Topic: Will there ever be any safe centralised exchange ? - page 11. (Read 2134 times)

I don't think Binance is exempted from being "unhacked". They've got hacked years ago.

Source: https://www.wired.com/story/hack-binance-cryptocurrency-exchange/

And also Coinbase: https://www.pcmag.com/news/coinbase-discloses-that-6000-customers-got-hacked-this-spring

It's clear that no exchange is safe for us to store funds until now even if it's the best in the world. It's possible that Binance and Coinbase may get hacked again in the future, as these hackers are also improving their skills to create backdoors. Just saying.

If you are making this post in reference on what happened recently with FTX, First, I would want you to know that FTX was not hacked, rather the CEO mismanaged funds belonging to the investors and traders, the hack came much later after the exchange was already collapsing.

Now back to the general part of this discussion, the truth of the matter is that every centralized exchange out there is 100 percent safe(atleast, this is what they tell us) until they are hack or jam a rock, same way a criminal is a good citizen until he or she is caught red handed stealing.
Centralization is the same system the government uses, and it has never really favoured the ordinary citizens, centralization was not what Satoshi designed or desired for bitcoin or cryptocurrencies, but his absence in the space gave room for alot of changes and deviations from the plans he laid down on how get bitcoin and cryptocurrencies to mass adoption, the emergence of altcoins bright about the centralization in cryptocurrencies we experience today.

But then, it is good that everyone in the space is beginning to see the flaws in this system, and are beginning to realize that decentralization is the way, but another bothering question is How prepaid we are for decentralization?.

Any stuff on the internet have a chance to get hacked, even you claimed that's one of the best exchange in this internet but once it gets hacked things are going downhill.
It's not about hacker to determine the fall of exchanges, bankruptcy, scam and many reasons to come up.

The way I tell people to whoever asks this question, I tell them about the examples of exchanges getting hacked and how people losing billion dollars worth of Bitcoin because of this and give them an alternative of which wallet to choose instead of storing it into exchanges like everyone does.

You can't, unless you are the owner of that exchange.
It's up to the team of that exchanges to secure the infrastructure with latest technology and stuff carefully, also it's about the hacker as well with their advanced technology to hack most of the sites.

We as the users just make sure we are ready once things going worse.

Generally everything is moving from centralized to decentralized. A safe centralized exchange? Anything exchange cannot be considered safe, we have been advised many times about it. It can appear safe at first and attract users, but it cannot remain safe forever. You cannot trust a centralized exchange because you never know the day they will be compromised or the choose to begin to act in a fraudulent manner.

Could be an inside job.  Could be an exploit.  Could be a brute force or the theft of the right equipment.  There are many ways an Exchange can be hacked and most of them are a time ticking bomb.  Even websites of the largest corporations sometimes have exploits.  There never is a 'perfect code'.  Otherwise there were no security updates for phones and computers.

No, there will never be any 'safe' Centralized Exchange.  Only the false feeling and hope of one's existence.

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Regards,
PrivacyG

Once Exchanges are regulated to Insure an account up to a specified fiat amount , say $250000 like banks and credit unions are required,
then storing money on an exchange will be safe. Until then it is still the wild wild west of crypto.

There is always risk involved when we are using centralized platform.  Besides there is no absolute safety when dealing with online platform.  So we better exercise caution and always vigilant when dealing with centralized exchanges.  There are lots of exchanges hack recorded in the history of cryptocurrency.  So better not leave your fund on the exchange.

I am not conversant with the business operation of Coinbase and Binance but based on the happening around centralized exchanges currently, I cannot vouch for any of them. Their level of financial recklessness and unintelligence is very disappointing.

Yes it is possible to keep advancing in cybersecurity to minimize cyberattacks but as long as these exchanges are headed by individuals and are registered in a country they cannot be trusted. These CEOs can make certain financial blunders that might affect the company negatively. Unfavorable government policy also have the potential to destabilize or even cripple the operations of these centralized exchange firms.     

Doesnt mean that people doesnt really take it out seriously, it is really just that people do really get that confident with these things and this is why they do forgot when it comes to risk factor on storing up your coins

on platforms which you dont possess its keys.Some are pretty aware but still they do just ignore because of the convenience that they do able to experience on using up the service.

There's no such thing about safe exchange on where it does assure out total or full security of your assets been stored.Its not really a wallet in the first place
but people are really just too lazy on pulling their funds on platforms.

The question should be, can we trust an exchange with our money?
The answer is no.

Don't trust any exchange to the extent of leaving your money on them most especially the third party exchange, because they are exposed to so many verses that can hamper their safety, recent events have proven that exchanges are far from being secured and at the moment, it is better we play safe and avoid exchange unless we just want to trade some small amount on them and afterward transfer our balance into our personal wallet.

