Bitcoin Forum

I have most of mine on an exchange because I'm getting paid interest. Has there ever been a time when an exchange like Binance for example, steals your funds or gets hacked and people lost money?

Almost all exchanges have been known to freeze accounts due to investigations or other reasons. Most exchanges also deny any liability in case your funds are stolen.

Bitfinex were hacked and took 33% of all users funds back in 2017 (I think) - users were compensated later but btc was what was stolen and users were compensated in the usd value (so all but people holding usd lost out).

A lot of exchanges exit scam too and that's another risk you'll have to bear by storing funds with them long term.

Is it even worth storing funds on an exchange for interest? You might get higher interest by switching to investing the same assets on trusted defi marketplaces (you'll have to do a bit more research and determine whether it's worth the risk but the roi is probably higher). The safest way to store crypto is to hodl it in hardware wallets or cold storage though (with software and hardware being obtained from a trusted source).

"Not your keys not your coins". The famous line for people who are using centralized exchanges/wallets as their personal wallet because the one who controls it is the entity where your coins at just like on exchange.

But in your case you are using it for interest, you are earning interest. It is still risky, even if you are storing your funds to exchange but think about or ask yourself, "Is the interest worth if ever your coins will be lost in the exchange"?  I am not telling exchanges are not safe at all but as long as you don't hold your own keys or you don't have full control over your funds, I can say it is not 100% safe.

 I think it is safe and has more advantage if you store it in a most reputable exchange like binance and houbi or kucoin you know that there is a lot of new exchange and it is a big problem if you store it in new exchange because you dont know if the particular exchange is scam or not, so i suggest to store on proven and tested exchange. Storing your crypto on exchange for interest is good idea keep storing and goodluck.

Not your keys, not your coins

• https://notyourkeys.org/

There are many real hacks on exchanges and many scam exits based on faked hacks in history. Even one exchange is really hacked, will they be ready to make compensation for customers? It's just probably. If they compensate, will they compensate by the exact coin you lost, in the exact number or they will convert it into fiat value at the time of hack for compensation. In addition, will they compensate instantly, at once or will they compensate gradually over months?

At least, having compensation is better than totally lose your coin. However, not all compensation is completely fair for users. So if you leave your crypto on exchanges, you leave your coins and your life in hands of others. It's not good certainly.

Look at this and you'd immediately know why: https://cryptosec.info/exchange-hacks

I'm not totally against interest-bearing platforms, but you're doing it wrong if you have 100% of your funds deposited. You need to practice risk-control.

all the answers had been shared above so if you are truly interested in our Opinion then best to Learn and check every details before continuing .
though in everything that profitable are risky , we can always Lose our funds in wrong decisioning .
so if you are truly into safe investing then like the post above me says?
never put 100% of your funds in exchange , and best to try spreading your money in different investing and in different exchanges .

Look at this thread Hacked Exchanges since 2011 (https://bitcointalk.org/index.php?topic=5090869.0) Binance once got hacked on May 2019, even they have SAFU and can recover their loss at that times, but no one knows in the future. Leaving your coins on exchanges is always a bad idea even you get an interest, it doesn't worth to risk all of your coins only to earn few percent. No one can recover your coins back, you will regret later.

There is no such thing as "reputable exchanges" in cryptocurrency world. You think all the previously big exchanges such as Mt Gox, Cryptsy, Bitrex, ... were not considered "reputable" at the time?! They all were. For example Mt Gox was so big and trusted that it controlled more than 85% of the total trading volume at the time and yet it scammed its users.

That is something that happens all the time, it is because of this that many users are so against leaving their coins under the control of centralized exchanges, now I understand you are obtaining some benefits out of this so you have to leave your coins at the exchange but there are ways to limit your exposure to that risk, the most obvious is to not have all your money at exchanges and keep the majority under your control, another good measure is if possible to keep your funds at several exchanges, that way even if one exchange is hacked then you are only partially affected and you do not lose all the capital that you destined to this kind of investment.

Because it is not safe. Google exchange hack or scam and you will find your answer. No matter how much they claim that they are very secure, there is still always chance of them getting hacked and you losing all your funds. There is also a chance that your account might get compromised and you might lose all your coins.
Oh and the main reason not to store your coins in an exchange - once you keep move your coins to a centralized exchange, you no longer own the funds.  The coins belong to the exchange since they control the keys and they can confiscate the funds and deny access whenever they want.

Because you simply don't keep your keys, putting all your money on an exchange is like depositing it in a bank. They can freeze your assets at any time without notifying you. There have been many cases of user accounts being frozen on Binance, Huobi are the top exchanges today and making a claim will get you into a lot of trouble and even you will lose your entire property if you can't prove the claims they make.

It is safe to store your funds in Binance or Huobi or KuCoin if your only other option is to store it in exchanges like YoBit and HitBTC and other shady exchanges. But you have more than just these options. You can actually withdraw your funds from these centralized exchanges into non-custodial and open source and hardware wallets where the private keys are under your sole control. So don't settle for relatively safer options when you could actually keep them in much much safer storage. You actually don't own your funds stored in centralized exchanges.

If you plan to sell or exchange your coins over the next few years, experience shows that storing coins in a cryptocurrency exchange account is no different from storing them in a wallet. And in many ways it's even more convenient.

I can understand that staking your coins on exchanges pays higher % which is enticing for someone who wants to make money out of their altcoins. Investors certainly wants to do that because of this offer and you can easily dump whenever the price goes ATH. They are however in danger when their accounts are going to be frozen by the exchange itself like what was said above. And it may just be a common practice in the coming years especially if you can;t provide where your funds come from.

Never use an Exchange as a wallet for long-term storage, because there has been loads of incidents where Exchanges got hacked. Here are some of the biggest Crypto Exchanges that got hacked ==> https://crystalblockchain.com/articles/the-10-biggest-crypto-exchange-hacks-in-history/

Also, governments are still busy with legislation and laws regarding Crypto currencies and they might clamp down on Exchanges with changes in laws and regulations and that might cause a forfeit or blocking of coins on Exchanges.  ::)

Wrong.
Only if you own shitcoins that you want to sell in the next few hours to days it makes sense to store them on the exchange so that you can act quickly considering how shitcoins pump and dump very quickly.
Otherwise if you own bitcoin and you want to keep it for years it makes no sense to store it on exchanges, they may not even exist in a couple of months let alone be around in years!

Exactly, Exchanges are for exchanging and their wallets which they provide to us
their customers should be used on a temporary basis.

"Convienient" how inconvienient is it to transfer coins which you want to exchange
from a hardware or smartphone wallet to the exchange?

@OP - for the sake of around $100 you can store your coin on a hardware wallet and
be at ease in the knowledge that your coin is secure and YOU control access to it at all times.

I understand the allure of earning interest but at least know the risk involved.

its more risky to do because what if the exchange gets hacked or stop operation suddenly without any notice. anything could happen, that means you are ready to let go of your funds. but if its in your wallet (hardware) then you can be sure of saftey as long as you dont expose your keys. you can gain interest on reliable defi platform if you make research well enough.

