Topic: Talk About Your Concerns And Fears In Doing Business With Exchanges (Read 680 times)

Loss of privacy isn't too big of an issue for me actually, since the exchanges are centralised and cryptocurrencies are not you can always just make up a username that isn't linked. What scares the shit out of me however is the security. I'm not knowledgeable on security and I can't for instance hack into a CIA mainframe like I'm sure some people here are entirely capable of doing but the idea of seeing these total amateurs and completely ignorant people using cryptocurrencies nevermind the fact that lets face it these are the people who are going to be setting up all kinds of businesses leaving themselves wide open to attack. The thought of leaving them alone with my money is pretty terrifying and I make enough mistakes on my own but I'd rather be responsible for my own downfall and learn from it rather than have the classic thing of an exchange leaving all their coins on their server and then wondering why they've all suddenly disappeared.

I was wondering whether I shouldn't mention this but I managed to lose 0.16 Bitcoins to a classic case of one of those stock exchange websites having fill orders that don't ask for confirmation. It may not be much to most people but it was a pretty sizable chunk of cash that I was building up so I could maybe get a more passive income. While I'm not too worried because I'm busy developing skills in real life and building up a business I at least had a backup plan but these guys, I'm not convinced at all about the security measures they have if any for that matter.

I made the classic trader's mistake of executing an order without properly looking at it first, don't make my mistake exchanges/stock exchanges! Put in fairly fool proof systems and never underestimate the stupid mistakes people make oh and make sure people can give you permission through a button of some sort to store coins on their account offline.

fair enough, i just thought it would be cool to see another exchange on the horizon  

Def a good topic of discussion!

In terms of concerns, below are my top:

1. Inability to cash out to Fiat when the time comes, especially in large amounts.

2. Exchanges always on the verge of collapse or shutdown by governments (happened to many times)

3. Lack of Privacy, the long list of documents are annoying, especially with requirement like (must be no older than 3 months etc), sometimes you give them all your documents then they aren't happy/satisfied so you refuse to use their service, what do they do with your ID docs after that ?

4. Since i'm giving out so much about my self, i am worried about Identity theft in case of hacks or lack of proper in-company policy to safe guard your Identity. Can't really trust them with my Documentations as they don't follow a set protocol, like for example charles swab would.

5. Slow BTC withdrawals / deposits always an unnerving experience

6. Poor, slow and unresponsive support (Bitstamp are the only ones that proved reliable in terms of support, every other exchange has major issues and i tried all of them)

1 & 4 are my biggest concerns.

Great replies and thank you for them!

Keep them coming!

I don't mind losing some privacy as long as I don't lose my bitcoins (not talking about losing 2 btc's but bigger amounts)... Thing is you must pick carefully the best exchange and don't go with the first random exchange that appears out of nowhere.

I think exchanges and privacy are *not* compatible right now. Even users at localbitcoins are victims of complex scams because people is not properly identified. I know some cases where the users at the end have lost all three things: the bitcoins, the fiat, and the privacy (they had to go to police/attorneys)...

my 0,02

Loss of privacy.  I felt like I had to take a shower after verifying with CAVirtex.  They say they encrypt your info on their servers but I feel like I will be kicking myself after the inevitable breach and id theft.

My concern is them knowing my personal information i am always hesitant to give that out online.
also can i trust them? how do i know they are reliable? will i get into any trouble? Thats what comes to mind.

Pardon me but I have never heard of an exchange that charges 30% for conversions to cash!

Which one does that?

Nice idea but no.

Takes much more money than I have to set up an exchange and operate in the USA!

Literally millions by the time all of the required registrations are complete and that is no joke!

I am very security minded, have concerns of my own and thought this might make a good topic for discussioni.

Thanks for reading!

My $.02.

are you starting up your own exchange / wallet service and this is part of your research ? 

exchanges is always to convert ... but, when always use bitcoin ... you don't need to convert even if you paid employees in bitcoin.
but for now, you must "lost 30%" in echange to transform BTC in local currency (and wait 1h for this process).

Not necessarily specific exchanges but comments in that regard are welcome also.

What are your fears about doing business with exchanges?

Theft of your crypto?

Not getting paid?

Governments blocking or seizing your funds?

Hacking of the exchange's website?

Loss of privacy?

Express your own concerns as well!

Maybe through discussion we can improve the situation with exchanges.

Thanks for reading!