The Reasons I Trust Binance for my Crypto Trading - page 2.

Doan9269

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Quote from: Dripstoil on June 05, 2022, 11:01:35 AM

The bottomline is that, your asset is just as secure at Binance as when you're handling it via cold wallet. Plus you have the added incentives of doing more with your assets to grow it.

The fact still remains thesame that centralized exchange remains centralized and nothing can change about all its demerits against decentralized ones, be it Binance or any other exchange they have the same risk to lack of privacy controls and ever increasing rate of attempts to been hacked, the advice here is not to use them at all, but your major investment shouldn't be left in them because of the risk, and if you're privacy concious then don't even go close to CEX.

Lucius

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Quote from: stompix on June 06, 2022, 08:31:35 AM

No large exchange will ever be able to pay back a total hack, and it makes no sense, they would rather go bankrupt and start again under a different name.

Even if in some imaginary situation it would be possible to pay the total damage, I wonder how someone would feel waiting 5 or 10 years for it? It has always been fascinating to me that in a country like Japan, such a case has not yet been resolved after 8 years, and in the event that someone hacks specified Chinese wandering crypto exchange, maybe the whole thing would be solved by the Chinese Communist Party Roll Eyes

I can understand that due to the need to trade it is necessary to have a part of BTC on crypto exchange, but I would never use such platforms as a way for long-term storage no matter how secure someone considered them. I know that it is a great challenge for many to be their own bank, but that is one of the key things when it comes to financial sovereignty.

aysg76

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Quote from: pooya87 on June 06, 2022, 11:01:41 PM

It would have made some small sense to make such a topic in 2011, even though it were still just as wrong back then too. But it makes no sense to still say the same thing and use "centralized exchange" and "security" in the same sentence when we have had lots and lots of cases where the CEX scams its users whether at a large scale (like shutting down completely and never giving users money back) or selectively at a smaller scale (like Bittrex that scammed about 20% of its users and stole their money).

People don't tend to understand these terms and for them Binance is safe because it has security protocols like 2FA and their well built system but still they are diluting the whole purpose of decentralisation with involvement of these CEX for their funds.

Not your keys not your coins is well known phrase for all of us in this crypto space but still there are lot of users who stores their funds in these exchange without even realising the fact how risky is it as the exchange has your keys and they store funds on your behalf and what if they change their mind and try to scam you ? Your funds are gone and you can't do anything after that.

The hacks are well organised on these exchanges and the other part is their KYC factor as you are revealing your identity to them and that also with restrictions.They act like central banking over your funds asking for lot of things under AML policy but they all are government puppets wanted to have full track of their users.If not submitted your account is freezed and you are locked out of funds as practically the funds are in their custody with keys to it.

Binance might have said they will repay customer funds in case of bankruptcy contrary to what Coinbase has said but still avoiding them is best option as funds are not safe at all in any manner over these CEX.

pooya87

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It would have made some small sense to make such a topic in 2011, even though it were still just as wrong back then too. But it makes no sense to still say the same thing and use "centralized exchange" and "security" in the same sentence when we have had lots and lots of cases where the CEX scams its users whether at a large scale (like shutting down completely and never giving users money back) or selectively at a smaller scale (like Bittrex that scammed about 20% of its users and stole their money).

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Quote from: Dripstoil on June 05, 2022, 11:01:35 AM

The bottomline is that, your asset is just as secure at Binance as when you're handling it via cold wallet. Plus you have the added incentives of doing more with your assets to grow it.

A custodial hot wallet will never be as secure as a cold wallet. Being isolated from Internet and other environments is always more secure than being always online. Storing coins by yourself is always more secure than trusting others to store them.

Storing a portion of your coins on exchange, maybe 10-20%, is acceptable if you are actively trading with them and making consistent profits. Storing all your coins there is just stupid.

KingsDen

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Quote from: Dripstoil on June 06, 2022, 08:39:14 AM

You're perfectly right but let me point out that even some who are technically savvy chose to keep Crypto at Binance because of other values they get. I am a risk taking entrepreneurs and would like to risk and grow my assets rather than having it sit somewhere safe and secure with zero growth. Like I stated in the original post, if you have nothing to do with your assets, you just want to keep it safe, then go learn cold storage. But if you want your assets to keep working for you, Binance is safer than we think.

Thank you Op for raising such a critical topic and stood to defend your conviction. I must say that it is not easy to do here where majority believes in pseudo-anonymity.
In as much as your view defeats the core purpose of bitcoin, it is undeniable that you had some facts in your article.

Your post pointed out some cool security features that I and some other members of this forum are not aware of
You also stated that privacy is a choice, while some are very conscious not to realize any bit of information that may jeopardise their identity, some are ready to give out their information.
Importantly, you said whoever wishes to increase his/her portfolio doesn't store coin in a cold wallet

You stated facts and I agree with you that exchanges are part of crypto and majority of bitcoin bought are gotten from exchanges. So, the choice to using exchanges or not is highly subjective and doesn't make anyone less a bitcoiner.

