... safely on its platform
"safely" & "on its platform" is against Bitcoin safety.
Topic: Coins on an exchange, any exchange, are never safe - page 2. (Read 418 times)
"safely" & "on its platform" is against Bitcoin safety.
Every day it seems a new story emerges about an exchange going bankrupt. Has been a recurring pattern since the Mt. Gox collapse. Why, with so many examples of failures, do people continue to keep their money on these? You don't own crypto if you have "coins" on an exchange, you have an IOU from a business that may or may not even be solvent.
Or you are not in possession of real Bitcoin/Cryptocurrency if you do not possess the secret keys/phrases that can be used to access and use the cryptocurrency on wallet that allows you to control and use the keys safely on its platform
With danger comes opportunity, put it on the exchange to make a fortune at the right time. Most people choose to put it in the exchange, which is also a manifestation of their trust in the exchange, and no one thinks that a large exchange will fail. But each of us should think about the consequences. Every choice is made by oneself, so the consequences must be borne by oneself.
Unfortunately this is true, the FTX exchange incident is not the first of its kind and it will definitely not be the last. There have been many similar incidents in the past and more will happen in the future, but on the other hand people need to deposit their money in the exchanges in order to be able to trade and get some profits, So what is the solution? The best solution in my opinion is to put a small portion of the capital into the exchanges to trade and keep the rest as a safe bitcoin wallet. In this way the loss can be reduced to a minimum.
I think it's because people expect to be able to sell their coins in a short time at the highest price and then they will withdraw the profits all at once. But they don't understand that it won't always be the case and that's what makes them keep most of their coins in exchange for a long time. And when cases like Mt.Gox happen again and their accounts get impacted, they regret keeping their coins on the exchange. This shouldn't happen to us because we have to be responsible for our coins, so maybe sending them to another wallet would be better.
Cex won't be safe ever and it seems to exchange native coins also wouldn't be safer even if you hold on to your hot wallet. How will you do with the token if it becomes zero? Tokens of native exchange would become zero anytime due to any reason that we have seen about FTX coin. We have to take a lesson from history and have to be very careful with our funds. It's crypto and anything could happen at any time whether something good or bad. So holding funds on exchange is never safe and holding native coins also never safe.
Every day it seems a new story emerges about an exchange going bankrupt. Has been a recurring pattern since the Mt. Gox collapse. Why, with so many examples of failures, do people continue to keep their money on these? You don't own crypto if you have "coins" on an exchange, you have an IOU from a business that may or may not even be solvent.
It's interesting to see https://rekt.news as they show almost daily hacks of different projects, platforms, exchanges, etc.
And meanwhile, bitcoin continues generating block after block...
Keeping your coins in an exchange defeats the purpose of using Bitcoin. You don't want to have intermediaries, that's the whole point.
Every day it seems a new story emerges about an exchange going bankrupt. Has been a recurring pattern since the Mt. Gox collapse. Why, with so many examples of failures, do people continue to keep their money on these? You don't own crypto if you have "coins" on an exchange, you have an IOU from a business that may or may not even be solvent.
In that matter we do not hold the decision of the investors here in cryptocurrency, it is their choice whatever they want to invest dude. Besides, cryptocurrency in the first place is full of risk and we knew that and maybe few don't know it.
Now if there are still people who are leaving assets in the exchanges here in the crypto space, maybe they are ready to face the risk they are taking, dude. I also have assets in other crypto exchanges but I'm not worried. After all, I know what I'm getting into even though, despite everything, it has risks because I'm a risk taker.
the traders keep theirs on exchanges because they are on the lookout to make money on opportunities like the FTX bankruptcy. you wanna sell fast when the price plummets going to $16k, that's the advantage but they are also risking when the exchange pauses withdrawals.
if you don't care of prices going down and you want to be on the safer side, take your coins out the exchange.
