Should exchanges be trusted anymore?

[nizamcc]

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?

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[DaftAjax]

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.

[Reid]

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.

[Wind_FURY]

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.

[mk4]

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.

[yoseph]

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?

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.

[jtipt]

All exchange which is legal/regulated with good reputation can be trusted, as long as you withdraw your money after finished exchange/trade your money and don't use exchange as wallet just like what many people did in past

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.

[CrewKitten]

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?

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.

[DaMut]

All exchange which is legal/regulated with good reputation can be trusted, as long as you withdraw your money after finished exchange/trade your money and don't use exchange as wallet just like what many people did in past

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

[Wendigo]

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.

[FlightyPouch]

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?

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.

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.

[webtricks]

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?

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.

[hatshepsut93]

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?

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.

[TheGodFather]

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.

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.

[Yakamoto]

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?

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.

[AleSergio]

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.

[avikz]

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?

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.  

[merchantofzeny]

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?

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.

[bitbunnny]

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.

[JorisK]

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