Topic: POLL: How can you trade cryptocurrency without getting "hacked" by an exchange? (Read 132 times)

https://counterparty.io/ tokens. A currency:C currency:B currency?

NO!

A currency:B currency!

Hmm...


Well if I were aware that I was trading such an amount that would be irresistible to the exchange operators not to steal it then I damn sure wouldn't be sending that amount to an exchange..
But what is this amount and how do you determine what amount would be irresistible? I think for most exchanges that aren't extremely illiquid this would have to be an extremely large amount to be significant in comparison to their current total deposits..
I think having any amount of coins sitting on any exchange or web wallet where a 3rd party has control of your keys is a risk and I suppose te greater the amount the more temptation any of them would have to steal it from you..


It could definitely happen and does.. Weather it be that you happened to be unlucky enough for it to occur while your coin was there (depending on your time level of exposure, sitting vs in and out), or that if your transaction itself was so large that it triggers such a heist may very well increase your risk..
All trading is a risk and relinquishing control of your keys is another part of that risk..  Once you send your crypto to a 3rd party then in all actuality you don't have that crypto anymore, all you have is a tally in some centralized ledger that says your account is credited X.XXX coin and that they are known for giving you your coins back at your request of a withdrawal.. But they don't have to send them back, they have the keys, you put your coin in their hands because you trusted them enough to take that risk..


I'm not sure what you mean by this but I'm guessing to exclude decentralized exchanges though pretty much every crypto is a "variable tokens that incur losses from slippage" in that their prices vary and the price will slip on you if you put in a big enough order.. BTC price will slip if you market buy a few million worth and so would pretty much anything commonly traded if your order is big enough..
How big of an order would it take to make US government bonds slip or perhaps the gold market? I don't know..

Pretty much if you want to trade crypto on any exchange you are sacrificing that risk of handing your control of your coin over in exchange for ease, speed, and organization that an exchange delivers.. It's a lot easier, faster, and more organized to trade on an exchange rather than try to find tat 1 trading partner in a million that wants to trade you what you want for what you have at a rate that is agreeable to both of you..

For example, this is why I liked to trade huobi with leverage so I could risk 1/5th of my crypto on deposit and then trade with 5X that amount as if I had deposited that much in the first place.. A good amount less risk of losing your coin to that exchange but you incur higher trading fees because of it..

You could trade here.. Decentralised-Liquidity Exchange -- 'D-L-Ex' https://bitcointalksearch.org/topic/decentralised-liquidity-exchange-d-l-ex-1579087
But then you would still have to trust an escrow or trust your trading partner, or your trading partner would have to trust you, and any of those could also run with your coin or you run with theirs..

It's pretty hard for me to come up with any situation where you could trade without any risk of being robbed other than a decentralized exchange like counterparty, but, if you havn't tried the counterparty DEX, it take a bitcoin block to confirm any trade you post and you have to pay a bitcoin fee to get every one of your trades to post, so it's very slow and very expensive..

Every step of the trading process has to be considered against your personally acceptable level of how much risk you are willing to take in order to possible have what gain as a result of success.. Just the trade itself has risk before you even get to what if the market moves against you..

It's all part of the gamble, choose your game wisely..

What if you're aware that the amount that you would trade on an exchange would be enough to immediately trigger an exit scam aka "hack" of the exchange, no warning on "zero-day" except the maxim that once you send your cryptocoins to a private key not under your exclusive control, they're no longer yours?

P.S. No trading variable tokens that incur losses from slippage.

I voted "fuck all webs of trust" Because you can trade on the counterparty DEX distributed exchange and you can't get hacked.. Well, if you get hacked it's your own fault for mishandling your seed/keys..

But, you can trade all the exchanges and not get hacked if you don't leave coin sit there long and stay aware for the most part.. It's a little about luck and a lot about your level of exposure to the 3rd party..

I have traded like every altcoin exchange and the only time I lost anything to anything other than a bad trade was a little bit of dust from arbing cryptsy right to the end.. I made way more arbing than I lost X100..

I probably have had some dust go down on now defunct exchanges but it wasn't worth my time to recover..


Getting hacked by an exchange is not really something to be that terrified about unless you use the exchange as your wallet..
If you just get in and get out with your business and stay aware of the current news about exchanges, the talk, you don't have too much to worry about..

I just put up the same poll on Twitter for 7 days & overwhelmingly, the votes are for "You can't".

Really sad how many people only recommend exchanges in spite of this, anytime someone tries to trade OTC with an ironclad WoT to their name with so many linked identities & logs that it would effectively be impossible for them to sell their identity so that the new owner's charade wouldn't immediately fall apart under a non-trivial examination.