Need overview - Managing huge bitcoins

S_D

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Quote from: Hazir on January 14, 2017, 11:22:58 AM

It seems that even for the biggest exchanges managing their bitcoin funds is really complicated. Look at Bitfinex case.
They used 'state of the art' security measures and that doesn't help them much, as they got "hacked" and lost 119,756 BTC.
In 2014 MTGox lost 744,408 BTC... do you still think that companies can manage huge stash of BTC?

Well of course there's no security that cannot be breached, however we can improvise.
Are there any fairly secure systems?

S_D

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Quote from: chicken65 on January 14, 2017, 12:46:33 PM

Quote from: S_D on January 13, 2017, 11:04:34 PM

BTC dealing websites manage million dollars of bitcoin every day.

How do these sites manage to allow instant withdrawal of bitcoins and stay safe the same time.
If these sites keep their bitcoins in cold storage, how do they manage to send bitcoins instantly Huh

Beware this guy. He's a scammer. Don't open any pm messages from him

And why would you say that?

chicken65

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Quote from: S_D on January 13, 2017, 11:04:34 PM

BTC dealing websites manage million dollars of bitcoin every day.

How do these sites manage to allow instant withdrawal of bitcoins and stay safe the same time.
If these sites keep their bitcoins in cold storage, how do they manage to send bitcoins instantly Huh

Beware this guy. He's a scammer. Don't open any pm messages from him

Hazir

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Activity: 1596

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★Nitrogensports.eu★

It seems that even for the biggest exchanges managing their bitcoin funds is really complicated. Look at Bitfinex case.
They used 'state of the art' security measures and that doesn't help them much, as they got "hacked" and lost 119,756 BTC.
In 2014 MTGox lost 744,408 BTC... do you still think that companies can manage huge stash of BTC?

S_D

full member

Activity: 198

Merit: 112

Quote from: ranochigo on January 14, 2017, 08:51:23 AM

What do you use it for?

I'm saying that they are allocating a small amount of Bitcoins in their hot wallet. Any amount is fine, as long as they won't be too affected if everything is gone. You have to manually refill it.

Oh yea I am completely aware. I am just looking for any established codes that achieves monitoring/signing transactions very well. Thanks for your input though

ranochigo

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Crypto Swap Exchange

Quote from: S_D on January 14, 2017, 08:43:19 AM

Quote from: ranochigo on January 14, 2017, 08:37:17 AM

Risk management. Bitcoins in the cold storage takes time to retrieve.

Most exchanges uses a hot wallet system which they have a small portion of their Bitcoins in. The hot wallet is kept online and it allows for near instant withdrawal. If the hot wallet is compromised, the majority of the coins are safe since they are kept in the cold storage.

So do we have existing management softwares in market right now?

What do you use it for?

I'm saying that they are allocating a small amount of Bitcoins in their hot wallet. Any amount is fine, as long as they won't be too affected if everything is gone. You have to manually refill it.

S_D

full member

Activity: 198

Merit: 112

Quote from: ranochigo on January 14, 2017, 08:37:17 AM

Risk management. Bitcoins in the cold storage takes time to retrieve.

Most exchanges uses a hot wallet system which they have a small portion of their Bitcoins in. The hot wallet is kept online and it allows for near instant withdrawal. If the hot wallet is compromised, the majority of the coins are safe since they are kept in the cold storage.

So do we have existing management softwares in market right now?

ranochigo

legendary

Activity: 3038

Merit: 4418

Crypto Swap Exchange

Quote from: S_D on January 13, 2017, 11:04:34 PM

How do these sites manage to allow instant withdrawal of bitcoins and stay safe the same time.
If these sites keep their bitcoins in cold storage, how do they manage to send bitcoins instantly Huh

Risk management. Bitcoins in the cold storage takes time to retrieve.

Most exchanges uses a hot wallet system which they have a small portion of their Bitcoins in. The hot wallet is kept online and it allows for near instant withdrawal. If the hot wallet is compromised, the majority of the coins are safe since they are kept in the cold storage.

S_D

full member

Activity: 198

Merit: 112

I do plan to do something in near future so this info might really help!

legendbtc

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Leading Crypto Sports Betting & Casino Platform

I hope only some exchanges will provide instant withdrawals where as some exchanges will check before confirming the withdrawals. They will take lot of security measure before installing any type of blockchain into exchanges, before accepting any blockchain it should satisfy their requirement in order to pay withdrawals to them.

S_D

full member

Activity: 198

Merit: 112

BTC dealing websites manage million dollars of bitcoin every day.

How do these sites manage to allow instant withdrawal of bitcoins and stay safe the same time.
If these sites keep their bitcoins in cold storage, how do they manage to send bitcoins instantly Huh

Topic: Need overview - Managing huge bitcoins (Read 387 times)