Do any Bitcoin exchanges allow you to use private keys to credit account?

Mickeyb

hero member

Activity: 798

Merit: 1000

Move On !!!!!!

Quote from: pawel7777 on October 30, 2015, 04:09:27 PM

But the only reason they did that, is there are no user friendly ethereum wallets yet. Not sure whether it would be a good idea for Bitcoin.

Yes, that was only reason. Ethereum didn't have wallet and people were even losing funds because it was to difficult to install one.

What Kraken did is again different than what OP has suggested. People were uploading .json files. These are not private keys. That's like you upload your wallet.dat to the exchange. These files are also password protected while private keys are not. Therefore it's much more secure to upload these files than plain text private keys.

pawel7777

legendary

Activity: 2436

Merit: 1561

Kraken did something like that for ethereum deposits. You can upload json file and enter the password (set when buying on pre-sale).
https://www.kraken.com/ether

But the only reason they did that, is there are no user friendly ethereum wallets yet. Not sure whether it would be a good idea for Bitcoin.

Mickeyb

hero member

Activity: 798

Merit: 1000

Move On !!!!!!

I see this also as causing many problems for the exchanges and putting much responsibility on their backs as well as for a receiving the private key, storing it correctly, etc. There would be many steps involved that had to be done correctly.

In the traditional way you either send your coins to the right (exchange) address or you don't. Simple as that.

DoubleMyBitcoins

newbie

Activity: 7

Merit: 0

i kind of doubt it as that would be a security concern

shorena

copper member

Activity: 1498

Merit: 1528

No I dont escrow anymore.

Quote from: jubalix on October 30, 2015, 02:20:46 AM

Do any Bitcoin exchanges allow you to use private keys to credit account?

the advantage being it would be hard to hack, as you enter the keys the bitcoin would be accessible to the exchange and they could immediately send it on to a new address secure (for a small fee)

Even if a keylogger was on your computer it would be hard compete.

I suppose a keylogger could send all keys for the last digit place, and get ahead a bit....

what do you think?

(this also ignores the risks of exchanges themselves but that's a different story)

I dont think it would do you any good if your system is already compromised. The only defense you can hope with this scheme is that the malware that infected your system does not scan for private keys. If it would be common the private key you send the exchange could easily be modified locally without your knowledge.

Other than that I think its best to handle private keys in an unencrypted form as little as possible. You essentially suggest that a user puts their private key in the clipboard befor sending it to the server, because we all know no one would type the key by hand. This can easly lead to the private key being compromised, e.g. because the user later pastes the key in a chat.

jubalix

legendary

Activity: 2632

Merit: 1023

Do any Bitcoin exchanges allow you to use private keys to credit account?

the advantage being it would be hard to hack, as you enter the keys the bitcoin would be accessible to the exchange and they could immediately send it on to a new address secure (for a small fee)

Even if a keylogger was on your computer it would be hard compete.

I suppose a keylogger could send all keys for the last digit place, and get ahead a bit....

what do you think?

(this also ignores the risks of exchanges themselves but that's a different story)

Topic: Do any Bitcoin exchanges allow you to use private keys to credit account? (Read 551 times)