Topic: I don't believe you - page 8. (Read 1162 times)

Simple: you don't. You have to take their word for it. Binance supposedly has a Secure Asset Fund for Users (SAFU) in place and also provides their wallet addresses, which contain millions of dollars' worth of coins, from Bitcoin to BNB and the stablecoins USDT and TUSD. Their SAFU is supposed to be an emergency fund funded by a percentage of trading fees in order to protect users' funds. Does that guarantee that your finds will be secured if things take a turn for the worse? Probably not; as I previously mentioned, you need to take their word for it.

The issue with DEX exchanges is that, so far, they haven't proven to have any significant advantage over CEX, apart from being decentralized.

For someone like me with trust issues, I don't think there's anything that can convince me that my coins are safe in an exchange or that my money is safe in a bank. It doesn't matter how big that bank or exchange is. This doesn't mean I don't use a bank or a centralized exchange, I do, but I have it at the back of my mind that as long as my money is with someone else that is a human being, it's not 100% safe.
It is because of this I usually don't keep a large amount of money in exchanges.
The only money I use for daily expenses is in my bank account. Sometimes I keep savings that I want to use for something in the bank. It is usually a short-term saving, a maximum of four months.
It's not a common thing for Banks to go bankrupt in my country, especially the big banks, but the inflation will most likely eat up any savings you leave in the bank for a long term before bankruptcy.

Public sentiment.
Public sentiment is the reason that makes me sure to deposit bitcoin to an exchange. Public sentiment is so strong it is almost like herd movement. Along as it is positive, I'll deposit for quick transactions. Secondly, company's image and interaction with the public. People want to company to take on a human persona. That's why they have social media pages where they can interact directly with customers or customers can see the company making updates and all.

Experience.
Yes, over time my bitcoin always arrives safely. I know it will. And even if it doesn't as long I the problem is not from my end, I know that I can simply report it and the issue will be resolve. It has happened before.

Anyways treat exchanges with caution. Leave only very little amount of yours there for quick transactions other than that, get yourself a custodial wallet.

We cannot claim that centralized exchanges are secure. But it is a fact that, like it or not, they will still exist and are an integral part of the cryptocurrency industry, and we will still use them to a certain extent. I believe there are still some people who don't use CEX, and they may be bitcoin maximalists. But the rest, those are trying to prove that they hate CEX, but I believe they are quietly using CEX daily, especially if they invest in altcoins or they are traders. How do traders make profits without using CEX? How do investors invest in altcoins and shitcoins without using CEX?

Are you referring to trading on the exchange or storing Bitcoin on the exchange. If the deposit are for trading then I think that's fine because you'll be done with the exchange before anything happens unless you're unlikely to deposit at the exact moment when the exchange is getting hacked or running out of business. I can deposit on an exchange because of the reputation the exchange has gotten but can never leave my Bitcoin on an exchange.

Exchanges that have good reputation from others that have used it can be used for trading of Bitcoin but since we have many wallets that can be used for holding of Bitcoin and exchange don't give use our private key, it'll be a wrong decision to hold your coins on exchanges.

How do you "ensure" that an exchange would not crash, the fact that an exchange has been operating for a long time does not mean that it cannot crash, mind you that most of the exchanges that have crashed lately were all operating/functioning for a long time, yet it didn't stop them from collapsing once they became insolvent. Thus do not put your assets into any exchange because you think they are trusted.

No, it's worse than that!

Banks are usually insured up to 100k euros or $100k in most developed counties, funds that are insured and that can't be touched, besides it's really hard for an "owner" to grab all the money in those accounts and do what with them? Withdraw at the rate of 1000 euros per take from an ATM and un with a bag full of banknotes to some 3rd world country with no extradition?

Just think for a bit, how many "owners" of banks have you seen doing this and how many times have exchange owners done it?
Besides, for example, who is the "owner" of Deutsche Bank? Or of Bank of America? ING?

