Hot wallet noob question

[Amon of Ra]

Hi guys,


New to all this,

I apologize for stealing value right of the bat, but I before buying anything I'm doing my homeworks where people know what they're talking about.

I'm based in Japan and using coincheck.com as trading site and wallet on my phone.
I read a few pages about attacks and theft of altcoins, and I was wondering, when you have coins online for trading, but also fiat money there, if the site gets hacked and the coins taken, will your online USD or yen or whatever also stolen, or is that a different "vault" / process altogether?

Thanks

[TryNinja]

I believe that most of those exchanges have a bank account to send and receive payments in USD and they process all payments manually.
This means that the hacker that finds an exploit on the exchange will only be able to drain the coins stored in the exchange wallet.

Anyway, don't store your coins in any exchange if you want to be 100% safe.

[chopcoin.io]

However; it could be that the exchange is hacked and due to legal processes also the fiat holder might be affected - so for example victims of the hack might sue the exchange and a court might order them to refund the  victims. The exchange can't so it becomes insolvent and now it has to pay even more to pay the costs for court and administration of the insolvency. In this case a hack would affect the fiat holders so better be careful and vouch your exchanges diligently!

[pawanjain]

Evreything online is risky. Anything can happen anytime. Cryptocurrency is obviously stated as risky and government has said that if you trade on cryptocurrency its at your own risk. If a website is compromised then it depends on the hacker to do whatever he wants. It just depends on our luck whether our coins are safe or not. If a coin can be stolen then fiat money can also be stolen if its at the same place. So there are possibilities that theft can happen on all currencies. Its better to use famous exchanges such as bittrex. But even that's not guaranteed that it will keep your coins safe.

[btcjocan]

Evreything online is risky. Anything can happen anytime. Cryptocurrency is obviously stated as risky and government has said that if you trade on cryptocurrency its at your own risk. If a website is compromised then it depends on the hacker to do whatever he wants. It just depends on our luck whether our coins are safe or not. If a coin can be stolen then fiat money can also be stolen if its at the same place. So there are possibilities that theft can happen on all currencies. Its better to use famous exchanges such as bittrex. But even that's not guaranteed that it will keep your coins safe.

Making your coins safe is by having an offline wallet back-up and I don't think so that it will be hacked by somebody. Eventhough government had a bad impressions on crypto currencies, but still it was just same as fiat money reputations; risk always prevails specially those hackers issue online that dismerit towards altcoins and btc investments. So the idea of ane ecrypted wallet with private keys is wise idea to have as a trader of digital assets.