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Quote from: examplens on June 06, 2022, 02:09:44 PM

Quote from: dkbit98 on June 06, 2022, 01:50:53 PM

On top of that you are using VPN... that can only make things worse for you, if you use it with Binance there is a chance they may flag you as suspicious.

or if someone sends you mixed coins (where you don't know anything about it) Binance will freeze all of your funds. https://news.bitcoin.com/as-fatf-regulations-galvanize-crypto-mixing-applications-are-targeted/
I'm not sure how easy it is to remove a suspension from a Binance account. especially for such reasons.

I don’t think OP realize this is a risk that comes with dealing with centralized exchanges. Because Binance is regulated, the authorities can request for information of their customers for investigation purpose and Binance will have no choice but to comply without consulting or seeking approval from their customers. Even worse, your account is frozen, it will not be easy to prove your innocence and recover your money.

The Cryptovator

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Everything I would agree with except storing crypto in Exchange whether it's Binance or any other centralized exchange. A few days back I bought some tokens from the Binance and moved them to my Ledger. I feel secure now at least Binance couldn't freeze my funds anyway. Whatever the security we can't prevent freeze funds by them. It's not all about only scams. I use Binance for trading, but not for storing big amounts not matter how secure it is.

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Quote from: dkbit98 on June 06, 2022, 01:50:53 PM

On top of that you are using VPN... that can only make things worse for you, if you use it with Binance there is a chance they may flag you as suspicious.

or if someone sends you mixed coins (where you don't know anything about it) Binance will freeze all of your funds. https://news.bitcoin.com/as-fatf-regulations-galvanize-crypto-mixing-applications-are-targeted/
I'm not sure how easy it is to remove a suspension from a Binance account. especially for such reasons.

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Dripstoil's problem is not that he completely trusts the exchangers and considers the safest crypto storage, but that he is trying to prove it in his post and convince other people of the correctness of his point of view. It is OP's personal business where and how to store his crypto and it is not for us to judge with his choice. Many here understand and voice that the exchangers is completely unsuitable as a crypto storage and contradicts the idea of "not your keys, not your money". The bad thing here is that newcomers, having seen and read this topic, may decide that binance or any other is trustworthy, which in the future may lead to negative consequences for them.

dkbit98

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Binance exchange is not a ''crypto storage'' of any kind and it should not be used like that by anyone, even CZ is not keeping his coins there, but OP obviously thinks he is smarter than him. Cheesy

You are giving someone else control over your coins and they can freeze your account anytime they want and for whatever the reason, so all those security features you mentioned (IP Whitelisting, 2FA, notifications, etc) means nothing.
On top of that you are using VPN... that can only make things worse for you, if you use it with Binance there is a chance they may flag you as suspicious.

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Quote from: sheenshane on June 06, 2022, 11:05:44 AM

You're wrong!
How many exchange platforms have been hacked that is suspected of an insider job? A Comprehensive List of Cryptocurrency Exchange Hacks
It might not be emptied but it will end up them immediate shutdown, luckily for those who will recover like Upbit exchange they cover losses.

Though considering Binance has a feature of high-security level and has a promised feature of SAFU which is your fund is safe, it doesn't mean you will trust your crypto asset to them, the golden rule of holding crypto must be our priority. "Not your keys, Not your coins".

Ending with an immediate shutdown seems to be a drama for some exchanges in the past.
I've even had a number of assets still on the exchange that were hacked and couldn't come back until now.
No matter how secure the exchange is, of course there will still be loopholes. Only Binance, which at that time was the most popular and largest exchange, could still be hacked. this proves nothing is on all systems.

Remember about the CRYPTOPIA exchange hack incident which was hacked 2x between February 2019 and February 2021. This resulted in a lot of losses.

But the most detrimental exchange hack incident was the MT.GOX exchange which suffered a loss of around $600 million.
This is the reason why no one can safely store all assets on the exchange, because we do not have complete control.

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Quote from: Dripstoil on June 05, 2022, 11:01:35 AM

While Binance boasts about its security, about keeping the funds "SAFU" and so on, while they do have a strong marketing and a pretty good history too (afaik they've always reimbursed when there was a problem), I would like to emphasize that they're still a custodian, and not your keys, not your coins.
I will come with even more: just search the forum about the Nigeria users Binance has frozen their funds without warning - most probably because Bitcoin is not legal in Nigeria and Binance may have received an official note about that.

So yeah, all big established exchanges are nice and good... until proven otherwise or until it happens to you. So.. better be wary and don't keep too big funds there.

noorman0

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You explain about security at length which is actually only a small part of your strong reason. Simply put, you are not confident in your ability to secure private keys. Yes, some people decide that because the centralized system has the possibility to recover.
Actually your compelling reason is this (which should be explained in more detail):

Quote from: Dripstoil on June 05, 2022, 11:01:35 AM

-snip-
and alternative credible means to store assets for maximum benefits.

