Why is it bad to leave crypto on exchanges? - page 2.

stepwilli

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Quote from: noormcs5 on April 30, 2022, 04:34:39 AM

When you put your funds on the exchanges, they are in fact not truly yours unless you withdraw them to the exchanges. If any mishap happens, like the exchange is closed or the exchange is hacked, then you will not be able to access the funds and all your money will be lost forever. Furthermore, you cannot go to court and claim your money from exchanges. Therefore, it is not wise to keep the funds on the exchanges.

Not truly yours is a concept foreign to most people and they are using it the wrong way. It is yours, it is basically all yours, as long as the exchange stays honest and actually allows you to withdraw. Same logic as your money in a bank and your money banknotes in your own wallet when we are talking about fiat.

When you have money in the bank, do you really think "this money is not mine"? I doubt many people think that, majority of the world uses banks to store their fiat and majority use credit or debit cards instead of cold cash to spend money around the world. So, long story short your money is still yours and shouldn't be a problem if the exchange allows it to be.

Woodie

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Depending on which exchange you choose to leave you coins on , in an event of hack for example you risk losing your coins if the exchange has no insurance which makes it your loss too.

Another reason one shouldn't leave coins on the exchange is you miss out on taking out any capital gains that the coin accumulates which makes it lost opportunity for you.

Rikafip

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Quote from: nurilham on April 30, 2022, 05:40:38 PM

Like Binance itself, they will not steal our assets. But they may be hacked and this has ever happened several times ago that Binance has hacked. That is one of the risks or weaknesses of saving assets on exchanges.

Binance maybe won't steal your money in the classic sense of the word, they may impose some bullshit reason why they decided to lock your funds and there will be nothing you can do about it. Selective scamming is still a thing.

Quote from: jhonjhon on April 30, 2022, 03:59:12 AM

If you want to take your Binance account security to the next level, you can use a security key such as Yubikey. This is a physical device, and you must tap the physical device button to enable 2FA. This is useful for those who have a large amount of money in their exchange account.

While it may protect you from external attacks on your account specifically, that can't help you if Binance get hacked or if CZ decides to perform exit scam.

Might as well sum it up with the meme Grin

horrifiedx1

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Quote from: UmerIdrees on April 30, 2022, 06:03:38 PM

Quote from: coupable on April 30, 2022, 05:28:57 PM

The habit of using these platforms cannot be changed simply , because there are no other options available. To be fair, these platforms, despite the risks they posed, were a fundamental reason for the rapid spread of the use of crypto in the world.
With the development taking place, there are some good decentralized platforms compatible with the philosophy of the blockchain, but they do not provide all the options that users desire, in addition to the fact that users deal with these exchanges as they deal with banking services, so many of them are ignorant of this.

We do have wallets which are alternatives of exchanges where we should store our crypto. However, for those people who do trading on a regular basis, they usually have no option but to keep a certain portion of their money always in the exchanges.
However, there are few people who use exchanges only to store their cryptocurrency which is totally wrong practice.

if there is no activity on the exchange in the long term, it is better not to leave assets on the exchange because there will be more risk. except if we do transactions every day, so the activity is always there, and maybe only the profits we take are transferred to the wallet, and even then if we don't compound. if one day the exchange gets hacked, then our funds run out, and security is not in our own hands

UmerIdrees

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Quote from: coupable on April 30, 2022, 05:28:57 PM

The habit of using these platforms cannot be changed simply , because there are no other options available. To be fair, these platforms, despite the risks they posed, were a fundamental reason for the rapid spread of the use of crypto in the world.
With the development taking place, there are some good decentralized platforms compatible with the philosophy of the blockchain, but they do not provide all the options that users desire, in addition to the fact that users deal with these exchanges as they deal with banking services, so many of them are ignorant of this.

We do have wallets which are alternatives of exchanges where we should store our crypto. However, for those people who do trading on a regular basis, they usually have no option but to keep a certain portion of their money always in the exchanges.
However, there are few people who use exchanges only to store their cryptocurrency which is totally wrong practice.

nurilham

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Quote from: Anonohmon on April 20, 2022, 06:59:27 PM

I have most of mine on an exchange because I'm getting paid interest. Has there ever been a time when an exchange like Binance for example, steals your funds or gets hacked and people lost money?

Saving assets on exchanges will be always risky. The risks will depend on how good the exchange has security.
Like Binance itself, they will not steal our assets. But they may be hacked and this has ever happened several times ago that Binance has hacked. That is one of the risks or weaknesses of saving assets on exchanges.
So if we are saving for long-term investment, it is better to move the assets to offline or hardware wallets.
but if this is for trading or still used for other activities like staking or others, we can still use it on exchanges, but for me, I will only save it a litle bit, not all in the exchange.

coupable

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The habit of using these platforms cannot be changed simply , because there are no other options available. To be fair, these platforms, despite the risks they posed, were a fundamental reason for the rapid spread of the use of crypto in the world.
With the development taking place, there are some good decentralized platforms compatible with the philosophy of the blockchain, but they do not provide all the options that users desire, in addition to the fact that users deal with these exchanges as they deal with banking services, so many of them are ignorant of this.

lixer

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Quote from: lablab03 on April 29, 2022, 11:03:31 AM

It's a actually not bad in my personal opinion especially if you're using an exchange that has good security and very trusted also and well known of course, coz on that case you can assure that your money is in a safe place.
But like what other said that Not your key is not your coins, well my answer for that is don't store your money for long time and stop using it as a main wallet, i mean just put what amount you want to trade then dump your profits immediately to prevent bad situations.

