Bitcoin Forum

Had been in a dilemma after seeing BTC-E's owner being arrested for a $4 Billion money-laundering fraud which he had been conducting, who knows that from when. First Mt Gox, then Bitfinex then Poloniex and now this, few were hacked and some had their admins only cheating their users.
Do you really think any exchanges are trustworthy anymore?

In truth we really can't trust anything, even if it have a very good reputation and whatnot. The thing is we take 'risk' about it, I mean how would you know if you're not going to try it. People always have doubts in anything and the only reason why they could make them trust you is to prove it. Fraud is not all about lying, its a matter of Social Engineering skills and communication expertise. You are convincing you're users to take risk in you by saying 'white lies' so that you could use them.

As for what you've said those are the only ones who've successfully fraud people, but eventually got arrested. We can't predict anything but as we take failure not as an enemy but as a friendly experience we might learn something and we could choose more wisely.

Their exchanges, their purpose is to exchange not to be a wallet.
Make your own offline wallet to avoid this circumstances. You might be risking your coins into losing your seeds but I would rather make that mistake than being robbed by those guys.
Making back ups with my seeds is the best thing I have done. Less worry now with wallet exchanges which used to be my friend where I store my money.

In crypto, the goal is that there would be no need to trust anyone. But it does not mean we have no use for centralized services, they have their function for now as long as the technology for decentralized exchanges and market places are not ready yet.

As soon as their ready, effective and as functional as their centralized counterparts, I believe we will see a shift in the Bitcoin landscape.

The thing is, people always leave their cryptocurrencies on exchanges, which is a very very bad thing to do. Legit or not, always withdraw your funds. All those problems are easily prevented when you use exchanges for only it's main reason; as an exchange. Not as a storage.

I really dont know why some people save their bitcoins in exchanges rather than their wallets, These owners can simply claim to have been hacked and their bitcoins stolen and there is nothing anyone can do about that. Just save your bitcoin into your bitcoin core wallet and you will not be losing any bitcoins whatsoever.

Exactly. You can't just stop trusting all the exchanges because of action of one. But I think it's always safe to have some doubt and not trust completely any service, wallet or exchange, which doesn't give you access to your private keys it's better not to keep BTC on there for a long time.

Exchanges should never be trusted in the first place. Everyone knew the dangers of using exchanges, they can easily steal your money.

You forgot to mention Cryptsy which is a huge exchange that went down a couple years ago now people are trying to sue them.

What exchanger which is 'legal/regulated' ? so far only Bitstamp and regulated under UK law,they have a 'good reputation' but what happened to them back then in 2015ish ? they're a legal exchanger,regulated under UK law but they get hacked by hacker ? that mean a legal/regulated exchanger can not be trusted fully,because everything is very sensitive if they involved with money.
to be honest,we can not trust them fully if i was you,whenever i made a profit i will try to withdraw my money from exchanger directly to my fiat or keep it by my self in my cold storage or local exchanger (i trust them because i know where're they)

So,we can trust them but we can not trust them fully.Only you can keep your money safely

If you don't like online exchanges you can find potential buyers offline and go trade with them face-to-face in the real world. You could get robbed there as well by the way.

As their name suggests, they are not exchanges and not an advisable wallet to save your bitcoins.

I save all of my bitcoins into a good bitcoin wallet as suggested by some of my friends. It is known for a long time, you can say tested and proven. I don't trust exchanges because they are not a wallet for saving but a wallet to exchange your bitcoin or to trade it.

Before classifying anything as trustworthy or not, first clear out your criteria. Now what exchange meant to, to be used as wallets? For holding coins? Indeed not, as suggested by name itself they are meant to exchange coins. So if we stick to their use as exchange then no doubt they are much more trustworthy than individuals or random people offering exchange service.
But if you made mind to not withdraw coins from exchange and use them as wallets then pretty sorry, anything could happen.

Bitcoin was created to remove a need for trusted middlemen in transactions, which can be described as "be your own bank" idea. So, when you store your coins on any type of online wallet (exchange, casino, wallet service, etc) you are essentially going against one of the reasons why Bitcoin was created. Everyone should take as a rule to never hold online more coins than they can afford to lose. Better to pay transaction fees each time you want to trade, rather than risk to lose a huge amount of coins.

