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.
Honestly I am starting to believe this as well now. I fact I would say buying coins is not safe at all. First LUNA and now FTT, it really looks as if Cryptos are made of nothing but a bubble, a fictitious demand created on a dramatic idea which exists only in theory when it faces a slightest of practical challenge it just bursts. I feel one should only hold decentralised Cryptos only and not even touch the Cryptos where exposure of a single entity is more than 20-30%. I feel this is the only way to be safe in this market otherwise be ready to lose your hard earned money. 
Topic: Coins on an exchange, any exchange, are never safe - page 3. (Read 418 times)
One of the reason i can think of as to why people still let their coin be on an exchange is that they are ignorant. I have a friend who is new into Crypto-currency and still lacking some knowledge, he knows about bitcoin and how he can buy coin on exchanges like binance but still don't understand the dangers of leaving his coin on the exchange. He has lots of coins on his Binance account not only I told him about the dangers.
I think we can tell people about the dangers of leaving their coins on exchanges and by this we can help reduce such illiteracy.
I think we can tell people about the dangers of leaving their coins on exchanges and by this we can help reduce such illiteracy.
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.
Yes.It's still that there are many people that do keep their funds on exchanges. And they don't know until when an issue about them is going to pop just like what happened for FTX.
While there's no issue yet, they're just leaving it there as if there's really no problem at all. But it's true that, you never hold your keys there if you allow them to keep it for you.
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.
Your wallet have a risk for getting hacked. It doesn't matter if it's from exchange wallet or your own local wallet, there is a chance for something happens if you do something wrong during certain date. The way of people or companies to secure the wallet are another factor to determine which is safest or not. Treat everything has a risk and you will become really careful when doing anything especially involved with money. with so many examples of failures, do people continue to keep their money on these?
Despite several occasions of giving warnings about how centralized exchanges could place a risk on users from having access to their coins or leaving them bare to data leakage without any form of privacy, yet this exchanges finds thier ways in to newbies who couldn't bot differentiate thier difference, while most often those that engage on trading also make use of the centralized exchanges, but leaving their little amount of asset in them, these centralized exchanges may still exists but their relevance would have drop drastically whereby many of them could have cease from operations just like in the case of the example you stated
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.
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. Also, they'll be the first to complain about how scammy cryptocurrency is to them. Certainly, with the information in circulation about the risks involved in keeping funds on exchanges the victims of these bankruptcy and disputes can be said to have self imposed the problem they are facing.
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.
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