Bitcoin Forum

Two scenarios are likely to happen at this point :

1. "We got hacked" e.g Mt.gox
2. They actually get hacked

It's no secret that when the price of BTC increase , exchanges and other services becomes a target for hacking and sometimes It's actually an inside job where they claim they got hacked and of course , we can't proof it.

So to avoid any kind of regrets If that happens , I really recommend everyone to withdraw his funds from exchanges for the moment as we are heading to 1000$ pretty soon probably. Once you finish trading , just withdraw as there is no reason to keep them there... when you want to trade again , just deposit the amount to trade with and nothing more.

Exchanges that holds most of the funds in cold storage could be more secure but you never know... so yeah , be careful.

Exchanges hold a very less amount in cold storage. But trading depositing and withdrawing again and again is tedious.   

My number one rule is that when I am done trading, that I directly withdraw all my coins back to my offline wallets. There is absolutely no need to keep your coins sitting there doing nothing. It's a certain risk that people are exposing themselves to that I consider to be unneeded. That being said, I find that people nowadays put the focus too much on hackers, while in reality I consider greedy employees or exchange/service operators to be much more of a serious threat. It's very easy to put the blame on hackers while in reality the operators of the exchange have had enough time to precisely plan and execute their theft.

Even if exchanges would hold everything cold storage, it still wouldn't protect any funds if it's an inside job  :P
Maybe decentralized exchanges are the future...

This is not true, exchanges keep most of their bitcoins in their cold wallet, since their hot wallet is only used for withdrawals, it contains alot less bitcoins than the cold wallet. If an exchange keeps most of their coins on a hot wallet, I wouldn't use that exchange.

Exchanges have been hacked before, and I am sure it will happen again.
The increasing bitcoin price just makes it more interesting for hackers.
Some of those guys are really smart and preventing an inside job nearly seems impossible to me.
But I am sure as well that everybody who is trading already knows these risks and it's up to his responsibility to minimize the the possible loss in such a case.

I has been told about this long time ago, but there are still a people who just store their coins on exchange wallet.
I don't know why they not take sometimes to learn about safe wallet :-\

History repeat, there are possibility another exchange services will be a target to hack.

I believe that the past hacked incidents for exchanges was something like lessons learned for them nowadays. On the other hand if they store most of their funds in cold storage wallets how easy  and quickly can satisfy their customers withdrawal needs especially the hours exchanges are closed?

If hack is inside job than exchanges that claim to store majority of funds in cold storage will not be secure place and we never gonna know what is the real reason behind any hack like for latest hack in bitfinex they never disclose how hacker become able to run away with so much of bitcoin.

Better to hold all bitcoin you have in paper or hardware wallet in situation like right now when price is pumping hard.

This is correct,no matter where they store the funds as long there are people inside would tend to get those funds then theres always risk because we know people if they saw large amounts of bitcoin their perception would really change.We dont know whats actually on people mind when it comes to money. Im expecting the same thing too that there would be news regarding on this hack because it do happens when bitcoins price would rise.

i have a feeling as soon as we get to $1200 we will see those that bought in late at the '2013 all time high' will want to exit out of fear of being burnt twice and having to wait another 3 years to exit. so they will jump out as soon as they can break even.

which will trigger a bank run and reveal the secret spending of exchanges who then cant pay out the coins that they were suppose to hold for their customers but didnt.

I never hold bitcoins on the exchange. I always hold bitcoin in the cold storage.
it's safer than holding on the exchange. When I want to sell , I just need to deposit for selling.
That is the best way to secure my bitcoins.

someone who has waited 3+ years and sustained about 86% loss and then back up, is not going to sell at the price he bought at. first if all i seriously doubt that anybody is holding $1200 bitcoin until today, unless they bought those coins for spending or holding for 20+ years.
and if they bought as an investment it doesn't make sense to sell your idle money after 3 years without wanting profit.

there is if you see the price jump from $700-$1000 in a month.. you get the fear that its another pump and dump and dont want to have had a chance to break even should it reach $1200 and be left at a loss should it drop below $1000 again soon after

personally im still holding alot of coin from the days of the $6 btc so im in for the long, and hoping merchant adoption expands to never need to directly return to fiat.

but those that made a bad decision in 2013 hoping for a quick profit and then get out.. but left stuck at a loss, would have now come to the conclusion of just hoping for a break even and never return.

anyone caring about the fiat price so much obviously is not thinking about staying in bitcoin.
anyone caring about the bitcoin for a 20+ year investment obviously is not caring about the daily-monthly price drama..

so those looking daily-monthly at fiat, or only talking about fiat rather than bitcoins utility.. obviously want to get out asap

Now there is no central point of failure like before mt gox got over 80% trades of all bitcoins.
Now its distributed quite evenly, so its not dangerous anymore.

