Newbie Reminder: Treat Exchanges as Marketplaces

qwertyup23

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Quote from: Davidvictorson on November 11, 2022, 05:06:06 AM

Dear newbies, please treat exchanges, such as Binance, KuCoin, Kraken, Huobi, OKX, and Coinbase, as marketplaces. What do I mean? Just as you do not leave your goods on the market after you have paid for them, you take them home with you. Consider your coins as the goods you bought at the marketplace. Your bitcoins should only be stored in cold storage wallets after purchase, and transferred out when you want to sell them. It takes less than 10 minutes. Remember, if you don't have the keys, it's not your coins.

This advice is seemingly one of the useful ones here in this forum. To be honest, I somehow feel guilty about this given that I have been in this forum for five (5) years now. Majority of my BTCs are inside my local exchange and the reason on why I do not transfer them to a hardware wallet is the convenience that the former provides in converting my BTCs to cash whenever I need it.

I guess that maybe, this is the sign that I have been looking for. Newbies, follow this advice and avoid the problems that most have already encountered. If you have invested a hefty amount of BTCs (bought them at exchanges), then move it as soon as possible to a hardware wallet.

Piesel

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The Golden rule is never leave your coins on an exchange and truly exchanges are just a marketplace and not a storage unit, your Bitcoin is best in your personal wallet, and if the exchange wants to be more effective.

They should focus on providing the link between two traders and not holding their coins, there should be a way that any transactions that will be carried out on the exchange, should drop directly into the trader's wallet and not the exchange wallet.

But not all exchanges have such features unless the Dapp which have a wallet connect feature that allows an external wallet connection feature, until your coins are in your wallet with private keys, you did not own the coins the exchange does.

So do well to move out your Bitcoins and any other assets out of the exchange, because there are safe there.

Anguwa

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Quote from: Davidvictorson on November 11, 2022, 05:06:06 AM

Dear newbies, please treat exchanges, such as Binance, KuCoin, Kraken, Huobi, OKX, and Coinbase, as marketplaces. What do I mean? Just as you do not leave your goods on the market after you have paid for them, you take them home with you. Consider your coins as the goods you bought at the marketplace. Your bitcoins should only be stored in cold storage wallets after purchase, and transferred out when you want to sell them. It takes less than 10 minutes. Remember, if you don't have the keys, it's not your coins.

This is a very good advise especially when compared to this market conditions and the bad News of LUNA and FTX crash, our personal wallets are our homes that we can control what we have, but when we live them in the market, if we lose anything among them we have no one to blame bacause we carelessly live them exposed.
Is it only Bitcoin that can be stored in personal wallets like Electron or it dose support many coins?

Issa56

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Quote from: Magic-Money on November 21, 2022, 11:27:06 AM

That is a very good one, while having a mindset for long run investment, as newbie buy and transfer to your cold wallet is a very good idea and it will make know difference network to save your cryptocurrency asset.

It's nice to transfer your coin to non custodial wallet address, but everyone should also learn how to protect their wallet address and also secure your private key, when you lose access to your private key then you also lose access to your wallet and when your private key have been exposed to scammer then the scammer can easily transfer all your coin without you knowing, so we should always protect our private key and we should always make sure we store it in a place that's not connected to the internet.

Mpamaegbu

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Quote from: slackovic on November 11, 2022, 05:26:01 AM

I understand that Ethereum fees are still too high to use Uniswap for a daily trading but there are bunch of L2 solutions that users can trade one with very little gas fee.

I don't like using any ETH commission based Dexs because of that killer in gas fees. Yes, I admit that fees have drastically gone down but it's not like what we've in other chains, especially BSC or even Polygon.

Quote

And then there is leverage trading. Before it wasn't that easy to do leverage trading on a decentralized exchanges but lately there is an increased popularity in DEXes where users can do leverage trading.

What you shared here is an eye-opener, even to me. Things like this exposition you've here are supposed to be with examples and links to Dexs that offer that. If you don't mind could you share names and links?

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Quote from: Hyphen(-) on November 19, 2022, 02:44:27 PM

Yes, it will reduce risk because there will be backup if the funds are split across multiple exchanges because two or more exchanges cannot have problems at the same time.
There is too much risk in every investment, but cryptocurrency investment has the highest risk in my opinion, as it can simply move someone from grace to grass.

Has the highest risk, but also provides greater returns than other investments. So commensurate with the big risk that will be accepted.
But as smart investors, we must also prioritize the safety of the investments we make. Minimizing every risk will be very useful in various ways that can be done, such as splitting on several exchanges. Monitoring updates from each exchange can also be done to find out the latest developments so that if there is an emergency you can rush to take the actions that need to be taken.

Magic-Money

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That is a very good one, while having a mindset for long run investment, as newbie buy and transfer to your cold wallet is a very good idea and it will make know difference network to save your cryptocurrency asset.

