Topic: This is why it's not a good idea to leave your coins on any exchange (Read 200 times)
November 09, 2022, 11:53:00 AM
some coins are still on the exchange and i am trading, not to leave the coins on the exchange but to do some trades to take profit. The main storage is of course using a personal wallet that is not connected to any exchange. Indeed, there will be many risks that can occur if the storage is fully using a centralized exchange, because we do not have full control over the assets that we have. Hardware Wallet is a safe choice as the main coin storage and security is guaranteed.
November 09, 2022, 10:57:29 AM
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In some regions, P2P trading is a real pain anyway so I understand why plenty of people just prefer to use Centralized Exchanges rather than finding someone to trade crypto personally with. There is no issue with keeping your coins if you are actively trading, but if you're really going to hold it just like you mentioned, you're entirely risking your funds from these hacks.Back when I was learning day trading, I completely forgot that I was sleeping on my funds that was stuck in Binance and I forgot to withdraw. Good thing I still manage to get it out so I can sell it since I quit trading that day anyways.
By the way, you should update your signature and avatar since I noticed that we're both in the same signature campaign. Hhampuz posted a new signature and avatar for the Winter season here in case you missed it.
Thanks for your input by the way!
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November 09, 2022, 10:15:18 AM
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Surely this is a common sense now for most of the people and knowing that you are even leaving out personal information just for the sake of being able to register is quite concerning. If I can recall correctly, there was also a data breach back then in Binance and regardless if it was true or not, it is still alarming nonetheless.If the security of your personal information is really important, the same could be said for your money regardless of how reputated the site/app is/was. There is no perfect security since everything has been coded, made and maintained by someone.
Having said that, keeping crypto on an exchange CEX or DEX for the long term is what I don't support.
The issue about the Binance data breach if I could remember correctly happen through a phishing site, telegram trick, etc and the hacker was able to get user 2FA codes, API keys, and important info that Binance didn't state how important the information are.
November 09, 2022, 09:19:14 AM
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Surely this is a common sense now for most of the people and knowing that you are even leaving out personal information just for the sake of being able to register is quite concerning. If I can recall correctly, there was also a data breach back then in Binance and regardless if it was true or not, it is still alarming nonetheless.If the security of your personal information is really important, the same could be said for your money regardless of how reputated the site/app is/was. There is no perfect security since everything has been coded, made and maintained by someone.
November 09, 2022, 08:10:44 AM
It should be a practice that don't leave most of your funds if you're not going to use them on exchanges. There are certain reasons why people are leaving their funds there and one of it as you've mentioned is about trust.
Maybe total of 5% of your funds should be put on exchange then other than that should be stored on your hardware wallet since this could make us more safety from any hacking incidents compare if we choose to put all or funds on exchange where attacks might possible occur to them. To many reasons why not leave your funds on any of them even if how trusted they are and for us not to get any problems regarding on internal or external issues happening on exchange we should avoid to trust them 100% of our money.
It's not just all about internal or external problems that you may describe. But it's all about being affected by any hack that might happen to them. November 09, 2022, 01:23:25 AM
Do not leave your coins on any exchanges all in the name of ' you trust them ' ,this is business, trust nobody, CZ is good today but that's today, we are all humans and change is constant in our lives.
I still have about $20 token in there for about 2 years, and I don't care if that lost or stolen by CZ. but in this different situation if I have $200 there, I don't need to 1 day wait to withdraw at all fast into my own wallet (where I have the private key), I can't sleep if someone/exchange still take control of my money. November 08, 2022, 06:58:59 PM
This should be a warning sign or a definitive sign that it is not good to leave your coins/token to any centralized exchanges. Always remember the rules that "not your keys, not your coins" to avoid further damage or loss when there's something bad going to happen to the exchanges.
Exchanges might be granting something but that doesn't mean they won't turn against you, after all it's still a business so they could do anything what they want as long as to make profit.
Exchanges might be granting something but that doesn't mean they won't turn against you, after all it's still a business so they could do anything what they want as long as to make profit.
November 08, 2022, 06:47:04 PM
Though we can't deny these centralized exchanges are very convenient for converting our crypto to fiat or making money in trading.
But after that session, we shouldn't leave it there and that isn't a good practice to leave your funds or store them for a long period of time on any centralized exchange. It's well-known fact as of now that centralized exchanges tend to be extremely unreliable upon storing your fund even though like Binance have marketing promotion about their SAFU.
Not only on FTX, but instead, in all centralized exchanges.
