Bitcoin Forum

It is always risky to leave behind crypto tokens in exchange wallet.


https://medium.com/@sibi.jonny/never-keep-crypto-tokens-on-an-exchange-wallet-63387f4019c6

Quite informative article,  before now I had been hearing from people keeping coins in an exchange is very risky but don't really understand the reason behind it.  Reading this article have gave me insightful information on why is not advisable keeping cryptocoins in an exchange.

you dont need to deal with the hassle sending your tokens to the exchange if you keep it on exchange. watch them cry if the exchange get's hacked they will blame the exchange.

Yeah right what you said ..
I am here just reading and understanding of the article. . . thank you ..

Of course it is always risky to leave your coins or tokens in any exchange or online wallet you dont have access to its private keys, in this case, you aren't really owning those coins and you can lose them anytime for whatever reason (scam, hack..). Use the wallet which you have access to the private keys.

As for me, I only keep a not so big amount in exchanges that i regularly trade to minimize the risk if in case something uncertain happens. Its much better also to do trading at renowned exchanges like binance or kucoin;  much safer than trying out new exchanges.

We know that, but for sure we need to take those risk. Sometimes having a FIAT is more secure than having any tokens at all.

While I keep my major coins on hardwallet, but the token needed to trade on daily is kept on an exchange so that the deposits and withdrawal fees will be minimize

This is getting really bad and only solution is using a Hardware wallet, MEW is  highly vulnerable for phishing  attacks and DNS attacks, Exchangers either get hacked or they take a fee (CEX.io recently announced a fee structure) for keeping the wallet.

Using Metamask can reduce the vulnerability of MEW in to some extent, but it seems like this is the age of Hardware wallets. until hacker find a way to hack them too...

yes, of course it will have the risk of losing the token we store on the exchange wallet site. because of course if we save on the wallet exchange site it could happen that a hacker can do anytime because the site will be online at any time. so we recommend you use the hardware wallet to store the tokens you have.

I always heard horror stories from missing coins in Yobit, frozen accounts from Poloniex and Bittrex. But sometimes I need to trade. So what I did is I distribute my crypto savings in different exchange site to lessen the risk. So I have account in Yobit, C-CEX, Poloniex, Bittrex, Binance, Kucoin and HitBTC.

Thank you for the information. I already know that keeping tokens on an exchange wallet is not safe since it is online wallet.  I guess I am lazy to move them. I should move them before bad thing happen.

Just keep it on ledger or MEW. I know MEW been hacked lately but cant think any wallet that are good. maybe wallet such as waves, eidoo or cardano( to be launched i believe) would be good option other than mew. but i do think sometimes its good to store the coin on trading site , as long as trading site are good and have good security that its good enough i think.

I did it because someone already warns me about what will happen to your token if you are not that active on your exchange website because sometimes exchange might down and before anything gone wrong you should take it out into your hardware wallet or in prefer website like myetherwallet. Just return it into exchange if you already want to sell it the fee's is just very minimal unlike the risk when you store it in exchange.

well, this a very common practice and hardcore investors never put their whole investment in one thing or Item.

If exchange being hacked we lose all our coins, but keeping on exchange give us opportunity sell fast when going pump and opportunity keep many different coins in one place

Yup keeping any funds on an exchange is risky if you are not trading it right away. Recently another smaller exchange called BitGrail had to close due to the XRB (Nano) hack that occurred. A good reminder to always protect ourselves in case any exchanges goes insolvent.

Very informative article however there are still a lot of people who keeps their coins and tokens mostly on exchanges rather than putting them in a safe hardware wallet or offline wallet even though it is very risky to do that.

Your keys your coin. Not your keys not your coin.

I should hope that everybody here knows the risks of keeping precious bitcoin’s (medium to long term) on an exchange. Obviously when you’re selling though your coins will be exposed to the exchange which comes with other online risks.

if you dont, than u cant trade.

Definitely, it is always risky in fact very risky to leave your coins or tokens in any exchange or online wallet which you don't have access to its private keys, in this case, you aren't really owning those coins and you can lose them anytime for whatever reason (scam, hack..). Use the wallet which you have access to the private keys which is quiet safer.

Yes, of course.
Letting anyone hold your coin in their purse, is a risk.
No one know what would happen tomorrow, and if anything goes wrong, you'll be worried.
If you have the keys, it's yours. If you don't have the keys, it's not yours.

People found themselves in a dilemma when they have to keep balance on the exchange because they are a daily trader. No doubt that keeping your coin on an exchange is a risky way, I personally put them out there too because I do trading, Well I'm advising those who are a trader to keep no more than you can't afford to lose or the alternative is cash out the balance immediately once you get the profit.

risk always there will always be how to manage ourselves so as not to impact with those risks, because all the mistakes seem big part is due to our own mistakes not to be careless

it is true, many people complain about losing tokens they have on the exchange site, maybe the things we need to consider after exchanging tokens we have in exchange exchange should not leave the private key we have and must get out of the exchange market to avoid lose other token types.

I use regular wallets for my bitcoins but i usually change every now and then to keep it secure.

Ofcourse it is risky, do not leave you tokens on an exchange wallet unless you want to sell it already. It is no safe to put you coins to someones purse because we do not know what might happen. They can easily get it from you so you need to be aware of that and be wise in handling you money in an exchanger.