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Title: Never store your coin on exchange!!! Post by: Bitrabbit3117 on April 27, 2022, 10:36:35 PM Your coin is safe but depending on the way which you use to store it, we all know that exhnage wallet is one of the least secured method of storing your cryptocurrency which most newbies don’t know about. The best way which you can secure your your coin is by using offline wallet because they are not connected to the internet which means you are free from hack, the safest place which you can secure your coin is where you are in control of your coin which means having full control over your coin, before you can have full control of your coin you must have your private key.
We all know that cryptocurrency exchange is very important because is a platform where buying and selling of coins take place, but we should also know that coins are not suppose to be stored in your cryptocurrency exchange wallet because your fund is at risk whenever something happens to the exchange your funds will be at risk. I notice most Newbies always prefer storing their coin on exchange wallet address because they believe is a convenient place which you can store your coin. Actually, we all know is the easiest place where we can store coin, after buying you don’t have to send the coin out and whenever you want to sell you can easily sell it back but what about the risk associated with it, if you are not careful you can lose all your fund in the exchange if anything happens to the exchange just because of your laziness. The best thing is that after buying a coin from exchange, immediately transfer the coin from the exchange to your offline wallet address and make sure you secure your private key. If you are a day trader I believe it’s a better you keep your funds on exchange but if you are a mid-term or long term holder them make sure you transfer your coin to your offline wallet. SOME CRYPTOCURRENCY EXCHANGE HACK THAT HAPPEN, CAUSE OF THE HACK AND THE AMOUNT LOST. Quote DATE EXCHANGE CAUSE OF HACK AMOUNT STOLEN (USD) 2022, January 17 Crypto.com Unknown $34 million 2021, December 11 AscendEX Obtained access to hot wallet $80 million 2021, December 5 BitMart Obtained access to hot wallet $150 million 2021, August 19 Liquid Obtained access to hot wallet $97 million 2021, April 29 Hotbit Obtained access to hot wallet Nil 2020, December 23 Livecoin Compromised system/servers Unknown 2020, December 21 EXMO Obtained access to hot wallet $4 million 2020, December 1 BTC Markets Internal staff error/mistake 270,000 user's private details 2020, September 25 KuCoin Data leak $275 million 2020, July 11 Cashaa Malware $3.1 million 2020, June 29 Balancer Vulnerability in protocol $500,000 2020, April 19 Lendf.me Bugs and Re-entrancy attack $24.5 million 2020, April 19 Uniswap Bugs and Re-entrancy attack $500,000 2020, February 5 Altsbit Obtained access to hot wallet $70,000 2019, December 19 Youbit Obtained access to hot wallet Unknown 2019, November 26 Upbit Obtained access to hot wallet $49 million 2019, November 5 Vindax Unknown $500,000 2019, July 11 Bitpoint Compromised system/servers $32 million 2019, June 27 Bitrue Compromised system/servers $4.5 million 2019, June 6 Gatehub Unknown $9.5 million 2019, May 7 Binance Obtained access to hot wallet $40 million 2019, March 29 Bithumb Unknown $29 million 2019, March 25 Coinbene Suspected trusted insider $40 million 2019, March 24 DragonEX Unknown $1 million 2019, February 15 Coinmama Data leak 450,000 user's private details 2019, January 26 LocalBitcoins Phishing data on fake site $27,000 2018, October 28 Maplechange Suspected trusted insider $51,000 2018, September 14 Zaif Obtained access to hot wallet $60 million 2018, June 18 Bithumb Unknown $31 million 2018, June 10 Coinrail Unknown $40 million 2018, April 13 CoinSecure Suspected trusted insider $3.5 million 2018, February 10 Bitgrail Suspected trusted insider $146 million 2018, January 27 CoinCheck Unknown $560 million 2017, December 20 EtherDelta Server DNS compromised $1.4 million 2017, July 5 Bithumb Unknown $7 million 2017, April 22 Yapizon Obtained access to hot wallet $5.3 million 2017, January 14-17 Cryptopia Unknown $16 million 2016, August 2 Bitfinex Unknown $623 million 2016, May 9 Gatecoin Obtained access to hot wallet $2.14 million 2016, April 7-9 Shapeshift Suspected trusted insider $230,000 2016, February 16 BTER Unknown $1.75 million 2015, December 11 Bitstamp Malware $5 million 2015, August 15 BTER Suspected trusted insider $1.65 million 2014, July 13 Mintpal Obtained access to hot wallet $2 million 2014, March 4 Poloniex Obtained access to hot wallet $50,000 2014, February Mt. Gox Various methods $460 million 2013, November 11 Bitcash Compromised system/servers $100,000 2012, September 12 Bitfloor Compromised