Bitcoin Forum

Can you trust a cryptocurrency exchange?

I have never heard of Blockchain Exchange and if it is a name then it is definitely a small and not famous exchange.
and from what I understand about Blockchain it is a kind of block chain technology and works on different platforms. In addition, it is not an exchange form to trade coins with each other. If I'm wrong, correct me.

it depends,u know we need to take carefully about what exchange we choose for transaction,since we give our money without any collateral.
i suggest binance,huobi,bithumb,bittrex,kucoin. i guess you is really new to crypto world. so, welcome to the ship.

short answer: no.

long answer: some exchanges are more trustworthy than others, re the likelihood of an exit scam or a seizure by law enforcement agencies. however, they are all prone to hacking or inside jobs, so relying on an exchange to store your coins = playing with fire.

no matter which exchange you use, you should minimize the time you keep money there. just deposit, do your trading, then withdraw.

It totally depends on what they should be trusted for. Using binance as an example, since they have put in work to make their platform very user friendly that even a newbie with no experience can create an account, buy any coin of their choice without much difficulties then obviously you can easily vouch for them to be trusted in regards to that. Same too can be said about vouching for them as a trading platform, both for spot and future market.

In regards to trusting them with your money, small funds that are used for your trades can be kept with them but you should never trust any platform, be it wallet providers or exchange that isn't your personal wallet (which you should obviously have control over your private keys) to store your money for you. These platforms can easiy be hacked/shutdown and in the process you lose access to your funds.

For me, it is no too.

I don't know what you mean though but I don't think people should trust these exchanges. You just open or visit it when you need it but I don't think people should really depend on it. These wallets are prone from being hacked and you are prone from being scammed so people should really worry when they are using an exchange.

It all depends what exchange you are trying to mention in this post. I would likely to trust an exchange platform that are well-known and famous that are being used by many users and in that way you can see clearly who to trust or not. Though there are some small time exchange platform that are also trustworthy in my opinion. I would suggest, just don't put so much assets in exchange just to be safe, much better put your assets in external wallets instead.

Depends on the use so better you should elaborate your questions since there are so many meanings for the trust you mentioned but if you mean for making it as your alternative wallet well it's a big no for me, there are countless of attacks or best to call them inside job which the balance of there user are been affected so for this incident never ever trust any of those even if they are called reputable.

But for tradings or other used then I trust several of them and you can use binance,Okex and huobi.

It depends where they are and how regulated they are. A lot of these Crypto currency exchanges are situated in countries, where they can only operate if they adhere to strict financial/operating requirements. Some of them are regularly audited, so if there are problems, it will be spotted very early.

The problem does not neccesarilly have to do with the honesty of the exchange, but how secure their software are, because companies with weak security, will be an ideal target for hackers. You will have to ask around to determine which exchanges in your area are highly regulated and which of them have a good security history. (How many times have they been hacked or exploits reported)

The decentralized and anonymous exchanges are a minefield and you should not gamble with large deposits in these exchanges. The general rule of thumb is not to store large amounts of money and coins on these exchanges. (They should not be used as wallet providers)

Looking with other experience I can't fully trust with exchange market and not brave for holding assets in exchange market, looking with many exchange scam without give back fund of investor like cryptopia and other exchange market. If you wanna be holder for long time better hold in your offline wallet.

    When you make crypto transactions, you use an exchange anyway. It's irrelevant if you don't trust him. But, yes, there are also reliable exchanges. Among the top exchanges we can count: Binance, Coinbase, Kraken, Bittrex. However, I hesitate to keep my investments directly on the exchange, because no exchange offers good security, and the risk of hacking is high. I recommend a hardware wallet for investment stacking, such as Ledger Nano S.

It's funny (sort of) to think about this:  I have no problem whatsoever holding stocks with an online brokerage, because I don't worry that they're going to abscond with all their customers' funds--but with cryptocurrency exchanges?  I'm scared to even keep $10 worth of crypto on any of them for longer than 24 hours, and that includes Binance, Kucoin, and the handful of others that are considered reputable.

I hate to say this, but stock brokerages are tightly regulated by the government, and that's why I trust my money with them.  I'm not exactly wishing for the government to stick its proboscis into the business of crypto any more than it has, but if crypto exchanges had more oversight I'd be far more willing to trust them.

First of all please move this thread to https://bitcointalk.org/index.php?board=223.0 as its not related to Economics secondly never trust any crypto exchange as we have very long list of thefts and scams and we never have any penny back from them even never trust them with 10$ as they can go away and then never you have your funds back in you own wallet just use them for exchange and then withdraw your funds immediatly.

no i cant trust them because exchange dont give your keys with you but i trust a wallet that can provide these feature  . no matter how they say that the exchange was trusted but once it got hacked or the exchange will turn into a scam  , you will still lost all your coins    .  but to some people they will simply answer that they will trust an exchange as long as its popular and trusted enough in the eye of the public   , basically those exchange are old enough and the centralized ones 

It depends on certain factors..
One cannot trust something new that easily plus it is the cryptocurrencies who you are dealing with and therefore the exchanges pose a great risk for the people .
There are certain exchanges which have been here for years and I do think it helps a person with trust and all.
If I see an exchange that I want to use, I usually go around and check the Google reviews .
When the Google reviews are good plus the exchange have a stable population of people trusting it and using it for a long time , I go ahead and try using it for small amount first and if it's all good , I don't even mind using them for trading.
I have been fortunate enough to not face any problems regarding exchanges in the past , so as for me I do think I can trust them.