poloniex and bitmex seem to be the 2 top volumes that would suffer most.
though its more diverse. doesnt mean that their isnt obvious targets for 'inside jobs' crying hack

when you start looking at poloniex and find they dont really show real CEO office addresses and only show PO/drop box addresses. meaning you cant exactly serve them papers.. you can see they are able to run fast after a hack

I'm not sure about other exchanges but Poloniex clearly says in the homepage "Majority of customer funds kept in cold storage"


Why not ? I mean claiming that they got hacked is easy when It's an inside job , but when It's cold storage , It should be stored somewhere safe where only a few people has access to , so I don't see how someone could get away with it.
Besides , If the majority of funds are in cold storage + in the same address , that wouldn't make it hard to trace on the blockchain while If they are online and from different addresses , It's definitely something hard to track.

We want decentralized trading platform but i don't think we gonna see working one that can compete with the current centralized platform any time soon. Bitsquare is there but they are still immature to handle large volumes, safer way to hold bitcoin is to hold them in address which is controlled by only you.

franky1 how many of the holders do you think will just give in to the temptation and sell off everything around $1300-ish and do you think this will cause a massive drop in the price again? I think at least 50% of everyone holding Bitcoin would sell something or everything following a new all-time-high.

People have been waiting for proper decentralized exchanges to show up and take over the centralized exchanges, but so far nothing serious has shown up.

It's years now that people are talking about this subject, but there has to be a reason as to why there aren't any decentralized exchanges being able to compete with the current exchanges.

I think a part of this problem is that people capable of creating such an exchange find it not worth their time as they somehow know or just assume it won't be a success.

what you have to realise is that although there are 16mill coins in circulation.. the bitcoin price is not managed/caused by 16million coins. it moves based on ALOT less coins. not all 16 mill coins are held in exchanges. only a fraction of circulation are in exchanges

it only takes a few thousand/few hundred thousand coins to shift the price because the resistance walls are lacking.
take MTGox. at most they had was 1mill coins out of 12mill coins at the time.. yet mtgox caused a price crisis of $1200->$250

now there are less than 1mill coins per exchange so there is less resistance, thus it does not take as much to cause price movement.

so im not going to say it needs 8million coins to change hands to cause a dump because that if factually untrue. it only needs a couple hundred thousand coins at most to cause a dump.

just think about that

  
   I can find a logic, when bitcoin is going up people are very active on exchanges, and in this times there is a lot of bitcoins circulating on their trading platform. I save my bitcoins, but in case I wish to trade with them I need to deposit, its how its working. When Mt.gox happened I didnt know about bitcoins (btc price was going up), this year we had Bitfinex ( price went almost double from last year), and looks like every now and then when price is going up hackers rob some exchange site.


   Good advice, I quoted just in case. We never know when will it happen, therefore caution is strongly advised.


Edit: Nice explanation Frenky. I like to read your comments, you have good observation and your comments are simple for understanding, even for me :).

i kinda agree with what you are saying, but also i think it is worth mentioning that those walls are much bigger than they look like. because people are not keeping their coins on exchanges and/or not in open orders, they usually go in when there is a change and that is one of the reasons why the volume is always so much bigger when there is a change than the walls you saw before the rise or drop.

kinda old tricks though but still possible, they could now plot it this time and think of how they were hacked.

which exchange do you think will declare the first?

bittrex? polo? its usually the largest and being used by thousands. i exclude yobit because they could have done it long before mtgox did if they intend to.  ;D

I hope some shit like this is not happen anymore in bitcoin world wide. It can damage trust that build for many years to bitcoin.
I think the exchangers has add more security features to keep their client's money keep safe. They has learn from mtgox, bitfinex, and others exchanger that got hacked before. But we still have to rescue our money to not put it in exchanger in big amount like what op said.

"Don't put all your eggs in one basket"

You forget that Poloniex was already hacked once and they were pretty transparent about it and paid back all affected users.
Source: http://www.coindesk.com/poloniex-loses-12-3-bitcoins-latest-bitcoin-exchange-hack/

The CEO is also pretty easy to find:
https://www.linkedin.com/in/tristandagosta

This doesn't mean that you should blindly trust them, but I'm just saying that there is info to be found.

