There is always risk, when it comes to managing money. It's not only about bitcoin exchanges. Financial institutions and banks also crash. But there are still those with a long-standing reputation and a strong focus on security. That's why I am really surprised when people keep complaining about strict requirements of certain exchanges and their demanding verification process. Come on, they are dealing with your money! Better be safe than sorry.
Well it is also ways to know more about your account in a certain Exchanging Site. You see they've wanted to submit more of your identity and personal information to let them be easier to trace your transactions and eventually hacked you. The security of a system could only be strong if, it is controlled by some sort of AI and not human. As all we know, humans area naive and greedy, so if they've seen large amount of cash or potential cash, they will not hesitate to take action over it. 
Topic: Should exchanges be trusted anymore? (Read 2714 times)
There is always risk, when it comes to managing money. It's not only about bitcoin exchanges. Financial institutions and banks also crash. But there are still those with a long-standing reputation and a strong focus on security. That's why I am really surprised when people keep complaining about strict requirements of certain exchanges and their demanding verification process. Come on, they are dealing with your money! Better be safe than sorry.
All exchange which is legal/regulated with good reputation can be trusted, as long as you withdraw your money after finished exchange/trade your money and don't use exchange as wallet just like what many people did in past 
as a small investor in crypoto world how we avoid the fee of the wallets.then i dont i always keep my coins in exchanges
You can't avoid transactions fees. They are a fact of the Bitcoin protocol, and based on the market demand for transaction confirmations. Good news: Once Segwit is activated, we move further towards a working Lightning Network. And then transaction fees could be much, much cheaper than they are now.
I also keep some of my coins on exchange site cause of the transaction fees.
I think it's high time we all realize that we should be hoarding our coins (and if we are spending them, batch payments and don't make unnecessary transactions). Saving some satoshis here and there on transaction fees cannot begin to justify the risk of holding coins on an exchange. Even if we are talking about regulated exchanges (even those who could be bailed out by their investors in a major hack of customer funds), customer money could be tied up for years, if most/all can be recovered at all, if the exchange gets hacked.
All exchange which is legal/regulated with good reputation can be trusted, as long as you withdraw your money after finished exchange/trade your money and don't use exchange as wallet just like what many people did in past
as a small investor in crypoto world how we avoid the fee of the wallets.then i dont i always keep my coins in exchanges
Even if its hard to understand what you wanted to say, elaking, you said something that most of us practice. I also keep some of my coins on exchange site cause of the transaction fees. Most of us take care about that and we rather trust exchange site then to move coins all the time.
I also must agree with some members that said that we can`t really have trust in anything, that is truth. I made my choice and I know risks, and each one of us can decide on its own. My reason is that I have many coins holding, and I`m lazy to download wallet for each coin. Well maybe I should think about doing that.
All exchange which is legal/regulated with good reputation can be trusted, as long as you withdraw your money after finished exchange/trade your money and don't use exchange as wallet just like what many people did in past
as a small investor in crypoto world how we avoid the fee of the wallets.then i dont i always keep my coins in exchanges
Many exchangers are lying and misleading. In fact, they have no license, so they are considered as unlicensed money transmitting business.
Conclusion: YES, there is a high risk of seizure in this case.
Conclusion: YES, there is a high risk of seizure in this case.
given that you admit that many exchanges are lying and misleading about their registration status, that they are listed on the FINCEN website, and that the exchanges do implement some level of KYC---it seems unfair for you to call anyone losing money in such a seizure "stupid" and "sheep."
it is especially unclear in the case of crypto-only exchanges. USDT, for instance, by its own terms, is not money nor redeemable for USD (despite what users think). so for Polo and Bittrex, are they definitely engaging in the operation of a money services business? is there precedent for this?
To assert the gray you have to dress the exchange because you have no other choice. Stealing is come down to an absolute minimum, and there are obviously at least three or four that you know you could trust it this time. Really for them to steal at any given point cuts off any future business for them these guys are making money hand-over-fist through fees, and everything else on her website
Think about running a website or someone's going to pay you nearly $2,000 just to have their product listed on your website. This is just one way to make money and it involves pure investment. On the other hand, investment in exchange has more risks.
Exchanges have never been trustworthy no matter how famous they no , no matter whom they are regulated by as we trade using bitcoin nothing really is safe , don't store all your funds in an exchange if you find a good trading opportunity send with tge most fees and quickly by the coin. As soon as you get the profit withdraw back to your account.
Had been in a dilemma after seeing BTC-E's owner being arrested for a $4 Billion money-laundering fraud which he had been conducting, who knows that from when. First Mt Gox, then Bitfinex then Poloniex and now this, few were hacked and some had their admins only cheating their users.
Do you really think any exchanges are trustworthy anymore?
Do you really think any exchanges are trustworthy anymore?
Well, that's why you must aware about the exchanges. Me myself only using popular exchanges and i also never let my coins on exchanges site for a long time. I'm still trust exachanges but we also need to be aware and always up to date about the exchanges information. If something fishy happen, just be ready to take out all your coins.
Poloniex is NOT regulated. They are like BTC-e. So, their terms are null.
can you explain what that means to a layman? they wave around their MSB # from FINCEN like it means something. they are based in the U.S. and registered with FINCEN, so i had sort of assumed that customers were better off than with BTC-e, for example.
is that not the case? are they at risk of seizure?