system/servers $250,000 2012, March 1 Bitcoinica Compromised system/servers $87,000 CONCLUSION We should all be aware that our funds are not safe in our exchange wallets, therefore if you have a coin, make sure it is stored in an offline wallet and that your private key is always backed up. Title: Re: Never store your coin on exchange!!! Post by: Rengga Jati on April 27, 2022, 11:56:33 PM CONCLUSION It has been clear enough and everyone knows very well about this that exchange wallets are not highly secured and it is risky enough to hack, and make our coins lost. There were many cases about exchange hacks although they claim that they have high security. But hacker is smetimes smarter that we think.We should all be aware that our funds are not safe in our exchange wallets, therefore if you have a coin, make sure it is stored in an offline wallet and that your private key is always backed up. But, should we have any chance of something else to do? Well, if we are willing to have investment and hold the coins for the long term, I exactly agree to store them in an offline wallet or hardware wallet. But once more, sometimes we have no choice if we are using the exchange for trading activties. We should put our assets there on the exchanges in order to trade. It is risky enough, yes of course because it is still on the exchange. But once more, if we are trading, it means that we must put the money on the exchange. It is different f we are going to investa and save it for the long term, better to do it in an offline wallet. Title: Re: Never store your coin on exchange!!! Post by: Cryptoababe on April 28, 2022, 12:54:43 AM Normally, it doesn't really matters storing coins in exchanges. Because without the help of most exchanges,i dont think it will be easy to buy any coins. Moreover, most issues that happened to exchanges are being solved.
Title: Re: Never store your coin on exchange!!! Post by: Darker45 on April 28, 2022, 12:55:29 AM This has been an overused advice and yet a lot of people are still keeping their coins on exchanges. It is inexcusable if somebody keeps coins on exchanges even if he/she doesn't trade at all. That would be a noob mistake. However, there are some who actively trades, so keeping funds in exchange wallets is unavoidable. I myself used to take advantage of swings in the market so I always made sure a portion of my coins are on exchanges. It would consume a considerable amount of time and fees if a deposit is made every time you make an order.
Title: Re: Never store your coin on exchange!!! Post by: tranthidung on April 28, 2022, 01:00:10 AM "Not your keys, not your coins". It is a classic mantra in crypto.
Title: Re: Never store your coin on exchange!!! Post by: Despairo on April 28, 2022, 01:25:06 AM Your coin is safe but depending on the way which you use to store it, we all know that exhnage wallet is one of the least secured method of storing your cryptocurrency which most newbies don’t know about. It's not exchange wallet, but custodial wallet. Actually custodial wallet is the worst unsecured method to hold your coins. You don't have full control over your coins, your account can be hacked, your coins can be stolen by malware etc.Normally, it doesn't really matters storing coins in exchanges. Because without the help of most exchanges,i dont think it will be easy to buy any coins. Moreover, most issues that happened to exchanges are being solved. You don't have any idea about it, exchanges is used to buy coins not for holding! If you have read the exchanges owner e.g. CZ, Sam etc said their exchanges is completely safe and will backed up with SAFU, that's just a promoting strategy and bullshit. Perhaps you're not the one victim of Mt.Gox or Cryptsy (hacked popular exchanges) if you still hold your coins on exchanges, you could be the next victim.Title: Re: Never store your coin on exchange!!! Post by: bittraffic on April 28, 2022, 02:10:39 AM Your coin is safe but depending on the way which you use to store it, we all know that exhnage wallet is one of the least secured method of storing your cryptocurrency which most newbies don’t know about. It's not exchange wallet, but custodial wallet. Actually custodial wallet is the worst unsecured method to hold your coins. You don't have full control over your coins, your account can be hacked, your coins can be stolen by malware etc.Normally, it doesn't really matters storing coins in exchanges. Because without the help of most exchanges,i dont think it will be easy to buy any coins. Moreover, most issues that happened to exchanges are being solved. You don't have any idea about it, exchanges is used to buy coins not for holding! If you have read the exchanges owner e.g. CZ, Sam etc said their exchanges is completely safe and will backed up with SAFU, that's just