You didn't get the point, the reason why you shouldn't leave your coins in exchanges because you can't know the exchanges is still operated or not in the future. If you have leave your coins on an exchanges which never got hacked until now, you're lucky since every year there's always an hack incident. I would rather spend some satoshis and times to secured my coins fully 100% on my wallet rather than leave them on exchanges to save some fees.

That's a same case like leaving your coins to centralized party.

or.. unless you need to put up sell offers for trading purposes, you could simply just send the coins/tokens to the exchange the money you're planning on selling them. That's just a teeny tiny bit amount of inconvenience in exchange for not putting your funds at risk. Or do you think for some reason that it's not a good enough r/r?

I think that earning a few satoshi for the "Earn" is not worth it, users have already mentioned the corresponding technicalities, so you should follow these tips and not risk it, but in any case each person is +18 and must make decisions based on the information, asking that question of the OP is actually a great disinformation.

So the belief of having a profit of a few poor percentages is not the bad thing, if it is what you like, just do it, but you must understand very well it is about having control and to be administrator of your assets. If you know the risk that exists after everything you have been told, you have to be very dumb to have 100% of what you own in an exchange that does not allow you to control your seeds.

If you check well, more than 80% of the people that contributed in this thread are advising against leaving coins on an exchange. They have also referenced the popular phrase "Not your key, not your coin".
But if you check the reality, the volume of coins in Binance is outrageous, then I ask myself, who owns those funds there.

You will discover that we don't practice what we preach. I know exchange like Binance is reputable and you can leave your fund there if you are a day trader, a merchant who also switch from crypto to fiat. Then, the advice is don't leave the majority of your funds on exchanges.

This is a problem you know wouldn't think would happen entirely, but it's better to be safe than sorry. As other members said, it's not good to keep everything on an exchange. It's suitable for profiting, but what if a hack might affect your capital there? What would you do then? Are you going to cry and shout scam? Even though you know it should be the exchange's responsibility it checking the vulnerability of their exchange, there should be some responsibility on the user to prevent life-threatening or lifestyle changes in the invested amount.

It would be best to find staking or earning potential that uses your wallet or some hardware wallets that have to stake and make money from HODLing etc.

What you should know about the Crypto Exchangers History:

1. Mt. Gox (2011): the first major breach in the crypto world
    First Instance: $8,75 million got hacked in year 2011
    Second Instance: $ 615 million got hacked in year 2014

2. KuCoin (2020) –
    Criminal stole around $281 million in coins and tokens.After investigation only $204 mln were recovered but rest is lost.

3. Upbit (2019) – the hack that made use of a single transaction
    This was done in team and from them two were the Chinese nationals. Steal was $45 million.

4. BINANCE (2019) – the biggest name to be hit
    Stolen 7,000 Bitcoin, value at the time was ~40 million USD

5. Bitfinex (2016) – the hack where losses were distributed
    Stolen 60 millions USD. They recovered some funds and only distributed that much to the users.

6. CRYPTOPIA (2019) – the curious case of two attacks
    Since this was small exchanger at the time of attack they swiped around 9% of their total holdings which were around $15.5 million.

7. ZAIF (2018) – the attack that was identified too late
    Stolen $60 million. Some funds recovered however it was huge loss for the company.

8. BANCOR (2018) – the hack where users went unscathed
    Stolen $23.50 million.

9. COINCHECK (2018) – the biggest hack so far
    Phishing attack was done to steal the money. Stolen and lost around $534 million

10. COINBENE (2019) – the hack that wasn’t admitted at first
     $105 million stolen in different currencies.

---

If you still think it is safe to store our crypto currencies on an exchanger then just pray that you are not one of the user whose money is stolen at the time of next hack

---

Read full history here. (https://crystalblockchain.com/articles/the-10-biggest-crypto-exchange-hacks-in-history/)

You can hold your money on an exchange if it's a highly reputable exchange and if you trust it. Also, it should include you being ready to get your funds out of it if some new regulations arrive (like those for some Russians arrived from Binance today), willing to send documents that confirm your identity and address, and be sure you're not doing anything illegal (and technically, not paying taxes is illegal in places where cryptos are regulated). These are centralized services, so they can do a lot of stuff. If it's a very good exchange like Binance, it likely won't perform an exit scam, and will likely compensate losses in an even of a hack, but something can still happen. Overall, your money is just much safer in your personal wallet.

The fact is that exchangers such as binance, kucoin, latoken, etc. are usually used to exchange different coins or tokens. And with these you can trade but these are the most popular websites in the world. These are the most secure things that are not likely to be hacked and they never steal funds.

At the very least, security issues. It should be understood that if you leave the currency on the account, it may not be safe.

there are such cases, and bitfinex is one of them. when the exchange was hacked, they only replaced 30% of the lost funds their users had. and it was a big case in the history of cryptocurrencies. that's why putting all your assets on the exchange is a bad thing. no system is secure, that's why we can't trust it even though they say that their platform has good security. because when your account is hacked, the exchange will not replace your lost assets. all errors will be passed to the user.

Except that they censor, charge unnecessarily high fees, blackmail for your private information, dictate by forbidding you to send money in certain cases, create an illusion of "taint coins" that have been involved in "illicit activity", whatever the hell that means. What have I forgotten? Oh right, if they go bankrupt or get hacked, which is a common phenomenon (https://bitcointalk.org/index.php?topic=5395442.msg59924700#msg59924700), you lose everything.

This isn't what I call the "most secure thing".

There have been tons of instances where exchanges have been linked to several scams and hacks in the past.

Recently, an exchange (Ronin) was hacked and more than millions of dollars worth of ETH were stolen from the exchange which affected some "pay-to-earn" games (e.g. Axie Infinity, etc.) in their transactions. In addition, there are also cases where exchanges have been tagged as scams in which some of your cryptos would be frozen in the process.

Generally, it is highly recommended that you move your cryptocurrencies in a more secured hardware wallet for proper storage and security. Leaving them in an exchange would only subject you to extreme risks of losing it in the unforeseeable future.

Since 2011, over $1.65 billion worth of crypto assets have been stolen and the numbers are getting bigger every year.
You can't know what gonna happen to the exchange, it may mismanage, lose, or whatever .
It's dangerous to keep your there i don't know if you guys have heard of about QuadrigaCX whose owner had passed away with all the private keys, allegedly losing access to 190 millions dollars of user funds. Who expected that?  
And others got hacked like mt gox.

reason why warning moved of not leaving your funds on exchanges is because of security reasons of the exchange. Because exchanges has their own coder's and programmers why computers wizards who specializes for decoding is interested of hacking any exchange that's gathered by funds. And i believe that this exchanges have competitor and it is possible to another to hack for getting more customers. I don't keep my coins in exchange because it can be hacked and the can not refund you. It is better Saving funds wallet like ELETRUM

I had an experience not long ago with the Okex exchange where we weren't able to withdraw our crypto assets I think for more than a month if I am not mistaken and the reason was not clear because they don't want to break down what really happened. But thankfully they get back and their service was resumed as usual but the point here is what if they are close forever? so as your crypto assets are trapped there forever as well without knowing when to get them back. That's why everyone has their own hard wallet of their choice to avoid such kinds of tragedies.