Bitcoiners, or should I say crypto users, who are keeping their coins or trusting their token with the centralized exchange when they yet don't have any use for their coin yet are the ones making mistakes and misusing what the exchange is meant for. I said so because each time I look up the full meaning of what "Exchange" means, the meaning always remains that,


 In any situation where one is not carrying out any trading with their coins, it's not meant to lie on their centralized exchange accounts. That's why self-costodial wallets were built, so that when we are not making use of our coins to trade on the exchange, we can store them in our self-costodial wallets. To explore exchanges better is only to carry out trading and not to store our coins there, and I assume that whoever is still storing their coins on the exchange has not realized that exchanges are not for storing coins and also has not realized the risks involved. I remembered I had saved coins on the exchange before for some weeks and months, but those days of such a foolish act are over.


Cheers 🥂, Dr.Bitcoin_Strange 👺👺

The idea that all banks go bankrupt is completely wrong. Because the world's economic harmony is maintained through the banking system. We have already come to know about the bankruptcy of some banks in some countries. Inflation usually causes various banks to go bankrupt. Banks declare bankruptcy when they become over-indebted and unable to repay the debt. Whether you keep your money in the bank is up to you. But those who are not connected to cryptocurrencies but all keep money in the bank. There are some banks that will offer to pay a lot of interest and it is better to avoid those banks. Use reputable banks in your country to keep your money. It will be safe for your money.

As NeuroticFish already mentioned, deposits up to €100.000 are protected by EU regulations; thus, there's nothing to be afraid of. As for exchanges, you simply have to trust the exchange you're using. Personally, I deem Binance a safe option, even though I have no guarantee that my funds are secured. I simply doubt that an exchange as large as Binance can go bankrupt from one day to the next. It even settled the lawsuit against the USA's version, and things are looking quite bright now.

Whether we like it or not, centralized exchanges are safe-ish and convenient to use, which are the main reasons they'll continue to be in business. You can avoid using CEX by switching to DEX platforms such as Bisq, where your funds always remain in your wallet.

You would only feel this if you have doubts to the bank or exchanges itself. Because in the first place why would you put your assets if you don't feel safe right? Of course we choose the most used bank where they have a good background and already operating in decades which is actually amusing since every year there's a new open bank and still they could keep up. Same with the exchanges, we put our assets in some trustful exchanges where we could ensure it wouldn't crash based on their performance in a long run. But still it's a good question for people in this thread to answer.

There are many factors which we need to consider before we decide to select exchange for crypto currencies transactions. These factors include exchange's overall reputation, quality of security systems and insurance cover of its account holder's deposits. Even with all these assurances provided by an exchange. it is important to note that security systems are never 100% immune to hacking attacks, as hackers persistently search for vulnerabilities in the system to exploit it.

Therefore, it is always advisable to store your funds in your personnel wallet and take measures to secure your keys.

Your user name already tells a lot and yes, these are good questions.

However, I have a remark: at least in EU, at least for funds under 100k EUR, the money in the banks is protected by law (if the bank goes bankrupt the national bank or an agency will reimburse you).
And somehow I think that some of those mindlessly (sorry, but this is the truth in a vast majority of the cases) keep their money in exchanges' custody expect something similar for their money (which in most cases won't happen).

Because exchanges have better business than non-custodial/decentralized systems. Mind you, the more you fear, the less you unlock the profits and benefits of your coin.

Then you should use a name you can trust. I have been using exchanges for many years, the same goes for many people I know, but none has been duped yet. Just use non-custodial wallets for HODLing and exchange for other businesses. Meaning you don't entrust too many assets to an exchange.

You are actually over-sounding this for a reason best known to you as if you were not using banks before cryptocurrency. Are there no banks that can be trusted? There are even some like Banque de France, The Washington Trust Company and others that have spent over 2 millenniums. How much has cryptocurrency spent that you are sounding this way?

Besides, Bitcoin can't stand in isolation, it will always need fiat for exchange, so just find the right banks and financial partners for your convenience and trust.

