Your coins on CEX may be at risk this bear season

sana54210

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Quote from: Majestic-milf on July 15, 2022, 01:34:20 AM

With the current market situation, where the bear pushes the dip further, chances are most centralized exchanges are being forced to go insolvent or even shut down due to inability to meet up with government taxes. And should this happen, your coins are at risk. Either you lose it all or get compensated in cases of lenient exchanges.
Some Exchanges may not be trusted as most times they are vulnerable to hacker attackers. Take the case of Bithumb, a South Korean crypto currency exchange that lost a million dollars worth of customers crypto in 2017.

Your privacy matters a lot always use a non- custodial wallet and save yourself the stress.

I definitely do not think that there is a problem with the CEX situation as a whole. Don't get me wrong, I am not saying that it would be a problem for all of this, of course there would be some exchanges which will be a trouble, but if you are looking at it just from one places perspective then it would be bad. However, places like Binance and Coinbase would be fine.

In fact, so much so that they would be actually better than the wallets you would have in your wallet. I just feel like there are a few places that gets hacked and suddenly everyone talks about how these places are dangerous but in reality they are not dangerous at all, it's just a few places.

dunfida

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Quote from: o_e_l_e_o on July 18, 2022, 01:58:31 PM

Quote from: wiss19 on July 18, 2022, 01:48:03 PM

If you are not a criminal, give your ID, the number will be checked, and if you are clean then they would probably not even check how much money you have.

You need to have a read about all the revelations from Snowden and others about the mass surveillance programs that pretty much every government in the world are undertaking, and the fact that most of these governments are sharing this data with each other. Not to mention the exchange itself will be collecting all your data, selling it to data brokers, who will then combine that with all the other data they have on you from a myriad of sources, and then sell all that on to literally anyone who wants to pay for it. It doesn't matter if you are a criminal or not - there is no evidence that mass surveillance prevents crimes. It is about control.

But still, none of that changes my original point: It does not matter in the slightest as to how well regulated or otherwise an exchange is. Any coins you deposit to it are no longer yours and are at constant risk of loss.

No one really knows but we do know it could happen and might already be happening without us knowing but the probability is indeed there since we cant really able to have some sneak peek on internal transactions that

had been done but knowing about the probabilities and capability for them to circle around those data and take or make use of those for some extra revenue reason then we wont really know thats why
you cant totally put 100% trust on any platform even though its the current top ranking on the market where you cant really be having that assurance when it comes to the security.
As for funds been deposited on a platform then consider those coins are indeed not yours, since you arent holding the keys of those wallet then expect for the probabilities.

o_e_l_e_o

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Quote from: wiss19 on July 18, 2022, 01:48:03 PM

If you are not a criminal, give your ID, the number will be checked, and if you are clean then they would probably not even check how much money you have.

You need to have a read about all the revelations from Snowden and others about the mass surveillance programs that pretty much every government in the world are undertaking, and the fact that most of these governments are sharing this data with each other. Not to mention the exchange itself will be collecting all your data, selling it to data brokers, who will then combine that with all the other data they have on you from a myriad of sources, and then sell all that on to literally anyone who wants to pay for it. It doesn't matter if you are a criminal or not - there is no evidence that mass surveillance prevents crimes. It is about control.

But still, none of that changes my original point: It does not matter in the slightest as to how well regulated or otherwise an exchange is. Any coins you deposit to it are no longer yours and are at constant risk of loss.

wiss19

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Quote from: o_e_l_e_o on July 17, 2022, 06:26:58 AM

A government "monitoring" or otherwise regulating an exchange doesn't care in the slightest about the users of that exchange or the safety of their coins. They don't care if the exchange has terrible security, or if they are hacked, or if they have risky business practices, or poor cash flow, or go bankrupt, or anything of that nature. They care that the exchange is collecting your KYC data so they can spy on you, and they care that the exchange is paying the relevant taxes. That's all. As I said in my earlier post in this thread, regulation or government oversight absolutely does not mean the exchange is safe.

