and control on their own coins. It’s a lot more secured for your coins to place them in your non-custodial wallet, aside from not operated online, you also don’t give any access to a third party so rest assured, as long as you are responsible with your own wallet, you will never experience hacking or stealing. You can trust exchanges but only when you’re good enough and knows how to deal the risk smartly.

Doan9269

hero member

Activity: 812

Merit: 560

Quote from: Ojima-ojo on January 08, 2023, 05:59:48 PM

Since the entire cryptocurrency market is an interconnected digital financial web, that comes with high security and risk since we know that once transactions are sent it is inreviseable so the need to pay close attention to our actions in this space is very important.

Always make verification before confirming any transaction you're about to make because they are irreversible when sent, there's a way to recheck the beginning letters of the address and the last fee letter of the same address to be thesame, there's a copy and paste malware that aim attacks on the clipboard replacing the one you intentionally copied.

Quote from: Ojima-ojo on January 08, 2023, 05:59:48 PM

My advice to others most especially newbies is that, make sure you are holding your asset in your wallet and never trust any cryotoxurrency third parties entity with custody of your coins until you have enough knowledge to manage the risk that is associated with such services.

Dont also mishandled your keys if in your custody, get a good means to sefure it and avoid it getting exposed to a third party and don't use a centralized storage network in securing your keys.

AakZaki

legendary

Activity: 2310

Merit: 1076

zknodes.org

Quote from: OcTradism on January 08, 2023, 10:16:29 PM

Wallets can be built from companies that build and provide wallet softwares only but they can come from exchanges too.

Nowadays you can see exchanges have many products to expand their ecosystems. Centralized exchanges have their decentralized exchanges and their wallets too.

For me I don't believe that any cryptocurrency wallet or decentralized exchange that is owned by a centralized exchange is non custodial wallet and really decentralized exchange. It's very logic to think so and you can agree or disagree with me but it is a good alarm for people who trust in open source, non custodial wallet and decentralized exchange launched by a centralized exchange.

Instead of using a centralized wallet exchange product, it's better to use a hardware wallet that focuses on developing non-custodial wallets. As a beginner, you should know about the differences between which wallets are safe or not, and which wallets have full control or not. If you don't have full control it will be very risky, you don't have keys, you don't have a wallet and you don't have assets.

nothing is more secure than a self-owned, self-managed hardware wallet. The centralized exchange is only a bridge for trade and exchange to fiat, do not make it the main repository.

Outhue

sr. member

Activity: 686

Merit: 403

Quote from: drwhobox on January 09, 2023, 02:00:53 AM

Quote from: OcTradism on January 08, 2023, 10:16:29 PM

Wallets can be built from companies that build and provide wallet softwares only but they can come from exchanges too.

Nowadays you can see exchanges have many products to expand their ecosystems. Centralized exchanges have their decentralized exchanges and their wallets too.

For me I don't believe that any cryptocurrency wallet or decentralized exchange that is owned by a centralized exchange is non custodial wallet and really decentralized exchange. It's very logic to think so and you can agree or disagree with me but it is a good alarm for people who trust in open source, non custodial wallet and decentralized exchange launched by a centralized exchange.

Anyone can build wallets. A company or a person builds a wallet, but if it is decentralized, it can not be controlled by authority. The developer who builds that no custodial wallet does not have control over any users so I don't think there should be any problem at all.

A crypto wallet that's based on decentralised alone is not confusing enough, I will never keep my coins on such crypto wallet, open source is the real reasons why crypto OGs use and trust a crypto wallet, don't get it confused.

Also it doesn't make sense for a centralized company or platform to build a decentralised tool and wallets, I will not trust them at all, if you want to be centralized then build everything based centralization, don't jump about.

Upgrade00

legendary

Activity: 2030

Merit: 2174

Professional Community manager

Quote from: drwhobox on January 09, 2023, 02:00:53 AM

Being decentralized alone or presenting to be so does not make a wallet recommendable or a good option to use.

Coinbase has a non custodian wallet, and wants everyone to believe that it's your keys and your coins without any interfering from them, but the wallet happens to be closed source and it is impossible to verify if coinbase does anything behind the scenes, like keeping backups or pre generated keys.

A non custodian wallet should ideally be open source and verifiable.

drwhobox

full member

Activity: 756

Merit: 133

- hello doctor who box

Quote from: OcTradism on January 08, 2023, 10:16:29 PM

Wallets can be built from companies that build and provide wallet softwares only but they can come from exchanges too.

Nowadays you can see exchanges have many products to expand their ecosystems. Centralized exchanges have their decentralized exchanges and their wallets too.

For me I don't believe that any cryptocurrency wallet or decentralized exchange that is owned by a centralized exchange is non custodial wallet and really decentralized exchange. It's very logic to think so and you can agree or disagree with me but it is a good alarm for people who trust in open source, non custodial wallet and decentralized exchange launched by a centralized exchange.

Anyone can build wallets. A company or a person builds a wallet, but if it is decentralized, it can not be controlled by authority. The developer who builds that no custodial wallet does not have control over any users so I don't think there should be any problem at all.

OcTradism

hero member

Activity: 1722

Merit: 801

Quote from: Ojima-ojo on January 08, 2023, 05:59:48 PM

My advice to others most especially newbies is that, make sure you are holding your asset in your wallet and never trust any cryotoxurrency third parties entity with custody of your coins until you have enough knowledge to manage the risk that is associated with such services.

Wallets can be built from companies that build and provide wallet softwares only but they can come from exchanges too.

Nowadays you can see exchanges have many products to expand their ecosystems. Centralized exchanges have their decentralized exchanges and their wallets too.

For me I don't believe that any cryptocurrency wallet or decentralized exchange that is owned by a centralized exchange is non custodial wallet and really decentralized exchange. It's very logic to think so and you can agree or disagree with me but it is a good alarm for people who trust in open source, non custodial wallet and decentralized exchange launched by a centralized exchange.

Topic: As a newbie it is better you take custody of your coins - page 2. (Read 424 times)