In a simple explanation, since your funds are being held at a third-party platform, you won't have full control of it in the event of an alleged hack and scam. You can't even withdraw it and all you need to do is to wait for the service to be back. In the worst-case scenario, they won't come back.

It's not totally wrong to subscribe to an interest-earning feature of exchange but to somehow minimize the risks, always choose the well-established ones. Not an assurance that everything is safe but at least, they won't likely to sh*t your funds that easy.

It safer to hodl or leave crypto meant for only trading or stalking purposes in any reliable exchange, while hodling the profits or other huge cryptos assets in a wallet, the rate at which hackers are getting more sophisticated is a serious concern to crypto users and exchanges, it's on records the huge amount of crypto stolen by hackers had rendered the choice of hodling cryptos in exchanges as a very risky option, though reputable exchanges spent hide amount of funds on their firewalls, however it's obvious majority of huge cryptos hodlers stored their coins in a hardware wallet with their possessions of the keys.

Of course, you are!
They have to give some offers such as giving interest over the money you invested otherwise why would you keep your assets and your money there? that's just because they want to attract people like you to keep your money there, nothing else. Keeping your money and your assets on exchanges like Binance was never safe because they won't give you access to your private keys or your recovery seeds, so you do not actually own your coins they can suspend your account for no reason.

The reasons I don't leave it there:

1. They can do whatever they want with the coins.
2. Not my keys, not my coins.
3. I have no power over my coins, other than the interaction with the exchange account that can be closed at any time for any reason.

We have to be selective in choosing exchanges that have developed and are well established, that it is not easy for an exchange that already has a good reputation so it is very impossible to damage reputation by stealing traders/investors' assets, I'm sure not for Binance because of that exchanges thrive on reputation crypto community around the world.

Who knows? If the amount is worth stealing they could that to anybody. Hackers are everywhere and if they see you are a vulnerable target having so much coins, then you should be taking care of those and leave it safe where no one can reach it except you. I know you are making money out of that interest but make sure you are aware those are not 100% secure.

In 2019 Binance got hacked and they lost over millions because of that hack event, just imagine if they stole your money as well!

It's not just on Binance, any exchanges out there are facing the risk of getting hacked in the future if there is a chance to do so. We don't know it could be a month, a year, a decade we don't know what would happened on those exchanges. To be precise though, it's never been a safe place to store your money into someone's wallet for this case is the exchanges.

Are you not aware of exchanges hacking incident? Regardless of the reputation of the particular exchange the risk is always there either your finds might be stolen (compromise), freezing of account or hacking. Thats why its not advisable to store your crypto on exchanges for long and use it as your wallet. Like what other user's said, "not your keys, not your coins" so better to hold your bitcoin securely by holding your own private keys in a trusted wallet.

You are on the right track but looking at the wrong places. If you are worried that a super wizard type of hacker could get into a secure exchange and steal your money, how do you feel about them hacking into your own computer? I mean doesn't that look easier?

If you think that some computer guy could hack into Binance for example which is as nearly impossible to hack as it gets and yet still could be hacked, then how do you believe that they can't hack into your computer. This means that you believe Binance is a bigger target for hackers and they wouldn't be worried about hacking into you, that's all you think, not that your own PC is safer, you just feel like they won't bother with you.

Depends on the exchange where you left your balances and if you leave it on binance for staking purposes then  think this is totally fine but take extra precaution upon using your account especially on phising sites since this is how people got compromise if they log their personal account on fake websites.

Also even if Binance is trusted exchange still there are chances that they will be hit by bigger exploits so the risk still there.

In the past it is possible to see more such incidents of Exchanges and other wallet platforms going out of usage after collecting some funds. As said, Binance is a trusted platform. At the same time there is also possible chances of getting into hacks.

When someone deposit on unwanted exchanges, the user becomes a prey for them. Further with the personal details used those people will try to get the user into complete control. So, always staying with precaution is good with cryptocurrency holding.

OP probably was aware about that but his main concern is about the staking that's why he left it on the exchange. You can't do anything with your coins once you put it on stake but you do have a choice to either put it for long term or take it anytime you want.

True that there are lots of hacking incident in the past and it proves that no exchange's are safe for storing coins in long term. I would choose electrum or any hardware wallet if I do have some Bitcoin since you are the only one knows your private key.

Gets paid interest for living your coin on an exchange...! That's the first I've heard of it and I very much doubt it actually happens. Perhaps you could let me know what exchange could that be and there formula for calculating profits.

Well, the only way you get paid profit or one known way you get profit on coins is by staking the coin. That way, its used to provided liquidity and percentage are given on staked coin over time, as best as I know.

Meanwhile, exchanges and wallets ajve got there advantages depending on which end you choose to look at it. Either security or trading or both but one thing is for sue. When it comes to security, wallets are the best.

Coinbase had notorious customer service issues with serious ghosting from their support staff and closing of unsolved tickets. Avg wait time was over a month when I was dealing with this. For those that wound up in situations that needed help, they often got stuck. Hacking is part of it but I was more concerned about losing access and having nobody to deal with. Coinbase is probably safer than most wallets at this point as long as you dont get yourself locked out. Their vault feature seems pretty safe to me.

We don't have to look if a certain exchange froze assets or got hacked in the past, but it's just a matter of having someone else handling your assets rather than keeping them on a hardware wallet for instance. We are all used to banks handling our money but in most fairly developed and democratic countries, banks and governments offer insurance that you will be compensated (to some extent) for your potential losses. If crypto exchanges had those checks in place, then there wouldn't be much issue in having your funds stored online.

I haven't had any serious problems using CEXs, but you should be wary of CEXs that aren't very popular on the market. I have also heard of a few cases of Binance freezing users' accounts and they actually put a large amount of money on it, but most things will be resolved in just a matter of time. In my opinion, this space DEX is also popular now, so asset storage also needs to be more flexible. Don't focus too much on your assets. That's what I learned during my participation in the market. What exactly is this?

Maybe if you use the funds on regular trading, then you can prefer to have the holdings in an exchange. That too not recommended, if the fund values big. Probably on a trusted platform like Binance it won't be a problem. If the plan is for long term holding, then never think of having it on any exchange or any of the third party platform.

Also don't fall for mere profit investing cryptocurrencies on third party service and multiplier schemes that assure with returns within a day. Even sometimes you might get directed to some scripts that show deposit and get doubled instantly. Down some positive reviews will be running as I deposited $100 and received $300 within few hours. With cryptocurrency in each and everything you need to be cautious.

Which of the exchanges? is it centralized or decentralized exchange? but either of the two i don't think its the exchange that is paying you but your coins can increase pretty good with increase in the current price of bitcoin and same vise versa, except if you opted in for trading, there you get profit base on your ability and price speculation skills and could loose or make profit as well.


