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.

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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.

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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.

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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.

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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.

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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.

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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.

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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.

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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.

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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.

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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.

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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.

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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.

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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.

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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.

Not only that (Bithumb case). I've also seen cases of other exchanges being hacked in 2017 and the year after, but that doesn't mean I'm afraid to use the exchange I need. Although it can be a lesson for everyone. Because good exchanges will always fix all their security systems after being hacked and for assets that I keep and don't sell for a long time, I always keep them in a safe wallet and it's not on any exchange, because I only use exchanges to trade online part time and also exchange the coins I need.

Quote

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

Your advice is very good, but I've been thinking about this for a long time so I've never had any stress when it comes to using the exchange.

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Quote from: ChrisPop on July 16, 2022, 02:31:03 AM

This is one the big problems when dealing with unregulated exchanges.

Regulation has nothing to do with it. Look at platforms like Celsius, Voyager, Vauld, and others. They all had the necessary MSB licenses and registration (or equivalents in non-US countries). They had some form of insurance, even claiming in some cases to have FDIC insurance. They were regulated and behaved within the law, but there is no law against making stupidly risky loans or investments. And now they are all bankrupt and their users have lost everything.

Sure, you should stick to well known platforms, but the difference between such platforms and small unregulated ones is "risky" and "very risky", not "safe" and "risky".

Reid

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I learned about that a long time ago thanks to the members of this forum who doesn't get tired about making other members aware about CEX risk.
"Not your keys, not your coins."
Centralized Exchange have no keys, just log-in details and password. Anytime it could be hacked or the exchange itself will do something fishy that will make your coins disappear. One way is that, claiming bankruptcy or just simply gone in the wind.
If a person will not trade then don't keep it there. Just purchase the coin that you want and keep it in a safer place with "keys".

robattfield

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I remember experiencing this situation in the past when some CEXs stopped providing translations during bear market periods. And that's really a lesson that many people need to be more wary of when leaving assets on CEXs, especially low-quality CEXs. It's better to make sure your assets are safe when any possible consequences can be foreseen.

ChrisPop

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This is one the big problems when dealing with unregulated exchanges. You don't know how and if they have proper capital and risk management procedures in place. I don't think exchanges have much overhead costs. I think they are pretty profitable, especially the big ones so with a bit of dilligence in their finance department they shouldn't have any problems paying government taxes which I suppose are not that hefty taking into account that many of them have set their headquarters in fiscal paradises.

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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.

Bear market shred off weak companies even exchanges can go bankrupt or force closures due to not sustaining it well during bear season.

Do you guys remembered C-CEX? It closed and says that they are "hacked" which is an old fashion way to scam people. Users who have funds and asset there haven't been compensated, Basically a scam. Weak exchanges can be on the same direction, Time can tell when would they close. Actually there are exchanges now that are filling up for bankruptcy, one of them is Voyager Digital. Obviously they aren't ready for this kind of market or they can't sustain their platform features that's why they filled for bankruptcy.

Store your coins in you wallet and avoid using weak or relatively new exchanges. Exchanges are becoming popular due to it's survivability in the market.

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Quote from: NeuroticFish on July 16, 2022, 01:21:49 AM

Again: don't believe everything that those businesses are promising (or claiming). It's just commercial.

Exactly this. Take Celsius as a prime example of this. They ran with the slogan "Unbank yourself", they claimed all over their website and social media that your coins were safe, that they were collateralized, that they were stored securely, etc. And then the bankruptcy proceedings go ahead and it turns out they were handing out uncollateralized loans, and spending the little collateral they did have to take out more loans themselves. Incredibly risky and completely unprofessional. Or Coinbase as another example. Say on Twitter how all their users' coins are secure and safe if anything should happen, but then file legal documents saying that users are unsecured creditors and their coins will be used to pay off any bankruptcy proceedings, leaving the users with nothing.

These companies say anything they like on social media to attract customers. Almost none of it is accurate. Your coins are at risk.

Quote from: cabron on July 16, 2022, 01:27:13 AM

I could have withdraw the $500 from one account if only withdraw fee for stablecoin will be cheaper.

Then that's an argument to find an exchange which doesn't charge outright theft levels of withdrawal fees to force you to only rarely withdraw. Binance is the worst for this.

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Quote from: o_e_l_e_o on July 16, 2022, 01:02:58 AM

Quote from: sheenshane on July 15, 2022, 08:42:08 AM

Though there are exchange that has a feature of SAFU like Binance which is your fund is safe

A marketing ploy, nothing more.

The ploy still works for me actually and probably for some of us too. We are very much aware of the "Not my keys, not my coins" but because we trade so much even in the bear market we leave them in exchanges to buy and sell when the price is right. I could have withdraw the $500 from one account if only withdraw fee for stablecoin will be cheaper.