It's usually the cloud mining services that run away when bitcoin price rises as much as it did in past 15 days.
I don't know why people ever keep their coins in exchanges like they are banks?
And hacking exchanges is not an easy task unless there is an inside job.

that is a pretty good thought and a good idea, it is true that we got so many case scammed by exchanger, especially bitcoin now almost reaching 1000$ , it will be wise to take extra precaution, maybe I need to think a wallet to keep my altcoin and don't put your coin too much in a wallet you better split it out or put extra security to your wallet

I feel your words are 100% true. This accident is bound to happen there is no doubt in it. With the Prices going so high people will hack it and mostly yes it has to be insider help, there's no way they can succed without that, I hope people listen to you and make a safe decision and take the call before its to late. Though it will be a pain but it's better to be safe than sorry, I sold my coins and now will buy at lower levels, hence I feel safe. Just out of curiosity did you end up losing your coins?

lol dig deeper. try serving a court order or slapping him with a wet fish and you notice all of his public addresses lead to PO/drop boxes

my rule is never to trade with someone that you cant find where they really reside to slap them with a wet fish should they do you wrong

you don't know why because i think you are not trading.

as a trader you want to catch the best opportunities to get in or out depending on which side you are on. for example right now if you are a day trader you want to sell on top and buy back in the dips, this means you should keep your coins on exchange to be able to do this.

and "getting hacked" doesn't have a warning beforehand, it just happens in a second when they close down shop!

I hope that it wont happen if it happens then the bitcoins price will come down which is not good.
By the way guys which Exchange is on top for now?

That's right. I even can imagine all those hackers who are trying to attract bitcoin exchanger now, cause of the price now is really teasing one. Just hope that in the case my bitcoins will not suffer. But I don't have too much to get panic, but anyway I spend not so few time to make it.

exchanges need to change

firstly
exchanges should ask their customer to register an empty public key. (emphasis PUBLIC)
the customer keeps the private key a secret.

next to log in users are shown a message. and the user has to paste in the signed message, to prove who they are.
that way 'passwords' are not saved on databases or involved because the message and reply(signature) is unique at each login.

next
the public key is used with a public key belonging to the exchange to form a multisig.
the multisig becomes the deposit address.

then when users want to make an order they sign a multisig transaction to give the exchange X of total balance. to place that X onto an order.
this way funds are made more so as a 50% user-50% exchange control of funds. and outside and inside hackers cannot take 100% control

I never save any cash with exchanges as I know that they can shut down their services anytime. 2 big exchanges in the past are enough to prove how reliable these exchange websites are and last time when the price was high, one claimed that they are hacked making bitcoiners lose all their hard-earned money. Even bitcoin wallets are not trustworthy these days.

Lol it's true that 99.99% cloud mining websites are scam but Bitcoin trading exchanges can also scam. Today there is many way to warn before there is any storm is coming but there is no way to warn before website is being hacked so it is better to be safe than saying sorry I did not read this thread.

Thats what I also I had in mind, that during increase of bitcoins price hackers attack and sites are declaring being hacked like bitfinex does. You are right by saying that there is a high possibility that there is an inside job and they will blame hackers but it was them who does it. Anyway thanks to this information that you spread, I am reminded that I should withdraw my funds from the exchangers just in case.

Case in point, bitfinex recently 'hacked for 120k' with panic sellers helping out to a few hundred k. Moved the price a couple of hundred dollars, I can't wait to see the next 'hack' in the coming weeks.

what you told is correct but after that low do you think that they would not have bought back in low and averaged the price and right now they will be in profit and if i am not wrong then they would have cashed it out in $ 930 range that time the price also crashed little bit and now back the price is up.

yes some have bought in low to average down.

but that just adds more ammo to suggest now they averaged down they will be "at profit" when they get the $1200 again. thus more inclined to cash out.

and as i said before. it does NOT require 8million coins to cause a crash, and thus a bank run to cause exchanges to run scared and scream 'hacked'. it requires alot less coins.

put it this way. imagine there are only 300,000 coins that are 'supposedly' in an exchanges reserves.
knowing exchanges are probably spending the reserves through the back door (fractional reserving) while the customers are playing with false mysql orderlines and balances.. it only requires less than 300,000 coins to go in the wrong direction to cause a bank run and the exchange wont have those coins available to allow for all withdrawals. because there isnt 300k coins to repay all customers

they would be required to hold their hands up and reveal they embezzled the funds. meaning criminal act and prison time..(bing honest hurts them so dont expect them to be honest)
or
fake a hack and walk away leaving customers in a cluster-f**k of legal actions with some high spending lawyers in bankrupcy court over a 2-5 year period. while the exchange owner sips cocktails on a beach.

Some of the most famous Bitcoin robberies were inside jobs. Here are two well known examples:

1. Robbery of Mt Gox by Mark Karpelès
2. Robbery of Sheep Market Place by Tomáš Jiřikovský

We would not know the real story. It's really hard to investigate what really happen. Maybe the owners really did ran with the money and they placed the blame on these guys. Probably they did steal it. No one knows for sure. The thing is that the price of bitcoin is very tempting to people holding funds especially when they see thousands of coins in their hands.

bitcoinica
trendon shavers
mtgox
mintpal
crytorush
cryptsy

maybe this time turns into something good for bitcoin trading platforms.