I have said many times that the centralized service has 1000's of "advantage" offers to get you to hand over your crypto. In this perspective, blockchain is not really needed for you. As long as something has a profitable scheme, you will enter even though you are actually being controlled.

sheenshane

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Quote from: Dripstoil on June 06, 2022, 09:00:08 AM

But the good news is that no exchange platform can be hacked to the level of getting everything emptied. The worst could be a billion dollar worth of coin. Correct me if I'm wrong.

You're wrong!
How many exchange platforms have been hacked that is suspected of an insider job? A Comprehensive List of Cryptocurrency Exchange Hacks
It might not be emptied but it will end up them immediate shutdown, luckily for those who will recover like Upbit exchange they cover losses.

Though considering Binance has a feature of high-security level and has a promised feature of SAFU which is your fund is safe, it doesn't mean you will trust your crypto asset to them, the golden rule of holding crypto must be our priority. "Not your keys, Not your coins".

BookFlower099

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I trust binance but not 100%. Binace is the top exchange but not ideal for your crypto storage. Because binance controlled by others.
Your asset is your. If its controlled by other thats will not be fair man.

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Quote from: Dripstoil on June 06, 2022, 09:00:08 AM

If you're afraid that Binance "cold wallet" be hack and get emptied, don't you think you should therefore be more afraid of your personal cold wallet? Because I believe it's likely million times easier to hack yours than theirs.

My wallet was never hacked, Binance had been hacked!
My wallet can't be reached via the web, theirs can!

There is no majik one million times stronger protection, it's how you guard the access to the data containing the private keys, in my case you don't even know what to look for, a text file, a picture in the bedroom of me and my wife with half of the key in the background, a bunch of numbers on a steel plate in the kitchen, where is the key? In Binance's case you already know, it's digital and in the possession of the ones allowing withdrawals from the cold wallet to the hot wallet, easy to social engineering targeting.

Quote from: Dripstoil on June 06, 2022, 09:00:08 AM

But the good news is that no exchange platform can be hacked to the level of getting everything emptied. The worst could be a billion dollar worth of coin. Correct me if I'm wrong.

Yup, you're wrong, there is no limit anywhere on the maximum amount of coins that can be transferred out of an address.
How would that even work?

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One simple question that I want to ask you after reading your long post is that, who owns Binance? I am sure you would answer CZ! Which unfortunately means a single individual owns and controls the exchange. What if he thinks and implements it is time to shut the shop. What will you do then?

Now, you might say every company or a an organization is being owned by a single individual. Yes, they are but the big difference here is that they all have an official addres of their offices worldwide. The problem with Binance exchange is that it doesn't and nobody can track them or find them incase if they shut shop.

I would suggest you to think twice before using any exchange as a wallet to hold your crypto assets. I personally would only use an exchange wallet for trading and nothing more.

cryptoaddictchie

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Some here OP trusted binance too but not on the edge that we are gonna rely on compensation that if binance got a total rekt it is.

He can compensate some probably or a bigger funds, however we cant be sure if he can compensate everyone if binance experience a total hack. Unless he could divulge that he owns the same fund somewhere that equals the total coins and tokens worth inside binance.

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Quote from: Dripstoil on June 05, 2022, 11:41:52 AM

At Bunance, you have options to do more with your Crypto to grow it. You can't do that while your coin is sitting at the cold wallet.

But that's just unrelated. Of course and you can loan your money or use these PoS-kind-of yield nonsense, which come with shitcoins, to make money, but that doesn't mean you don't lose privacy, security, custody. Again, the moment you hand out your coins to Binance, they're no longer yours; with or without a profit.

Quote from: Dripstoil on June 06, 2022, 09:00:08 AM

If you're afraid that Binance "cold wallet" be hack and get emptied, don't you think you should therefore be more afraid of your personal cold wallet?

No, because no other person on Earth cares as much as me, for my money's safety and privacy.

Quote from: Dripstoil on June 06, 2022, 09:00:08 AM

Because I believe it's likely million times easier to hack yours than theirs.

You can't "hack" my coins if you don't know I own any. Wink

Quote from: Dripstoil on June 06, 2022, 09:00:08 AM

But the good news is that no exchange platform can be hacked to the level of getting everything emptied. The worst could be a billion dollar worth of coin. Correct me if I'm wrong.

Dude, read the link I gave you: https://cryptosec.info/exchange-hacks/. Centralized exchanges have got hacked, can get hacked and will get hacked. Only an ignorant would continue believing they're safe.

Topic: The Reasons I Trust Binance for my Crypto Trading - page 2. (Read 540 times)