I think it's not really "spy" on you, if they see that you are a person who doesn't have any type of criminal record, they will move on. This feels a lot like aunts and uncles on facebook that is so scared that their data will be collected, not realizing even their text message about the fact would be collected.

If you are not a criminal, give your ID, the number will be checked, and if you are clean then they would probably not even check how much money you have. Do not oversell your value, you are not important to the government if you did nothing wrong, they can't calculate 80 million people and spy on each of them, they just want to know about a select few, and we are not one of those.

aysg76

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Quote from: o_e_l_e_o on July 17, 2022, 06:26:58 AM

Quote from: nurilham on July 16, 2022, 06:49:16 PM

Does it mean every CEX is a risky place for our coins?

Yes.

Using of Centralised exchange services for decentralised coins like bitcoin completely diminish the it's usecase and what security you except from it?

The CEX have their own terms and they will operate on their own terms and see them as business entity who have to comply with the government regulations to keep their profits running down the line without even thinking of your privacy for a moment at all.The governments always want to track you and so these CEX is risky for you undoubtedly.

Quote from: o_e_l_e_o on July 17, 2022, 06:26:58 AM

Also yes. A government "monitoring" or otherwise regulating an exchange doesn't care in the slightest about the users of that exchange or the safety of their coins. They don't care if the exchange has terrible security, or if they are hacked, or if they have risky business practices, or poor cash flow, or go bankrupt, or anything of that nature. They care that the exchange is collecting your KYC data so they can spy on you, and they care that the exchange is paying the relevant taxes. That's all. As I said in my earlier post in this thread, regulation or government oversight absolutely does not mean the exchange is safe.

Exactly exchange doesn't care about your safety and security and they want to increase their profit share only with increased customer base and government support.They will be putting restrictions on you each time you make transactions and KYC is what they are making mandatory these days so being anonymous is not a option for you at all with these CEX.

Quote from: o_e_l_e_o on July 17, 2022, 06:26:58 AM

Bitcoin fees are often 1 sat/vbyte, which equates to a few US cents. Hardly an excessive price to pay for security.

And fees will only depend on the size not the amount you are willing to transfer unlike to your traditional monetary system that charge high fees with lot of documents to make big transfer but in bitcoin we see how whales make million dollars transactions with normal fees payment and yes you can pay it with RBF also and usually the transaction is settled fast.

o_e_l_e_o

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Quote from: nurilham on July 16, 2022, 06:49:16 PM

Does it mean every CEX is a risky place for our coins?

Yes.

Quote from: nurilham on July 16, 2022, 06:49:16 PM

What if there is a reputable local exchange that is always monitored by the government? Is it also an unsecured place to store coins?

Also yes. A government "monitoring" or otherwise regulating an exchange doesn't care in the slightest about the users of that exchange or the safety of their coins. They don't care if the exchange has terrible security, or if they are hacked, or if they have risky business practices, or poor cash flow, or go bankrupt, or anything of that nature. They care that the exchange is collecting your KYC data so they can spy on you, and they care that the exchange is paying the relevant taxes. That's all. As I said in my earlier post in this thread, regulation or government oversight absolutely does not mean the exchange is safe.

Quote from: nurilham on July 16, 2022, 06:49:16 PM

Sometimes we are forced to keep our coins on exchanges because if we store them in private wallets, it requires transfer fees whenever we want to sell them.

Bitcoin fees are often 1 sat/vbyte, which equates to a few US cents. Hardly an excessive price to pay for security.

xSkylarx

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Quote from: Majestic-milf on July 15, 2022, 01:34:20 AM

Your privacy matters a lot always use a non- custodial wallet and save yourself the stress.

Using a non-custodial people is really better for holding cryptocurrencies but there are people who still choose to keep them on CEX because they are afraid to lose the seed phrase of their wallet and not able to recover the assets anymore. We know that there are some investors who are only in for profit, they don't bother transferring it to other wallet because they are confident of the exchange's reputation.

2stout

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To be fair, all coins that a user has on a CEX is at risk; however, this varies by CEX. Some CEXs are more risky and some CEXs are less risky but it's still taking a big chance regardless of how stable or how much longevity a CEX may have, some of the likes which we have already seen recently.

nurilham

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Does it mean every CEX is a risky place for our coins? What if there is a reputable local exchange that is always monitored by the government? Is it also an unsecured place to store coins?