It possible, but am not saying it has happened to Binance, but we have several centralized exchanges that have past experience of hacks and one of them is  bitfinex hack  (https://en.m.wikipedia.org/wiki/2016_Bitfinex_hack) and this is the more reason why a decentralized exchange is more preferable than a centralized exchanges. Also there's no maximum privacy guaranteed in CEX, the only scenario i can admit the use of CEX is on trading but when it comes to investment it is more safer to use DEX.

There will also be times when the exchange runs away. Money is your own money.
You can't imagine what could happen and cause your money to be lost. Even in large exchanges there are coin theft incidents.
It would be better for you to read more reports on this.

You can leave your crypto on exchanges but you should know the risk and the consequences and know what already happened on the exchange history.
If you want to earn interest from your coins, you can use other apps such as Trust wallet, crypto.com wallet, and Exodus wallet so you will not risk the coin in the exchanges.
But if you still want to do that in Binance, you are free to continue.

Yes, that's why people who have been in the market for so long will advise you not to keep your funds in exchanges. Even if you're earning interest on it, there's a likely that you won't be spared if hackers come to steal Binance's fund. Despite they have this "funds are safu", it's possible that they'll not cover it if the attack is large and they can no longer guarantee a refund.

I think there is a different way to stake and it's not always be inside the exchange but there are some that are happening inside the wallet. It can be safe because there are wallets that let you hold your keys with you. There are also platforms that lets you stake when you connect your wallet. You didn't deposit any of your coins, so your still in control of them.

I wonder if what you are doing is staking? And can you share the name of that exchange? Maybe we can also try it and we will see if it's profitable. Binance and other trusted exchange won't steal your coins but they can freeze your account only if you have made actions that are illegal and are against their rules but it is possible that they can get hacked. This is why it's risky or bad to store crypto on any exchanges.

As someone who had stored funds in exchanges for quite a while, I'd advise you not to do it, despite not having any negative experiences myself. In 2017, I had abandoned a decent sum of money on Bitstamp and on an online wallet (BitGo), I recently recovered the accounts with no issues (back in early 2020 or late 2019, not sure), and my money was intact. However, as previous posters commented, it's a practice which is advised against, due to some hack incidents.

Personally, I believe it's fine to have money in exchanges, providing that you're actually using them for something (such as trading), don't leave them unattended without any specific reason, they're not a banking service.

You can personally trust an exchange's security and still be locked out for some minor and obscure TOS violation, happens all the time with people holding their funds on 3rd party platforms even outside of crypto. You don't own any of the coin that you do not control the private keys for.

Those documentation forms can get rejected for any arbitrary reason. Plenty of payment platforms will freeze accounts and request documents, then continually reject any valid document submissions for whatever excuse they feel like giving. I wouldn't trust an exchange with a single satoshi.

Binance is a centralized exchange and it can freeze your account if they find something fishy in your account. So it's not good to leave crypto on exchanges because they can be hacked/lost or can be locked.

I guess this has been established but also is that there are reasons why people leave their cryptos in exchanges even though not advisable and knowing all the risks involved which mostly involve staking for interest and quick access to trading for traders other than this, I don't see a reason why investors will want to leave their crypto in exchanges no matter how trustworthy but can still easily freeze your assets, be hacked or even outright scam by the exchange resulting to lose.

     Being in this industry for years, I am telling you, don't keep majority of your funds in an exchange for too long, or at least spread it out on several exchanges if you are fond of staking and yield farming. Not that it doesn't exist in other platforms but considering that it may be easy for you to do these things on an exchange, I understand. I don't have to tell you the countless number of horror stories of several people all over the years that kept funds on exchanges long term. Just a little googling and you'd see what you are looking for, while the causes and effects for each story may differ from one another, they have one thing in common; the root of the problem is keeping fund in an exchange.

Everyone will find their own reason why it is not suggested to keep cryptocurrency on exchange, only when they lost them. The level of danger or losses varies from exchange or account being hacked, to exchange charging fees for holding your funds. And the last one is most disgusting's. You leave funds on exchange, one day plan to spend specific amount, but when you return you find less.

Yes these are the major disadvantages if we store our cryptocurrencies into exchanges like Binance, KuCoin, etc. No disrespect, but as long we do not fully control our assets, they have the power to freeze our accounts anytime without warning and not liable for any losses in case the hacker attacks the exchange.

It’s better to invest in a hardware wallet like Ledger Nano S, Trezor and SafePal. Don’t put too much money on Metamask and Trust Wallet too, because they are vulnerable to malware and hacking because of not having a multisig feature like the Lobstr’s vault. It’s one reason why $12k was drained to my 3 wallets combined a few days ago, and I learned my lesson the hard way and I am still trying to move on with that but I am getting there and back to business.

All this talk about not holding cryptocurrency on an exchange ends when you start actively trading it. Of course you shouldn't keep your money with third parties, but you have no other options when you are trading on a daily basis. That's why some people accept all the risks and hold cryptocurrency on exchanges. In that case, you should regularly withdraw part of your profits to a personal non-exchange wallet.

I understand that the interest you are getting is worth the time that you are spending to keep those coins locked up without being able to use them.

There can be two scenarios here,
1. You cannot spend those coins in your country anyway because they are not leninent towards crypto, yet - in this case what you are doing is fine, but be a big diligent to not store all your coins there, but withdraw at least 50% of it.

2. You can spend your coins easily, but you are being lazy and getting stuck in the idea of losing interest payments - in this case pull out 100% of your assets for your good.

You can never know when an exchange will get hacked or freeze your wallet for some reason. While the interest earning schemes are tempting, be careful because in the past every one year we see an exchange happening and you dont want to be a victim of such.

As people say, not your keys, not your crypto. It is advised not to leave large amounts of crypto on the exchange and for interest reasons or whatever.
and indeed binance has thrived in protecting crypto accounts and gaining trust, and although Binance is relatively safe but remember it is centralized. So it could be that your crypto could be lost who knows and being careful is important.

I agree that should be a major pointer there, leaving a large amount of your crypto assets on the exchange is highly risky and with regards to even, if the exchange is trusted or relatively safe, it can still happen. Binance if I recall is amongst the hacked exchanges before so I would only do what I intend to trade.

making regular withdrawals of profits on a trading account on an exchange would indeed be better and recommended. If you keep everything on the exchange will be very risky, because we do not have full control on the exchange.
However, the current exchange security is also constantly being upgraded, such as Binance which continues to provide a high level of security to protect its users from hacker attacks etc.

I use a hardware wallet to keep all my crypto assets more secure and make deposits on several exchanges that I want to use for trading. the important thing is to choose the best exchange and have the best features, don't use an exchange that has no clear security and is still relatively new, I can recommend Binance, Kucoin, Huobi, but be careful and alert, no system is forever safe.

There is not even a very safe exchange, if there is a case of theft it has been going on for a long time. In fact I think every exchange I've ever known has been hacked. I think with the hack that happened it became a warning. Therefore the exchange will continue to develop in terms of security.
Keeping all the funds in the exchange is certainly a risk, but I think most people do that. Moving their assets repeatedly is too much of a hassle. But fund management as you do will be better, use some of your funds and routinely store in a personal wallet. Although a personal wallet does not guarantee but it is a little more secure.