We need exchanger in order for our alt coins to be exchange to bitcoin. I think it is safe to use exchanger now even though there was a thought that do not put your money or your bitcoin in exchanger because they said that it might be lose. But i dont think that your money will be lose. Have faith on it.

Exchanges are typically worth trusting since they usually don't have scandals like this, but you have to realize basically everything with the Bitcoin economy is based on trust and if exchanges start to make themselves out to be entities that no-one wants to associate with, then, simply put, they all lose money and exchanges suddenly stop seeing volume like they currently manage.

What would come next? Either you're going to have a bunch of local transactions or we'll get a decentralized exchange that everyone is talking about developing. Too bad it can't just magically store funds for users somewhere.

It is difficult to say if exchanges are trustworthy or not, because after each exchanger there is a human body and you cannot predict how it would behave :) Ofcourse at the moment there are some great exchanges like Bittrex or Kraken for example. Everyone can see how they work and everyone trust them, but you never know what can happen.

True! A lot of users are in the same dilemma I believe. But I also believe that, not all exchange admins are scammers and they try to run a business here for long term. However, the current scenario is forcing a lot of members to re-think their accountability. Since I trade a lot, I keep a good amount of balance in some exchanges.

But I always transfer at least once in a week to my own offline wallet after the weekend. I get most of my time to trade during weekends only and after weekend, I transfer any extra money above my holding threshold to my offline account. So you need to set a threshold for yourself, like 100 USD. Anything above that amount will be transferred and stored in your wallets just to make sure that you don't get hurt if your exchange goes down.  

Heard about MTGOX but that was years before I got into bitcoins. First time I heard about Bitfinex and BTC-e. As for Poloniex, it's the only exchange I've used so far and I'm hearing a lot of complaints before they disabled the trollbox a few weeks ago.

Geez, really hard to make a living these days with sharks basically swimming underneath you. At least in BTC-e's case, the owner got arrested.

Everything could be used for wrong purposes and nothing is 100% secure, every business could have the bad sides and so the bad things could happen with exchangers too. But that doesn't mean that you can't trust exchangers and similar services, you just have to be careful and make the due diligence.

With solutions like Waves Platform, soon you don't need to trust Exchanges anymore :)

I still trusting. Exchanges exists because the need to trading. We did not required to believe to fully, but better after finished trading you should withdraw your balance asap. This can be minimize the possibility of bad happen like in previous.

Decentralized exchanges like Waves, etherdelta, bts would be the future of exchanges.
safe and secure

There are some, like coinbase, that I would trust enough to do business with.   They're regulated and probably insured, and they're in the US.   Others, like Yobit, I trust enough to do really small amounts of business with. 

It's always good advice to not trust any of them as far as keeping any money with them.  There have been far too many instances of scamming to do otherwise.   Do your trades and then take your money out ASAP.

Agree, for now i stay away from exchanges, but once a good decentralized one shows up, i will use that immediately.

Seriously mate? What if you are new and you recently bought bitcoins because you just want to trade some altcoins and send them to an exchange and unfortunately it rips everyone off and scams everybody? Will those kinds of situations be in your hands? And what about those who put their coins there just for the purpose of trading? Should they also "make their own offline wallet" every time they make a profit, then redeem and then deposit back if they want to trade something else? Will it really work? Then what about the fee?

With the information that was published, I was frightened about everything. I no longer trust anyone. They are just deceiving all of us, all of us have been exploited as chess pieces.

BTC-E did not stole its users bitcoins. Their admin was arrested because they did not implement Know Your Customer AKA Spy On Your Users procedure and your money was stolen by government.

Non-KYC exchanges should be trusted. KYC exchanges should not because they are working with governments.

If you are new to bitcoin then the first thing you have to learn is ,how to store them safely and the best solution is to have the coins under your control ,but if you are actively trading then you must trust the exchange to keep your coins and withdraw when ever you are inactive because you cannot trust any exchanges or third person with your coins.

