Topic: Reminder: Your funds are NOT safe in third-party wallets - page 2. (Read 505 times)

Nothing is ever 100% safe, even with your private keys hidden someone can physically attack you and torture you until you give them up.  In some cases people feel safer with a 3rd party.  Not everyone wants to be their own bank.

One of those reasons is due to fact they can't find a single wallet to hold all their coins/tokens because they invested in multiple shitprojects from misunderstanding the concept, "Don't keep all your eggs in one basket" not knowing it's ever worst when you keep your eggs in multiple unsafe baskets all in the name of investing in multiple source of income when technically they're investing in one (cryptocurrency investment).

Before we start advicing newbie to stop storing their coins on exchange, they have to first be educated on investing wisely.

Did you even read that wall of text ? or you just read the title and assumed it could be replaced with that one liner ?

The whole purpose of this thread is not about me just telling others not to use exchange wallet as a bank, but to give them reasons why it's absolutely necessary not to do so.

This is "beginners and help" section and many are new to all of this, I believe every single one of them should know the reason/reasons as to why they should listen and follow these advices they hear all over the forum.


Thanks for the insight but I pointed this out in the OP :

They didn't forget those exchanges hacked in history. It's just that they used exchanges because of various purposes e.g buy,sell,deposits, withdraw,convert,less hassle trades etc.

There are lots of reasons why people used exchanges. Remember that not all people does have the same purpose of holding coins for long period. They already understand the risks so to minimized that they will stick to those reputable ones. We can't just say to people to stay away from exchanges but instead give them some enlightment about all the associated risks they will faced once they put money on exchange.

For holding purposes for quiet long period, obviously it's basic that people should not used an exchange wallet.

You can replace all this wall of text for:
Remove your money from exchanges and put them in a wallet where you hold your private keys.

This is probably among the most basic things which anyone that uses cryptocurrencies should know, if it's not in your personal wallet it's not yours yet, as simple as that, but surprisingly enough there are actually people that really think that their tokens/coins are totally safe in exchanges, if you ask those people why are they so sure and feel safe, most of them will probably just say because they trust the exchange or something like that.

Seems to me some people tend to forget previous incidents regarding exchanges getting hacked rather quickly, BitGrail hack that during the incident millions of XRB(Rebranded and known as nano now) got removed from their wallet and the cryptopia hack that happened recently and it wasn't even this exchange's first time that experienced an incident like this and then again people trusted this exchange enough to keep their funds on there, why would anyone trust an exchange with all those previous fishy incidents (like the time when they were having something around 1 month or even more for a simple withdarawal action) and such really?

I'm not talking about the amount that you are trading daily or weekly obviously, this is about medium/long term holds, the tokens, coins or even stable coins that you're not going to exchange them anytime soon, so just don't go ahead and put your life savings on exchanges and use them as a bank no matter how trusted and reputable that exchange is, you can only use your personal wallet (preferably offline) as some kind of a bank, even if we assume that one exchange is really trusted and they're not going to go offline the next hour or tomorrow there's still a chance (even if it's really low) that the exchange that is trusted by you and many others just gets hacked and all your funds on there goes poof.