I don't know who is the owner personally but i know who is him based on his popularity.
Tbh, im not even willing to deposit my money on exchange site if i will have the easiest way to withdraw my money. People were doing it caused by exchange site to let you convert your tokens to cash and you can withdraw it to your bank account.
It's not as complicated as p2p. It's also more secure compared with p2p.


It doesn't make sense the person like CZ will be ruining his reputation by running away with customer's fund.

You don't save it for a long time but you are still using bank to withdraw or deposite your money. That means you are still trusting the bank to keep your money, even in a short time.

Game theory makes me trust some exchanges more than others. I mean, if the stock exchange, operating honestly, can generate 1 billion profit per quarter and function like that for years while developing itself and the entire industry, or it can get away with $ 10 billion today and always look back hoping that interpol is not behind the corner, then the probability of the second scenario is rather low. It is different when you see that the volume is falling, the stock exchange loses the competition and everything indicates that its business is on a downward slope. Then stealing seems to be more lucrative, especially when it comes to money that changes the owner's life (beyond a certain amount, it's not about money anymore, it's about power).

BTW Imagine that you are a CZ who cheats 150 million people by doing an exit scam. That's about 2% of the population. This means that every 50th person you pass on the street has been deceived by you and wishes you the worst. Wouldn't you be afraid of a knife in the back? Plus, people know you're a billionaire who won't go to the police if your loved ones are kidnapped for ransom.

Another thing is that it is a big temptation for centralized exchanges to use fractional reserve, which with poor risk management can result in a collapse like we saw with FTX. So funds are not safe even with market leaders that run profitable buisness. And fractional reserve harm bitcoin - Money creation system - is bitcoin creation resistant?

If you are thinking of having doubts about entering money into an exchange, why would you enter money into that platform if you have doubts about that exchange? Just for example in Binance, we know that CZ is its owner but we don't know him personally.

Now, the question is, why are we still putting money into the Binance exchange to buy Bitcoin when we don't know its owner personally? That's because many traders do trading on the Binance platform because of their trust and belief in Cz's management, that is, the trust we feel is what dictates why we still put money into it to buy Bitcoin.

Since the blockchain is a public ledger the transaction will be visible to the public that it actually went in to that address, so there is no way denying that it didn’t came in like the way fiat banks do. The only problem is the exchange is prone to attack and they could use that as a back lie after stealing funds that it was hacked.


This is the right way to actually way to deal with exchanges. Treat it like a market place that it is supposed to be and withdraw your funds from it once you’re done. If you’re are trader and the transaction fee to actually withdraw your funds daily might be expensive then do it weekly or monthly but even at that do not have much on the exchange for this period too. If you want to trade in large number it is better to split it up in 2 or more exchanges to minimize the risk of hack or collapse of the exchange

There is no way to know that, which is why if you really need to use a centralized exchange to use your fiat to buy some bitcoin then you need to try to make this process as fast as possible, and once your bitcoin is reflected on your balance then you need to get your coins out, however even something like this is no guarantee, as even if the coins are on your wallet if the exchange happens to collapse soon after you got your coins out, then a court order could force you to send them back in order to be redistributed among all the people that got scammed, so always exercise the utmost caution when dealing with exchanges.

Everyone knew Sam Bankman-Fried (SBF) of FTX, what use was that when shit hit the fan? None. The same goes for Binance. If it takes everyone's coins and leaves everyone with nothing, the name will not do anything to help get those coins back.

This is a very short-sided view if you think that because you "know" the owner, that you're safe.


This is also a very short-sided reason to use an exchange and claim that your money is safe.


What happens when your KYC documents is sold to the highest bidder after being hacked, or after the business is closed?

The high withdrawal fees are a strategy to lock people into the exchange. That's not good practice, or a good sign for the future.

You urgently need to change your mindset. Encouraging CEX (especially Binance while it's under current scrutiny) is not wise.