But after that session, we shouldn't leave it there and that isn't a good practice to leave your funds or store them for a long period of time on any centralized exchange. It's well-known fact as of now that centralized exchanges tend to be extremely unreliable upon storing your fund even though like Binance have marketing promotion about their SAFU.
If you have any fund of FTX it's better to withdraw, I heard the withdrawal was stopped but now it's open, be smart because the market can still go lower due to this commotion.
Fortunately, I didn't use this exchange. Not only on FTX, but instead, in all centralized exchanges.
November 08, 2022, 05:33:37 PM
I am sure you guys are aware about the commotion that's happening between Binance and FTX right now? Well this is a very good reason why it's not a smart idea to trust any exchanges even if they are the number 1 over other crypto exchanges.
Competition in a business field like this is really tough. Maybe later there will be a lot of things that change a little in the future. On the one hand, Binance is a top exchange and so is FTX. Regarding the storage of assets on exchange, it is never recommended to store assets on an exchange because this is very risky. Unless we use it for daily trading. What's more, if we want to store these coins for a fairly long period, then, it is not recommended to store them online. November 08, 2022, 04:22:16 PM
I am sure you guys are aware about the commotion that's happening between Binance and FTX right now? Well this is a very good reason why it's not a smart idea to trust any exchanges even if they are the number 1 over other crypto exchanges.
Do not leave your coins on any exchanges all in the name of ' you trust them ' ,this is business, trust nobody, CZ is good today but that's today, we are all humans and change is constant in our lives.
If you have any fund of FTX it's better to withdraw, I heard the withdrawal was stopped but now it's open, be smart because the market can still go lower due to this commotion.
Do not leave your coins on any exchanges all in the name of ' you trust them ' ,this is business, trust nobody, CZ is good today but that's today, we are all humans and change is constant in our lives.
If you have any fund of FTX it's better to withdraw, I heard the withdrawal was stopped but now it's open, be smart because the market can still go lower due to this commotion.
I definitely agree with your statement- though I am somehow guilty that I still keep my BTCs in our local exchange.
Remember that despite that these exchanges claim that they have the security to keep hackers from infringing our privacy, they are still the number one target. The maximum security to guarantee the safety of your cryptos is to provide a hardware wallet and deposit your coins inside. Keeping them in an exchange is a disaster waiting to happen- though I am quite guilty with this issue since the convenience of putting your coins in an exchange is too helpful for me.
November 08, 2022, 03:23:33 PM
On the positive sides of things, a benefit of this feud between the two CEO's is that it is raising an additional awareness on the importance of cold storages and why it is good for people to be responsible for the security of their coins, I hope that people learn. If you must leave any coin in an exchange, it should be an amount you are willing to risk loosing or you have an intention to trade with. If you are not a trader, you have no business stacking up coins in an exchange pointlessly, that is a newbies idea of hodling.
November 08, 2022, 02:51:13 PM
There are more reasons than this not to leave your coin on an exchange, you don't need to wait for two CEO's to have a heated beef before you actually know.
I have this ideology and that's until I confirm a coin is successfully in my wallet it's not mine, and having your coin in Exchanges like Binance e.t.c mean you can only see you own the coin but the exchange has more control over it than you, and when the exchange (which are always hot cakes for hackers) drops their guard at any point you also can be a victim.
I have this ideology and that's until I confirm a coin is successfully in my wallet it's not mine, and having your coin in Exchanges like Binance e.t.c mean you can only see you own the coin but the exchange has more control over it than you, and when the exchange (which are always hot cakes for hackers) drops their guard at any point you also can be a victim.
November 08, 2022, 02:43:55 PM
There’s a reason the OG saying is still very relevant - Not your keys, not your coins.
Cold storage is the only way to sleep well at night. You can not trust any platform to hold your coins & be 100% safe.
Self custody is the way.
Cold storage is the only way to sleep well at night. You can not trust any platform to hold your coins & be 100% safe.
Self custody is the way.
November 08, 2022, 02:37:30 PM
be smart because the market can still go lower due to this commotion.
This is not the reason why you should not keep your coins on exchanges or any centralized/custodial services. If the prices of your assets are going or the market collapses then it will affect you even if your coins are in your custody.In fact, having them on an exchange (although I don't recommend it), you will be able to exchange them faster before the prices fall more.
Keeping your coins on centralized exchanges/services is not recommended because that way, technically, the coins are not yours and they can dissappear with the exchange all together at any moment.