How is this new? Storing money on exchange is basically giving money to a stranger/friend who promises you to give your money back when you ask for it. So if anything were to happen to that person or he loses the money, your hard earned money is gone you need to realize that. But that doesn't mean you shouldn't use exchanges. Just be careful and preferably move out after each trade you make.

So where do we trade or sell our altcoin if we ourselves can not believe in the exchange? Maybe I do not know all the stories from the past exchange. But it is really bad to see so many exchanges that make deep chasms continuously

None should be trusted. If you are in the shoes of people who lost money in MtGox and recently BTC-e. You will know about it. The problem is not only if the exchange is related to illegal activities like BTC-e or if the exchange is going to scam like MTGox. There is also a risk to see the exchange hacked like it happened with Bitfinex. So the exchange may be clean, it doesn't mean you are safe. Remember that with exchange you don't own any private key and you rely on their security ressources.

I dont know if its true. But try not to put you bitcoins in your exchanger. Others say that you you need to pull out your bitcoins there because it may be lost. So why dont you try to do it. Then come back aftee aug 1 or after they will announce that it will be safe to invest and trade again. You may try itm

Decentralize exchanges will take over soon like Waves, Mothership, Wcx, etc. Only put money you are willing to lose!

There are a lot of trusted exchanged in the past that closed or runaway like mt.gox and others. Exchange on cryptoworld will not be trusted forever because there is no legal exchange everywhere. Bittrex and Polo is still not legit exchange on US.

Is it really safe? How can we absolutely believe in those platforms? No, at present, I feel suspicious about everything, I feel disgusted when I get cheated.

Here on online world You should always put up in your mind that you should not trust anybody but only yourself.I applied this rule ever since which i dont really trust any exchanges on where when i do make tradings i do immediately cash out my funds and i dont care to pay up fees actively as long i do secured my funds in my own wallet on which i do have its full control. Its really sad to think off on whats happening on exchanges as of now on which they do have their own issues.

Not all here in online world would be trusted especially if there is money thing just like here in bitcoin! we should all be cautious in every action we made here because possibly in just a split of seconds your bitcoin can be lost.   

there are only few regulated exchangers : Coinbase, ITbit, Circle, Gemini, Bitstamp.

also, i highly recommend you to find forex brokers which accept BTC (all of them have a history behind and are regulated) like :

https://www.plus500.com/

https://www.ig.com

www.fxcm.com/

http://www.avatrade.com/trading-info/range-of-markets/cryptocurrencies/bitcoin

Its a dilema since we need exchanges to be able to trade bitcoin and altcoins, soo in the end we will need to trust into them, otherwise we need to leave crypto, or find some solution for it, a decentralized exchange would be amazing, but we are scared in the general to try again.
Poloniex were top exchange for me till they close trollbox, since those the support has becamed horrible, and they had the best over the exchanes.

With the several casualty that have befallen exchange sites and the most recent one which has even made people lose quite an amount of their hard earned resources, for me we cannot do without exchange sites and cannot trust them so its an ironical situation which I believe can be handled with more care with one single rule, NEVER LEAVE YOUR ASSETS ON EXCHNAGE SITES...

Well its really in the human action that is what dangerous and not in the the exchange sites. Because the exchange sites are just tools and that can be used to exchange from coins to coins. Its really in the human action that is more dangerous because they are the ones who're operating these exchange sites.

I was using coinbase.com for a very long time as that was very simple and effective for me, however with August 1st looming I decided to end my coinbase.com account and move out which was due to simple reason I just couldn't trust exchange, not that I had any problems with coinbase.com but it felt to be safe have private keys and that's one issue with exchanges, so ya I don't feel safe with exchanges and recent events showed it was a good move.

I think should accept the trust when exchanging. Anything that is exchanged will become more valuable, Bitcoin too.

Just to ruin your faith in the human race, even more, technically we can't trust anyone except ourselves. Who is to say that the big escrows and trusted traders on the forum won't just run away when the opportunity presents itself.

It seems like exchanges have been taking hits after hits, but I think that I would still trust an exchange. The people who need to trade altcoins and make money rely on them and it would seem to judge them after a couple of events, no matter how dodgy it may seem.