Getmon

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Quote from: Hyphen(-) on November 19, 2022, 02:44:27 PM

Quote from: Zaguru12 on November 11, 2022, 10:33:28 AM

Yeah it's a challenge for daily traders. I had suggested before that it will be better to split them into two or more exchanges depending on on the traders fund. At least its rare to have all exchanges having issues at the same time. Then monthly some of the funds can be moved to wallets. This could minimise the risk.

Yes, it will reduce risk because there will be backup if the funds are split across multiple exchanges because two or more exchanges cannot have problems at the same time.
There is too much risk in every investment, but cryptocurrency investment has the highest risk in my opinion, as it can simply move someone from grace to grass.

My circle of friends were using different exchanges back then because we continuously looked for new coins before they were listed in the bigger exchanges. Today, we have many options to buy promising new coins. The birth of PancakeSwap, Uniswap, Dodo and many more changed it, smaller exchanges are not needed anymore. Therefore it is decentralized exchanges for the new coins but the focus on regular trading is in the big exchanges.

It is easier to trade using centralized exchanges than decentralized exchanges. The trading features alone are of great use for regular traders. But for non regular traders, never leave your bitcoins in exchanges. If the second biggest exchange FTX gets wiped out in a matter of days, leading exchange Binance can fell too. There is no vulnerable exchange particularly in the volatile crypto market.

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Quote from: Zaguru12 on November 11, 2022, 10:33:28 AM

Yeah it's a challenge for daily traders. I had suggested before that it will be better to split them into two or more exchanges depending on on the traders fund. At least its rare to have all exchanges having issues at the same time. Then monthly some of the funds can be moved to wallets. This could minimise the risk.

Yes, it will reduce risk because there will be backup if the funds are split across multiple exchanges because two or more exchanges cannot have problems at the same time.
There is too much risk in every investment, but cryptocurrency investment has the highest risk in my opinion, as it can simply move someone from grace to grass.

Asiska02

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Quote from: Davidvictorson on November 11, 2022, 05:06:06 AM

Dear newbies, please treat exchanges, such as Binance, KuCoin, Kraken, Huobi, OKX, and Coinbase, as marketplaces. What do I mean? Just as you do not leave your goods on the market after you have paid for them, you take them home with you. Consider your coins as the goods you bought at the marketplace. Your bitcoins should only be stored in cold storage wallets after purchase, and transferred out when you want to sell them. It takes less than 10 minutes. Remember, if you don't have the keys, it's not your coins.

This statement is as brief, clear, and direct as it should be. The information being conveyed here is simple enough for even the most laypeople to understand. Even if after all of this, someone from this forum still becomes a victim, their negligence is to blame and there is no other explanation or justification for it. NOT YOUR KEYS, NOT YOUR COINS.

Razmirraz

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Quote from: BIT-BENDER on November 11, 2022, 03:06:23 PM

OP is this post only about Bitcoin? Well in my own opinion it shouldn't come to think of it many Newbies but more altcoins that bitcoin.

I think so, Op has mentioned Bitcoin specifically on the topic.
The exchange is not completely a safe place to store assets, we only have a password to enter the exchange but do not have a key to keep it safe. Op made this topic because there are several exchanges that have been successfully hacked, exchange hacks have occurred many times which makes our assets not completely safe there.

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Quote from: Davidvictorson on November 11, 2022, 05:06:06 AM

Dear newbies, please treat exchanges, such as Binance, KuCoin, Kraken, Huobi, OKX, and Coinbase, as marketplaces. What do I mean? Just as you do not leave your goods on the market after you have paid for them, you take them home with you. Consider your coins as the goods you bought at the marketplace. Your bitcoins should only be stored in cold storage wallets after purchase, and transferred out when you want to sell them. It takes less than 10 minutes. Remember, if you don't have the keys, it's not your coins.

This is an important update for everyone it just newbies might not really understand what this means. Some persons do find it easy to keep coins on an exchange due to so many reasons which include easy to sell, Less swapping fee, staking, mining and some many others. It is obviously not advised for us to keep our coin on an exchange but sometimes we are always tempted to do that when we can bear the risk if anything happens to our coin. Some exchanges just careless and do not care about what we might lose if their platform get sticker or hacked.

Peanutswar

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Quote from: Davidvictorson on November 11, 2022, 05:06:06 AM

Your bitcoins should only be stored in cold storage wallets after purchase, and transferred out when you want to sell them. It takes less than 10 minutes. Remember, if you don't have the keys, it's not your coins.

Additionally with these you can buy trusted cold wallets with the Trezor and Ledger

Code:

https://www.ledger.com/
https://trezor.io/

And also check the supported coin because in different storage only limited support with the coin you want to, also for their trusted resellers world wide you can check here

Code:

[1]https://trezor.io/resellers
[2]https://www.ledger.com/reseller

I'm not partnered or a reseller just shares this information for the benefit of the newbies. Also if you don't have a budget yet ideal to use a hot wallet such as the following.

