Topic: With these acts, do we still believe in Centralized Exchanges? - page 2. (Read 282 times)
You don't have to trust them, just use them whenever you're in need of their service. You don't keep deposits there as well, so when you trade and wants to withdraw then take it out immediately when you're done doing your trades there. It doesn't have to be big or small amount but just use them as is since they're exchangers. Whether you've got or no problem with them at all and either centralized or decentralized, the lesson from these incidents is that they're just tools for exchanging crypto<->fiat.
If you ask users who have never had a problem, you will only get the answer, "yes, I still believe in my exchange".
Regardless of the preferences you mentioned, actually I don't have much to do with exchanges, the principle is "never trust strangers", that's all. I'm sure that they are doing their basic job, but there can be times when they experience a failure of trust due to systems and management that are broken by the people behind the company who are getting greedy, mishandling, and not understanding the users.
Regardless of the preferences you mentioned, actually I don't have much to do with exchanges, the principle is "never trust strangers", that's all. I'm sure that they are doing their basic job, but there can be times when they experience a failure of trust due to systems and management that are broken by the people behind the company who are getting greedy, mishandling, and not understanding the users.
Don't even think about giving them your full trust.
That's what exactly I want to tell.Entrusting them with our fund is quite tough for us to choose which one of them are reliable enough, as Binance, just because they are one of the largest exchange is one of the factors that people give no choice just to trade and make a profit.
The point here is, never store your coin on CEX for a long period of time, after your trading session, withdraw them all.
If you're in a trading session, we should regularly assess the reliability and security of an exchange, including staying updated about its policies, regulatory compliance, and any changes in its operating procedures just like Binance did.
2. Can we trust them with our money even as all those recent ones are given room for the users to withdraw their funds?
3. And can we depend on this opportunity to allow users to withdraw their funds and keep trusting them?
3. And can we depend on this opportunity to allow users to withdraw their funds and keep trusting them?
Of course not. Let's take your example - hotbit for instance. Yes, they are giving people time to withdraw but it's only for a month. This time frame is simply too short for most if not everyone to be able to withdraw everything. Since people's money are already on their pocket, we are almost always at their mercy.
Not to mention, sometimes situation could get worse with CEx's e.g. hacking/exit scam where it's possible you won't have any chance of getting everything back.
Dabbling into CEx is just picking the lesser evil and setting up preventive measures. Don't even think about giving them your full trust.
I don't understand what connection did you find between Binance updating deposit addresses and this case of Hotbit that pushed you to question whether should we trust centralized exchanges after these accidents or not?
Summarized answer is that you should not hold your coins on exchanges and the basic rule is: Not your keys, not your coins.
But that doesn't mean that you shouldn't use exchanges at all. There are certain financial features that only centralized exchanges can offer, for example margin trading, futures trading, options and so on. If you use these features, you have to use centralized exchanges but if you only want to trade bitcoin to another peer and you don't do it daily, then decentralized exchanges are the best option among available ones.
Summarized answer is that you should not hold your coins on exchanges and the basic rule is: Not your keys, not your coins.
But that doesn't mean that you shouldn't use exchanges at all. There are certain financial features that only centralized exchanges can offer, for example margin trading, futures trading, options and so on. If you use these features, you have to use centralized exchanges but if you only want to trade bitcoin to another peer and you don't do it daily, then decentralized exchanges are the best option among available ones.
I feel that if the CEX management does not trust themselves, then why are we trusting them and giving them our coins to keep for us?
'We' do not trust centralized exchanges to keep our coins, at least coming from the perspective of people who know the right way to keep their coins. Being your own bank means you keep your coins yourself, thus if you have been trusting third party entities to keep your coins for you, time has come for you to move it into your non-custodial wallet.Having said that, use exchanges for the purpose of trading; don't fall for the misconception that they are "banks" where you can keep your crypto, your crypto bank is your non-custodial wallet that you control and have the keys.
My questions here are:
1. Can centralized exchanges be fully relied on again?
2. Can we trust them with our money even as all those recent ones are given room for the users to withdraw their funds?
3. And can we depend on this opportunity to allow users to withdraw their funds and keep trusting them?
1. No experienced person will rely on exchanges. It is not your keys and it is not your coins on blockchain. Which means you have no full control over your own coins.1. Can centralized exchanges be fully relied on again?
2. Can we trust them with our money even as all those recent ones are given room for the users to withdraw their funds?
3. And can we depend on this opportunity to allow users to withdraw their funds and keep trusting them?
2. With noncustodial wallet, you will have no one to trust. Leave only the money you are using to trade on exchanges and have the remaining on noncustodial wallet. Some people will trade and still always transfer all their trading money to a noncustodial wallet. Offline wallets which are safer.
3. Do not trust. Trust only yourself.
Recently, Binance has changed some deposit addresses for its users, which they said is due to security, and some of the forum users here were on the support list as it is good for such acts for security reasons.
Hotbit Exchange has now announced that all CEX operations will cease as of May 22, 2023, though users will still be able to withdraw all of their funds prior to June 21. They believe the former management employee, who quit working there in April, was involved in a project that violated Hotbit rules.
My questions here are:
1. Can centralized exchanges be fully relied on again?
2. Can we trust them with our money even as all those recent ones are given room for the users to withdraw their funds?
3. And can we depend on this opportunity to allow users to withdraw their funds and keep trusting them?
I feel that if the CEX management does not trust themselves, then why are we trusting them and giving them our coins to keep for us?
Hotbit has given three reasons for this action, which are as follows:
Source: https://hotbit.zendesk.com/hc/en-us/articles/14750194236823-It-s-time-to-take-a-bow
Hotbit Exchange has now announced that all CEX operations will cease as of May 22, 2023, though users will still be able to withdraw all of their funds prior to June 21. They believe the former management employee, who quit working there in April, was involved in a project that violated Hotbit rules.
My questions here are:
1. Can centralized exchanges be fully relied on again?
2. Can we trust them with our money even as all those recent ones are given room for the users to withdraw their funds?
3. And can we depend on this opportunity to allow users to withdraw their funds and keep trusting them?
I feel that if the CEX management does not trust themselves, then why are we trusting them and giving them our coins to keep for us?
Hotbit has given three reasons for this action, which are as follows:
Quote
1. deterioration of the operating conditions.
2. change in the crypto industry trend.
3. Hotbit has also suffered numerous problems, such as repeated cyber attacks and the exploitation of project defects by malicious users, resulting in significant losses.
2. change in the crypto industry trend.
3. Hotbit has also suffered numerous problems, such as repeated cyber attacks and the exploitation of project defects by malicious users, resulting in significant losses.
Source: https://hotbit.zendesk.com/hc/en-us/articles/14750194236823-It-s-time-to-take-a-bow
Jump to: