|
Title: "Not your keys, not your Bitcoin" Post by: RapTarX on July 14, 2019, 12:22:21 PM I found this thread (https://bitcointalk.org/index.php?topic=5090869.0) interesting. More specifically, the sentence I have used in the title. Check the thread. Since 2011, many exchange were hacked and its user had lost their bitcoin. Until you are not holding the private key, it's not your coin. Be aware and don't use exchange to store your coin.
Title: Re: "Not your keys, not your Bitcoin" Post by: Pmalek on July 14, 2019, 01:02:45 PM This is a good reference point especially for new investors who believe that it is a good idea to keep your money on exchanges. Exchanges should be used only for what the name suggests - the exchange of currency A to currency B and once that is done the money should be withdrawn to a safe device.
For better visibility I am going to add the list of hacked exchanges so it's visible in this thread as well. I think it is important as there are many well known names in that list. Code: Exchange Year Amount / Month Amount / Coin Founders Source: https://bitcointalk.org/index.php?topic=5090869.0 Title: Re: "Not your keys, not your Bitcoin" Post by: Lucius on July 14, 2019, 01:22:48 PM This may be one of the most famous sentences in crypto world, and everyone will completely agree with that statement. People are very often confused by how bitcoin works, and it is good to know that bitcoin is always on blockchain, and that we can only buy information which allows us to transfer bitcoin over blockchain. That information is called a private key, and every time you create new bitcoin address, new private key is created.
It is therefore quite foolish to give such info to anyone, and in case of crypto exchanges users are taking a double risk - from exchanges and from hackers who attack such companies on a daily basis. QuadrigaCX owner was allegedly died and take all private key in his grave, and Mt.Gox case is still unresolved after 8 years - I think this is enough warning for everyone who still think "This can not happen to me, I have 2FA on exchange" Still, it's a big mistake to think that desktop, paper or hardware wallet provide perfect safety for cryptocurrency. In last few days we can see how people lost coins using the above-mentioned ways and methods. Nothing is safe if we use that in the wrong way. Title: Re: "Not your keys, not your Bitcoin" Post by: El duderino_ on July 14, 2019, 01:25:07 PM This is one of the first rules and is been explained very often, still many are lazy or don't do any research and get their coins lost by storing them on exchanges or will be very vulnerable by storing them there as we write this very second...
Why is it so that one has to burn himself before they know the danger of something like that?? Title: Re: "Not your keys, not your Bitcoin" Post by: Velkro on July 14, 2019, 01:33:35 PM For better visibility I am going to add the list of hacked exchanges so it's visible in this thread as well. I think it is important as there are many well known names in that list. Never store your funds longer than needed for trade on exchange. Its REALLY important. Title: Re: "Not your keys, not your Bitcoin" Post by: Btczhageh on July 14, 2019, 02:05:24 PM The most stupidest mistakes investors make or cryptocurrency enthusiasts make by storing their coins or tokens in exchange, whatsoever you called it; secure exchanges or not aren't good to store coins or tokens for a longer time. I was a victim of cryptopia and will not forget my personal experienced with them. For now, I use Hardware wallet or Blockchain wallet.
Title: Re: "Not your keys, not your Bitcoin" Post by: DdmrDdmr on July 14, 2019, 02:31:40 PM Being completely true as a statement, the other side of the coin is that not everyone is brilliant at being their own bank, thus the amount of reports from people that have has their crypto stolen whilst being their custodian.
The upside of being in control of your own private keys comes with the slight burden of responsibility over its security. While for the most that is not too much of an issue (due to either knowing what they are doing, or simply no being targeted), it does entail getting acquainted with best practices on the dos and don’ts, as well as being sharp on the election of the type wallet itself in relation to operative needs and security features. Title: Re: "Not your keys, not your Bitcoin" Post by: hugeblack on July 14, 2019, 05:11:31 PM It’s Better to say "Not your code, Not your Coins. Download full-node wallet"
Having a private key (or wallet seed) does not mean that you are safe, a lot of open source/famous wallets have been hacked or lost some keys for example: newbie's wallet (blockchain.info) ----> Old bitcoin history: @johoe return 870 BTC to the owners (https://bitcointalk.org/index.php?topic=5127525.0). Avoid using untrusted/closed source wallets and it is better to download a full-node wallet. Downloads only from official websites Title: Re: "Not your keys, not your Bitcoin" Post by: Sohyun Park on July 14, 2019, 05:48:28 PM I think it is always a healthy to store your major chunk of funds in a offline wallet. The funds that are involved in trading sometimes must be left on the exchange as it is required.
I would suggest it is good to have 2FA on all our online accounts be it a online wallet or a exchange for some extent the funds are safe when we enable 2FA. Title: Re: "Not your keys, not your Bitcoin" Post by: rosezionjohn on July 14, 2019, 05:50:56 PM It is funny that even after countless reminders like this, some still prefer to store their assets on exchanges. I once asked why do they do it, one reply I got is "It is more secure. Even if it gets hacked, I will still be refunded" and I'm like ???
Title: Re: "Not your keys, not your Bitcoin" Post by: OgNasty on July 14, 2019, 06:36:49 PM Some people’s security practices and understanding of Bitcoin are so poor, that keeping BTC on an exchange isn’t a bad idea. That being said, if you know how to create a secure wallet of any kind and you leave a majority of your funds on an exchange, you are asking for trouble.