I meant there has to be a last straw that breaks the camel's back right? how many times we have to hear about some exchange service getting hacked before we start moving on from these type of exchange and to better ways of trading which are less susceptible to hacks.

they were never hacked

do you really think they are going to be honest and admit to embezzling funds.. ofcourse not

duh, obviously it has been 99.9% bullshit whenever we hear an exchange service was hacked.
that is why I am saying there should be some end to all this bullshit, maybe this time a new exchange runs away with millions and people start thinking about new alternatives.

Poloniex

same words were said in 2011 when bitcoinica went
same words were said in 2012 when intersango went
same words were said in 2013 when trendon shavers went
same words were said in 2014 when mtgox, cryptorush went
same words were said in 2015 when mintpal, and cryptsy went

but people dont learn. they all treat exchanges like a long term bank and trust third parties
the only way to change things is to change HOW exchanges hold funds. because people wont ever learn to avoid exchanges

I agree and actually said this the other day.  Exchanges are very vulnerable at this point so no storing bitcoin there.  Or maybe we bitcoiners are just to used to the roller coaster ride over the last few years, we nearly expect the dip after the rise.  maybe this time is different  :-\

We should not store funds on exchanges even if they claimed they have the tightest security. After all the hacked-myself(or not) that happened in the previous years, we should be wiser by now and use exchanges as they should be, just exchanges, not storage of bitcoin. But if they still store bitcoin on exchanges then they should not cry when it suddenly gets hacked.

I store some altcoins to exchanges though.
I'm not sure if they'd be interested to it but if they are, they can have mine. to me, there are more risk installing altcoin wallets

There will be no alternatives because if a new exchange would been hacked then there nothing we can do about it and let those bitcoin gone and move on.Theres no end to this and expected there will be a new exchange would pop-out and claiming they have the best security blah blah..Those hacks are just inside jobs nothing-less.

Yeah that has been the problem. I never put my BTC on a third party site or app for long. I cannot avoid it completely but what I can do is take away the chances of my money to get stolen by putting it on exchanges or third parties only when I mean business and take it out and keep it in my personal wallet as soon as my business is done. Hopefully everyone follows that. I am looking for ways to avoid third parties completely but that sounds impossible as of now.

Even the funds on cold storage aren't safe, we have seen this in the past how exchanges are getting hacked and how funds are stolen, your suggestion is just perfect and it is good for people to think twice holding their money in the exchanges for a long time, not just now but always.

When you deal with private keys that you cannot revoke, and whose compromise would result in massive losses, you just can’t have them on a regular server architecture. You need some sort of secure hw token. Like Bitstamp did with Trezor and Ledger integration after the 70mil. hack .

By the way the Shapeshift "hack" was quite incredible as well - http://hackingdistributed.com/2016/04/25/shapeshift-hack-simply-incredible/

This is something no one can preven if will happen and when it will happen, and the most important where, wich website is on the target from the hackers, we all know that nowadays security its a must, those wich doesnt care will become the next to get attacked in the medium time. The bitfinex issue, showed that they does know they can get easy bitcoin, soo be aware and protect your coins, use exchanges but dont play with all your bankroll.

Yes i feel it coming soon. anyone think it will be bitstamp

Honesty Im thinking to start a thread like this few days ago concerning about the possibility of some exchanges to become a fraud or maybe having such a big problem with the price increase that is happening today. Chances is really high and it happened many times. It's easy to say for exchanges that their security have been breached. On the other hand, it's also possible that they are really breached by the hackers due to full force attempt to stole coins to take advantage of the price increase.

We doesn't have an assurance that everything will be fine but for a matter of security, it's not wrong to make a full concern for our coins and start modifying our ways to store it. Yes regular withdrawals is a must when doing trading with the current price situation like this today. Don't mind the withdrawal fee, it's more hurtful if you lost your all funds.

Thank you for the advise as well as the assumption in which you based this upon as it is verifiable as we have seen this several times that I have read then they will claim ddos attack and that's one of the issue I am still having with Bitcoin as no one t be held responsible for the loss of funds by investors untill when that is established we will continue to have insiders and even owners of sites compromise security for the sake of their selfish interest...

It's really possible at this point especially the price is surging up. If that kind of things is happening everytime there is a price increase, what's more now because it's really close to $1000 mark which is highly a long time desire for any bitcoin users.

But you know even there isn't a price increase rally that is happening, people should also study on how they will deal with the security of their bitcoins without using web exchanges.

Ah concur wit yo verry astute assessment,  mr. Oss.  We gon' see exchanges do it, an muthafukkas round this here forum too.  People be unscrupulous when prices ring the g-damn BELL.  They craw out the woodwork.   Y'all be careful now.

