Poll : do you trust an exchange to hold your bitcoins ?

CoinsCoinsEverywhere

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Quote from: Fray on August 13, 2014, 08:05:00 PM

Quote from: franckuestein on August 12, 2014, 06:20:51 AM

People don't remember MTGox?

Yes, that exchange in which people lost a lot of money Wink

Even if you don't have a mtgox type situation, have your coins stored on an exchange opens you up to a lot of risks. One main risk is that your account at the exchange gets hacked and your coins withdraw from your account. You would have little to no way of proving your account got hacked and would have no way of recovering the money.

It would be very helpful to have something like FDIC or SIPC backing for exchange accounts so you could be assured that (under most normal circumstances) you won't lose your money if your account is hacked. Of course that would require additional regulation and expense, but that's the trade-off.

Fray

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Quote from: franckuestein on August 12, 2014, 06:20:51 AM

People don't remember MTGox?

Yes, that exchange in which people lost a lot of money Wink

Even if you don't have a mtgox type situation, have your coins stored on an exchange opens you up to a lot of risks. One main risk is that your account at the exchange gets hacked and your coins withdraw from your account. You would have little to no way of proving your account got hacked and would have no way of recovering the money.

oceans

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No, this is not something I would do purely because I don't think it would be safe to and I would never have piece of mind having my coins held in exchange. I have known people to lose by doing this so it's not something I would do unless I wanted the same fate.

franckuestein

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People don't remember MTGox?

Yes, that exchange in which people lost a lot of money Wink

asdlolciterquit

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i have most of my btc on exchange, but i'm getting scared, so soon i will take off them.

Dread Pirate Roberts

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maybe i just will save in bitstampp because theire more better than keep secure online or save in cold wallet who never online. but while waiting send to cold wallet i save more than 10 btc and send it to there . to makes more easy to access all wallet and secure Cheesy

wasserman99

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I'd also like to know who "insures" these deposits. The government? Xapo themselves? I don't trust Bitfinex either when they say they effectively "insure" lender swaps by collecting 15% of swap interest fees. Do the math -- that won't cover a damn thing in a real price decline.

CoinsCoinsEverywhere

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Quote from: williamj2543 on July 24, 2014, 09:50:10 PM

Quote from: alecmerkel on July 24, 2014, 09:22:40 PM

So pretty much there all shit.

xapo has insurance? Do you have to pay a premium for that?

In their vault it is insured, for 0.12% annually.

By whom is it insured? And under what conditions? If xapo suddenly disappeared and the owners ran off with your coins, would you be able to collect on the insurance for that (my guess would be no)?

williamj2543

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Quote from: alecmerkel on July 24, 2014, 09:22:40 PM

So pretty much there all shit.

xapo has insurance? Do you have to pay a premium for that?

In their vault it is insured, for 0.12% annually.

alecmerkel

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So pretty much there all shit.

xapo has insurance? Do you have to pay a premium for that?

ArbatDeli

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Trust an exchange? That's asking for trouble. Maybe when we get some trustworthy exchanges backed by established brands.

tsoPANos

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In math we trust.

Not I don't.
I just don't want to loose my money again, like I did with gox.
I have been goxxed!

1echo

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scams hunter!

Yes, only to one exchanger, because I know the owner.
Www.bitcoin.co.id

williamj2543

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Quote from: AceWallen on July 24, 2014, 02:11:37 AM

Quote from: williamj2543 on July 23, 2014, 11:49:17 AM

Only online site I would trust for holding long term is maybe blockchain, and definetly xapo.com's insured vault. Other than that, it could end up like mt. gox again.

i wouldn't use blockchain.info for long term storage. it's still an online hot wallet. and i have heard that it can be vulnerable to JS exploits. for long term storage, cold storage is the only solution.

Currently I am keeping about 0.05 BTC in my blockchain for quick access, and the rest in a xapo.com vault, cause its insured so its impossible for it to be lost. I don't trust myself with cold storage.

AceWallen

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Quote from: williamj2543 on July 23, 2014, 11:49:17 AM

Only online site I would trust for holding long term is maybe blockchain, and definetly xapo.com's insured vault. Other than that, it could end up like mt. gox again.

i wouldn't use blockchain.info for long term storage. it's still an online hot wallet. and i have heard that it can be vulnerable to JS exploits. for long term storage, cold storage is the only solution.

alecmerkel

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Quote from: DolanDuck on May 31, 2014, 08:57:10 AM

There's no sense in holding ALL the bitcoin savings into an exchange but if I would be forced I'll deposit mine into BitStamp,
the only one I trust.

Offline wallets + paperwallets + online wallets (small amount to trade) to be secure and have some fun.

I heard that bitstamp is closing account and keeping the BTC. Is this true? You seem to trust them a lot. Do you have any input on this?

franckuestein

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Quote from: williamj2543 on July 23, 2014, 11:49:17 AM

Only online site I would trust for holding long term is maybe blockchain, and definetly xapo.com's insured vault. Other than that, it could end up like mt. gox again.

I really thing that online services are not so good to store coins...
But for you: https://blockchain.info/about - Blockchain have a detailed "About Us" so you can save It with all their info Wink

You know...

williamj2543

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Only online site I would trust for holding long term is maybe blockchain, and definetly xapo.com's insured vault. Other than that, it could end up like mt. gox again.

CoinsCoinsEverywhere

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Quote from: TheGull on July 22, 2014, 06:30:26 PM

Quote from: DannyElfman on July 22, 2014, 10:43:57 AM

Quote from: HarHarHar9965 on July 19, 2014, 04:24:55 PM

Quote from: franckuestein on July 19, 2014, 12:12:52 PM

Some exchanges are verified because of an audit but as you know some of them can close when they want unpredictably.

I don't trust any of these audits. From what I can tell, none of them have been carried out in a manner that proves current possession of assets to cover all liabilities.

The New York regulations are going to try to change this. The goal of the regulations is to get it so exchanges must prove that they have enough bitcoin to cover all of their customers' bitcoin and fiat deposits.

I like the spirit of this, but if it is a full-reserve system (which is what it sounds like) then I think it risks being too limiting to allow the bitcoin ecosystem to evolve.

Full-reserve systems can certainly inhibit growth, but they're a heck of a lot safer. I think that part of the spirit of bitcoin is to get away from banks and some of their practices like fractional-reserve banking that lead to all kinds of financial calamities. I think it's worth it to trade some growth potential for stability.

TheGull

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Quote from: DannyElfman on July 22, 2014, 10:43:57 AM

Quote from: HarHarHar9965 on July 19, 2014, 04:24:55 PM

Quote from: franckuestein on July 19, 2014, 12:12:52 PM

Some exchanges are verified because of an audit but as you know some of them can close when they want unpredictably.

I don't trust any of these audits. From what I can tell, none of them have been carried out in a manner that proves current possession of assets to cover all liabilities.

The New York regulations are going to try to change this. The goal of the regulations is to get it so exchanges must prove that they have enough bitcoin to cover all of their customers' bitcoin and fiat deposits.

I like the spirit of this, but if it is a full-reserve system (which is what it sounds like) then I think it risks being too limiting to allow the bitcoin ecosystem to evolve.

Topic: Poll : do you trust an exchange to hold your bitcoins ? (Read 9194 times)