Yeah, I have also been using an exchange, although not as my main storage, but they have been quite reliable. That’s why it’s good to make use of those bigger exchanges, they always knows how to store assets that belongs to their customers, by using safe means of storage.

And we should get to know how the exchange we choose to use goes about storing customer assets, whether they have an insurance that covers any form of loss or they store with a cold storage and things like that, it is really important piece of information for us to know.

Oluwa-btc

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Quote from: Kabal101 on April 30, 2022, 07:36:43 AM

Leaving cryptocurrency in exchange is very risky because anything can happen to the exchanges . Majority of centralized exchanges suffered from hackers invasion and most of them have run out of businesses. It would be a different case in an insured crypto currency exchanges platform . The best way of protecting funds is transferring them to personal wallet from the exchanges

All of the advice here,been encoded several times, Not your keys not your coin.
Avoid exchanges and third parties as they are incompetent to keep your coins in shape.
Imagine not able to look after once self but you want to look after someone else's coin,blah!
Hold down that coun get your S-P in a safe place either written down or a hard ware wallet, also avoid saving your seed phase to emails to avoid malware's attack's.

Kabal101

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Leaving cryptocurrency in exchange is very risky because anything can happen to the exchanges . Majority of centralized exchanges suffered from hackers invasion and most of them have run out of businesses. It would be a different case in an insured crypto currency exchanges platform . The best way of protecting funds is transferring them to personal wallet from the exchanges

noormcs5

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Quote from: dataispower on April 29, 2022, 04:22:22 PM

Quote from: Crypto Library on April 29, 2022, 10:06:28 AM

Quote from: Anonohmon on April 20, 2022, 06:59:27 PM

I have most of mine on an exchange because I'm getting paid interest. Has there ever been a time when an exchange like Binance for example, steals your funds or gets hacked and people lost money?

I think this is not that much bad to store crypto on exchangers. Now the question is which exchanger you have use for store your Coins , if you use the non-reputable and scam exchanger for store Then it must be risky. There are a lot of new scam exchangers out there now that attract people with lots of lucrative offers, but eventually scam. In this case, you have to be careful while selecting the exchanger.

The disadvantages is greater than the it advantages and i know that some exchanges get hurt through hacking and is bad to leave your cryptocurrency in any of exchanges. And one of the reasons is that hackers target exchanges stand and most of the prominent exchanges has received lost of fund's before. Myself can't leave my funds there. Because the disadvantages and when you lost your funds even though the exchange recover your funds can't be recovered or give back for you full like before

When you put your funds on the exchanges, they are in fact not truly yours unless you withdraw them to the exchanges. If any mishap happens, like the exchange is closed or the exchange is hacked, then you will not be able to access the funds and all your money will be lost forever. Furthermore, you cannot go to court and claim your money from exchanges. Therefore, it is not wise to keep the funds on the exchanges.

m_nief

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If you can't trust with Binance exchange for saving your funds you can purchase and withdraw all your assets to metamask, hardware and trustwallet. Controlling wallet by yourself without worry when bad thing like Binance hack although impossible you can loss all your assets when saving on Binance exchange. Trough still save your email and password safety and keep using 2fa when accessing Binance not worry all your assets never have chance for hacking. You need to be logic have many trader and investor save their fund on Binance and not any worry because they have protect Binance account.

btc78

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Quote from: Anonohmon on April 20, 2022, 06:59:27 PM

I have most of mine on an exchange because I'm getting paid interest. Has there ever been a time when an exchange like Binance for example, steals your funds or gets hacked and people lost money?

Do you really need to ask this mate? haven't you read exchanges being Hacked ? or something happens to the Users through Phishing ?
try not to risk your money in places where you are not the One who holds the Private key, because there is a saying that "Not your Key , Not Your Bitcoin"

if you want your funds to be safe for long time ? if you are Holding ? then best to use ledger wallet.

or if you are using the funds for trading daily? then best to limit the amount used for trading so you will not risk all your money inside the exchange.

jhonjhon

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Quote from: MiF on April 20, 2022, 08:31:05 PM

Quote from: Anonohmon on April 20, 2022, 06:59:27 PM

I have most of mine on an exchange because I'm getting paid interest. Has there ever been a time when an exchange like Binance for example, steals your funds or gets hacked and people lost money?

I think it is safe and has more advantage if you store it in a most reputable exchange like binance and houbi or kucoin you know that there is a lot of new exchange and it is a big problem if you store it in new exchange because you dont know if the particular exchange is scam or not, so i suggest to store on proven and tested exchange. Storing your crypto on exchange for interest is good idea keep storing and goodluck.

