[2016-01-15] Bitcoin Users Need To Stop Trusting Exchange Wallets

[jdebunt]

If there is one major thing the recent Cryptsy issues have taught us, it is how users should never store funds on an exchange platform for too long. This is not just true for the world of Bitcoin and digital currency, but also for any financial platform in existence. The main difference is how Bitcoin stimulates users to take control of their finances, whereas fiat currency does not.

http://themerkle.com/news/bitcoin-users-need-to-stop-trusting-exchange-wallets/

[a7mos]

I do not understand why people still thinking about saving their bitcoin in an exchange addresses ! Did not they learn anything from Mtgox and what happened two years ago !                                 

[1Referee]

I do not understand why people still thinking about saving their bitcoin in an exchange addresses ! Did not they learn anything from Mtgox and what happened two years ago !                                  

They want to have their coins there to be able to sell directly when the price is getting dumped to the ground. If they have to wait for their deposit to post after at least 3 confirmations, then it might already be too late to sell. They don't see the risks that we do. They will end up learning it the hard way, unfortunately. People are too lazy.

[sesiah]

Yes, I have read about some exchangers that anonymously close and cheat people of their bit coins,  cryptsy, I don't know if its back

[twister]

This is true but one has to deposit them into some exchange some time for trading purposes and cryptsy was blocking withdrawals from some time as I saw some threads claiming that, which means they were planning this and were fattening up their wallets before doing this.

[indiemax]

I use Shapeshift, never had a problem, hope they get a boost from Cryptsy

exchanges always end up scamming 

[RodeoX]

Amen. I just don't understand how people store thousands of dollars on exchanges. It's crazy when you consider that the owners are often unknown and based in a foreign country.

[defaultking]

They want to have their coins there to be able to sell directly when the price is getting dumped to the ground. If they have to wait for their deposit to post after at least 3 confirmations, then it might already be too late to sell. They don't see the risks that we do. They will end up learning it the hard way, unfortunately. People are too lazy.

Came here to say this. They're too worried about missing a sale then they are the security of their coins. Whenever there is money to be made people will do sill things.

[enhu]

Some people just want mobility that they can access their coins and buy wherever they are without having the coins with then or in their android phones. This is the reason why i get to store some coins on exchange wallets. But I've learned the hardway since mtgox. I never store any on cryptsy, good thing.

[Kprawn]

The moment when you trust a third-party with your private key, you already lost your coins. We advocate that Bitcoin gives a user full control over their finances and then we

tell them to use third-parties. Most third-parties have to adhere to strict AML/KYC regulations and in a way, relinquish control to governments. Most of these third-parties work

like banks and they are our main competitor.    Use a hardware wallet and keep control over your own coins.  Store the majority of your coins in cold storage.

[piloder]

Amen. I just don't understand how people store thousands of dollars on exchanges. It's crazy when you consider that the owners are often unknown and based in a foreign country.

Keeping some coins on the exchange can make buy and sell faster. After this incident, we definitely need bitcoin exchanges to be regulated.

[p3yot33at3r]

After this incident, we definitely need bitcoin exchanges to be regulated.

Yeah. Right.  Cos regulation works so well for the banks - they never screw anyone over.

[piloder]

When there is a fork caused by Core and Classic conflict, should we take the coins from online wallets or exchanges?