Sometimes we are forced to keep our coins on exchanges because if we store them in private wallets, it requires transfer fees whenever we want to sell them. To be honest, I also keep some coins on Tokocrypto, it is a trusted local exchange in my country. I know this exchange can be bankrupt at any time, but I think it is quite safe to keep my coins there for several weeks or months. It is very difficult to avoid totally CEXs.

Quidat

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Quote from: Majestic-milf on July 15, 2022, 01:34:20 AM

With the current market situation, where the bear pushes the dip further, chances are most centralized exchanges are being forced to go insolvent or even shut down due to inability to meet up with government taxes. And should this happen, your coins are at risk. Either you lose it all or get compensated in cases of lenient exchanges.
Some Exchanges may not be trusted as most times they are vulnerable to hacker attackers. Take the case of Bithumb, a South Korean crypto currency exchange that lost a million dollars worth of customers crypto in 2017.

Your privacy matters a lot always use a non- custodial wallet and save yourself the stress.

Once you had sent out or deposit your funds into centralized platforms then expect that there's something like this which an incident which cant really be known on when a platform would be running their
users money or something that involves hacking or inside jobs which it is unfortunate for those users who are been affected by this. Bear season could really be also a culprit on a situation like this and
even on bullish times where everything is mooning then incidents of hacks and exploits could really happen thats why there's no really exemption into this one
Thats why always consider risk management whenever you do make out deposits on platforms which you dont possess the private keys of those wallet.

crzy

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Quote from: Majestic-milf on July 15, 2022, 01:34:20 AM

Your privacy matters a lot always use a non- custodial wallet and save yourself the stress.

This is always advisable, store big money on a wallet where you have control and just use CEX for your trading activities.
Even the top exchange can have a problem, so don't over confident with your exchanges. Though to be more safe during this bear market, I suggest to buy only good coins since they are proven to survive and they already have the history in bear market before. Bear market can affect everything, better to have a good plans and strategies now, especially in storing your money.

CryptocurencyKing

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Quote from: Upgrade00 on July 15, 2022, 02:07:39 AM

"Your coins on CEX may be at risk this bear season"
Actually, they are not 'your' coins if they are in a centralized exchange.

You know I laughed hard when I first sighted this reply. As funny as it may seem, it's not funny at all and this is the truth to centralised system in the crypto space. Having sent all your coins to a centralized exchange makes you automatically a No-Coiner.
For all we know, the exchange could crumble, they could come up with a verification system for which the necessary documents you would not have, they might create policies that can restrict your access to the stored coins, they could froze your account as a way of controlling liquidity and so many shits like that. CEX is a no when it comes to storing coins and worst still is an exchange that have got its own coin or token for which you are an investor. It gets bad in the bear market and your at risk with your coins on CEX.

darkv0rt3x

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Many might not like what I'm going to say but it's true up to some extent.

People leaving their Bitcoin (or even any other shitcoin, not that their matter but...) on custodial wallets are retard. There is no lack of examples of wat happens with custodial wallets. People know about it but they just don't care until it happens to them. But then, it's too late! So yeah, those people deserve to get robbed/hacked/wahtever! Centralistion was always and will always be a problem! If people still choose to leave their assets there, then they cannot complain when the shit hits the fan.

Rengga Jati

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If indeed we intend to hold, using a hardware wallet to store cryptocurrency during a bear market is necessary. But what about traders or short holders?
Indeed, the current market conditions are in bearish condition. However, I think that if it is a top and reputable exchange, at least we should choose an exchange that has less risk of going out of business. And it is rare for top exchanges to go bankrupt even during bearish periods like before. And even if they are going to close, usually users are given the opportunity to move their assets to other exchanges, right? So, our assets will not immediately disappear, unless we do not take care of the transfer of these assets to another wallet or exchange before the exchange is closed.

dothebeats

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Bear market or not, funds are always at risk when kept only at CEX. These platforms are in constant threat to hackers and inside jobs, hence why it's unwise to keep your funds there for an extended period of time. It's funny that even with all the advisories and hacks that happened throughout the years on exchanges, people still think that these places are the best safekeepers of their own funds. You'll never know when these exchanges will get their coffers drained so better keep your funds yourself to not get burned in the end.

