[2016-08-31] Why 1/3 of all bitcoin exchanges since 2009 were hacked

[smartgerman]

Why 1/3 of all bitcoin exchanges since 2009 were hacked
Ironically, most of the bitcoin exchanges that suffered various security breaches and hacking attacks were once the largest trading platforms expected to run top-notch security protocols.
http://www.coinfox.info/news/6323-why-1-3-of-all-bitcoin-exchanges-since-2009-were-hacked

[Gahs]

It's a big irony.

Crypto exchanges want people to adopt bitcoins yet they keep losing people's money and people have to wait for years to get a refund. So how will they continue believing in digital currency?

[gentlemand]

It would be nice to see one complete and thorough breakdown of how some of these hacks happened. The problem is that most of these exchanges are run by kids and used by people who've never traded anything else before without the brains to think things through properly. Expectations and standards are low and temptations on the part of the exchange owners are sky high.

[notthematrix]

Its very simple guys.....
IF YOU DON'T OWN YOUR KEYS ITS NOT YOUR BITCOIN!
https://www.youtube.com/watch?v=IwP1DOHYLaE

[Kprawn]

It's quite obvious why this is happening.... These centralized services are being operated by incompetent people. You also have millions of dollars

worth of value stored there, and this makes for juicy targets. We have recently seen massive hacks on banks dealing with SWIFT transfers. If these

banks are unable to secure their networks, how will these small time operators be able to do it. Just keep small amounts of coins in these services, if

you want to trade. 

[TraderTimm]

It is happening because of two things:

1.) Bitcoin has value, and is worth stealing (pretty important, I'd say)

2.) Exchanges so far have been run by people with very little experience in Information Security disciplines and Financial Services acumen.

Every single one with a few exceptions have been subject to those two facts, and we see the results plain as day. Luckily, after a time exchanges will not be necessary -- the long view, where Bitcoin denominated transactions slowly start to take over instead of conversions -- but before that becomes a daily routine we must put up with these incomplete and inconsistent efforts to provide conversion services to other currencies.

Never trust your funds to another service for very long - if you must.

[a7mos]

because every thing online can be simply hacked specially if there is a big motive like the value for bitcoin which will encourage hackers to spend days and nights to try to steal exchanges

[scyth3]

Its very simple guys.....
IF YOU DON'T OWN YOUR KEYS ITS NOT YOUR BITCOIN!
https://www.youtube.com/watch?v=IwP1DOHYLaE

+1

[richardsNY]

I think if you want to avoid these silly "hacks" ahumm inside thefts.... Then NYSE or Nasdaq has to launch it's own Bitcoin exchange, or at least should add it to their exchange platform to make it tradable. That's how you avoid that incompetent exchange operators don't get tempted to rob their own customers. Another benefit is that professional stock traders and such, will much more likely take a dive into Bitcoin. All current Bitcoin exchanges will never attract wall street level traders. These people know very well that these exchanges can't be trusted with serious amounts of money.