If you look into the history of crypto exchanges theres several issues that happened which makes people lose the believe on it 

And the funds they've left on exchanges, never been refunded. Or, if it's about to be refunded it has took them a long time of wait before it even moved for the decision to give back to the affected users.
In short, if you don't want to be problematic with it then don't leave it on exchanges or if you do, you're aware of any possibility if unfortunate events happens into the exchange you've left your funds.

If you have been in this industry for years you will remember Mt. Gox and all the other exchanges that fell prey to hackers and bugs and the such. Of course, due to the semi anonymous nature of most crypto, this money can be traced for you in some cases and in other cases, if you did KYC with the exchange, it can be attributed to you and Mt. Gox has no choice from a legal standing other than to reimburse you.

But this has two problems. You are trusting someone else to hold your money. If something happens you might be stuck waiting years and finding special lawyers to get your money back.

The entire point of crypto is to be the sole person who has access to your money.

Not your keys not your coins.

There was no major exchange hack in the last one year, even in the middle of bull market, which could indicate that exchanges are doin something different. Since 2019, more than 70% of hacked exchanges are still active. Now the wallet that was suppose to be safe is now the target eg metamask wallet. Another factor is to split portfolio on different wallets to reduce the risk.

Dont go all in and only put on the amount which you could afford to lose.Im not saying that they cant be trusted considering that you are mentioning about binance but still the risk
on getting hacked or any possible problems could arise since exchange platforms are really prone into these kind of incidents on which you should really be aware or prepared of.
because everything could happen in an instant which means risk would be always there.Therefore, you should really be that paranoid on not to go all in or put all of your
assets parked on a certain platform.

     Yup, have heard of these and more. The thing about exchange hacks is that if the funds you kept is big enough, then it would be worth it to chase after it and go through the effort of hiring a lawyer or something. But, if it isn't that much or is all a person has because of earning it online and has no capabilities to hire a good lawyer, the person has no choice but to let go of such funds. Still, it is better when the funds get lost on an exchange. The bigger problem here is when some regulation changes or whatever problem and your funds get frozen, worse case impossible to take out. Of course there are warnings form exchanges when some things get changed. The problem is that not all of the people can check every now and then about crypto. Pretty careless as an investor you may say but has already happened couple of times, even with the people I know personally. So yes, best place is your wallet. As what you have said, "Not your keys, not your coins."

Yes. Basically any exchange is prone to hacks, theft, and in some cases, fraud. You'd be better off leaving your crypto on "De-Fi" platforms than a centralized exchange just because the risk of loss is simply too high to bear. I don't care if a centralized exchange gives you high interest rates if at the end I'm sacrificing my privacy/anonymity and control over my own money. Decentralization exploits crypto's fullest potential, so it's best to seek alternatives that would put you first above all else. Most people are not that knowledgeable about crypto/Blockchain tech, so they will use what's most convenient for them.

What to do with your money is entirely your decision. As long as you don't invest more than what you can't afford to lose, you'll have nothing to worry about. Just my opinion :)

there is no wrong-flowering platform, and avoid virtual risks, because basically crime is everywhere,
it would be nice if you put your money in a local bank for locking, because even though banks often make losses but there is a guarantee of safe funds when there is a bank robbery etc., in contrast to crypto when the exchange is hacked, it is unlikely that the funds will return.  like MK4 said, we must be good at controlling the risks that exist and we will face

We had a million of exchanges that got hacked or exit scammed, we had it at sizes of mt.gox as well so it wouldn't be new thing. However, Binance is making a ton of money and the security of your coins improved a lot during this period, which means that it's very hard for people to actually got it hacked.

Binance would prefer to keep going and make money legit way, because they are already making billions and on top of that we are talking about a company that worths hundreds of billions of dollars. Yes if they somehow "stole" your money that would be more profitable but in the long run they would live a horrible life, why prefer that when you are already making billions?

Yeah, it is the sweetest spot for hackers considering that this places are involved with millions of dollars which it is really that understandable that they would really be coming after with these amounts

and next would be gambling places or any other platforms or services which does have lots of funds or money that they do generate.If you are an active trader then its true that its less hassle if funds

been leave out into platforms for immediate interaction for possible opportunity that you could see and if you could bare out the risk then go ahead.

I don't think it is a too bad idea to leave our coins on exchanges, but make sure the exchanges have good history and are friendly to their members. Of course, no exchanges are secure enough, all exchanges are possible to be hacked. However, several exchanges want to refund their members' money once there is a hack. I am sure Binance is one of the exchanges that have responsibility if there is a hacking case. So, I think we have no reasons to be so worried about our money. But never put all our money on exchanges, just put the amount of money that we can afford to lose.

Don't find this as a gamble. With gambling users will be suggested to spend what one can afford to lose. An exchange is different, every exchange have got security issues which gets updated often. With this we can have trust over the platform and keep the funds that are being used for trading and not the amount that can be afford to lose. If the plan is for long term holding, then never look for exchange. Find the best wallet and secure the amount, and keep the recovery seed safe.

Binance is most users choice when it comes to exchange services, due to its good history and listing of more trading pairs. With time something advanced in the exchange platform could come or everything could go as DEX.

Yes, there's nothing bad in leaving your cryptocurrency on an exchange that's only if the coin won't be left on the exchange for the long term. No matter how good the exchange's reputation and its previous record were never keep your coin on their platform for the long term because doing so is like gambling in which the chance of winning is always 1%.
I am saying this from experience because some exchange suddenly shutdown and never come back online.

^ That is correct advice, never put all your money on one exchange.
Binance is a trusted exchange for how many years but still, it is not ideal to store your coin in the long term even though they have a promise of SAFU which means all funds are safe and secure. But yet, this does not give any guarantee, everything on the centralized exchange could be hacked, so probably after trading, pull out your fund and store it on the non custodial wallet which is safe.

When it comes to binance, I have high regards that they won't steal from you. Yes, they have SAFU. But as much as possible, don't put all your crypto in one exchange. If you will not be putting your crypto for staking, better store your coins in your own wallet. I understand some are earning interest by staking or by flexible/fixed savings, as I also done that. But once you finished the period, transfer it to your own wallet.

That's because funds stored banks across some (if not all) countries are insured. The same cannot be said about crypto exchanges. There must be some kind of law that would hold centralized exchanges accountable for the loss of funds due to hacks, theft, and other undesired situations. Otherwise, who's going to respond when you lose all of your hard-earned money on a crypto exchange? As long as there's no protection in place, most traders will be reluctant to leave vast amounts of crypto in an exchange.

Crypto/Blockchain tech is becoming more popular each day so there's hope regulations will tighten in order to legitimize the industry as much as possible. Who knows if the level of criminal threats on the crypto space is reduced by a minimum sometime in the future? Just my thoughts ;D

Investors can easily do something like this but this is way more difficult for traders, because as we know one of the deciding factors when it comes to making profits or not on the shortest times frames is speed, so if they get their coins out of the exchange and they happen to receive a signal during the time their coins are not in the exchange by the time they make a transaction, get a confirmation and their funds are reflected in the exchange then most likely the trading opportunity is over, so they do not have too much of a choice and traders will leave their coins at the exchange.