Mt Gox was a mystery. I think it is hacked from inside. Even before the big hack happening, there are numerous small accounts get hacked and bitcoins from these accounts are transferred away. I am sure some employees did these, if not with the company itself.

Its not really a mystery since most members and people here on bitcoin world that incident was an inside job and they are responsible on this so-called hacking event of Mt Gox. We all know that exchanger holds the enourmous volume of coins that's why they really decide to take it down and just saying its being hacked. For now I would really expect another exchange will be hacked.lol

LoL this is so mainstream in cloud mining or exchange website slogan .
They really need fresh idea to scam people.
But if those "White hat" really hacking them, I hope they can share a bit with us here.
Help the poor Bitcoin community here lol.
I have think who running this *WE GOT HACKED* scam are the same person.
Hopefully those hacker , hack them until they become homeless.

Yeah,i`m expecting the same thing to happen soon.

Some big player in the bitcoin trading to get hacked and the btc price is $500 the next day.

true

From what I have heard, the problems with Mt Gox actually started in 2011, only a few months after Jed McCaleb sold the site to Mark Karpeles. Since there were no audits, this wasn't detected until February 2014.

Imagine my short positions when that happens. i'll be rich I tell ya!

Karpeles was already a scammer when he moved to Japan. I read about him running away with the money when his employer fell ill. Then he failed to properly secure the site and lost a lot of coins, but still continued to take deposits, hoping that future clients will help him recover. He also liked the expensive stuff: apartments with a view and prostitutes... And did I mention stealing? He also liked that.

You will need to keep rolling over your short positions until that happens.
If Bitcoin raises to an ATH before that, your liquidity might get squeezed.  ;D

I've done a lot of exchanges before from a new altcoin to bitcoin. But i never used the exchange site as a storage of my bitcoin since thats what my bitcoin wallet is for. All i store in exchange site are mostly altcoin since most of them ask for a desktop wallet or their own site wallet. And since I'm gonna exchange it so i use the exchamge site as a storage for it. But never to bitcoin.

Already did my little bit of bitcoin selling didn't wanted to wait for the $1000 and all the chaos of everyone panic selling. It's good that I don't have a habit of keeping any bitcoin on a exchange, so already have my bitcoin in my control now not looking to sell for another year  :D

it started when the price went very high, an bot made it so and then the whole thing was hacked, what a coincidence, it make sense that the bot was made by the exchange itself to pump the price and ring more money there, with so many naive users at that time it was like a walk int he park, scamming them all

Just move all coins out of exchanges.
My shitcoins from cryptsy were lost because i was to lazy to move them out of there.

its a good suggestion for every traders so they don't have to risk their fund in the exchanges and we can trading with limit budget but we can still to get a big profit. i like the idea and i will use this for myself and i am really afraid to get hacked because i have this experience in the past so i will be careful from right now.

Best lesson would be dont trust exchanges 100%, use your own wallet or diversify your coins. no one knows when an Exchanges Owners will run out of course and start a hacking story to get away with money.

Even if a hack did happen right now I don't think the price will plummet that far.
Worst case scenario the price will stuck at certain price and then rising back up.

The condition of bitcoin is different from Mt.gox era, there are more people supporting bitcoin right now than before.
But, try to keep your positive thoughts and hope nothing bad happen. :)

A smart call, never keep any money in exchanges :)

Nothing can any of us done after the coin are gone from the exchange's wallet.

They can't. Bitcoin has a zero, none, nothing economy. The only reason Bitcoin's exchange rate moves at all is because of day trading. Day traders need to be able to trade. They need btc on the exchange to sell and cash on the exchange to buy at a moments notice. When mega buttloads of btc are stolen at an exchange I don't feel sorry for them because it's mostly day traders losing money. The cash that exchanges hold is almost never stolen because that would cause a real investigation by actual authorities and result in jail time. No one does anything when bitcoin is stolen until you get into the mega thefts like Mark Karpeles pulled off. Even then if MtGox was in a different country Karpeles would never have had the government involved.

Stop being paranoid about it. If you are worried about your bitcoin then start to use FULLY LICENSED EXCHANGES i.e. Gemini.
But no, you people complain that they have harsh KYC policy. Don't be pussies and stop complain about harsh KYC and be sure that your coins are safe.

Wouldn't be that surprising to see more bouts of "hacking" happening, but you never know, we might get lucky and there won't be anyone going down aside from maybe some small exchanges for some local places. I would be surprised if there are any high-profile Mt.Gox-type events this time, unless we hit a new all-time high.

Or you can calm the fuck down...download a bitcoin wallet for your computer/phone....etc

https://bitcoin.org/en/choose-your-wallet

The only reason you need to use an exchange is to convert btc to? ...if you aren't trading/converting don't bother with exchanges.