Exactly, people who leave their money on the exchange they are not holding but because they are looking to profit through market volatility but unfortunately things have gone awry, which no one can predict before can. After Binance announced it would buy back FTX, the market reacted positively but then they changed their mind and the market started to fall, everything happened within 24 hours. Everything happened so fast that investors did not have time to react.
Once we have joined the market, the risk is always lurking for us, if we don't lose when investing, if we don't get hacked, our account will be locked by the exchange. Always invest with money you can lose.
Why, with so many examples of failures, do people continue to keep their money on these?
(....)
For sure, it's the most convenient way to access your funds, with easy access, you just need your email and password compared to using a personal wallet where you need to secure such things to make it secure but I don't agree with people that use their exchange account to store funds if they are not touching it at all, better to use personal wallet where you control it.(....)
Crypto exchange must be only be use when trading so what's on your crypto account must be your funds that is for trading only not savings.
Every day it seems a new story emerges about an exchange going bankrupt. Has been a recurring pattern since the Mt. Gox collapse. Why, with so many examples of failures, do people continue to keep their money on these? You don't own crypto if you have "coins" on an exchange, you have an IOU from a business that may or may not even be solvent.
actually it is not about Keeping money on exchange but how we need to use them , while there are some mixer to hide our identity yet exchange is important to all of us who trade and make this for a living.I still use exchange but not as common as before .
Now if I only need to transact for certain coin that available in Binance directly to my local wallet, then yes binance is what i use.
Every day it seems a new story emerges about an exchange going bankrupt. Has been a recurring pattern since the Mt. Gox collapse. Why, with so many examples of failures, do people continue to keep their money on these? You don't own crypto if you have "coins" on an exchange, you have an IOU from a business that may or may not even be solvent.
It’s not so cut and dry. Keeping it at home or in some secret bank vault has its own risks, people can steal it(which they only need to copy the key you won’t even know until the coins are gone), it can burn down, your phone/private wallet can get hacked, cold storage access is severely limited which creates more risk if you need to keep getting the paper key every time etc… you can make backup and put it somewhere else, but that just opens up another point of exposure.
It all depends on your situation, if you live alone in a concrete house where no one has access, then yes keep it yourself, but most of us aren’t in this situation.
Life is all about risk management, this is no different. Any exchanges outside of us regulation or foreign owned is a definite no, coinbase despite all the hate I think is pretty safe as they are us listed company and well regulated. Their risk management is also well defined. Can it still go down? Of course, is it likely to happen? Probably not. Is it safer to keep your crypto there vs at your home safe? Only you can answer.
I've created similar thread before Recent event: Stay away from centralized exchanges (FTX, Binance, etc), use DEX, this is why "not your keys, not your coins".
Never hold any coins inside the exchange since you don't have full control over your coins, just bought a hardware wallet e.g. Ledger or Trezor, better safe than sorry. Maybe this problem currently happen on FTX, but who knows in the future Binance will did same since they've a problem or get hacked. Centralized exchange is very vulnerable, it's just a fake statement if their exchange's security is very high.
Never hold any coins inside the exchange since you don't have full control over your coins, just bought a hardware wallet e.g. Ledger or Trezor, better safe than sorry. Maybe this problem currently happen on FTX, but who knows in the future Binance will did same since they've a problem or get hacked. Centralized exchange is very vulnerable, it's just a fake statement if their exchange's security is very high.
In the end, the only way to be 100% sure that your crypto is safe is to remove it from an exchange and store it in a wallet where you control the private keys. One just needs to look at the exchange situation over the last few months to realize that this is nothing new or surprising. Businesses offering these services are simply not prepared for a rapidly fluctuating market. Nor are they prepared for the security risks of managing so much money. It is no wonder that they have failed in large numbers when dropping hundreds of millions in a week is a common occurrence in this market. That being said, you're still going to need to trust someone at some point; we haven't had a string of successful DEXs yet really get off the ground, so we'll see how those pan out in a year or two.