The worst place to keep your coin is on exchange wallet address, you might be enjoying interest but just know that your funds is not safe there incase if anything happens to the exchange then their is no assurance that you are getting back your funds, we have heard about different exchange hack that have been happening and people are losing their money which I believe there are still more hack which will happen and you leaving coin on an exchange then your coin is definitely at risk because you can lose them.

It’s always safe to hold Bitcoins personally in a hardware wallet.
Still if you want to risk your BTC for some penny interest then surely you can go for Exchanges.
Not exactly Binance but yes other exchanges have a pretty bad reputation for hacking and stealing of user’s funds.
Moreover many exchanges without any prior warning can anytime freeze your account with funds. So be careful from that also.
At last I would conclude that, keeping Bitcoins in exchanges are risky, as you are not the only person who has access to the funds and therefore you are compromising your money in this case.

You should be careful so that you do not end up in a situation like this. I recommend that you watch the Binance Hack story so that you are aware and your funds are safe. This will also help in the recovery and protection of your account.

 Steps to keep your Binance account Safe and Secure:
1. Don’t keep extra funds on an exchange
2. Secure your email account
3. Backup Key while setting up 2FA
4. Whitelist address
5. Anti-phishing Code
6. Device management
7. Binance API key Security

Ref. https://coinsutra.com/binance-account-hacked-secure-binance-account/?msclkid=85ee8c8bc7ac11ec82b9b1b104558e0a

You have nothing to worried about your funds if you are doing the right thing and if there are no suspicious activities that might be caught their attention. Binance and some exchanges will take action and possibly freeze your account if you violate their rules and that is why we should be aware of what we're doing and must abide by the rules of the exchange otherwise.

But if you are using non-trusted exchanges, chances are;
 -lock your account
 -steals your money

Nope, not at all.

Exchanges will never be a good safe place to store your cryptocurrency, because there are times that they've been hacked, but luckily hackers returned the funds or leave the stolen funds to a certain wallet that can't be open by other people and will be forever sleeping there. Hardware wallets are the safest haven for your cryptocurrency, because you're the one who holds the key to unlock it. It might be a little expensive but worth the price to secure your future.

I think this is not that much bad to store crypto on exchangers. Now the question is which exchanger you have use for store your Coins , if you use the non-reputable and scam exchanger for store Then it must be risky. There are a lot of new scam exchangers out there now that attract people with lots of lucrative offers, but eventually scam. In this case, you have to be careful while selecting the exchanger.

So far I have never experienced the theft of assets in the exchange or storing all assets on the exchange. I think it's very risky, also not the right decision. This is because at any time they can freeze your assets in most cases. I prefer to use only when I need/trade. whatever the reason I prefer to be safe by not leaving assets on an exchange.

Keeping your crypto on an exchange is not the best idea, even as you say on top exchanges - it is not safe. Look on YouTube, or read articles, how many cases were there when everything was stolen from the exchange, to the last token. They don't steal from all users, but if there are such cases, then this means that you are already putting your coins at risk. And who needs additional risks?

I don't think it would be too risky for someone to store crypto using the right exchanger. There are many good exchangers who promise that if their exchanger is hacked and their funds are stolen then they will be backed up. Many good exchangers now have this promise. Also, if you want to store a large amount of funds for a long time, I think it would be better to use a hardware wallet.

It's a actually not bad  in my personal opinion especially if you're using an exchange that has good security and very trusted also and well known of course, coz on that case you can assure that your money is in a safe place.
But like what other said that Not your key is not your coins, well my answer for that is don't store your money for long time and stop using it as a main wallet, i mean just put what amount you want to trade then dump your profits immediately to prevent bad situations.

Storing money in an exchange is actually enticing and great, it attracts much interest when stakes or marketed. But the guarantee of safety of your money is not 100% assured as they can be hacked and funds will be stolen. Any wallet for saving funds that you don’t have full access or control of it, which you can send or receive money, then its not your coin yet. The best way is to use an hardware wallet with your private keys with you.

Hope you have heard about a major hack in Binance a few years back and you still think that it is a safe bet to store your coins in exchanges. We have seen many instances where exchanges are hacked left and right and there are exchanges that cease to exist after a while or after a major hack and if people cannot understand the basic things then it is their choice.

Binance really trusted exchange with major hacked cases last several years but keep exist and wake up until right now, before have Kucoin got hack but still safe member fund without have to close their exchange website. I think if save assets on both exchange above I think not have to worry with our fund loss, but if want save for several years later I think use hardware wallet is most recommended with your fund, not really worry what ever happening on exchange market because your assets really most safety for long term.

I think keeping assets on the exchange has a lot of problems from banned  accounts to frequent exchange hacks.
so in my opinion saving too large of funds on the exchange is not good, it's better to store it on hardware equipped with 2fa or some kind of protection, and without connecting to a 3rd party wallet or other

The disadvantages is greater than the it advantages and i know that some exchanges get hurt through hacking and is bad to leave your cryptocurrency in any of exchanges. And one of the reasons is that hackers target exchanges stand and most of the prominent exchanges has received lost of fund's before. Myself can't leave my funds there. Because the disadvantages and when you lost your funds even though the exchange recover your funds can't be recovered or give back for you full like before

Storing assets on an exchange is actually not so bad as many people say, I have peace of mind when using Binance as long as we strictly follow their regulations. Most accounts frozen or locked without prior notice are involved in money laundering and illegal asset transfers, with mistakenly locked innocent accounts to be reopened upon investigation.

But storing assets on exchanges is not really our money so only a part of assets should be stored on the exchange, not all assets should be put on the exchange.

Leaving crypto on exchanges is risky not just because you lose control of/ownership of your assets, but also because you risk being duped or hacked by the exchanger. Depending on the volume, storing assets on an exchanger might earn you some money. However, if the exchanger is hacked, you might lose your money forever.

The second point is that each exchanger is centralized and requires KYC, locking your account with an exchanger, this also leads to risk assets.

So always find more information and DYOR to keep your crypto asset safe and secure.

exchange are very Vulnerable to Hackers and attackers , meaning why need to risk your funds outside your wallets?
when you can have much safer Holding without thinking everyday what would happen to your funds?

Make up your mind mate , unless you wanted in the future that you will post here that the exchange is hacked and your funds are compromised .

Leaving bitcoins and other crypto coins at an exchange is a large security risk in my opinion. There have been big exchanges being hacked in the past, leaving investors with a losses because recovering the coins is very hard. It might be easier to not always withdraw coins to your wallet, and you can also save the transaction fee every time, but you could lose everything like that. Better be safe even if there never was an issue. Receiving interest on your coins is nice, but is that profitable? I wouldn't expect an exchange to pay high interest, because it will eat away their profits. Also the exchange doesn't really need your coins if it only matches buyers and seller. In case the exchange is also lending out coins it might be different, then there is more risk involved. What if all the borrowers default at the same time and leave the company hanging? In case of bankruptcy I wouldn't expect you to get all your coins back either. If you only trade a few times per month, do the extra work and save your coins in a seperate wallet.