Exchanges were never trustworthy; you can only spread around the risk. Your best bet is with registered, VC-backed exchanges (like Coinbase, Gemini, Bitstamp) because even if they get hacked, their investors will probably bail the customers out.

Indeed most of the people end up in saving big amount of money into exchanger itself. Even one of the friend had over 6 BTC on exchanger, of which 2-3 BTC were in the form of altcoins. When I asked him why are you keeping those rest BTC over there the he replied, "I'm professional trader who needs money handy when there is good opportunity for trade is going to take place". For a minute I thought it is true as well.
So it's all about methods and strategies of person that makes him to take the decision. May be we need to take the risk for the best.

Totally agree, in my country there is any bitcoin company who offering service like another exchange. That company has good reputation and the owner very actively promoting and teaching anything about bitcoin. For that, exchange site with good reputation and good owner it can be trusted.

Yeah just like what I always doing. After I trade my coins I immediately transfer it to my wallet just to be safe.
I dont let my coins sleep in the exchanges as I know its not really trustworthy and having some serious issues.

The thing is why would you even store that much money which you cannot afford in an exchange that is known to have absolutely no physical address, close to zero customer support and is basically a money laundering pit?

Do your own due diligence before doing anything - that's true whatever you do with your bitcoins.

Exchanges were never supposed to be a safe place for you to store your coin. It's called an exchange for a reason, not a wallet. If you store your bitcoins on an exchage for a prolonged period of time then you're the only one to blame when one gets hacked or shut down/exit scams, because if you just held onto your own private keys everything would have been fine.

If we loss our trust from them, then to make exchange of our coins to fiat or altcoins will be difficult.
So, if the owners of these exchange sites are found in fraudulence acts does not clearly mean that every transactions made will be of trouble, cause they have workers working with them.

storing coin in the exchanges is bad idea. i think you are right mate, people should not store their coin on exchange. just use exchanger for exchange activities for example for trading or change btc into fiat.  the problem isn't only on trust of exchanges but people must aware to don't stores their coin on exchanges.

i trusted but not 100% trusted because not secure to store our all of bitcoin for an any exchanges for a long time although those exchanges had good reputation but don't mean it will secure forever and indeed we still needed exchanges for our trading activities but if i have huge amount of bitcoin or altcoins then my primary options is store all of it into offline wallet

It's not only about exchanges, holding bitcoins anywhere other than your 100% control on it is a risky move. One should keep his funds in offline storage either in hardware or paper wallet where he is whole and sole owner and manager of the private keys. Exchanges are meant for trading and thus one should maintain the amount which requires him to trade on exchanges and not the surplus gains if he is not interested in reinvesting.

a lot of people are trust in bitcoin and the price is also keep on increasing till the date august first will come up and now the process of exchanging has become very easy but still there s a huge risk in it because it is important for the process of the trading but trusting exchange completely is not a good decision being careful in bitcoin exchange can minimize the chance of loss.

I think this depends on reputation, if we do not read much and user experience of course we can get scam. Read many reviews and experiences from other users before depositing in the exchanger.

I already clarified this in my statement that "few were hacked and some had their admins only cheating their users." I didn't say they steal our BTC but their intention must have been that only behind doing such money-laundering related deeds.



Why would I store, exactly right? But I said one thing in between these threads that I am repeating once again that nobody stores their coins at such places intentionally but they put them just for the purpose of trading because exchanges are the only medium who allow us to profit or lose our coins there. Losing on our own doesn't make me feel that bad as much as how I feel when I get cheated just like everyone else.

It is better to always put our money at exchanger when we wanted to trade only. After we finished with our main purpose then send back the money to the safest place we can get. It is too risky to put our money in a place where we have no control over it for a longer time.