If you simply are storing your coins then do so offline. There are many solutions to this...get researching :D

It is tedious but is way better to use that time to withdraw your coins than to later regret not doing it, the only reason you have money deposited in some website is because you plan to use that money for something, trading, buying, investing, but as soon you are done with it you must withdraw it.

I have a question about this: If any exchange get "hacked" (Wether it's an inside job or no) the Bitcoin price will go down like the Mt Gox case or Bitfinex in august, so what do  the hackers do with the stolen BTC?  Hold? Spend? Dump?

This is a very good advice and something am taking into consideration seriously. Right now, I am not having Bitcoin in any exchange wallet and am not yet into trading myself. Well, that can mean that I don't have much Bitcoin myself though hopefully in 2017 I can increase my Bitcoin portfolio. I am also hoping that pump and dump will not be affecting Bitcoin in the first quarter of the year.

I read a thread on a dark web forum about Bitcoin where one person claimed to have stolen thousands of btc. He said he goes to an exchange like BTCe and watches large walls form (say 500 btc wall). He then sells down to the wall and stops to wait for more buy orders to appear above the wall then sells again. He did that repeatedly over a period of months in 2015. Remember, if you stole the Bitcoin you don't really care what you sell it at because anything is profit for you. His story could be complete bullshit but you never know. Successful thieves are arrogant and like sharing the story of their success so it might be true.

Depends on the hacker really. If I were him I'd slowly sell it, so that the bitcoin price doesn't get affected that much and the exchange which I'd dump it on doesn't get suspicious.

soon as the rumor is out, people who holds btc will dump the btc they are holding. they wouldn't wait for the hacker to dump.
its like spreading fud in the forum. few holders who happen to believe what the fudster is saying can affect their decision.

I'm sharing your opinion in this question. There're two groups of black-hat hackers (hackers who are participating in illegal activity e.g.: hacking exchanges). One group's driven by hunger of profit. The other group's driven by desire to prove that they can do it. Hacking exchanges now is VERY profitable and which else date would be more beautiful than hacking an exchange when BTC hits $1000, the legendary price that everyone expected for so long?

Sometimes it is a bit scary when there is a big rise of bitcoin, many sites from one moment to another are "hacked"

It all depends upon the individual hackers who holds those coins and it is not at all possible to hide this much coins moving around so it might take a really long time for the hackers to sell off or convert their assets to other coins if needed and most of the hacks are inside jobs in my opinion.

Its not only scary its really worst as I lost some big amount in mintpal and crypsty and now living very bad life because of these hacks have never recover from these and now suggesting never keep money on these exchanges and sites just keep them in your own custody like blockchain.info

You were highly intuitive when you wrote about "We got hacked" coming!It was a warning,but not everybody listened to that.That has happened exactly to Btc38.It was not a big amount of coins that were stolen,but my opinion about is that every single coin is important,because people worked hard(in some cases maybe not that hard)to earn them.Fortunately,the Btc38 assured the people,that the losses will be covered.But Im wondering how is still possible that the hackers still can do what they do,and the companies not take security actions against it.It must be there a way to make security 100%.Maybe to keep all the funds in the cold wallet.Maybe the people will have to wait longer to receive their coins,but at least they can stay assured that everything is ok, and their coins are in a safe place.

the users of these exchanges must take some action against them, they should start asking for insurance, and other ways to make sure their money is in safe place. just the fact that an exchange has been around and has a high volume is no guarantee any more. and it seems like these users are forgetful of what has happened so far to exchanges!

This users, well many of them only hold what they can afford to lose. If you hold more then you are unlucky and should learn. Insurance and all the carry on will only come with government intervention and that  is what we don't really want. It will be around in Europe in late 2017 or early 2018 though so your wish will come true.

All of the funds can be cold wallet if they have a small withdrawal delay

ie enough time to open a safe,

Coin u see on the exchange is not real coin

Very true. Gox was huge during that time. Polo is huge this time as well the rest like bittrex.

a lot of users advised the rest of us not to store BTC on exchange though. insurance were never needed i guess because not so long ago there was an ICO which offers security of their money but this ICO weren't funded much so the project wasn't launched.

Someone probably should never keep their extra coins in a exchange, if someone feel that they don't want to pay the fees of deposits everyday as they do trading everyday then they should just keep their capital in the exchange and take out the remaining btcs from there as it really can be dangerous.

I think all funds of the big exchanges are holding in the cold storage.
it's very difficult to hack bitcoins or altcoins. I never expect this new " we got hacked"
Because many cases had been hacked before so They must be careful about the funds.