Although Binance is the most trusted cryptocurrency exchange, there is a chance that it will be hacked. On May 7, 2019, the world's largest cryptocurrency exchange, Binance, was hacked. The hackers were able to steal around 7000 Bitcoin, which is worth more than $40 million USD at the current price. The hack occurred at an inopportune time for the exchange, and it appears to be its largest hack to date.
https://coinguides.org/binance-hack-7000-bitcoin-stolen/?msclkid=09367001c86211ec8161e250bc605127

If you want to take your Binance account security to the next level, you can use a security key such as Yubikey. This is a physical device, and you must tap the physical device button to enable 2FA. This is useful for those who have a large amount of money in their exchange account.
https://coinsutra.com/binance-account-hacked-secure-binance-account/?msclkid=09367c89c86211ecb24f400c76902629

Do you really need to ask this mate? haven't you read exchanges being Hacked ? or something happens to the Users through Phishing ?
try not to risk your money in places where you are not the One who holds the Private key, because there is a saying that "Not your Key , Not Your Bitcoin"

if you want your funds to be safe for long time ? if you are Holding ? then best to use  ledger wallet.

or if you are using the funds for trading daily? then best to  limit the amount used for trading so you will not risk all your money inside the exchange.

If you can't trust with Binance exchange for saving your funds you can purchase and withdraw all your assets to metamask, hardware and trustwallet. Controlling wallet by yourself without worry when bad thing like Binance hack although impossible you can loss all your assets when saving on Binance exchange. Trough still save your email and password safety and keep using 2fa when accessing Binance not worry all your assets never have chance for hacking. You need to be logic have many trader and investor save their fund on Binance and not any worry because they have protect Binance account.

When you put your funds on the exchanges, they are in fact not truly yours unless you withdraw them to the exchanges. If any mishap happens, like the exchange is closed or the exchange is hacked, then you will not be able to access the funds and all your money will be lost forever. Furthermore, you cannot go to court and claim your money from exchanges. Therefore, it is not wise to keep the funds on the exchanges.

Leaving cryptocurrency in exchange is very risky because anything can happen to the exchanges . Majority of centralized exchanges suffered from hackers invasion and most of them have run out of businesses. It would be a different case in an insured crypto currency exchanges platform . The best way of protecting funds is transferring them to personal wallet from the exchanges

All of the advice here,been encoded several times, Not your keys not your coin.
Avoid exchanges and third parties as they are incompetent to keep your coins in shape.
Imagine not able to look after once self but you want to look after someone else's coin,blah!
Hold down that coun get your S-P in a safe place either written down or a hard ware wallet, also avoid saving your seed phase to emails to avoid malware's attack's.

Yeah, I have also been using an exchange, although not as my main storage, but they have been quite reliable. That’s why it’s good to make use of those bigger exchanges, they always knows how to store assets that belongs to their customers, by using safe means of storage.

And we should get to know how the exchange we choose to use goes about storing customer assets, whether they have an insurance that covers any form of loss or they store with a cold storage and things like that, it is really important piece of information for us to know.

The habit of using these platforms cannot be changed simply , because there are no other options available. To be fair, these platforms, despite the risks they posed, were a fundamental reason for the rapid spread of the use of crypto in the world.
With the development taking place, there are some good decentralized platforms compatible with the philosophy of the blockchain, but they do not provide all the options that users desire, in addition to the fact that users deal with these exchanges as they deal with banking services, so many of them are ignorant of this.

Saving assets on exchanges will be always risky. The risks will depend on how good the exchange has security.
Like Binance itself, they will not steal our assets. But they may be hacked and this has ever happened several times ago that Binance has hacked. That is one of the risks or weaknesses of saving assets on exchanges.
So if we are saving for long-term investment, it is better to move the assets to offline or hardware wallets.
but if this is for trading or still used for other activities like staking or others, we can still use it on exchanges, but for me, I will only save it a litle bit, not all in the exchange.

We do have wallets which are alternatives of exchanges where we should store our crypto. However, for those people who do trading on a regular basis, they usually have no option but to keep a certain portion of their money always in the exchanges.
However, there are few people who use exchanges only to store their cryptocurrency which is totally wrong practice.

if there is no activity on the exchange in the long term, it is better not to leave assets on the exchange because there will be more risk. except if we do transactions every day, so the activity is always there, and maybe only the profits we take are transferred to the wallet, and even then if we don't compound. if one day the exchange gets hacked, then our funds run out, and security is not in our own hands

Binance maybe won't steal your money in the classic sense of the word, they may impose some bullshit reason why they decided to lock your funds and there will be nothing you can do about it. Selective scamming is still a thing.


While it may protect you from external attacks on your account specifically, that can't help you if Binance get hacked or if CZ decides to perform exit scam.

---

Might as well sum it up with the meme  ;D

https://i.postimg.cc/jd9wNLvd/photo-2022-05-01-11-49-14.jpg

Depending on which exchange you choose to leave you coins on , in an event of hack for example you risk losing your coins if the exchange has no insurance which makes it your loss too.

Another reason one shouldn't leave coins on the exchange is you miss out on taking out any capital gains that the coin accumulates which makes it lost opportunity for you.

Not truly yours is a concept foreign to most people and they are using it the wrong way. It is yours, it is basically all yours, as long as the exchange stays honest and actually allows you to withdraw. Same logic as your money in a bank and your money banknotes in your own wallet when we are talking about fiat.

When you have money in the bank, do you really think "this money is not mine"? I doubt many people think that, majority of the world uses banks to store their fiat and majority use credit or debit cards instead of cold cash to spend money around the world. So, long story short your money is still yours and shouldn't be a problem if the exchange allows it to be.

There is one thing that I would like to share, a few months ago, the police of a country that is not Colombia, put Binance to investigate all Binance accounts of Colombians, and the Exchange itself blocked them all from submitting to the investigation going through above the integrity of their clients and the Colombian authorities, and until they finished carrying out their investigation they did not leave them alone, then that is a reason not to leave the money in an Exchange. I think that everyone is free to have their income wherever they want, but it is better to have total control over our money, without the need to submit to events imposed by governments and third parties.

So far, I've never experienced this except once, namely the exchange of cryptopia where until now my funds amounting to XXXXX have disappeared without a trace, while the policy for claiming is still ??? to maybe return it
but whatever the exchange it is still possible to hack. then placing funds in a personal wallet is the wisest thing

It makes no sense storing your money in the exchange for no reason but is there anyone here did that? Except only to those who lost access to their account. Some exchange offers staking and other forms to earn when you lend your crypto to them but that's a different story anymore.

Being active like doing trades still has its own risk not because cryptos are volatile but because your assets are vulnerable to hacks as active traders doesn't withdraw all their funds but they keep most of it inside the exchange to save fees and time. That's still better anyway than losing all of your funds at once due to hacks. Rest only assured that we are using an exchange with good security.