Code:

https://electrum.org/#home
https://www.exodus.com/

Issa56

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Quote from: Davidvictorson on November 11, 2022, 05:06:06 AM

Dear newbies, please treat exchanges, such as Binance, KuCoin, Kraken, Huobi, OKX, and Coinbase, as marketplaces. What do I mean? Just as you do not leave your goods on the market after you have paid for them, you take them home with you. Consider your coins as the goods you bought at the marketplace.

Most people think exchange is their house and not a market, they believe is a place where your funds can be secure, but they don't know its kind of risky leaving coins on exchange, some people always say they prefer leaving coins on exchange because it can easily be traded whenever they want and they don't have to be transferring coins from wallet to exchange, some people always say they prefer leaving their coin exchange because they can easily reset their passwords even if they forget it, but if private key is lost, then you won't be able to access your funds again.
But I noticed that most of those people giving reasons why they prefer leaving coin on exchange have not experienced any crypto hack before, they won't have being giving all those reasons, most of them have not lost money in any exchange hack before. Immediately after buying a coin we should always make sure we transfer it to our non custodial wallet address to have rest of mind, no exchange is to big to be hacked or compromised, we all have to be very careful.

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Quote from: Davidvictorson on November 11, 2022, 05:06:06 AM

Dear newbies, please treat exchanges, such as Binance, KuCoin, Kraken, Huobi, OKX, and Coinbase, as marketplaces. What do I mean? Just as you do not leave your goods on the market after you have paid for them, you take them home with you. Consider your coins as the goods you bought at the marketplace. Your bitcoins should only be stored in cold storage wallets after purchase, and transferred out when you want to sell them. It takes less than 10 minutes. Remember, if you don't have the keys, it's not your coins.

Good example. But in the market there is consumer buyers who buy in one's and go home with the goods. How about larger buyers who buyer in bulk and resell. They buy so large that they cannot take their goods home every evening and return them every morning. They don't have any other options than to build shops inside the market where they save the goods they buy and resell to people.
So, you don't blame them when their is fire outbreak in the market which will eventually burn down their goods

Frankolala

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Leaving your funds in exchange means you are giving them access to do whatever they want with your funds. Newbies should take note of this in other for you to learn better in this community, a word is enough for a wise. If you can't sleep in the market place them why will you live your asset in the market place.

This is how scam issues are been discussed here and the best advice on how to be safe is given here but some persons will find it difficult to listen on simple safety tips on their investment and will finally regret their ignorance. Your electrum wallet is your coins, FTX hack is not the first and will not be the last save all your coins in your custody not in the hands of centralized system.

ThemePen

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That is the good suggestion ever. Like we see what the FTX done. And after some days there can be more exchanges so this is a good suggestion that keep out you all assets from all exchanges and don't store them in any exchange.

Exchanges can scam anytime like FTX. So be careful.

_BlackStar

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Quote from: Welsh on November 12, 2022, 06:30:47 AM

Electrum can be used as a cold wallet, however by default or the most common usage it's not. If you ran Electrum in a offline environment, it would be considered cold storage, but even then you have to handle the downloading of Electrum, and the transfer to a offline computer, very carefully.

Also, it could technically still be stolen or compromised. There's always a physical threat, and it entirely depends on how you've secured it. Plus, there's no such thing as absolute security, there's always going to be flaws whether that's through the user or the software itself. You can only reasonably secure something, since you aren't going to know all the flaws until they're discovered, and there's been many in the past.

I like this kind of security practice with electrum, but let's be honest that if we have more than $10K in funds then it would be better to consider hardware wallets as a better security option.

Although in the end every bitcoin user is responsible for fund and himself, but as a community, we will probably advise them in the right and simple way. A hardware wallet would be very cheap compared to the risk of losing all the assets on the exchange, this is certainly a worthwhile thought.

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Quote from: Pandu Geddon on November 11, 2022, 06:03:36 PM

Putting assets on an exchange is very risky. what happened to FTX certainly teaches us a lesson. we have no control over our assets. everything is owned by a third party. so it's better now we get used to storing assets in our wallets. if can't have a hardware wallet, an online wallet like Trustwallet is fine for a while too.

Trustwallet or Coinomi as a wallet that can be multicoin compared to storing assets on this exchange is more risky after seeing the impact of FTX which has become a new trend due to failure which eventually led to bankruptcy.
In fact, we are planning a long term investment, so just buy this hardware wallet, you have to sacrifice a little money to buy the wallet. For me, this is important and even if you don't want it, the wallet mentioned above is still worth it as long as your private key is responsible for yourself and not can store arbitrarily.
I myself believe more in hardware wallets and Electrum being a bitcoin wallet that is comfortable to use.

Alisha-k

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A good discription and explanation on how exchanges should be treated. There is no business keeping coins that are not meant for trading on exchanges. Hackers are on the hunt and many more Centralized exchange are on the pipeline to getting hacked. we can't trust a system where their database is controlled from a central point and can stop their customers from making withdrawals. Buy from exchanges and move them immediately to cold wallets where worries of compromise is reduced to its minimal.

Topic: Newbie Reminder: Treat Exchanges as Marketplaces (Read 530 times)