How exchanges steal our money | Bitcointalksearch.org

Canis Majoris

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Quote from: gabmen on March 01, 2018, 12:23:21 AM

Quote from: Altero on February 27, 2018, 05:36:50 PM

Quote from: Casabrandy on February 27, 2018, 04:19:37 PM

Quote from: TERA2 on February 27, 2018, 03:43:01 AM

You forgot #3 - shuts down and runs with all your money

This may only happen if that exchange have not gained enough supporter, or if they think they already get a huge amount that will be enough to risk their name and to be followed with lots of chaos from their user. Now that governments were into dealing with exchanges legalities , it will be hard for them now.

It looks like government regulations on crypto exchanger may now needing to have it. Not for the reason that to regulate the price but to have a certain agency to take dealings with exchanger owners and to know also a legit one. Because as I've observed, a lot of exchanger is now created and I'm pretty sure that some of them are just scam.

Well that's one fact that traders would have to live with. So it really just boils down to being selective about which exchange you're going to use. All these exchanges have issues but they of course wouldn't want too many negative ones to smear their reputation. So stick to those that many users are trusting as well and keep a wallet outside exchanges

Ultimately, all crypto exchanges are vulnerable because there are inside jobs and hacks. But if coins get stolen, there is no way back. I don't remember an exchange that got hacked and managed to get all their coins back. In August 2016 over 70M dollar worth of BTC got stolen from Bitfinex, and no one knows for sure what's happened to them since then, apart from the thieves themselves, of course. There's no safety in centralized exchanges. Regulations may help a bit, but crypto will remain crypto and no amount of regulation will prevent future hacks.

poplolnman

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Quote from: cryp24x on March 25, 2018, 11:05:21 AM

Before we come up with any conclusion, we must know how the said exchange platform works. We should also know how they make a profit.

Exchange platform usually makes a profit in the difference of spread during buying and selling. We are exchanging our currency based on what we have agreed to exchange. I think it has no different with the real world exchange fees that vary based on the area. For Cryptocurrency, I believe they implement maximum fees on every transaction.

So not surprising if there is a lot of new exchange popping up massively. They see the clear opportunity to make money from plain stupid people and foolish naive one , well I know that's what everyone think about how you feel in disadvantage , some exchange run the business healthy and some in dirty , the point we can't prove the accusation , that's all.

TTITA

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In fact, exchanges has their liquidity to do this with their tricks, it's how they making the profit. Exchanges in crypto currencies have full space to take many advantages for themselves, for example how the fee withdraw for each exchanges is different even sometimes for the deposit we are exposed to cost.

minersday

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Quote from: Rggadi on March 07, 2018, 01:41:49 PM

now the new methode used by some exchange is by staking and creating masternodes , using users deposit coins , and then dump this coin on the markets , so many coins never see a price rise.

That is shit, no one should do that because you are doing something that is not honest at all..

By the way, all the exchanges are crap and they steal a huge amount of money to all of us, independently from how much we deposit in there

FRJ

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We exchange our bitcoin in need and they take the advantages.But we are doing this for a long time because we don't have any choice.We are also doing this for better security. Though they actually ensure us the security, yet they take some excess only to make a business ....

cryp24x

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Before we come up with any conclusion, we must know how the said exchange platform works. We should also know how they make a profit.

Exchange platform usually makes a profit in the difference of spread during buying and selling. We are exchanging our currency based on what we have agreed to exchange. I think it has no different with the real world exchange fees that vary based on the area. For Cryptocurrency, I believe they implement maximum fees on every transaction.

Rggadi

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now the new methode used by some exchange is by staking and creating masternodes , using users deposit coins , and then dump this coin on the markets , so many coins never see a price rise.

jrrsparkles

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I don't think reputed exchanges will involve in these kind of shady activities,the chance of happening this only if we deposited our money in new exchanges,for me it never happened that exchanges steals our money because I never kept huge amount in their wallets. Tongue

MoonJeina

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This is how the exchanges works , in the digital world as well as in the real world .
I agree , that at some point the exchanging and trading process takes way lot of money in the way of the exchange from one coin to another and the rates needs to be revised and standardized as each exchange has different prices .
In the banks too we have to pay some fair amount of money for some exchanges to be done . We ignore it in the name of "tax" that is authorized by the government and is made mandatory.

alyssa85

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Quote from: Jet Cash on February 24, 2018, 03:45:55 PM

I don't understand why you consider this to be theft. Exchanges have always had a difference between buying and selling prices ( the spread ). Banks do it with fiat transactions, and they often charge an additional commission on the trrade.

Yes. It's how market makers make their profit, and without market makers, liquidity would dry up.

Apaxy

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Quote from: Lancusters on March 04, 2018, 09:54:07 AM

Recently, we have been experiencing problems with the registration and use of exchanges. Those exchanges that have a reputation for closing anonymous accounts and do not register new users. The requirements for verification are constantly tightened. I think that soon there will be exchanges that allow you to Deposit and withdraw Fiat. There will be only cheaters.