I think its find to leave few money on the exchange as long as its something you can afford to lose in case the exchange suddenly suspends withdrawal. But staking them on Defi or lending platforms is riskier.

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

Quote from: o_e_l_e_o on July 16, 2022, 01:02:58 AM

Let me fix that title for you OP:

This reminded me that one can actually change the title that appears when they reply to a thread, and if quoted, it carries that title. So, I directly fixed it myself Grin

Quote from: o_e_l_e_o on July 16, 2022, 01:02:58 AM

I have been warning people about platforms like Celsius for years, and every time I do, there are always multiple users in the thread saying variations of "Well, I use them and have had no problems" or "They are big and reputable therefore they are safe". There's even a post in this very thread saying exactly that about Binance.

This is a rationalization many (including experienced users who have seen first hand hacks and data leaks from CEX) use to make it understandable to use centralized platforms. And with some of those platforms integrating supposed non custodian wallets onto their system, it further gave the false sense of autonomy.

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Quote from: sheenshane on July 15, 2022, 08:42:08 AM

Though there are exchange that has a feature of SAFU like Binance which is your fund is safe

Imho the more correct way would be "your funds are claimed to be safe".
With so much SAFU around, this didn't help the Nigerians who got the funds frozen by Binance without prior notice, isn't it?
Again: don't believe everything that those businesses are promising (or claiming). It's just commercial. Think it over very good and never forget: not your keys, not your coins.

o_e_l_e_o

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Let me fix that title for you OP:

Coins on a CEX are at risk.

Any coin not in your own wallet is at risk at all times. It doesn't matter if it is on some two bit exchange no one has heard of or on Binance or Coinbase, on some lending platform like Celsius or BlockFi, or in a web wallet. If it's not in your wallet, not only is it a risk, it is not even yours. Every one of these platforms, as we are now discovering with Coinbase's recent SEC filings and with Celsius and Voyager going bankrupt, treat coins deposited from users as belonging to the platform. You give up all rights and claims of ownership over those coins as soon as you deposit them, and they can and will be used by the platform to pay off their debts and liabilities.

Quote from: Poker Player on July 15, 2022, 01:42:59 AM

Good initiative but the problem I see is that the average user of this forum knows what you are saying

I have been warning people about platforms like Celsius for years, and every time I do, there are always multiple users in the thread saying variations of "Well, I use them and have had no problems" or "They are big and reputable therefore they are safe". There's even a post in this very thread saying exactly that about Binance.

Quote from: sheenshane on July 15, 2022, 08:42:08 AM

Though there are exchange that has a feature of SAFU like Binance which is your fund is safe

A marketing ploy, nothing more.

DVlog

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That is why I always prefer to keep my balance in my non-custodial wallets. Though I think maintaining assets in an exchange like binance, ftx, and kucoin is safe, using a personal wallet is the best option. You do not need to worry about any exchange hack or suspicious activity from the exchange itself. But for a low-quality exchange, I won't even deposit my funds to buy any token.

boyptc

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Not only during the bear markets but all of the time.

That's why it's spreading on the forum that if you don't hold the keys, then you're not holding your funds in any exchange because it will never be.

Everyone not just the newbies but also those that have been long in the market to become vigilant. From the hacks, to the shutting down of exchanges due to several reasons and most of it are the same about can't tackle the bear market with their responsibilities, obligations and liabilities.

Silberman

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Quote from: dimonstration on July 15, 2022, 05:08:47 AM

Not your your key not your coins and this quote is the forum main tag line. Cheesy

Anyway I doubt huge CEX will be affected by this like for example Binance, They are in crypto business since the crypto marketcap was below billion dollars. They are the one who gain the most on this bull market so they have enough funds to withstand any bear market how dip it was unless the price dip near zero which is obviously not profitable anymore to any business here in crypto.

This is a very common phrase in the forum and yet it is still one of the most powerful and important ones, Satoshi designed bitcoin with the idea of allowing every single person to be their own bank, and while some users have decided to abandon that responsibility by letting a CEX to take on that role that phrase still holds true, letting someone else manage your coins for a long period of time is a mistake that could come back to haunt us at some point, and when we have so many exchanges out there and new regulations appearing which forces them to pay more taxes then at some point they could become insolvent and in that scenario the chances you will recover your coins are not very high.

blue_hurricanger

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I think I know the point anyone here is talking about since the cases of Celsius filled for bankruptcy recently along with Voyager, 3AC shook the faith in CEX. Freeze the asset, stop the withdrawal.
But to be fair, the CEX exchanges are a bit more resistant than those loan companies. Because those loan companies boom thanks to the bull market last year. They can pay back the high rate they promise but once the bull market is gone, you know what is coming. Even in the Mt.Gox case, people can still get their money back abit after a very long time of waiting so if you keep your asset at Binance and not fall for lending bullshit, you're not at risk of losing all of your assets.

sheenshane

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Quote from: dimonstration on July 15, 2022, 05:08:47 AM

Not your your key not your coins and this quote is the forum main tag line. Cheesy

As always and considering it as a golden rule, IMO. I also repeatedly say this to anyone who needs advice.