But then people are hard headed and never learn, me included lol.  It had been a hassle withdrawing and depositing Bitcoin when trading, especially you have a buy order to be filled.  You cannot withdraw the bitcoin placed in a buy order because you need to cancel the order in order to withdraw that Bitcoin.  


Indeed hackers need to sell the stolen bitcoin slowly, even if it is free, their aim is to get a high rate as possible.  So most probably they put the lowest sell wall at least higher than the buy wall and put it in chunks.

I am sure someone registered a case with the FBI when Bitfinex was hacked and some individual lost $1.3m and the last time i checked the FBI was investigating the case and i do not know what the current situation is but it all depends upon individual users filing cases and majority of the time they could not do anything as most of them are untraceable .

Some people don't have a choice, for professional traders for example, it's impossible for them to withdraw and deposit for every trade

Actually the Bitfinex hack of August 2016 caused the price to drop quite sharply ($65 million stolen in that hack).

Bitcoin isn't as decentralised as it should be because sadly exchanges keep going bust (usually after a hack).

but this is a problem with the exchange that can't keep the big portion of their funds on cold storage, i don't think it has to do with bitcoin no being decentralized enough, i remember also that the bitfinex has faced a good and fast recovery, it wasn't a bid deal like mtgox and the market was fine after few weeks

Even though bitfinex did recover fast but still the trust of its users and traders is already lessen unlike when the times that isnt being hacked.Trust issues would really matter on this field but there are still people who still support the exchange. Decentalized is no connection regarding on this matter.

Well duh, it has absolutely nothing to do with bitcoin's decentralized nature. Obviously that guy just doesn't have any clue what decentralized actually means. If exchanges gave you options for true cold storage with either multi-signature or only you have the keys you'd be fine, but exchanges cold storage is shit compared to your own cold storage that's done properly.

I think with such high price for bitcoin there is possibility to be hacked again. Same like it was in August of 2016 when bitcoin get closed to 1000$. I think it may happen in any moment now.

It is not decentralised if everything has to go through a handful of chokepoints. The exchanges are a chokepoint, and the concentration of mining behid the great firewall of china is another chokepoint.

Until people can buy stuff directly without having to use exchanges and without having to use btc-to-fiat cards or apps, there will be chokepoints which will fail periodically.

Withdrawing our bitcoin in exchanges is the same as saying do not trade in exchange when you are not around.  Or do not put buy or sell wall if you will be sleeping  that is not beneficial to traders.  This two things should be balanced out.  Like withdrawing only those Bitcoin that is in excess of our trading target.  But traders don't want to miss things like sudden decrease of bitcoin price or sudden shoot out of it.  So traders keep their bitcoin in trading platform to take advantage of this kind of scenario.

https://i.imgur.com/kbKPNOK.png

5 USD before reaching the ultimate goal 1000$ and It may keep increasing , If you really want to protect yourself at this point then you should definitely start withdrawing as soon as you finish your trade.

I hope we didnt get to hear something of that nature because it will only give people who are of the pessimistic view of Bitcoin price a justification for their view. In further to that, I still hold the view that the exchange owners should be one way or the other be made responsible for the compromise of their sites and this will go a long way in making them live to their responsibility.

Many people who keep their coins on exchanges are really losing in the long term. Why ? Because if you use exchanges only to buy and sell and hold the coins in your wallets you can make much more. Well you have to be patient and not trade every second ,minute or hour but in the end you will come out as winners. If you have bought bitcoin at 700-750 USD Price you can win a nice chunk if you sell now that is almost 1000 , my electrum wallet says 999.46 USD per btc. Use Kraken,Bitstamp,Bitpanda  to sell your coins, and also to buy. Play with the price and forget day trading.

To get back on topic, withdraw any coins you may have in any exchange, no matter how safe you may think they are. I do trading but only long term trading, buy low and sell high whenever is the possibility as simple as that.

If any exchanges get hacked I will not be surprised as this has happened before.

I never trust putting bitcoins (actual money) with some online wallet, which does not have a long enough history of credibility, and no strict regulations like banks. You take your own risk. Always keep the bitcoin with yourself.

i am afraid if that mtgox inncident was  agai happen i dont wanna see many people suciding and all. in addition to that the price fell so fastly that it distturbed the whole network but at least it didnot reached lower than $200

The price is about to cross the thousand dollar mark and i hope there is no more incident like the Mtgox or the bitfinex hack this time around to start the bear run and if the bull run continues we could see another rally which could break new grounds with this run,i do not want to hear a hack news once again.

Me either, especially when we are talking about volumes of bitcoins that you had. It is always a recommended and good thing to have your very own wallet. Let's just learn from the past incidents and these type of alibis "we got hacked" aren't going to be successful and good reason again. But remember that many did already warned everyone here.