You need to use other resources to output crypto currency into real money. I think that the exchange should be used only for trade, and not for cashing.

Lancusters

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Recently, we have been experiencing problems with the registration and use of exchanges. Those exchanges that have a reputation for closing anonymous accounts and do not register new users. The requirements for verification are constantly tightened. I think that soon there will be exchanges that allow you to Deposit and withdraw Fiat. There will be only cheaters.

Chrisjay29

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Activity: 392

Merit: 103

Yeah there are some exchanger that steal money. Especially hitbtc. My 400$ didnt give back. I been sent them a my token NGC (Naga) 100token. But it only appear in my account is 20ngc.. the 80 ngc was dis appear

gabmen

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Quote from: Altero on February 27, 2018, 05:36:50 PM

Quote from: Casabrandy on February 27, 2018, 04:19:37 PM

Quote from: TERA2 on February 27, 2018, 03:43:01 AM

You forgot #3 - shuts down and runs with all your money

This may only happen if that exchange have not gained enough supporter, or if they think they already get a huge amount that will be enough to risk their name and to be followed with lots of chaos from their user. Now that governments were into dealing with exchanges legalities , it will be hard for them now.

It looks like government regulations on crypto exchanger may now needing to have it. Not for the reason that to regulate the price but to have a certain agency to take dealings with exchanger owners and to know also a legit one. Because as I've observed, a lot of exchanger is now created and I'm pretty sure that some of them are just scam.

Well that's one fact that traders would have to live with. So it really just boils down to being selective about which exchange you're going to use. All these exchanges have issues but they of course wouldn't want too many negative ones to smear their reputation. So stick to those that many users are trusting as well and keep a wallet outside exchanges

Altero

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Quote from: Casabrandy on February 27, 2018, 04:19:37 PM

Quote from: TERA2 on February 27, 2018, 03:43:01 AM

You forgot #3 - shuts down and runs with all your money

This may only happen if that exchange have not gained enough supporter, or if they think they already get a huge amount that will be enough to risk their name and to be followed with lots of chaos from their user. Now that governments were into dealing with exchanges legalities , it will be hard for them now.

It looks like government regulations on crypto exchanger may now needing to have it. Not for the reason that to regulate the price but to have a certain agency to take dealings with exchanger owners and to know also a legit one. Because as I've observed, a lot of exchanger is now created and I'm pretty sure that some of them are just scam.

Casabrandy

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Activity: 837

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Quote from: TERA2 on February 27, 2018, 03:43:01 AM

You forgot #3 - shuts down and runs with all your money

This may only happen if that exchange have not gained enough supporter, or if they think they already get a huge amount that will be enough to risk their name and to be followed with lots of chaos from their user. Now that governments were into dealing with exchanges legalities , it will be hard for them now.

Canis Majoris

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Activity: 126

Merit: 59

Quote from: HabBear on February 26, 2018, 03:37:41 PM

#1 and #2 below are the exact same activity you're accusing the Exchanges of committing - delaying trades.

I don't see what the first method has to do with delays. There are no intentionally added delays when an exchange takes liquidity from the orderbooks. In fact, it is in exchange's best interest to pull off the job as fast as possible. I'm curious where you got this idea from. Care to explain?

Quote from: HabBear on February 26, 2018, 03:37:41 PM

Exchanges are allowed to make the spread, that's how they make money. By fulfilling Bitcoin (or insert cryptocurrency/investment) buy orders for more than the sell orders. It's not stealing, it's literally how they make money. It's nearly no different than a bank loaning out money at a higher interest rate than they pay for savings.

Neither I understand what you mean here by "making the spread", but front running is definitely not an allowed practice on regulated exchanges up to a point of causing serious penalties. And there are good reasons for that like providing level playing ground for all market participants.

Soros Shorts

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Quote from: Canis Majoris on February 24, 2018, 02:47:49 PM

This method works exceptionally well with market orders filled at the current market price.

Seriously, if you place large market orders on any exchange, Bitcoin or otherwise, you've got to be a moron.

TERA2

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You forgot #3 - shuts down and runs with all your money

Canis Majoris

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Quote from: campica on February 26, 2018, 02:21:41 PM

I don't think that exchanges steal our money, because they earning big money on their fee. They have fee when you sell , buy and withdraw money. Some exchange even have fee when you deposit bitcoin , that is really bad in my opinion, so before you open account on exchange first read about Fees.

This is definitely not about fees, which you implicitly accept when you start using an exchange. You know human greed knows no limits, so you wouldn't really expect exchanges to lose 100% bullet-proof opportunities of making money off their clients, even if such practices are universally frowned upon, would you? And still more so if they can walk away completely unscathed, and there is no single entity to unleash justice on the wicked.

Topic: How exchanges steal our money (Read 643 times)