November 08, 2022, 08:48:02 AM
Storing your coin in a centralized system is good because of the little benefits attached to it and easy trading. The risk of this action is very high, losing all your coins you stored in exchange will be a big lost compare to the little benefits you gain. You shouldn't trust exchanges they might be dubious
You should only keep little of what you can afford to loose and keep most of your coins in a cold storage wallet for proper security. Trust nobody when it comes to business,whenever you want to trade you can go to your cold storage wallet and get your bitcoin.
You should only keep little of what you can afford to loose and keep most of your coins in a cold storage wallet for proper security. Trust nobody when it comes to business,whenever you want to trade you can go to your cold storage wallet and get your bitcoin.
November 08, 2022, 08:34:29 AM
- Whatever will happen to the exchange, they don't care about us.
- it is a common practice by most newcomers and it is a must to change
- and, we should understand the underlying risk of leaving our funds too long in an exchanges wallet as possibly they can rid it and take control over your funds.
We have to think of all the possible things to happen. And even though they are known and reputed exchanges, still we need to be cautious enough as this is for our own safety. They never assure our safety in the first place.
- it is a common practice by most newcomers and it is a must to change
- and, we should understand the underlying risk of leaving our funds too long in an exchanges wallet as possibly they can rid it and take control over your funds.
We have to think of all the possible things to happen. And even though they are known and reputed exchanges, still we need to be cautious enough as this is for our own safety. They never assure our safety in the first place.
November 08, 2022, 08:21:39 AM
I think another lesson here is not to buy and hold tokens that are centralised by one authority too and don't have any sort of voting or governance systems attached (like ftt and bnb). This could include stablecoins too as their nature leads them to be quite centralised.
November 08, 2022, 07:25:42 AM
Its absolutely wrong to store your money with a bureau de change. The same is applicable to cryptocurrency, its sad that many traders use exchanges like wallets where they store their funds. Trading is the primary activity of exchanges and its advisable to store spare funds there. To enable easy trading experience, but leaving a big amount of coin in an exchange is just like what I said earlier; trusting a bureau de change with your fiat.
November 08, 2022, 06:52:59 AM
you have not said anything new here, but as this is a tangible topic, I believe that the constant repetition that you should not hold funds on exchanges is not out of place.
You are obviously biased because in this case you only accepted what CZ had to say, and you actually take care only of funds on FTX.
why do you think CZ is good today? they are the biggest manipulators of the crypto market and it is not good at all if they help in the collapse of the nearest competitor.
I don't want to defend FTX here, but Binance currently has too much power, especially for a decentralized system like Bitcoin.
I am sure you guys are aware about the commotion that's happening between Binance and FTX right now? Well this is a very good reason why it's not a smart idea to trust any exchanges even if they are the number 1 over other crypto exchanges.
Do not leave your coins on any exchanges all in the name of ' you trust them ' ,this is business, trust nobody, CZ is good today but that's today, we are all humans and change is constant in our lives.
If you have any fund of FTX it's better to withdraw, I heard the withdrawal was stopped but now it's open, be smart because the market can still go lower due to this commotion.
Do not leave your coins on any exchanges all in the name of ' you trust them ' ,this is business, trust nobody, CZ is good today but that's today, we are all humans and change is constant in our lives.
If you have any fund of FTX it's better to withdraw, I heard the withdrawal was stopped but now it's open, be smart because the market can still go lower due to this commotion.
You are obviously biased because in this case you only accepted what CZ had to say, and you actually take care only of funds on FTX.
why do you think CZ is good today? they are the biggest manipulators of the crypto market and it is not good at all if they help in the collapse of the nearest competitor.
I don't want to defend FTX here, but Binance currently has too much power, especially for a decentralized system like Bitcoin.
November 08, 2022, 06:47:13 AM
This topic had a related discussion i will also like to recommend going through with the title: Recent events should make you withdraw all your coins to your own wallet: Part 3 it was recently discussed by two reputable members of this forum gmaxwell and o_e_l_e_o whereby in the stated above link from o_e_l_e_o's thread he make reference to the related discussion from gmaxwell which also talks about why everyone should take his coins away from any exchange that supports BSV among other challenges that comes in with using a centralized exchange siting examples which i also encourage going through the discussion which was referenced on the same thread.
Not everyone visits Bitcoin discussion thread on this forum, some are into altcoins than Bitcoin so I don't see any reason not to create such a post in another thread for more people to be aware of.Some investors don't even know what's happening to FTX yet because they bought the coin and decide never to look back until the bull market is here which can take a year or two, this is a very bad plan because anything can happen to that project within that time frame.
The reason why many leave coins on exchange is for trading purposes, I do trade on centralized exchanges too but when I quit for the day I move out all my profits and leave behind what im willing to lose if anything happen to the exchange.
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