I think you need to add more things why we trust a cryptocurrency exchange because if you ask about that, I guess that people will be a little bit confused about what you mean. Maybe you can give a comparison can you trust Binance and KuCoin or another exchange because of the question it sounds strange for me. But maybe I am wrong to understood your mean, so I am sorry.

I only trade with old known reputable exchanges except I have token from airdrop or bounty and they are trading in unfamiliar exchange, I just watch reviews and feedbacks before trading there otherwise I wait for a more popular exchange. Some centralized exchanges are death trap.

Well, Bitcoin was created so that we won't need regulators to ensure security, you are your own regulator, and this also means that keeping your coins safe is your own responsibility.
Having tightly regulated exchanges would solve the problem of exit scams and stealing, but it would introduce new problems - transaction limits, financial monitoring, account freezes by authorities, etc.
Ideally we'd have decentralized exchanges, but they seem to be not fully reliable, prone to hacks and also have some degree of centralization to them.

I think old exchange sites are good for trusting cryptocurrency exchanges New exchange sites are more scammed and invite KYC they struggle to hack through KYC, the coins aren't safe here and are more likely to be stolen. you're right that centralization will reduce the amount of thefts and nobody are going to be ready to manage the currencies illegally. Decentralization has more advantages than centralization but it's more likely to be hacked here So use old exchange sites to stay your currency safe Binance is sweet in old exchange sites.

There are exchanges that you can trust to a greater extent. There are exchanges that should be trusted to a lesser extent. There are exchanges that should not be trusted at all. But this is if we are talking about making transactions.
If we talk about the storage of your funds/keys and other things, then you should not trust any exchange.

Trusting an exchange depends , is not all exchange that can be depended upon but generally for me, I'm always doubtful about genuity of some of the exchange since they are not really regulated like the forex platforms. So I do prefer to keep my coin in my own wallet and hodl if I buy from exchange.

When you plan to trade on some exchange, to deposit money and leave money sitting there you need to trust it! You can't make profit if you deposit and withdraw for every trade, I'm not saying it's impossible, but than you trade with huge amounts and in mid or long term, and you never hold your funds on exchange for more than a couple of hours!
I have money in two exchanges all the time, sometimes more or less, depends, but I trust those two exchanges with my money. Many exchanges got hacked, luckily I never had any funds in those exchanges, so maybe I am risking that amounts, but it's the risk I can take!

The whole point of bitcoin was to create a cryptocurrency which did not needed a third party for your transactions to go through, relying on a centralized exchange goes against bitcoin's nature, however I understand that it is inevitable to use them if you want to be a trader or an investor, so what you can do? The best thing for you to do is to minimize as much as possible the time that your coins are in an exchange that way the risk of being hacked becomes really low.

100%? Of course I don't, but do we have a choice?

At least I am trying to be safer by choosing the top ones rather than those that are promoting themselves as better exchanges but have yet to prove that they really are the safest choices.

I literally do not trust any service, however, it is possible to answer partially if specifically asked "is this service reliable?" Although many users do not fully trust these services, there is a fact that some of these services have proven their reliability. I do not want to specifically praise a service or abuse a service in this post, but there is a fact that some services have gained more user trust than others. For example, even though I do not fully trust all the services, if I am asked a question like "A service is more reliable or B service?", I will of course prefer one or show it as a suggestion. Briefly, in this way, no service can gain the full trust of users, but it can gain partial and comparative purposes.

Yeah, the creation of bitcoin was mainly to be a peer to peer electronic cash system which disallow any form or middle men to avoid extra cost. There is the ironic part of decentralized cryptocurrency going into centralized exchanges but the degree is not the same, like the category bitcoin is decentralized because it is not govern by any group or organization but it do not goes the same as exchanges because centralized exchange means there is a central command for which the transactions are being gathered.

To some extent, yes. You can trust the platform provided that they are fully registered to operate as an exchange and has a license to operate. Otherwise, you would be fooling yourself to believe that someone on the internet can facilitate trades in a platform without anything backing their credentials whatsoever. With the number of hacks targeting exchanges each day, it's better to be safe and put some room for doubt against the exchange you're working with. Do not place a substantial amount of money and let it sit there for an unknown amount of time. Just check the famous hacks involving exchanges and use them as guidelines on how much would you trust your exchange with everything that they are asking and everything that you are giving.

To transact you still do not need a third party, if you want to purchase you need to go to the exchanges or find a seller and exchanges are the safest option rather than trusting a random seller and hence it is not against bitcoin's nature.

@OP, you can trust the top exchanges which are registered in the US because they need to comply with the rules and most probably will not run away, coinbase can be trusted and as suggested by many, never keep the coins in any exchanges if you are not trading.

Sure, the stock exchanges are trusted because they are working with the government however most of the time they only care about what they make and nothing else, you do not have the freedom you usually have, and if they go too deep into trouble they are saved and you are not. There was literally millions of people who lost money in 2008 because of stock exchanges, whereas stock exchanges were saved, so how did they got "saved" when people still lost money?

Crypto could be more risky, there are a ton of hacking going on, and I am sure eventually they will find a way to stop that, but in the end I think the best thing about crypto exchanges is, they are mute point, you and some other person trade, and they are just helping you find each other and that's it.

Believe it or not it is the right of each individual.
Some cryptocurrency exchanges do have good quality and are widely used for trading. But there are also some Exchange that has no credibility and some that are scams.

The most popular and widely used Exchange cryptocurreny is Binance. Binance has a quality that will protect the user's assets well.