Exchanges is safe as long as you dont store your coins there. Just use exchanges for trading your coins not as your wallet. Like what Im always doing, after I buy or sell my coins I immidiately transfer it to my wallet that holds private key. I dont trust my coins in exchnages even before I first trade.

they should never be trusted and i can't believe anyone ever did trust them.

though btc-e had a good track record this was inevitable while they refused to come out of the shadows. bitfinex has repeatedly raped the market. kraken basically does not work.

the only ones worth taking a leap of faith on are the properly regulated ones like gemini, but i do wonder what they'd do if they suffered a giant hack. places like coinbase claim to be insured against that. i don't want to see that put to the test.

In my opinion exchanges is exchanges don't put all your money there put your bitcoin in a wallet with private key. You should not put those you can't lose, be wisely. Unless you are at ease in your own money.

Not all the exchanges but we need to trust at least some of them, it's not a choice but it's a compulsion or necessity. Also if one or two reputed exchanges turned scam it doesn't mean that the other exchanges would do the same. I'm sorry if any of you have a bitter experience with poloniex but I still trust poloniex and bittrex and I still consider both of them to be the best exchanges. I have some money with both of them and I haven't had any problems with them so far so I trust them and hope they don't turn scam.

What happened to Poloniex?

Exchanges are as trustworthy today as they always have been, you need to only use them for trading and keep your coins in your own wallets as much as possible...

As much as I agree with you, because if we looked back to the past events that happened we could really conclude that everything has its end and of course there is nothing that really trusted. But just think about what he said, all you need is to he careful, and in other terms think also about when money is involved it is already risky.

Thief is always around and storing money in an online exchange(for a long period of time) are too risky. Never trust online exchange that easily, although some exchange has a good reputation and trustworthy, it still much safer to be always on alert, also its our hard earn money we need to be careful
more often.

Some exchanges that I know of aren't covered by insurance so it's hard to put complete trust in them or put a large amount of money in them for a period of time. How many times have we seen these exchanges get hacked and promised they'll return the money but instead go into hiding? Where there's money, they become potential target for hackers,  and exchanges are always on the radar for such activities.

Although there's always a risk with those exchanges, we have no options but to trade our altcoins bounty. You should have check the legit informations from the reviews of the site, in order to avoid certain hesitations from your end. Sometimes that's the reasons of those coins were dying and never sold,  due to bounty holders has fears to be engaged with any exchanges. To give some sort of advices here is, being carefull is the best precautions to do and never exchange on those sites with negative reputations.

Tbh exchanged were never safe :/

It's about money, always. The question is how much.? There are literally like 1-2% of owners who have never thought of scamming their users. So if you feel something is wrong then better to shift to another.

Only keep the minimal amount you need to on the exchange and the rest in your wallet where you control the keys. One of the points of crypto is that you are your own bank.

Forget about crypto currency exchanges , fact is that all most everything in this world is not trust worthy for cent percent for sure.That list includes even Govt entities.

But don't forget that we are in Decentralized world of crypto currencies , Which is far more safer than a Centralized system as per my opinion.The only precaution we need to take is, use exchanges only to exchange and keep our coins in a Offline wallet.   

Keeping your money in your wallets is fine, but are you intended to pay huge fees that exchanges like Bittrex are now levying upon you every time you trade and make something there? They charge BTC0.001 per withdrawal, so if you are a small trader would you still want to withdraw immediately?
I think the other way as I feel waiting for my goals to be reached is important, but when exchanges will just cheat their users like this then I am afraid we will never trade anywhere in the future.

I also do that. I keep my money in my wallets. But if emergency occurs I really cash it out immediately just for the sake of its purpose. I can still trust exchanges somehow because they have given me profits and I haven't have any problems yet. Though others see it unworthy to be trusted but it has a huge impact in society so why doubt it.

1. Exchanges using hacked as a dummy reason to get away with users funds.

2. Exchanges itself getting involved in money laundering or other illegal stuff and thus being compromised by legal authorities and again users bearing the brunt.

3. Exchanges taking user privacy for granted and sharing user details with centralized authorities. It wouldn't be wrong to say that exchanges could share details of users who are involved or doubted to be engaged in illegal activities with the authorities and in the same tone it wouldn't be wrong to say that privacy is one of the key attributes of bitcoin and exchanges are bound to protect user privacy at all cost.