Well im happy to have no news about hacked of funds lost from the last week of the last year, and i do expect business companies does put security as their main concern, soo users can invest and trust them whithout fear to loose their coins, and wow bitcoin is reaching 1000 dollars what a nice way to start the year.

Or maybe e-wallets have these scenarios...

I keep my money in Xapo and don't have to fear because of the infrastructure involved. I'm not too afraid of anybody getting in, but as per the quality of exchanges I'd have to look for more than one to use to minimize risks.

Most web wallets have internal systems for enhanced security, but rather the wonder of sustainability. Some even offer currency exchange at fair rate.

Xapo's cold storage option is pretty solid but unfortunately I don't trust them 100%.

Is it extremely hard to develop or something. Why can't something like https://etherex.org/ take off? It makes perfect sense for decentralized exchanges to be able to compete with the 3rd party ones at this stage in cryptocurrency.

I'm kind of expecting something like this to happen now, I didn't think it was possible but I guess it is, and we're sitting above $1k right now and chances are some exchanges are going to exploit this.

I don't know why they do, since they can make a lot more money maintaining their website and then performing an exit scam, but whatever I guess. Scumbags either way.

Hah,

A hacking might be the only way to drive the price back down to "buy back in" status  ::)

*whistles*

I wouldn't wish it on anybody though...

I hate the word" hacking". it made bitcoin price down when the certain exchange has hacking problem .
I think the almost exchanges have been in strong security status.  it's very difficult to do hacking now.

Something like this would be so sketchy.

Don't get hacked. I hope the security of trading / exchanging sites are really protected. It's hard to trust because they can hack it and they can just do it.

That is actually a pretty stupid move. Claiming a hack like they did gets the price lower in a few hours only. That's what they want? I know there were websites coming with this excuse when they did not even have a hacker coming after them. Everyone wants money and I also know that me writing this message won't stop them, but it's a bad move. Thousands are going to leave Bitcoin because of a website getting hacked. Less people means a smaller Bitcoin price. Look at the charts and you'll see that Bitcoin went up VERY fast in the weeks before Bitfinex's hack, and then it went down and needed months to recover. We would have had over $1.500 already if that didn't happen, probably.

I'm not so sure, we're decentralized enough that 1 exchange will be maybe $100-200 of the price? It might even be futile...

I agree. Remember the last hacking to the trading platform? It caused a big damage to the bitcoins' prices which made Bitcoin can not increase its price for at least 3 months. I will try not to involve in any trading platform or third party services.

I'm feeling this right now also because i don't see a TOP price for this coming days so it's like a bubble..

yeah. learning from past mistake is the best learning. so, in order to not be hacked, keep your coins safe on paper wallet maybe or another safe wallet, not on an exchange. or in other words, do not trade many coins in this some period of time. because I think there are not many stupid people who just save their coins in exchanges without strategy.

It has been pointed out overtime that an exchange is not a substitute for a bank, so after every exchange, best bet is to transfer your coins to a safe wallet. For those, who trade at exchange sites, leaving just enough to cover the average trading volume should do and when profits roll in, they have to be cashed out. Warren Buffet used to say, "The return of the capital is more important than the return on investment" One have to live, to be able to fight again tomorrow!

I consider the current price to be somewhat overbought, but definitely not a bubble. If we continue seeing the price go up to like $1500 in the coming weeks, then it's clear that a bubble is forming. But as it is right now, it's too soon to put the label bubble on it. That's why people should keep holding their coins and not forget to secure profits every now and then.

All we need to do in order to make a shitload of money is be able to call the top then let it crash and call the bottom for a buy back in, buy back the exact amount of btc you sold at the top and pocket the profit.

So what up , Any update about which site already "Got hacked" ? Hopefully there none been hacked yet for now because Bitcoin still UP UP AND AWAY !

I think most the big exchanges already put high security and all their bitcoins in cold storage

You would think this, but the hacks have happened practically every six months since bitcoin launched.

The only exchange with insurance is coinbase. It would really stabalise the system if all the other exchanges got some insurance too - that way people would have confidence that they wouldn't lose money just because the exchange got sloppy with security.

But what about an "inside job" ?  I think that the  Mt Gox was an inside job. They just wanted the money because they didn't believe in bitcoin

Yes, we are never 100% safe, they can use the best technology security, but using online services there is always a risk to lose money, be hacked. I already took out all my funds from exchange for now and splitted my money between some sites as I don't use desktop wallet. This way I can reduce the risk to lose money or be hacked.

I didn't know about this Coinbase insurance, I will check, looks they are one step forward than another sites... Better for customers.

Keep your coins safe and off an online exchange!

An exchange with a license is as vulnerable as a not licensed exchange if they use the very same methods for the protection of the coins in this case having a license from a government does not mean automatically they have better security.