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.

Though there are exchange that has a feature of SAFU like Binance which is your fund is safe, still considering it not safe to store your coins there is a long period of time but if you're in trading, I'd like you to choose them than the unknown exchange platform which is commonly considered to be bankrupt due to what you've said.

Quote

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.

There's nothing you can do if you're a trader, just take a risk, and picking a good exchange was your first step there.
After the trading session just transfers your coin out into your non-custodial wallet, you're safe.

Quote

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

I tend to agree and you're indeed right.

dimonstration

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Dimon69

Not your your key not your coins and this quote is the forum main tag line. Cheesy

Anyway I doubt huge CEX will be affected by this like for example Binance, They are in crypto business since the crypto marketcap was below billion dollars. They are the one who gain the most on this bull market so they have enough funds to withstand any bear market how dip it was unless the price dip near zero which is obviously not profitable anymore to any business here in crypto.

Leviathan.007

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Leading Crypto Sports Betting & Casino Platform

In my own idea, It's not only about the bearish market situation but in any situation, your funds are in danger whenever you keep your assets where you don't have direct access to your seeds and private keys and this case got many victims already. Because they can suspend your transaction and withdrawals for any reason they want and they can change their rules also the risk because higher when the prices go down in the market because the other option for them can be a declaration of bankruptcy so they won't give the coins hack ever.

NeuroticFish

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I think that people should read the topics made by o_e_l_e_o on this matter, I'll post them here in case you guys (and gals) have missed them.
Recent events should make everyone withdraw all their coins to their own wallets
Recent events should make you withdraw all your coins to your own wallet: Part 2

Shortly, my opinion:
Even though it is being said on a daily basis that "not your keys, not your coins", people keep missing the point and losing more and more money. With bitcoin becoming more and more mainstream, with every minute passing by it's more and more important to keep your funds under your own custody, i.e. be your own bank. And don't give to the others, no matter what they promise. And if you're not knowledgeable enough to keep them safe, buy a hardware wallet.

btc_angela

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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.

I guess those who are force to go insolvent are exchanges that don't have the liquidity in the first place. But I will say that majority of top exchanges will have better protection although no one is safe from cyber threat.

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.

A lot of exchanges have been hack as well since Bithumb, lost big amount of money regardless of bear and bull market.

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.

Of course, we would like to protect our privacy, but there could be argument by now that some exchanges requires our KYC to be able to used their platform.

Upgrade00

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"Your coins on CEX may be at risk this bear season"
Actually, they are not 'your' coins if they are in a centralized exchange. The exchange holds the keys and the coins as well, you only trust them to let you spend it when you need it and that privilege can be revoked in a bull or bear market.
There is also the risk of privacy loss, with your personal details falling into the hands of hackers or being handed over to government agencies.

Quote from: Charles-Tim on July 15, 2022, 02:01:16 AM

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

Your privacy matters a lot always use a segregated wallet and save yourself the stress.

What did you mean as segregated wallet?

I read it as segregated witness wallet. Probably cause that was the only way it made sense to me.
And you are right, best to be specific on using an open source, non-custodian wallet

Charles-Tim

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Even aside this present bear market, even during bull market, any unused coins should be transferred out of exchange to noncustodial wallet, being noncustodial means you have the full control of your coins.

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

Take the case of Bithumb, a South Korean crypto currency exchange that lost a million dollars worth of customers crypto in 2017.

That is even better. This thread's OP was last edited on January 02, 2021 but you can see many exchanges that were hacked right from 2011 to that time when it was updated last.

Hacked Exchanges since 2011

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

Your privacy matters a lot always use a segregated wallet and save yourself the stress.

What did you mean as segregated wallet? I think to be specific, people should be advised to use a noncustodial wallet. There is also a custodial wallet, which are not also advisable just like exchanges because if talking about privacy and full control, if exchanges are the fire, then custodial wallets are the hot frying pan.

Poker Player

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Good initiative but the problem I see is that the average user of this forum knows what you are saying, however there are many people who do not visit this forum who will innocently leave their funds in CEX.

Then comes the crying, when more than one leaves their life savings in an exchange or platform that goes bankrupt:

Quote from: Eternad on July 14, 2022, 09:35:18 AM

There's a lot of people now posting about suicide in there social media in relation with this Celsius collapse as expected. Celsius is licensed company which is the reason why noob investors will risk there life savings in there for a passive profit.

I just saw this article https://cryptobriefing.com/i-am-suicidal-celsius-customers-respond-to-firms-bankruptcy/?utm_source=feed&utm_medium=rss shared on our group in telegram. This is same when Terra UST collapse before.

Majestic-milf

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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.

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