I’m still waiting for my mtgox funds many years later. Title: Re: "Not your keys, not your Bitcoin" Post by: bernardos on July 14, 2019, 06:46:55 PM I’m still waiting for my mtgox funds many years later. I think it would be very beneficial for all members here if you wrote a thread about what happened to you on mtgox. You are the first user that I heard say he lost money on mtgox and it could be a good lesson for everyone here to read your experience. Title: Re: "Not your keys, not your Bitcoin" Post by: BitMaxz on July 14, 2019, 07:40:46 PM I didn't know that there are many hacked crypto exchanges I only know hacked 5 exchanges from 2015 to 2019 which are MT.Gox, Poloniex, cryptopia, Binance, and Bitstamp. I mostly heard of these exchanges here on the forum than the other exchanges listed above. That is why I don't want to keep my coins in exchanges for a long time because even it is in a high level of security there are still possibilities that they can be still hacked.
That is why I always keep some of my coins in the offline or cold wallet as long as they are not connected to the internet they are safe. I think it would be very beneficial for all members here if you wrote a thread about what happened to you on mtgox. You are the first user that I heard say he lost money on mtgox and it could be a good lesson for everyone here to read your experience. No need for that there are many threads about MT.Gox here on the forum where most of them lose their precious coins from Mtgox exchange. Here are some of them. - https://bitcointalk.org/index.php?topic=179586.0 - https://bitcointalk.org/index.php?topic=4412667.0 - https://bitcointalk.org/index.php?topic=451225.0 Additional knowledge about MT.Gox below. - https://en.wikipedia.org/wiki/Mt._Gox Title: Re: "Not your keys, not your Bitcoin" Post by: hatshepsut93 on July 14, 2019, 09:13:52 PM Some people’s security practices and understanding of Bitcoin are so poor, that keeping BTC on an exchange isn’t a bad idea. That being said, if you know how to create a secure wallet of any kind and you leave a majority of your funds on an exchange, you are asking for trouble. I’m still waiting for my mtgox funds many years later. If someone's security is that bad, it won't really makes much difference then - if their PC is ridden with malware, coins from both exchange and software wallet can be stollen, if someone doesn't verify the sites they visit, they become a victim of phishing with either fake exchange or fake wallet. 2FA is one thing that can help people with horrible security practices, but it's also available in some wallets like Electrum, though this comes at a price of additional fees. Title: Re: "Not your keys, not your Bitcoin" Post by: elda34b on July 15, 2019, 01:21:04 AM You are the first user that I heard say he lost money on mtgox and it could be a good lesson for everyone here to read your experience. Mt.Gox is a famous case. I'm quite surprised you heard it only by now as most articles/news about exchange hacks will likely quote or at least mentions about Mt.Gox. If someone's security is that bad, it won't really makes much difference then - if their PC is ridden with malware, coins from both exchange and software wallet can be stollen, if someone doesn't verify the sites they visit, they become a victim of phishing with either fake exchange or fake wallet. 2FA is one thing that can help people with horrible security practices, but it's also available in some wallets like Electrum, though this comes at a price of additional fees. Like it or not, people need to increase their security awareness if they want to participate in the cryptocurrency ecosystem. They don't have to store it on their computer wallet though. They can just make a paper wallet, keep it safe somewhere, and store their long-term hold there. Title: Re: "Not your keys, not your Bitcoin" Post by: Julian ogan on July 15, 2019, 03:35:19 AM I found this thread (https://bitcointalk.org/index.php?topic=5090869.0) interesting. More specifically, the sentence I have used in the title. Check the thread. Since 2011, many exchange were hacked and its user had lost their bitcoin. Until you are not holding the private key, it's not your coin. Be aware and don't use exchange to store your coin. I agree with you, keeping cryptos on exchanges is not safe. Many exchanges got hacked even though they follow many security measures. Recently, Japanese crypto exchange BitPoint Loses $32 Million USD to Hackers. It is always good to store your coins in your own wallet where you will have the access to your private keys. Cold wallets are the best option to store your coins. Title: Re: "Not your keys, not your Bitcoin" Post by: odolvlobo on July 15, 2019, 05:33:39 PM I expected the number of hacks to go down over time because security practices would improve, but the opposite has happened. Every year the number of hacked exchanges has risen. It is becoming a more frequent occurrence every year.
Title: Re: "Not your keys, not your Bitcoin" Post by: Lucius on July 16, 2019, 09:01:43 AM It’s Better to say "Not your code, Not your Coins. Download full-node wallet" Having a private key (or wallet seed) does not mean that you are safe, a lot of open source/famous wallets have been hacked or lost some keys for example: newbie's wallet (blockchain.info) ----> Old bitcoin history: @johoe return 870 BTC to the owners (https://bitcointalk.org/index.php?topic=5127525.0). Avoid using untrusted/closed source wallets and it is better to download a full-node wallet. Downloads only from official websites If I'm not mistaken, current size of bitcoin blockchain is over 230 GB, and this is main problem for people who want to use full-node wallet. It is not only problem in fact that user need to have hard disk of at least 250 GB, but also in speed of user internet - this is not something for low speed internet connection. You are mixing online wallets with desktop / hardware wallets, it is not the same level of security and it will never be. Online wallets are most insecure way of keeping cryptocurrency, and by using any desktop / mobile wallet this security is improved. If user want to improve security even more, hardware wallet is next step. Having a private key or seed is just fine&safe, problem may be only in a way how users is handle with such data. |