Every day it seems a new story emerges about an exchange going bankrupt. Has been a recurring pattern since the Mt. Gox collapse. Why, with so many examples of failures, do people continue to keep their money on these? You don't own crypto if you have "coins" on an exchange, you have an IOU from a business that may or may not even be solvent.
Nothing new but there are still lots who had been mainly affected on the time comes where these platforms do really experience huge problems.It had been suggested and been advised for how many times that its never been ideal on leaving your coins on an exchange, no matter how reputable and popular it would be
which there would be always the risks of this situation.
Its never been safe since on the first place thats why storing up huge amounts of money is never been recommendable.Its the basic but still people do really end up
on leaving their funds.Its never been safe but there are instances which we do really like on storing it there, even myself.
Every day it seems a new story emerges about an exchange going bankrupt. Has been a recurring pattern since the Mt. Gox collapse. Why, with so many examples of failures, do people continue to keep their money on these? You don't own crypto if you have "coins" on an exchange, you have an IOU from a business that may or may not even be solvent.
You are right but if you are a short term trader you do not really have too much of a choice, since it would not make a lot of sense for those people to withdraw their coins at the end of their session only to deposit them at the beginning of the session the very next day, so those people need to take the risk of storing their coins at an exchange, however those which are not really traders and are using the exchange as their personal wallet are without a doubt making a huge mistake, and they could end up paying a huge price just because they were too lazy to create their own wallet. 
It's good to see recurring threads about this same mistake to maintain awareness. But, the more it appears on forums and medias people still keep blind ears to it. And such people pay the price when the exchange collapses or go bankrupt.
The right to one's own opinion is a universal one. No matter how a warning is spread, not everyone would heed it because nowadays people act very irrationally. Lack of understanding and occasionally placing too much trust in such exchanges, particularly those that have never experienced bankruptcy, are further factors contributing to people's strong attachment to retaining their money in an exchange. Before taking preventative measures, one does not wait to become ill with a certain condition.
Every day it seems a new story emerges about an exchange going bankrupt. Has been a recurring pattern since the Mt. Gox collapse. Why, with so many examples of failures, do people continue to keep their money on these? You don't own crypto if you have "coins" on an exchange, you have an IOU from a business that may or may not even be solvent.
The fact is that some people are very big risk takers, they don't let their coin be on the wallet where they cannot use it to try their luck in some coins.They always look out for opportunities in exchanges where they could increase their portfolio and this opportunities come within a short period of time. Before they will transfer their coins from wallet to exchange the opportunity has gone, that is why people still keep their coins in exchange to enable them be dynamic and take risk
People are irresponsible and uneducated. Pretty much that, summarily. To do self-custody, one needs to spend some hours to study how things work, how wallet software work, learn security tactics, ask / search for questions, have questions etc.
FTX showed that isn't the case. It's amazing to me that Sam managed to get himself more than 15 billion dollars in wealth and it still wasn't enough to keep him happy and stop him from doing stupid things with customer funds.
I can't believe this idiot is so rich: https://twitter.com/DU09BTC/status/1586269255162478593 
Every day it seems a new story emerges about an exchange going bankrupt. Has been a recurring pattern since the Mt. Gox collapse. Why, with so many examples of failures, do people continue to keep their money on these? You don't own crypto if you have "coins" on an exchange, you have an IOU from a business that may or may not even be solvent.
A lot of people don't trust themselves to hold onto their own funds. They figure the people running the exchanges are professionals and wouldn't do dumb things with their money. FTX showed that isn't the case. It's amazing to me that Sam managed to get himself more than 15 billion dollars in wealth and it still wasn't enough to keep him happy and stop him from doing stupid things with customer funds. It absolutely amazes me. The amount of damage that has been done to the industry by these selfish get rich with other people's money types is immeasurable. If the average person cannot trust anyone to custody their funds for them, crypto can't go mainstream. The same reason people keep their money in a bank instead of under their mattress.
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