a promoting strategy and bullshit. Perhaps you're not the one victim of Mt.Gox or Cryptsy (hacked popular exchanges) if you still hold your coins on exchanges, you could be the next victim.Users who had been around may not trust storing their coins on exchanges base on their experience in the past where coins never get to be refunded. But when they heard about Binance returning the funds, they were pretty much trusting Binance. And the fact that they also allow staking, they wanted to make use of it. The advice to take the coins out still works and its safer for anyone. People who store on exchange, find an excuse when they just have less than $1000 in there. I may be guilty of it too because I'm doing it for some of the tokens I hold. Title: Re: Never store your coin on exchange!!! Post by: NeuroticFish on April 29, 2022, 10:44:20 AM Normally, it doesn't really matters storing coins in exchanges. Because without the help of most exchanges,i dont think it will be easy to buy any coins. Moreover, most issues that happened to exchanges are being solved. You don't know, hence you give bad advises. Please try to learn more first. As long as the hacked (total) amounts are not too big the exchanges may reimburse, but it's not a rule. The rule is to withdraw the funds from exchanges to your own wallet where you have the private key. This is what bitcoin was made for: allow you be your own bank. If you use exchanges as wallets, sooner or later you'll get into troubles (meaning lost money). Many already did. Title: Re: Never store your coin on exchange!!! Post by: Kelvinid on April 29, 2022, 11:51:58 AM We should all be aware that our funds are not safe in our exchange wallets, therefore if you have a coin, make sure it is stored in an offline wallet and that your private key is always backed up. Exchanges are just used for trading, buying, and selling, not storage. That is clear enough. Title: Re: Never store your coin on exchange!!! Post by: Fivestar4everMVP on April 29, 2022, 06:59:26 PM This is a topic that's been discussed over a million times on this forum, and this is also how the term "Not your keys, Not your crypto" came about, alot of people have lost huge amounts of money to exchange hacks, I personally lost over $300 on cryptopia hack when it happens, this is not a huge amount but I know peeps who who lost hundreds of thousands of dollars, they say the best form of learning is by learning from other people's mistakes.
I do not leave any amount more than $49 dollar on an exchange, this is for exchange whos minimum withdrawal is $50, but for the exchanges that allow lesser amount minimum withdrawal, I withdraw everything to my personal wallet anytime am done with trading for the day. Title: Re: Never store your coin on exchange!!! Post by: isaac_clarke22 on April 29, 2022, 07:53:13 PM ~ Are you sure that those "issues" are being solved? They can just claim that they are not experiencing any hacks and do a cover-up story to just avoid people ruining their reputation. You should buy coins there and do your usual trading, but don't ever hold them.As long as you're interacting with someone's code, you're not guaranteed to be safe. There is no perfect security, mate. Title: Re: Never store your coin on exchange!!! Post by: nakamura12 on April 30, 2022, 06:32:46 PM This has been advised to many newbies and other people who store their crypto in an exchange too many times. There are disadvantages why storing your crypto in an exchange, that is why it is not recommended to do it either small amount or not. It's not just me who knows that this has been discussed many times. I wonder why you came up with this again since as I have said before this has been discussed many times. I understand your intention but you should do a research if this hasn't been discussed or not before posting it here.
Title: Re: Never store your coin on exchange!!! Post by: dlightag on May 02, 2022, 11:41:36 AM Thank you for the information, As a newbie i have learn a lot from not to been hack on personal wallet, most time saving coin on offline is good but one mistake can happen and the wallet got compromise through fishing link, in the name of dex airdrop through connecting process to clam and end up got hacked account. therefore i prefer spread my asset (Coins) in difference area both on exchange and offline.
Title: Re: Never store your coin on exchange!!! Post by: Pterosaur on May 02, 2022, 11:58:12 AM Crypto traders have no choice but to leave their fund on exchange for trading, its better to go with top exchanges that understands that anything can happen to their customers assets at any time, this is why its always a smart idea to have risk funds aside, Binance exchange always prepared for such so they can pay their customers back, another reliable one is kucoin.