Simply because exchanges can still have control over your asset and no one really like that. Plus the possibility of a certain exchange to get hack will always be there. Remember that all exchanges are prone to any kind of attacks since because there is huge money in there. Therefore, hackers will always try their best to get into the system and we will never know when can it become possible. So our assets will never be safe on any kind of exchanges whether it is a reputable exchange. So never use an exchange as a form of wallet where you store all of your funds.

it has been answered and explained thousand time before and look at all the answers in your thread now? it is the vulnerabilities and the idea of exchange being targeted by scammers and hackers so best not to leave your funds inside this exchange or in other exchange .
You must have the KEY for you to tell that it is your funds.

Using an exchange to keep all your crypto holding is not a good idea cause anything can happen and account can be locked for any reason. I will rather keep my coin on non exchange wallet so when I want to sell it, I can also send it to an exchange to put it for sell than keeping all my holdings on an exchange. I see no reason why your coin should be on an exchange cause the worse might happen at anytime.

People who leaves their fund's there don't know the implications but some said is good ideas why the exchange can close and close with your funds, i have notice record of exchanges that run with people fund keeping funds their is not saved because either the funds is stolen by the exchange or by the hackers

You are being suggested to avoid storing your crypto on exchanges because that’s the least secure place that you can store your assets. Crypto exchanges can get hacked at anytime, although some of them have proven to be secure and have not been hacked yet, and also it all depends on the method that they use, just like coinbase.com: they have a cold storage where they keep majority of their users assets.

So, Coinbase might be a secure place to store your crypto because of the method they use, but over all you are being advised to have your coins stored in an offline wallet where you are in charge of the private keys; an exchange may have cold storage, but you don’t have the keys.

As it's always said: "not your keys, not your coins". Leaving your coins in an exchange is like leaving the keys to a trusted third party. That "trusted third party" can either run away with your coins or lose everything in an instant due to hacks and/or theft. The same cannot be said when you have full control of your coins stored in a non-custodial wallet. I wouldn't recommend anyone to leave their crypto on exchanges, except small amounts for day trading.

With increasing KYC requirements, you're better off using decentralized exchanges or atomic swaps than anything else. Most people aren't that educated about crypto/Blockchain tech, so they'll leave coins in an exchange believing their funds will be safe for the long run. As far as I know, exchanges aren't liable/responsible for any amount of crypto left on their platforms. So there's no one to turn to if there's a major hack, scam, or anything that will make your lose your hard-earned crypto on a centralized exchange.

If only governments had a law which held exchanges responsible for user's funds, things would've different. They could treat centralized exchanges like banks, in order to hold them responsible for customer's funds. Crypto is starting to get into the mainstream, so it's expected regulators will jump in with the aim of legitimizing the space as much as possible. Just my opinion :)

There are several exchanges in the crypto market that have gained a good reputation, one of which is Binance and the other is KuCoin. If you save your assets on these level exchanges, I would say that your assets are safe. Why, many of us may have heard in the past that these were also face the cyber attack, but still no one was harmed.

This is a rhetorical question that have been sung countless times like a song here.
They can be incompetent in their security and privacy and this will sure lead to loss of your coins
So it's best you have full control over your coins this is one of the main roles Bitcoin plays to have financial freedom over our Money.
So don't get your coins and Bitcoin in third parties else you'll be fvcked.

I mean it’s risky to leave your funds in the exchange for a long time even if you are getting interest. Crypto exchange is different from a bank and you can’t always trust the level of safety they have for funds. Hacking is a possible threat too. There must be many people who might be doing the same for getting regular interest on their bitcoins. If you are really sure about the safety and compensation plans of your exchange then you can keep your funds there.

For any exchange or trading platform to steal your funds they you should know there is a wrong attempt by either constantly login in with wrong password or with wrong 2FA while some inputting wrong trading pin, exchange do have trading pin before placing order to sell or buy at this point if inputted wrongly such account will be freeze or lock till all verification has been done.
so since i involved in trading i have not experienced such action from any exchange.

Your private key is the most important aspect determining the security of your crypto asset, and exchanges have access to everyone's private key, thus your coins are not protected. You are responsible for retaining your private key, which is why non-custodial wallets are the greatest option for storing our money because we have complete control over our wealth because we have our private key.

Well, take the example from those hacks that has happened within those exchanges in the past.

A lot of funds were robbed and hostaged that they can no longer get because the exchange is also a victim and they have never planned on how they're going to refund those customers that have lost their funds.

Those little interest that you may get won't be enough to compensate your lost to them.

In the very question of this topic, you claim that it is bad to keep crypto on exchanges, which means that you realize that it would be better for you not to do this. As I understand it, you are "held" by the paid interest that you receive from storing your crypto on exchanges. You are risking your money for these small paid interest, because exchanges are periodically gets hacked, exchanges can go bankrupt or just block your money under some pretext. Most of the comments on your questions contain recommendations NOT to store your crypto on exchanges, therefore, for your own good, it will be better if you refuse meager interest, but save your money by withdrawing them from exchanges.

there will always be a shortage of every exchange because anything can happen, but if you can avoid it from experiencing it is certainly very good, but it is not easy to anticipate this. what you say is true and needs to be done to continue to be able to place your funds in private wallets, which have the least risk of being hacked.
Currently, there are many wallets that are safe and available and easy to use, just adjust it to the needs that we need.
Indeed, avoiding storage on the stock exchange is something that needs to be done continuously, if you have to, don't do it for a long time.

• Mt. Gox (2011) - First major breach in the crypto world.
• Bitfinex (2016) - Hackers managed to steal coins worth over $60 million.
• ZAIF (2018) - Total losses were calculated to be around $60 million.
• BANCOR (2018) - Raised good fund from an ICO and lost worth $23.5m.
• COINCHECK (2018) - Hackers used a phishing attack to access hot wallets and stole crypto worth $534m.
• Upbit (2019) - Criminals managed to break into the exchange and steal over $45 million in a single transaction.
• BINANCE (2019) - The hackers withdrew over 7000 bitcoins from its hot wallet.
• CRYPTOPIA (2019) - Exchange was hit by a major attack that resulted in total losses worth $15.5m.
• COINBENE (2019) - Cybercriminals managed to take away over $105 million in cryptocurrencies.
• KuCoin (2020) - Criminals managed to steal over $281m worth of coins and tokens.

Biggest Crypto Exchange Hacks (https://crystalblockchain.com/articles/the-10-biggest-crypto-exchange-hacks-in-history)

Above were few of the biggest hacks in the history of cryptocurrency exchange. This is the prime reason why people aren't suggested to keep hold of funds in exchanges.

touch wood so far i've never experienced such horrid. it's an informative thread, i shall start looking into taking out my crypto from exchanges. need time to learn the alternative ways.

It’s simply because you do not have the custody of the assets there. Exchanges can freeze your account under any circumstances and has the power to suspend deposits and withdrawals. The worst thing would happen is if an exchange would disappear like thin air due to massive server hack, etc., where the possibilities of seizing all assets of the users are high. This is why we don’t trust on exchanges to store our crypto assets, but only use them for trading purposes (e.g., spot, futures, margin, etc.).