The solution lies in decentralized exchanges, something like Bitsquare, open source peer-to-peer trading with the exchange having no control over user funds and absolute privacy.

Most importantly it's always a bad idea to keep a good amount of funds in centralized exchanges.

We can't trust anything from internet no matter how they claim that they are legit, the moment they will decide to scam us then we can't do anything about it. Its better that we use exchange on its sole purpose to exchange and do our trade not use it as a wallet.

true. we can't say when they will scam us since we don't have any control even they are claiming that they are really trusted but who knows
what is inside their minds maybe if they are already satisfied for what they got from those members/traders they can easily say that they been
hacked and close the exchange.

All exchanges will have risks, but the exchange must be we should be trusted because with our exchange easier to do well, if no exchange is already doing bitcoin transactions.
Because the exchange we can use anywhere.

Today people can not feel safe anywhere. A lot of scams. In everyday life, not less. If you are afraid to store their bitcoins in an online wallet where you have a guarantee that hackers will not hack your computer and steal your coins offline.

Well yes, those were the places where we can do change of our own cryptocurrency. And do not fear on it. Trust them, we are just relying on them. Imagine that if we lose those exchanges. Where us cryptoholders/cryptotraders will go? Well anyways, I am just worried about the poloniex. They are taking too much from exchangers. I think they are accumulating $2 million per day. Well I think it is because of their service. They have the highest number of coins and stocks. Trust exchanges, have some balls.

Actually this is not a problem that are only faced in the world of Crypto-currency, even in the regulated market with the government involved, there are also a chance for any registered investment companies or exchanges to shut down without giving any notification to the investors.

I always crave the exchange because in exchange we can use it for the journey, money exchange sometimes get a loss with the sale and buy price is very different.

Never trust them basically, in some you have better faith then others but still there's always that chance and we have seen it time and time again.

Take out from exchanges till forks done:
https://www.btcforkmonitor.info/

for me trust an exchange is like sign pgp key ... I use some trust level

unknown
Nothing is known about the owner’s judgment in key signing. Keys on your public keyring that you do not own initially have this trust level.
none
The owner is known to improperly sign other keys. In other words, you don’t trust them.
marginal
The owner understands the implications of key signing and properly validates keys before signing them.
I use this for people that I know remotely; business contacts for example.
full
The owner has an excellent understanding of key signing, and his signature on a key would be as good as your own.
I use this for people I entirely trust, such as my brother, my work team (but not necessarily members of my staff I do not know well or who have not been with us long) and very close personal friends.



ultimate
This should only ever be used for your own keys. You are the only person you can trust ultimately!

That is right, there is danger everywhere, even if you settled to keep a vault in your home, yet is it not 100% safe. Best bet is to always have it at the back of one's mind, while dealing with exchanges and about every other online company that one's actually fishing on croc infested water.

Mt.Gox style collapse is now a regular feature in the cryptocurrency world and I think watching out for the tell-tale shady signs should be a red flag to know when the party is about to come to a halt. My account with this exchange have been out of use for a long time now and already there have been reports that BTC-e is a disaster waiting to happen, people needed only to do their due diligence to see through their gimmicks. These for instance:

http://digiconomist.net/fraud-risk-assessment-btce

https://www.cryptocoinsnews.com/btc-e-trustworthy-or-recipe-for-disaster/

Reputation becomes important because some exchangers eventually become a scam, this we must be aware that we are not exposed to a scam.

Shady signs are needed to be seen but what if scammers are smart enough to just snatch away everything from you before you do anything?
It is not necessary that you will be getting information about everything that is yet to happen so being aware still gets us nowhere unless thieves leave a sign of thievery they are going to conduct.

I really don't trust exchanges that much since the beginning. But I don't really have a chhoice when I want to trade. Maybe it's time for someone to develop a decentralized exchanges as well. Just my thought   ;D

There is no safety anywhere whether it's online or offline wallets as the slightest glitch can lead to hacks and even banks aren't secure, forget online exchanges. MtGox I guess paid its users and some exchanges do compensate for the losses upto some extent if they are insured but not all. They were in a huge loss when the incident happened and till now they are under a debt.