Although Binance is the most trusted cryptocurrency exchange, there is a chance that it will be hacked. On May 7, 2019, the world's largest cryptocurrency exchange, Binance, was hacked. The hackers were able to steal around 7000 Bitcoin, which is worth more than $40 million USD at the current price. The hack occurred at an inopportune time for the exchange, and it appears to be its largest hack to date.
https://coinguides.org/binance-hack-7000-bitcoin-stolen/?msclkid=09367001c86211ec8161e250bc605127

If you want to take your Binance account security to the next level, you can use a security key such as Yubikey. This is a physical device, and you must tap the physical device button to enable 2FA. This is useful for those who have a large amount of money in their exchange account.
https://coinsutra.com/binance-account-hacked-secure-binance-account/?msclkid=09367c89c86211ecb24f400c76902629

Mauser

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Quote from: Anonohmon on April 20, 2022, 06:59:27 PM

I have most of mine on an exchange because I'm getting paid interest. Has there ever been a time when an exchange like Binance for example, steals your funds or gets hacked and people lost money?

Leaving bitcoins and other crypto coins at an exchange is a large security risk in my opinion. There have been big exchanges being hacked in the past, leaving investors with a losses because recovering the coins is very hard. It might be easier to not always withdraw coins to your wallet, and you can also save the transaction fee every time, but you could lose everything like that. Better be safe even if there never was an issue. Receiving interest on your coins is nice, but is that profitable? I wouldn't expect an exchange to pay high interest, because it will eat away their profits. Also the exchange doesn't really need your coins if it only matches buyers and seller. In case the exchange is also lending out coins it might be different, then there is more risk involved. What if all the borrowers default at the same time and leave the company hanging? In case of bankruptcy I wouldn't expect you to get all your coins back either. If you only trade a few times per month, do the extra work and save your coins in a seperate wallet.

Chato1977

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Quote from: Anonohmon on April 20, 2022, 06:59:27 PM

I have most of mine on an exchange because I'm getting paid interest. Has there ever been a time when an exchange like Binance for example, steals your funds or gets hacked and people lost money?

exchange are very Vulnerable to Hackers and attackers , meaning why need to risk your funds outside your wallets?
when you can have much safer Holding without thinking everyday what would happen to your funds?

Make up your mind mate , unless you wanted in the future that you will post here that the exchange is hacked and your funds are compromised .

Digitalbitcoin

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Leaving crypto on exchanges is risky not just because you lose control of/ownership of your assets, but also because you risk being duped or hacked by the exchanger. Depending on the volume, storing assets on an exchanger might earn you some money. However, if the exchanger is hacked, you might lose your money forever.

The second point is that each exchanger is centralized and requires KYC, locking your account with an exchanger, this also leads to risk assets.

So always find more information and DYOR to keep your crypto asset safe and secure.

Smack That Ace

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Quote from: Kelvinid on April 29, 2022, 07:38:42 AM

Quote from: Anonohmon on April 20, 2022, 06:59:27 PM

I have most of mine on an exchange because I'm getting paid interest. Has there ever been a time when an exchange like Binance for example, steals your funds or gets hacked and people lost money?

You have nothing to worried about your funds if you are doing the right thing and if there are no suspicious activities that might be caught their attention. Binance and some exchanges will take action and possibly freeze your account if you violate their rules and that is why we should be aware of what we're doing and must abide by the rules of the exchange otherwise.

But if you are using non-trusted exchanges, chances are;
-lock your account
-steals your money

Storing assets on an exchange is actually not so bad as many people say, I have peace of mind when using Binance as long as we strictly follow their regulations. Most accounts frozen or locked without prior notice are involved in money laundering and illegal asset transfers, with mistakenly locked innocent accounts to be reopened upon investigation.

But storing assets on exchanges is not really our money so only a part of assets should be stored on the exchange, not all assets should be put on the exchange.

dataispower

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Quote from: Crypto Library on April 29, 2022, 10:06:28 AM

Quote from: Anonohmon on April 20, 2022, 06:59:27 PM

I have most of mine on an exchange because I'm getting paid interest. Has there ever been a time when an exchange like Binance for example, steals your funds or gets hacked and people lost money?

I think this is not that much bad to store crypto on exchangers. Now the question is which exchanger you have use for store your Coins , if you use the non-reputable and scam exchanger for store Then it must be risky. There are a lot of new scam exchangers out there now that attract people with lots of lucrative offers, but eventually scam. In this case, you have to be careful while selecting the exchanger.

The disadvantages is greater than the it advantages and i know that some exchanges get hurt through hacking and is bad to leave your cryptocurrency in any of exchanges. And one of the reasons is that hackers target exchanges stand and most of the prominent exchanges has received lost of fund's before. Myself can't leave my funds there. Because the disadvantages and when you lost your funds even though the exchange recover your funds can't be recovered or give back for you full like before

glendall

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I think keeping assets on the exchange has a lot of problems from banned accounts to frequent exchange hacks.
so in my opinion saving too large of funds on the exchange is not good, it's better to store it on hardware equipped with 2fa or some kind of protection, and without connecting to a 3rd party wallet or other

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