Fortify

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Quote from: Majestic-milf on July 15, 2022, 01:34:20 AM

With the current market situation, where the bear pushes the dip further, chances are most centralized exchanges are being forced to go insolvent or even shut down due to inability to meet up with government taxes. And should this happen, your coins are at risk. Either you lose it all or get compensated in cases of lenient exchanges.
Some Exchanges may not be trusted as most times they are vulnerable to hacker attackers. Take the case of Bithumb, a South Korean crypto currency exchange that lost a million dollars worth of customers crypto in 2017.

Your privacy matters a lot always use a non- custodial wallet and save yourself the stress.

In reality if the exchange is being run properly and reasonably then it should ringfence customer bitcoin, which would never be intermingled with company finances. However as we see, there are a lot of companies out there offering things like ridiculous "interest rates" in return for allowing customer bitcoin deposits to be sold short - stay far away from these companies are they are vulnerable to all sorts of manipulation, alas people get overly greedy.

CryptoYar

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Quote from: Majestic-milf on July 15, 2022, 01:34:20 AM

[...]
Some Exchanges may not be trusted as most times they are vulnerable to hacker attackers. Take the case of Bithumb, a South Korean crypto currency exchange that lost a million dollars worth of customers crypto in 2017.

Not only Bithumb almost every major exchange has been hacked in the past.

Here are some threads about it.

Hacked Exchanges since 2011
[Updated] List of cryptocurrency exchange hacks

So yes, it's stupid to hold your funds on exchanges, because any exchange can get hacked at any time and you'll lose your funds.

Quote from: Majestic-milf on July 15, 2022, 01:34:20 AM

Your privacy matters a lot always use a non- custodial wallet and save yourself the stress.
Using a non-custodial wallet gives complete control over your/our funds. So no one can freeze and take away our funds. The only thing we need to do is keep safe our private keys.

trendcoin

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Centralized exchanges are already dangerous places. As you mentioned, the period we are in is a period open to all kinds of dangers. Heavy tax burdens, government bans and thefts made the stock markets more dangerous places in this period. Therefore, your advice should definitely be taken into consideration.

But on the other hand, centralized exchanges are also places where you can make quick money. I use centralized exchanges very often, but I do not use them as a wallet. I complete my transactions and immediately withdraw my money to my own wallet. So, I think it's more important how we use them.

yhiaali3

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Several companies have so far declared bankruptcy due to the bear market, there are Three Arrows Capital (3AC), Voyager Digital and Celsius.
The CEO of the FTX Exchange hinted that there are several financially insolvent stock exchanges, all of these indicators indicate that several companies and exchanges may declare bankruptcy due to the bear market, so it is very dangerous at these times to store assets in the central exchanges, because in the event of bankruptcy, investors will lose their money , so wallets in general and cold wallets in particular are best for storing crypto assets.

CryptopreneurBrainboss

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Quote from: Majestic-milf on July 15, 2022, 01:34:20 AM

Your privacy matters a lot always use a non- custodial wallet and save yourself the stress.

Exchanges weren't meant to be used as wallet so you ignoring all the warnings available on the internet and using them as a wallet is wrong. Don't get carried away by all the juicy deals they bring to the table to try convincing you into trusting them with your coins as they can never be trusted. Don't be fooled by all the VCs they have backing them or billions currently available at their disposal as Immediately they can't stand the liquidity pressure, they lose all the supports from the VCs and been left alone to collapse and that's exactly what's happening to the projects going bankrupt in this bear market.

Use exchanges for only trading purpose (buying and selling of your cryptocurency). Apart from this, any other features they offer shouldn't be trusted especially those that have to do with you giving over owenrship of your assets as immediately the coins are sent to the exchange, you lose the freedom you ones have of been incharge of your finances.

Topic: Your coins on CEX may be at risk this bear season (Read 443 times)