Topic: How crypto exchanges secure our funds? - page 2. (Read 536 times)
As safe as an exchange must have a gap to be hacked, in my opinion if you want to use an exchange, use it only as needed. If there's nothing you need, save your money in your own personal wallet, it's much safer
The network of these exchanges have been encrypted to fight cyber attacks, although to assure your funds are really safe I suggest you make use of decentralized exchanges where you do not need to store your assets on the exchange instead they are stored on your wallet.
I am not sure but I think that the only steps they take towards securing our funds are taking insurance on firm's asset so in case of any hack they pay us back using the funds they received from insurance.
The project advertises its services. He says that many use their services. Protection is debatable. And it’s best to check the stock exchange before joining it and trading there. Look at the rating of exchanges on CMC and you can choose the one that suits you best. I did not work with this exchange.
He is talking about an exchange like changelly. I do not think Changelly is on the coinmarketcap list of exchanges. Nevertheless, the security seems to be tight as I have never heard any negative news about it except for the fact that their fees are a bit on the high side. Or perhaps, hackers do not think it will be worth it to breach their systems.
Remember the Binance leak before. It is quite a reputated exchange and yet it got its users info still leaked. Just don't go in too much deeper with KYC if you know you won't even reach more than 1 BTC within your day assuming that you're day trading. I never disclosed that much info when it comes to these wide area of the market. You never know who's snooping your SMS number.
Yeah, and all these exchanges talk about high security and sophisticated password and encryption and so on, but in the end, the hacks happen because of simple basic rules that aren't followed.
Employees have access. Desktops are not locked. Not checked and scanned for keyloggers or data theft.
Centralized problem. What do we expect?
If you are storing your funds, the best thing to do is to secure them in your own wallets, if possible cold wallets... never 100% trust any exchange as you never know what might happen when your funds are under their custody...
For trading it is recommended that you check CMC and select a few exchanges among the top ones... don't put all your eggs on the same basket...
good luck
For trading it is recommended that you check CMC and select a few exchanges among the top ones... don't put all your eggs on the same basket...
good luck
No one really trusts an exchange 100%, but most good exchanges stores the data of its users in an offchain drive or hardware, o cold storage device though still a centralized manner of storage, but it ensures if they are hacked at whatever time, the data of their users remain safe irrespective
In fact, we cannot be sure of the safety of our funds that we store on crypto exchanges, because we do not know exactly how they store our funds. We only know what the members of the exchange team are telling us. Even large exchanges are hacked, but for example, large exchanges have a better attitude to security and store our funds because they value their reputation. Recently, I noticed that some exchanges began to create reserve funds or insure clients ’funds, but this concerns large exchanges, so I would be careful with new exchanges.
I think they often using cold storage as their wallet to store our funds and reserve funds.
A good exchange will requiring a good security too, they cannot just using web wallets to store coins from users.
A good exchange will requiring a good security too, they cannot just using web wallets to store coins from users.
Remember the Binance leak before. It is quite a reputated exchange and yet it got its users info still leaked. Just don't go in too much deeper with KYC if you know you won't even reach more than 1 BTC within your day assuming that you're day trading. I never disclosed that much info when it comes to these wide area of the market. You never know who's snooping your SMS number.
I am a verified member of binance and the reason for verification was not because I have large amount of money there but to be able to do the newly established features like margin trading, lending and IEOs. The first time I read that you must be verified before getting access to IEO participation, I rushed and did as such.
I want to use one exchange and I want to be sure they protect my data and money. All my exchange say about protection is "Changelly is one of the most prominent instant cryptocurrency exchanges that has gained the trust of more than 2M users from all over the world. The service provides safe and fast transactions without revealing users identities. We provide the best possible rates by comparing a wide range of reliable trading platforms and work with a list of 140+ cryptocurrencies that is constantly increasing."
Can you explain that to me? What does it mean?
And how exchanges actually protect our funds?
Can you explain that to me? What does it mean?
And how exchanges actually protect our funds?
Yes, no one protects your funds. Do not believe it. Your funds can be stolen from any exchange in the event of a serious hacker attack. Exchange employees can also commit fraud and steal your funds. No need to trust the exchanges 100% and store all your money there.
Trade in small amounts, and keep your money in your wallets.
The first thing need to do is to read and understand their term and condition, read the white paper, get a feedback from the team and users of the exchange. Actually to make our assets secure int he exchange we need to secure are account by enabling 2fa authenticator or after you meet your target amount transfer the token in personal wallet.
It is only marketing for their project to encourage you to join and follow their project. But always remember that no one is secured in this industry and the nature of crypto business is being risky so you don't have to believe if you are encouraging to a secure project. It's up to you how to have a good strategies to make your coin and investment secured and free from loss.
The exchange i assume your talking about is changelly, changelly is a centralized exchange meaning they hold on to the funds while trading is taking place. This is usually done in hot wallets just like we normal users use , For much bigger transactions they could be using a hardware wallet for cold storage. But changelly is a bit different as you only send them crypto for each trade and you get whatever you want it converted into right in you other wallet, This minimizes the amount of time your funds are at risk.
Exchanges talk a lot about protection, but all the same there is someone who hacks them and steals user funds, so it is best to trade on large exchanges such as binance, because during the previous theft of funds the exchange reimbursed everything from its feed.
I guess you should read through their terms and conditions first and also about how they operate. Actually, every exchange has its own way of securing user funds, and mostly what they do is to use cold wallets for that purpose. They may also do keep some on the wallets though. Security protocols are also varied and exchange specific. so you have to do your research and choose the one that best suits you.
There is no crypto exchange that is safe enough to secure your funds, although to an extent decentralized exchanges tries their best. The best way to secure your funds is through storing your coins in your personal wallet which you are in charge of, anything less than this is risky; that's the truth. Binance being one of the biggest exchange was hacked, thus confirming my statement, let's be careful with our funds.
If an exchange is so sure of protecting the identity of its users, that is, providing the utmost security, to confirm that, it should first be used for some users before that can be guaranteed. There are big exchanges that have existed for some years now and have been put to such test, yet some of them failed. Of that should happen, how then can I be sure of an exchange that is just coming in newly. What technology is it using to protect the identity and the fund of its users? If it is the same tech used by others, then I see no difference in it, except there is a novel security system that is put in place. If that is what Changelly has discovered, then it should be an achievement. A lot of exchanges today I am sure are working on their security system.
Changelly has hired people to spread the word about them. I don't really remember anyone even recommend the exchange even before 2017 but I have however heard scam accusations to them during that time. Looks like there is a massive hiring of forum posters to make it look like changelly is a reputable exchange.
Most exchanges claim to provide multi-key multi-level storage of funds that is called as vault and some of the exchanges also call it cold wallet and mostly large sum of idle coins are stored their for security while for day to day base funds and withdrawals funds are stored in less secure hot wallet that is ready with some funds all the time, the bottomline is that exchanges at the moment do not provide complete security of funds and the security enhancements are inevitable if the exchanges want to survive and compete in this market.
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