I like to think optimistically, so I think that despite the big losses that caused the fiasco with FTX, Celsius and the like, this should have a positive effect on the future good practice of keeping coins outside of centralized exchanges.
I'm sure many people have read the phrase "not your keys, not your coins" but apparently many of them did not take it seriously. maybe all this could help in raising awareness for the safety of crypto assets.

Exchanges will never be safe for two reasons, the first one is that since they concentrate so much wealth they will always be the target of hackers, and even if their security is the best they can always be hit by a zero-day exploit and be hacked anyway, the second reason is that they are a business and businesses disappear, I do not have the data but how many businesses do you think survive more than 100 years? Probably that number is less than 1%, so if there is a bad management the exchange can disappear just like what we saw with FTX.

Coinbase and Binance are two safe exchanges right now, but no one would dare recommend you keep your investment assets there long term because the exchange is not a safe wallet to store your assets in. You are safe to trade there and buy anything there as long as you agree to KYC, but you have to withdraw all your assets from the exchange if you want to hold them long term.

It is not the responsibility of bitcointalk users, but every exchange owner has a way of ensuring that your funds will be safe with them whether you trust them or not. CZ said that many times on twitter, but you have to have principles and really accurate reasons why you should believe about that. In the end, don't keep your investment in centralized exchange whatever your reasons. Your security is your responsibility, and not your keys and not your coins, it's that simple.

You do not "vouch" for the reliability of a 3rd party platform. One common quote here is 'not to trust, but to verify", and this applies to not trusting an exchange (be it centralized or decentralized) with the safeguarding of your assets.
There are so many risks that exists besides that of a hack or a breach.

These are not questions you can find answers to here. You can do your research on the different exchanges, but would only get information on what's publicly available.

The solution is to keep your money out of centralized platforms.

Hmm it actually depends on the definition of "safe" when it comes to transactions. Generally, there are exchanges which have been existing for years now (e.g. binance, etc.) and they have proven their integrity and honesty all throughout. Despite this, they are still prone to hackers given the amount of transactions that happen on their exchange.

No matter how "safe" an exchange may be, always expect that they are still prone to hackers. That is why the golden rule is to never keep your coins inside an exchange as you will never know when or how they will be hacked (e.g. binance was hacked and ~$570 million worth of coins were stolen).

No there won't.

Exchanges come and go, most of the ones from 2015 aren't even around anymore. So it's extremely risky to settle on a single exchange for many years because it might get illiquid meanwhile without you even knowing about it.

I don't feel like I really want to agree, but yeah, Coinbase and Binance probably what you'd call the safest you can find. Coinbase because they've probably got the most robust licensing (and are a principal partner for the debit cards they issue, which is something you don't get unless you open your books to them). Binance because of their reserve fund (but I can't say I've ever verified for myself this proof of reserve).

I would say one day we'll see an exchange or at least a financial institution with a crypto exchange arm that'll get a true banking license along with the deposit guarantee schemes that all national banks get from their respective countries. Then I might say that's as safe as it gets (since with that guarantee it also means you open yr books to the central bank, though we all know that's not much in way of safety these days).

Never. Treat exchange as a marketplace where your money can get stolen every time so you don't rely too much on them. Using an exchange to store your funds is a bad idea even if they claim to offer insurance etc. Even those lending platforms are facing trouble and change their ToS regularly so they don't have to pay back the user funds. Use them to trade with the money you are willing to lose, move your funds asap after you make a decent profit.

I'd say the exchanges that currently remained to be unhacked are pretty "safe"; probably Binance and Coinbase. But that doesn't mean I'll recommend leaving funds on these platforms. The developers can make the platform as secure as possible, but never secure enough to the point that it's impossible to hack. Exploits will always be a risk. Not because these "unhacked" exchanges remained unhacked for years doesn't automatically mean it'll stay the same forever.

https://NotYourKeys.org


That's why you don't let other people entrust their funds to you. You have not much to gain but everything to lose.

I was wondering if there could still be any safe centralised exchange in the blockchain industry. Of lately lots have been unveiling itself and centralisedexchanges are at the end of it all.  Does it mean that these centralised exchanges that are in existence lacks the capability to safeguard assets and funds after attracting investors and traders to their platforms for engagement and activities?
 How do you explain these things to the people whom have entrusted their funds and assets to you for safe keeping hoping that what they gave to you is under safe care only to wake up to a sad news of their assets being stolen by hackers. How do you explain all these.

At first identifying the problem is a basic course for rendering solutions. If these problems are not identified immediately by the exchanges for quick remedy then who's to be blamed for it. Do they really do constant check on their service to know their lapses, if they do, do they identify it immediately with utmost attention? Do they do a constant check and evaluation on their staff and  mechanisms.

With all these said, what are your opinions on this subject matter as I feel this needs to be looked into for possible measures to be taken for  so as to further prevent or minimise the rate at which exchanges get hacked or being careless with investors and traders funds.