Topic: how is cryptocurrency safe? - page 2. (Read 565 times)

For one, be extra careful when investing in projects and companies through ICOs. Secondly, you can protect your digital assets by keeping them in cold storage such as  paper wallet, hardware wallet, data storage device inaccessible to anyone except you (e.g. USB, disk drive) etc. All of these options have their pros and cons, but keeping most of your assets in them is safer than keeping them in software wallets, hosted wallets, or wallets tied with accounts of online exchanges.

NEM is hacked because the company was not stored offline, they were breaking the rule which you have to keep offline to generate more coin. So I think for this matter we better to blame on the operator, the company

I think it's not fully safe, however, the protection it will have comes from large redundancy. The blockchain stores it’s “ledger” on many thousands of servers, and if, let’s say, one ledger will happen to become altered and say a group action ne'er happened, you continue to have 999,999 different ledgers that do say the group action materialized. I might suggest that if you get into commerce giant amounts of crypto-currency, you buy a “wallet”, that is essentially AN encrypted USB drive that you just will store your currency on. With this, your currency is abundant safer than being held on website servers, that area unit far more liable to attack.

Choose any "how is cryptocurrency --fill in the blank--" and the world will answer with a million different answers.  But why?  In my opinion, it is because crypotcurrency is still relatively new and not fully adopted as being a normal part of commerce.  Sure, 8 years may sound like a long time to some.  But how long have credit cards been around?  How long have people been actually comfortable using them?  Sure, people feel safer today using them even though every year this is massive fraud.

The same can be said for cryptocurrency, cash, or any other fiat.  A big problem with cryptocurrency is people don't fully respect the security risks and do not adequately secure assets.  Mt Gox didn't teach people and neither did the XEM heist.  It will continue to happen but we should all be thankful that the recent crimes haven't been as devastating as the Mt Gox even though they have been bigger and more widespread.

Inside job is the word. Every single time.

it is my big concern as a newbie in the industry. please advice " is there any specific way to guide using the wallets safely?"

That's absolutely right, we cannot compare cryptocurrencies and exchanges. As you said, cryptocurrencies can't be hacked, as it's not a thing that can be hacked, it uses the block chain technology, which it's impossible for anyone to hack it, but there are some people who are already hacked, because of their stupidity, they are not using carefully their wallets.

Who says the cryPTO currencies are safe. They were never safe, no right now and also not in future .These are not meant to be safe. If they ARD safe than the richest people will become more richer and the poor will always in terms of investment. Just keep in mind tge cryptocurrency is the most dynamic thing which is the best part of it.

My best policy to not too store everything in one wallet.try to spread your coins on different wallets. Try not to open your account everyday unless until it is required. Use 2FA to your mobile and use high tech paid securities to yoir wallet.
Just these things are required.

Nothing is ever safe on this world and that includes cryptocurrency. There will always be loopholes where evil minded persons make use of them in order to benefit themselves. It's all the people behind shadows who are making cryptocurrency unsafe. So one has to be smart and cautious all the time in each step of the way as there are plenty out there who want to get/acquire what you have and possess by any means.

And how you will be able to find for the person or group of people which differs in nothing from you?
For example you have stolen 500 million, all purses identical and I can trace only that where you have sent money, further you will send money on 10-20 of purses and from there through the exchanges you will do small cashing in of means, any exchange of the average level doesn't ask KYC that I could find you, and often where there is KYC people give the false data bought on the black Internet and everything, the track is lost

You cannot compare cryptocurrencies with exchanges. Both have entirely different system of working. Cryptocurrencies can never be hacked, unless an idiot or a careless wallet owner let that happen due his own foolishness. Cryptocurrencies use blockchain technology. Every day new blocks are being added to the blockchain. So if anyone who wants to hack it, he will have to hack all the wallets on the blockchain network which is impossible to do.

And, even if they somehow fall victim to exploit, you can be sure as a majority user, you'll get some protections. Refer to Bitcoin exploit of 2010 where billions of coins were created. Refer to Ethereum which was created after a major exploit in the original chain.

Exploits aside, yeah. Cryptocurrency is probably the safest bet for money right now, and will be for a good many years, probably enough for our lifetimes. People say things like quantum computing but really, blockchain tech will do more than stay ahead of that curve.

P.S. Why're all the news outlets saying the NEM was successful "laundered"? I thought successful laundering implies the funds have been successfully cleaned.

Nothing in this world is 100% safe, to understand how cryptocurrency is safe you need to how blockchains works, even when people get stolen the coins can be somewhat tracked. But it's surely safe enough to be used, banks get stolen all the time as well, even the army. 

Speaking in the context of Bitcoin, no one would compensate you if you were to get robbed of your cash on the streets either. Just like Bitcoin, you control your own cash and not your banks.

With the agreement, I'm certain some sort of contract could be made using other blockchain technology and it could uphold in the code of law. Bitcoin is primarily for day to day transactions and not for things that would require trust beyond that transaction.

There is a phrase like that
"Impossible is nothing. It just takes time"
 
Take Your Own Precaution (TYOP) and leave it to time.

I'll summarize it like this:

Imagine there is a glass box nobody can break into without entering password. Inside of this box there is a super-valuable coin that worth a fortune. Anyone can have the box, look inside this box and make sure coin is there but nobody can ever take it unless they know the password. This box is super safe unless you give the password to it to someone else. 

You see every time people speak on those issues they fail to consider the fact anything can be stolen. Burgler can take your computer by breaking into your house, your traditional cash money can be taken from you, your car can be hijacked. The whole ownership concept presumes that your thing can cease being yours at some point (it can be done with or without your consent). Id doe not matter if it is truckload of gold or virtual coin. If value is transferable - it can be transferred, no matter of its quantity. So it all boils down to how do you make the effort of stealing  cost more then what the thing being stolen. For example effective defence would be to hide 10$ behind 5$ lock that require 1000$ tool to break it. I.e. thief need to invest times more to steal times less.

Another fundamental rule is that anything can be taken off of you provided enough efforts were invested. So if I have infinite resources I can theoretically take appart any lock atom by atom - it just not very practical.

Cryptocurrency is interesting in that context because with current technological progress there is no way to BREAK your key. So the only weakness is your own head. So "ownership" of coins and safety is your sole responsibility. Basically you get the perfect lock, but you need to design the door yourself. If your door have a hole - your lock won't save you.

I think you're approaching how much the exchanges are safe, not cryptocurrency. Exchanges are unsafe. Do not trust them. Hacker cases are constant and always in high values. And recovering what is lost in them via legal justice is very difficult.

Cryptocurrency, on the other hand, and especially Blockchain, are so far proven to be safe until the discovery of failures.

And failures can occur. That's why we treat it as an experiment yet. In Bitcoin serious crashes are rare and if I'm not mistaken, only once did they have to pause and recover the backup. 9 years with just one pause is incredible.

Guys the point of the OP is  how safe is cryptocurrency, not how safe is an exchange platform,  X or Y

@OP
A Cryptocurrency is safe as the math are safe. it's secured by math;  based on an algebraic structure of elliptic curves and digital signature a mathematical scheme

And same as @bL4nkcode I have ner hear of any so far