Topic: Private keys for Coinbase , Bit-x ? (Read 719 times)

Understood , thank you all and mostly for Quickseller and BIT-X.COM for the detailed answers . ty
not familliar with the API so didn't fully understand what the last paragraph was 100% about .

bit-x.com is an exchange, not a web wallet. Users does not 'own' an address that is used to deposit LTC or BTC. Once coins are sent to a deposit address, the appropriate internal user account is credited with the deposited amount, and coins become available for the exchange to use in its operations. User also does not control the source address of withdrawals. This is standard practice among centralised exchange services. Crypto funds are expected to be deposited to our exchange for the purpose of trading and to fund debit card purchases. For storage purposes users are advised to use their own wallets.

We use multisignature as a way to secure coins in our hot wallets. It allows us to introduce additional restrictions on the usage of the coins. These restrictions are enforced by a secure isolated single-purpose system with a very strict access policy. Any transaction must be signed by both the hot wallet and the restriction-enforcing system. To steal any significant amount from the hot wallet, a bad actor must gain access to both the hot wallet system (highly secured) and restriction-enforcing system (paranoid-level secured).

The problem with message signing is that core bitcoind/litecoind only allows to verify messages signed by standard non-multisig addresses (technically, the verifymessage API call calls GetKeyID function, which ensures that the address version is PUBKEY_ADDRESS, while multisig p2sh addresses use SCRIPT_ADDRESS as their version). If a user needs to prove their control over an account associated with a particular deposit address, it could be implemented by signing a message certifying this fact with a publicly known bit-x.com key. Perhaps there is a better way, we're open to all suggestions!

Best Regards,
Bit-X Staff

I would actually believe the opposite of this. The fact that you do not have exclusive control over the private keys controlling your bitcoin means that you are less safe then you would be if you had generated and store your private keys yourself.

Both coinbase and bit-x are "web wallets" meaning that they do not keep your funds in a specific address, but rather will create an entry in their database when you send a transaction to them once it gets three confirmations, at which point they may use the outputs from your transaction as inputs to a transaction when another customer wishes to withdraw some of all of their bitcoin, or they may send your bitcoin to their cold storage.

Not sharing the private key with you allows them to essentially own all the wallets and therefore do whatever they want with your bitcoin when you're not using it - like a bank lending out most of the money it keeps on deposit.

I don't think Coinbase (or Xapo or others) offer lending yet though, which is probably a good thing at this point.

Why do you need to sign a message from that address? To prove an account is yours? I've seen several people not be able to sign messages from their addresses because they used an exchange and thus have not be able to get their account back after they've lost it on here. People should get into the habit of at least posting an address from their own wallet even if you're not going to use it. If you want to keep your coins online go for a blockchain.info wallet. At least you can sign a message then.

It's very surprising to me how many people seem to keep their coins on exchanges. Very risky. I thought people would have learned from gox.

What the hell "Multi signature" means on BIt-x.com if they own both keys then ? Dosen't seem a liiiittle bit illogic to you guys ?

Part of what keeps them so safe is not allowing you to get that private key.  They then know no one got the private key from you even on accident.

Coinbase I believe even has some kinda insurance, which would be part of reason they don't release key.

Why, did you use your bit-x wallet address to fulfill a transaction of some sort? Most online wallets and exchanges do not offer giving you private keys to your addresses in their service, that's why it is advisable to keep your balance in your own wallet.

You cant get the private keys thus why people recommend people to not use them as a service for holding your coins for a extended period of time

Damn , it's really shit to know that Bit-x.com don't allow signing messages I really was in need to do this .
FOr what comes to Coinbase , thank you so much

You can't.


You can using Coinbase but not with BIT-X. See https://bitcointalksearch.org/topic/m.11915241.

I always had this question and now I want actually to know if it's possible to get the private keys of Coinbase accounts or Bit-x.com accounts and export them to import to another wallet .
Or simply the ability to sign messages using the adresses given on those accounts  ?