Well I like your idea and I know in current have altcoin want create this exchange is Waves. You can check the name exchange Waves created for prove they have idea as your mean and still development every day for user trusted them. "Waves Decentralized Exchange" ;D

use a regulated exchanger and the possibility to be scammed is almost zero.

It's still prone to fraud (like regulated banks and investment companies e.g mutual funds) but the good thing here is, since it's regulated, chances are low to happened and we can sued them and can able to get back our funds.

Just take note that regulated exchanges requires verification which for me, I don't see any problem to that.

BTC-e is different story. Most big exchanges have are licensed, regulated and are more trustworthy. BTC-e was never "the cleanest" exchange and many knew it. Furthermore, there was normal occurrence to get your account "hacked" and find out that coins are gone.
However, everything connected to crypto must be done with high vigilance.

There is no difference. Eventhough some of exchanges are regulated, there are likely to or liable to suffer from hacks. Most of already knew that BTC-e was not "the cleanest" but we still take the risk of putting funds there.


Exactly, That is why the goal of this oversight is to ensure that financial markets operate with a minimum of fraud and to provide a fair, transparent marketplace for investors and businesses alike. This approach has been proven to be effective and very efficient. I don't see a problem with requires verification, KYC/AML for some exchanges. This is a safety net for most of us.

Seems you have not read the Poloniex Terms of Service; Regulation means nothing except that they share your information with the government, and you waive your right to sue them or have your money returned in event of fraud or a hack, period.

See: https://bitcointalk.org/index.php?topic=2063536.0

There is nothing different if you are using the right exchange because right exchange give you more possibilities while other exchanges are giving you hard time so i would like to say that use coinbase or blockchain because these are the best exchanges ever you will know. Because in them the prices are also less and there is not even a single tax.

Ideally, we would have decentralized exchanges run by smart contracts, but it may be very hard to implement with fiat, and anything that isn't cryptocurrency.

As for current centralized exchanges, it's a risk management problem. You have some negative expected value determined as (probability of loss * amount of funds). To minimize it, you could only send funds to exchanges when want to make a trade, instead of keeping it there all the time, but this creates additional costs due to transaction fees and delays. If you are dealing only with small amounts and trade frequently, it makes sense to keep your coins on exchange, but if you are hodling large amounts long term, hardware/software wallet is the only right choice.

if someone see the exchange as a crypto currency wallet... this is big problem... as we ve lived at mt gox and btc-e... i ve been making just exchange complete the trade take out all currency in 1 hour... i ve lived afew problem under the name of "processing error" but all of them ve been solved in 48 hours... my trade volume more than 250k usdt during the last 1 year i ve never left 1 cent in their account... 

as we can easly understand from their name they are EXCHANGE SITES... do not keep deposit in their account like a forex company....

as always my favorites

1- POLONIEX
2- BITTREX

Exchanges is a business indeed and we all know that in business there is no 100% guarantee of profit. Trusting is really hard especially beacause in this industry there is anonymity but if you are a business minded and all you always take risks and trust to be able to survive in a field.

That's the problem. Often times, when bitcoin drops in value, altcoins drop even harder. People want to retain the fiat value of their coins, and decentralized exchanges can't solve that.

I'm also pretty skeptical of attempts to peg cryptocurrencies to fiat values. It never ends up working out in practice, and I don't think it works in theory.

Poloniex is NOT regulated. They are like BTC-e. So, their terms are null.

To assert the gray you have to dress the exchange because you have no other choice. Stealing is come down to an absolute minimum, and there are obviously at least three or four that you know you could trust it this time. Really for them to steal at any given point cuts off any future business for them these guys are making money hand-over-fist through fees, and everything else on her website

Everything seems stable at this point. The BIP148/BIP91 splits never materialized, and Bitcoin Cash is stable (if slow) and exchanges seem to have a good handle on supporting it now.

Still, it's good not to have your coins on exchanges...

can you explain what that means to a layman? they wave around their MSB # from FINCEN like it means something. they are based in the U.S. and registered with FINCEN, so i had sort of assumed that customers were better off than with BTC-e, for example.

is that not the case? are they at risk of seizure? :-\

FinCEN number it's just federal registration number. It is NOT a license. FinEN registration does NOT provide you licensing rights to operate as a money transmitter in the States.  

