Topic: Why Security in Crypto Matters? - page 5. (Read 1767 times)

I thought there would be an exchange that would return the merchant's assets if the exchange wallet was hacked,

apparently I was wrong, they were 100% unable to return the assets of the trader because all trader assets were stored centrally and if this storage was successfully hacked then all assets would be lost,
Hi sir, may I ask? whether market profits are stored in different purses so that they can return a small amount of the assets of the trader


sir this advice and information is useful for newbie like me thank you so much

There is absolutely no guarantee of this happening. Some of the larger exchanges which have been hacked in the past have indeed used some of their profits to reimbursed the affected customers or to absorb the losses, but there is absolutely nothing to say they "must" do this, and there are countless examples of exchanges being hacked and either shutting down/going bankrupt, or simply saying "tough luck" to their users. This is also only a consideration in the exchange themselves are hacked. If your account is hacked and your wallets cleared out, no exchange in existence will refund your money.

If they call themselves decentralized, but they hold your coins in their wallets with complete control over your private keys, then they are lying. That is not decentralized.

There is no safe way to store your coins on an exchange. If you want your coins to be secure, you must withdraw them and hold them in your own wallet.

I have 2 choices when storing assets on an exchange

1) First, if the crypto exchange stores the assets of the trader in a centralized storage, then the exchange must return the assets of the trader if one day the storage has hacked and stolen,
of course exchanges like this have a clear team and have certificates from neraga

2) secondly, a decentralized exchange, which stores assets in centralized storage, if the storage is hacked and stolen then the exchange will not return traders' assets, I will not store assets on an exchange like this

Obviously it matters.
It matters everywhere from banking transactions to crypto money transfer. Bcoz one mistake or wrong detail could be result of losing your all wealth health n happiness. You will lose all your money, your girlfriend , your party holic friends😀😀🤣
So, it does matters.
So, better to protect and use it by 2factor google or other Authenticator , use good exchanges, private key 12-15 words written in blank paper and put it in a locker.
Thanks. 👍🏻👍🏻

Not in crypto ,you have to get security in every aspect of life. Without security you can loose what you earned with hard work. In Cryptocurrencies you have to secure your fund because people has earned this Cryptocurrencies with lots of afford.some people invested their hard work money for life to make better. If they not secured this, they can loose their crypto by hackers.
So play smartly be safe.

COMMONSENSE!
This is the main thing for you to protect something which is valuable to you.If you do give out importance of it then
you would be that sensible enough to seek out ways on how to secure and continue to learn on whats the new way of
scamming or security vulnerabilities.Make yourself updated and do act on whats the best to secure your holding.
Just like on what youve been doing on keeping your wallet into your pocket. 

If they get hack you will also at lose but if they refund their user well that's cool for the platform to offer but I guess there's only less platform doing this that's why we need to be careful on where we are putting our money since its always at risk especially if we are putting it on un safe platforms here.

 there are legit platforms but some of them control your funds . what if they got hacked or anything bad happen to them one  day ? you wont know if they will still refund you  . this why its better to store funds that allows you have your private keys  .

 you can still print those keys or seeds and you can keep them physically   . security really does matter not just on crypto but also on anything that we do because we dont want to loose our money    . not unless if you are careless that you just want to donate your money to someone else  

As we can see crypto is a digital money that can only transact with online transactions. As we notice “it’s a digital money” so that it is intangible and cannot be touch once we convert our physical money into digital money. Once our money is a virtual money we are not 100% responsible on it because the platform that we trusted has also and access onto your money. You cannot manipulate it at 100%. In choosing our trusted digital coin platform we need to review well their rights or is it legal platform because when we hurried to use those platform, we can’t fully checked their platforms if it is legit or just a scammer.

This shouldn't even be up for debate, security should be first thing in mind when it is a matter of funds. The best way to secure your funds is by putting them under your own control. This is why I tell people to avoid storing tokens on exchanges. Always use a non-custodial wallet to store your coins.

When we talk about holding bitcoins yourself and holding bitcoins on exchanges, I want to say something about that.
First of all there are two types of people:
1. Who can take responsibility and take care of their bitcoins
2. Who can't take responsibility and blame others in case their bitcoins get lost (exchanges).
First type of people know that security matters and they value it while second type of people - no, they want security but don't value it and risk.

My strategy to secure bitcoins is that I create another secure (let's call it places) and all of these place contains my keys and etc. But it's not like ABC, they are still more secured and these are the things that only I know.

I don't know why It should be a question. Security is needed obviously everywhere. It should really matter.

just read this
https://cryptoadventure.org/a-guide-on-why-security-is-important-in-driving-cryptocurrency-adoption/

They also should make sure that they have their keys hidden and there's  backup so losing wont happen. In investing, people should be more careful as there's more scams nowadays.

For your average crypto investor where they buy and just hold the crypto this thing would be easier for them since sending their crypto to their wallet after buying them is just a one time process. However if we are talking about traders especially the day traders they can't risk their capital lying around in there wallet because they will miss some opportunities there. So maybe the best option for then really is to trade in a reliable exchange where they can have piece of mind trading or at least go to those crypto insurace coverages that protect them against crypto hacks and thefts which I think will be the preferred option for them.

Having a document with your private keys or seed stored in plain text is a huge security risk. If you have such a file on an internet enabled device, then all your coins are at risk and you should transfer them to a new wallet immediately. The only time I would ever even consider storing private keys or seeds in an electronic document is under secure encryption on a permanently airgapped device.

This is actually probably the least of your worries when you use a centralized exchange. The most common thing we are seeing recently is more and more exchanges springing unannounced and ridiculous invasive KYC requirements on their customers, and holding their customers' coins hostage until they comply, so you are forced to either give up your privacy or forfeit your coins. Even if you do comply, in some cases the exchange still decides that's not good enough and you can't access your coins. Exchanges can decide that something you have done is "suspicious" (although they hardly ever explain what that "suspicious" activity was) and lock your account. There are also plenty of new exchanges which eventually just exit scam with all their customers' deposits. Exchanges can shut down, disappear, refuse service, become bankrupt or insolvent, or any number of other things which can jeopardize your coins.

Don't use centralized exchanges, trade peer-to-peer, keep control of your own coins at all times.

A huge percent of people in the cryptocurrency sector stores their crypto token on their exchange account which is why they easily lose their assest due to exchange attacks and the likes. If this exchanges out there secure their platfrom with high end security as well as a reservation for safu when an attack is launched to their exchange to help user recovery their stolen funds, people won't be bothered about saving their assets on exchange. But regardless of this, it is expected for everyone to always keep a huge amount of their holding in their blockchain wallets.

Some of them not focusing on it since they are aftering the profit they can get on token listing and we should avoid them up to get out from possible danger in future but there are some exchange which is still good like binance and although they got issue of been hacked before but still they manage to shoulder back the possible losses on their investors.

It is always the case of those who are used to saving money, such as companies, who hold trustworthy banks as though their money is 100% protected there. Therefore, once these people come into the crypt, they trust this central exchange, even if many of them are already compromised.

I don’t know why these discussions are renewed? Everyone knows that the primary purpose of crypto is to get rid of the need for a third party to protect the funds, if you want to deposit them on the platforms, then why not deal with banks?
Do you guarantee that the platforms will return your coins to you?

As for how to protect your coins, a quick search on Google will give you many options.

I use the same strategy which is using a different wallet specifically with a private key. If i'm going to use an exchange and trade a significant amount i'd split my balance in smaller pieces if safety is my first priority over profit.

All exchanges focus on making profits and there's not much they could improve on since most exchanges are centralized.