Title: Re: Never store your coin on exchange!!! Post by: Pmalek on May 02, 2022, 12:34:56 PM Normally, it doesn't really matters storing coins in exchanges. Yes, it does. There is not just the risk of getting hacked and having your coins stolen that way. The owners can make exit scams and steal the coins themselves. The exchange can freeze your assets and ask you for the origin, source of the money, KYC... Their ridiculous "taint" algorithm can result in your funds being frozen or confiscated if they came from addresses or sources that particular exchange considers dirty and illegal. Regulatory frameworks can change for your country stopping you to use those services. Because without the help of most exchanges, i dont think it will be easy to buy any coins. Buying and selling is the purpose of crypto exchanges. Storing your coins in their wallets is not the way to do it because they are not yours anymore. Crypto traders have no choice but to leave their fund on exchange for trading... That's OK. But you are not trading with your entire portfolio. Therefore, the coins you plan to hold long-term should be stacked away somewhere safely. Title: Re: Never store your coin on exchange!!! Post by: Doan9269 on May 02, 2022, 01:48:32 PM We should all be aware that our funds are not safe in our exchange wallets, therefore if you have a coin, make sure it is stored in an offline wallet and that your private key is always backed up. It is also very important to know that when dealing the offline wallets and backup for keys, how we handle the safety to those keys lies in our hands and one must ensure that the keys were secured enough without the Involvement of a third party knowing about it, why i said this is because i noticed we are aren't good in handling things for proper safety against any intruding element, i remember how they slogan is been pronounced not your keys not your coins (https://bitcointalk.org/index.php?topic=5173370.0) and many users begin to start having difficult encounter in related manners once they have a change in device which will require the provision of those keys in other to unlock the access to the coins on blockchain. The best way which you can secure your your coin is by using offline wallet because they are not connected to the internet which means you are free from hack Not only are your coins vulnerable to been hack while using a centralized exchanges, they can also claim a data lost, website downsize, zero privacy, high transaction charges and the whole shit about it is that you can never claim back your coins on centralized exchanges whenever they encounter any of the above listed challenges because they are in custody of your keys Title: Re: Never store your coin on exchange!!! Post by: Coyster on May 02, 2022, 02:21:36 PM most time saving coin on offline is good but one mistake can happen and the wallet got compromise If you do your research on how to do it properly, and you follow all of that without any mistake, then no problems would arise i am sure of that, except of course if it is a product of your own folly.the wallet got compromise through fishing link, in the name of dex airdrop through connecting process to clam and end up got hacked account. That is then your own folly, there are actions you take that keeps you vulnerable to loss of funds no matter how secure the wallet you use is, even if you use a HW wallet for example, there are things that are expected of you to do/not to do as the user, if you go contrary to them and lose your funds, then it is your own folly.therefore i prefer spread my asset (Coins) in difference area both on exchange and offline. Terrible choice, whatever funds you have on an exchange is more or less not yours cause you don't have the keys.Title: Re: Never store your coin on exchange!!! Post by: Mpamaegbu on May 02, 2022, 04:11:06 PM Yes, it's a given that if it's not your keys then it's not your coins. Many of us know and believe that to be true. Sadly, no trader can deal with the inconveniences of having to transfer coins to exchanges each time they want to deal. The coins have to be on the exchange for smooth and speedy transactions. Now, come to think of it, it's not only on exchanges that we experience hacks and loss of coins. What about hacks involving privately owned individual wallets? These things happen and there's no absolute guarantee to them. I think the warning of people not to leave coins on exchanges isn't properly directed. There should be a mid-point for such warning. Otherwise, we end up panicking people unnecessarily.
Title: Re: Never store your coin on exchange!!! Post by: laredo7mm on May 02, 2022, 05:05:50 PM We should all be aware that our funds are not safe in our exchange wallets, therefore if you have a coin, make sure it is stored in an offline wallet and that your private key is always backed up. If you are holding some coin for a very long time then a privet wallet is the best option but for the short-term holders, the exchange is not that bad. Exchange hack is not something that happens every day and constantly withdrawing and depositing coins from exchange could cut off your profits if you are a day trader and your investment portfolio is significantly small. It totally depends on the investor's strategy because in the end all we do is make profits. Title: Re: Never store your coin on exchange!!! Post by: PX-Z on May 02, 2022, 05:41:03 PM Storing coins to an exchange "account" (not wallet) for trading is different from making it as an alternative as a wallet. When you see "never store" it is a different way to say, dont send your coins to an exchange.
Without these daily traders who often used exchange for their daily gains/loss, i don't think we can see such kind of price for bitcoin if there's less activity (sell/buy order) going. Title: Re: Never store your coin on exchange!!! Post by: tokyohd on May 02, 2022, 07:33:37 PM Thanks for the nice advice. In fact, my thinking changed reed your post. I have always felt that the exchanger wallet was more secure than my offline wallet. Thanks a lot.
Title: Re: Never store your coin on exchange!!! Post by: Upgrade00 on May 02, 2022, 07:51:54 PM Storing coins to an exchange "account" (not wallet) for trading is different from making it as an alternative as a wallet. When you see "never store" it is a different way to say, dont send your coins to an exchange. To store up something basically means to keep in a safe location while you're not actively using it. Day traders are actively trading and as such they are using the funds sent to their wallet, this does not count as storage. Using an exchange account to keep bitcoins you're not using overtime is storing and is not advisableExchanges are necessary for trades. Except one has a trusted individual they can trade with, you'll need them. I have always felt that the exchanger wallet was more secure than my offline wallet. Note that your offline wallet is the best option, but it puts all the responsibility of safeguarding your address on you. You are responsible for;• Your private keys (seed phrase) back ups, • Your choice of wallet software or hardware. |