Any exchanger who want to operates in USA(this includes Kraken, Poloniex, Bitfinex and many others) MUST register as MSB in  ALL the States where they want to make business and then to register with FINCEN

But these exchangers(including Poloniex because you asked about them) are throwing dust in the eyes of the naive people. They register on FINCEN website(it's very simple do that; you can do it yourself by using any name you want) and they are saying that they are MSB.

If you take a look on FINCEN website(at bottom), you will notice that there is an alert toward to this thing :

"Information contained on this site has been provided by the MSB registrant. FinCEN does not verify information submitted by the MSB. Information provided on this site reflects only what was provided directly to FinCEN"

https://www.fincen.gov/msb-registrant-search

Many exchangers are lying and misleading. In fact, they have no license, so they are considered as unlicensed money transmitting business.

Conclusion: YES, there is a high risk of seizure in this case.

Well, that's why you must aware about the exchanges. Me myself only using popular exchanges and i also never let my coins on exchanges site for a long time. I'm still trust exachanges but we also need to be aware and always up to date about the exchanges information. If something fishy happen, just be ready to take out all your coins.

Exchanges have never been trustworthy no matter how famous they no , no matter whom they are regulated by as we trade using bitcoin nothing really is safe , don't store all your funds in an exchange if you find a good trading opportunity send with tge most fees and quickly by the coin. As soon as you get the profit withdraw back to your account.

Think about running a website or someone's going to pay you nearly $2,000 just to have their product listed on your website. This is just one way to make money and it involves pure investment. On the other hand, investment in exchange has more risks.

given that you admit that many exchanges are lying and misleading about their registration status, that they are listed on the FINCEN website, and that the exchanges do implement some level of KYC---it seems unfair for you to call anyone losing money in such a seizure "stupid" and "sheep."

it is especially unclear in the case of crypto-only exchanges. USDT, for instance, by its own terms, is not money nor redeemable for USD (despite what users think). so for Polo and Bittrex, are they definitely engaging in the operation of a money services business? is there precedent for this?

as a small investor in crypoto world how we avoid the fee of the wallets.then i dont i always keep my coins in exchanges

Even if its hard to understand what you wanted to say, elaking, you said something that most of us practice. I also keep some of my coins on exchange site cause of the transaction fees. Most of us take care about that and we rather trust exchange site then to move coins all the time.
I also must agree with some members that said that we can`t really have trust in anything, that is truth. I made my choice and I know risks, and each one of us can decide on its own. My reason is that I have many coins holding, and I`m lazy to download wallet for each coin. Well maybe I should think about doing that.

I think it's high time we all realize that we should be hoarding our coins (and if we are spending them, batch payments and don't make unnecessary transactions). Saving some satoshis here and there on transaction fees cannot begin to justify the risk of holding coins on an exchange. Even if we are talking about regulated exchanges (even those who could be bailed out by their investors in a major hack of customer funds), customer money could be tied up for years, if most/all can be recovered at all, if the exchange gets hacked.

You can't avoid transactions fees. They are a fact of the Bitcoin protocol, and based on the market demand for transaction confirmations. Good news: Once Segwit is activated, we move further towards a working Lightning Network. And then transaction fees could be much, much cheaper than they are now.

There is always risk, when it comes to managing money. It's not only about bitcoin exchanges. Financial institutions and banks also crash. But there are still those with a long-standing reputation and a strong focus on security. That's why I am really surprised when people keep complaining about strict requirements of certain exchanges and their demanding verification process. Come on, they are dealing with your money! Better be safe than sorry.

Well it is also ways to know more about your account in a certain Exchanging Site. You see they've wanted to submit more of your identity and personal information to let them be easier to trace your transactions and eventually hacked you. The security of a system could only be strong if, it is controlled by some sort of AI and not human. As all we know, humans area naive and greedy, so if they've seen large amount of cash or potential cash, they will not hesitate to take action over it.