FinCEN number it's just federal registration number. It is NOT a license. FinEN registration does NOT provide you licensing rights to operate as a money transmitter in the States.
Any exchanger who want to operates in USA(this includes Kraken, Poloniex, Bitfinex and many others) MUST register as MSB in ALL the States where they want to make business and then to register with FINCEN
But these exchangers(including Poloniex because you asked about them) are throwing dust in the eyes of the naive people. They register on FINCEN website(it's very simple do that; you can do it yourself by using any name you want) and they are saying that they are MSB.
If you take a look on FINCEN website(at bottom), you will notice that there is an alert toward to this thing :
"Information contained on this site has been provided by the MSB registrant. FinCEN does not verify information submitted by the MSB. Information provided on this site reflects only what was provided directly to FinCEN"
https://www.fincen.gov/msb-registrant-search
Many exchangers are lying and misleading. In fact, they have no license, so they are considered as unlicensed money transmitting business.
Conclusion: YES, there is a high risk of seizure in this case.
Poloniex is NOT regulated. They are like BTC-e. So, their terms are null.
can you explain what that means to a layman? they wave around their MSB # from FINCEN like it means something. they are based in the U.S. and registered with FINCEN, so i had sort of assumed that customers were better off than with BTC-e, for example.
is that not the case? are they at risk of seizure?
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Should exchanges be trusted anymore?
Take out from exchanges till forks done:https://www.btcforkmonitor.info/
Everything seems stable at this point. The BIP148/BIP91 splits never materialized, and Bitcoin Cash is stable (if slow) and exchanges seem to have a good handle on supporting it now.
Still, it's good not to have your coins on exchanges...
To assert the gray you have to dress the exchange because you have no other choice. Stealing is come down to an absolute minimum, and there are obviously at least three or four that you know you could trust it this time. Really for them to steal at any given point cuts off any future business for them these guys are making money hand-over-fist through fees, and everything else on her website
Reputation becomes important because some exchangers eventually become a scam, this we must be aware that we are not exposed to a scam.
use a regulated exchanger and the possibility to be scammed is almost zero.
It's still prone to fraud (like regulated banks and investment companies e.g mutual funds) but the good thing here is, since it's regulated, chances are low to happened and we can sued them and can able to get back our funds.
Just take note that regulated exchanges requires verification which for me, I don't see any problem to that.
Seems you have not read the Poloniex Terms of Service; Regulation means nothing except that they share your information with the government, and you waive your right to sue them or have your money returned in event of fraud or a hack, period.
See: https://bitcointalksearch.org/topic/poloniex-terms-of-service-scam-2063536
Poloniex is NOT regulated. They are like BTC-e. So, their terms are null.
Ideally, we would have decentralized exchanges run by smart contracts, but it may be very hard to implement with fiat, and anything that isn't cryptocurrency.
That's the problem. Often times, when bitcoin drops in value, altcoins drop even harder. People want to retain the fiat value of their coins, and decentralized exchanges can't solve that.
I'm also pretty skeptical of attempts to peg cryptocurrencies to fiat values. It never ends up working out in practice, and I don't think it works in theory.
Exchanges is a business indeed and we all know that in business there is no 100% guarantee of profit. Trusting is really hard especially beacause in this industry there is anonymity but if you are a business minded and all you always take risks and trust to be able to survive in a field.
if someone see the exchange as a crypto currency wallet... this is big problem... as we ve lived at mt gox and btc-e... i ve been making just exchange complete the trade take out all currency in 1 hour... i ve lived afew problem under the name of "processing error" but all of them ve been solved in 48 hours... my trade volume more than 250k usdt during the last 1 year i ve never left 1 cent in their account...
as we can easly understand from their name they are EXCHANGE SITES... do not keep deposit in their account like a forex company....
as always my favorites
1- POLONIEX
2- BITTREX
as we can easly understand from their name they are EXCHANGE SITES... do not keep deposit in their account like a forex company....
as always my favorites
1- POLONIEX
2- BITTREX
Ideally, we would have decentralized exchanges run by smart contracts, but it may be very hard to implement with fiat, and anything that isn't cryptocurrency.
As for current centralized exchanges, it's a risk management problem. You have some negative expected value determined as (probability of loss * amount of funds). To minimize it, you could only send funds to exchanges when want to make a trade, instead of keeping it there all the time, but this creates additional costs due to transaction fees and delays. If you are dealing only with small amounts and trade frequently, it makes sense to keep your coins on exchange, but if you are hodling large amounts long term, hardware/software wallet is the only right choice.
As for current centralized exchanges, it's a risk management problem. You have some negative expected value determined as (probability of loss * amount of funds). To minimize it, you could only send funds to exchanges when want to make a trade, instead of keeping it there all the time, but this creates additional costs due to transaction fees and delays. If you are dealing only with small amounts and trade frequently, it makes sense to keep your coins on exchange, but if you are hodling large amounts long term, hardware/software wallet is the only right choice.
I always crave the exchange because in exchange we can use it for the journey, money exchange sometimes get a loss with the sale and buy price is very different.
There is nothing different if you are using the right exchange because right exchange give you more possibilities while other exchanges are giving you hard time so i would like to say that use coinbase or blockchain because these are the best exchanges ever you will know. Because in them the prices are also less and there is not even a single tax.Jump to: