Should exchanges be trusted anymore?

[2fresh]

Never trust them basically, in some you have better faith then others but still there's always that chance and we have seen it time and time again.

[xbiv2]

Should exchanges be trusted anymore?

Take out from exchanges till forks done:
https://www.btcforkmonitor.info/

[Andre_Goldman]

for me trust an exchange is like sign pgp key ... I use some trust level

unknown
Nothing is known about the owner’s judgment in key signing. Keys on your public keyring that you do not own initially have this trust level.
none
The owner is known to improperly sign other keys. In other words, you don’t trust them.
marginal
The owner understands the implications of key signing and properly validates keys before signing them.
I use this for people that I know remotely; business contacts for example.
full
The owner has an excellent understanding of key signing, and his signature on a key would be as good as your own.
I use this for people I entirely trust, such as my brother, my work team (but not necessarily members of my staff I do not know well or who have not been with us long) and very close personal friends.



ultimate
This should only ever be used for your own keys. You are the only person you can trust ultimately!

[Victorycoin]

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.

That is right, there is danger everywhere, even if you settled to keep a vault in your home, yet is it not 100% safe. Best bet is to always have it at the back of one's mind, while dealing with exchanges and about every other online company that one's actually fishing on croc infested water.

Mt.Gox style collapse is now a regular feature in the cryptocurrency world and I think watching out for the tell-tale shady signs should be a red flag to know when the party is about to come to a halt. My account with this exchange have been out of use for a long time now and already there have been reports that BTC-e is a disaster waiting to happen, people needed only to do their due diligence to see through their gimmicks. These for instance:

http://digiconomist.net/fraud-risk-assessment-btce

https://www.cryptocoinsnews.com/btc-e-trustworthy-or-recipe-for-disaster/

[Wong Gendheng]

Reputation becomes important because some exchangers eventually become a scam, this we must be aware that we are not exposed to a scam.

[nizamcc]

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.

That is right, there is danger everywhere, even if you settled to keep a vault in your home, yet is it not 100% safe. Best bet is to always have it at the back of one's mind, while dealing with exchanges and about every other online company that one's actually fishing on croc infested water.

Mt.Gox style collapse is now a regular feature in the cryptocurrency world and I think watching out for the tell-tale shady signs should be a red flag to know when the party is about to come to a halt. My account with this exchange have been out of use for a long time now and already there have been reports that BTC-e is a disaster waiting to happen, people needed only to do their due diligence to see through their gimmicks. These for instance:

http://digiconomist.net/fraud-risk-assessment-btce

https://www.cryptocoinsnews.com/btc-e-trustworthy-or-recipe-for-disaster/

Shady signs are needed to be seen but what if scammers are smart enough to just snatch away everything from you before you do anything?
It is not necessary that you will be getting information about everything that is yet to happen so being aware still gets us nowhere unless thieves leave a sign of thievery they are going to conduct.

[Jarkss]

I really don't trust exchanges that much since the beginning. But I don't really have a chhoice when I want to trade. Maybe it's time for someone to develop a decentralized exchanges as well. Just my thought   

[erikalui]

There is no safety anywhere whether it's online or offline wallets as the slightest glitch can lead to hacks and even banks aren't secure, forget online exchanges. MtGox I guess paid its users and some exchanges do compensate for the losses upto some extent if they are insured but not all. They were in a huge loss when the incident happened and till now they are under a debt.

[CowboyKiller]

I really don't trust exchanges that much since the beginning. But I don't really have a chhoice when I want to trade. Maybe it's time for someone to develop a decentralized exchanges as well. Just my thought   

Well I like your idea and I know in current have altcoin want create this exchange is Waves. You can check the name exchange Waves created for prove they have idea as your mean and still development every day for user trusted them. "Waves Decentralized Exchange"

[mayax]

Reputation becomes important because some exchangers eventually become a scam, this we must be aware that we are not exposed to a scam.

use a regulated exchanger and the possibility to be scammed is almost zero.

[harizen]

Reputation becomes important because some exchangers eventually become a scam, this we must be aware that we are not exposed to a scam.

use a regulated exchanger and the possibility to be scammed is almost zero.

It's still prone to fraud (like regulated banks and investment companies e.g mutual funds) but the good thing here is, since it's regulated, chances are low to happened and we can sued them and can able to get back our funds.

Just take note that regulated exchanges requires verification which for me, I don't see any problem to that.

[Cryptocoinsmania.com]

BTC-e is different story. Most big exchanges have are licensed, regulated and are more trustworthy. BTC-e was never "the cleanest" exchange and many knew it. Furthermore, there was normal occurrence to get your account "hacked" and find out that coins are gone.
However, everything connected to crypto must be done with high vigilance.

[Kemarit]

BTC-e is different story. Most big exchanges have are licensed, regulated and are more trustworthy. BTC-e was never "the cleanest" exchange and many knew it. Furthermore, there was normal occurrence to get your account "hacked" and find out that coins are gone.
However, everything connected to crypto must be done with high vigilance.

There is no difference. Eventhough some of exchanges are regulated, there are likely to or liable to suffer from hacks. Most of already knew that BTC-e was not "the cleanest" but we still take the risk of putting funds there.

Reputation becomes important because some exchangers eventually become a scam, this we must be aware that we are not exposed to a scam.

use a regulated exchanger and the possibility to be scammed is almost zero.

It's still prone to fraud (like regulated banks and investment companies e.g mutual funds) but the good thing here is, since it's regulated, chances are low to happened and we can sued them and can able to get back our funds.

Just take note that regulated exchanges requires verification which for me, I don't see any problem to that.

Exactly, That is why the goal of this oversight is to ensure that financial markets operate with a minimum of fraud and to provide a fair, transparent marketplace for investors and businesses alike. This approach has been proven to be effective and very efficient. I don't see a problem with requires verification, KYC/AML for some exchanges. This is a safety net for most of us.

[Gnosis7777]

Reputation becomes important because some exchangers eventually become a scam, this we must be aware that we are not exposed to a scam.

use a regulated exchanger and the possibility to be scammed is almost zero.

It's still prone to fraud (like regulated banks and investment companies e.g mutual funds) but the good thing here is, since it's regulated, chances are low to happened and we can sued them and can able to get back our funds.

Just take note that regulated exchanges requires verification which for me, I don't see any problem to that.

Seems you have not read the Poloniex Terms of Service; Regulation means nothing except that they share your information with the government, and you waive your right to sue them or have your money returned in event of fraud or a hack, period.

See: https://bitcointalk.org/index.php?topic=2063536.0

[Tungsten-1]

I always crave the exchange because in exchange we can use it for the journey, money exchange sometimes get a loss with the sale and buy price is very different.

There is nothing different if you are using the right exchange because right exchange give you more possibilities while other exchanges are giving you hard time so i would like to say that use coinbase or blockchain because these are the best exchanges ever you will know. Because in them the prices are also less and there is not even a single tax.

[hatshepsut93]

Ideally, we would have decentralized exchanges run by smart contracts, but it may be very hard to implement with fiat, and anything that isn't cryptocurrency.

As for current centralized exchanges, it's a risk management problem. You have some negative expected value determined as (probability of loss * amount of funds). To minimize it, you could only send funds to exchanges when want to make a trade, instead of keeping it there all the time, but this creates additional costs due to transaction fees and delays. If you are dealing only with small amounts and trade frequently, it makes sense to keep your coins on exchange, but if you are hodling large amounts long term, hardware/software wallet is the only right choice.

[bartar]

if someone see the exchange as a crypto currency wallet... this is big problem... as we ve lived at mt gox and btc-e... i ve been making just exchange complete the trade take out all currency in 1 hour... i ve lived afew problem under the name of "processing error" but all of them ve been solved in 48 hours... my trade volume more than 250k usdt during the last 1 year i ve never left 1 cent in their account... 

as we can easly understand from their name they are EXCHANGE SITES... do not keep deposit in their account like a forex company....

as always my favorites

1- POLONIEX
2- BITTREX

[Shamie1002]

Exchanges is a business indeed and we all know that in business there is no 100% guarantee of profit. Trusting is really hard especially beacause in this industry there is anonymity but if you are a business minded and all you always take risks and trust to be able to survive in a field.

[illinest]

Ideally, we would have decentralized exchanges run by smart contracts, but it may be very hard to implement with fiat, and anything that isn't cryptocurrency.

That's the problem. Often times, when bitcoin drops in value, altcoins drop even harder. People want to retain the fiat value of their coins, and decentralized exchanges can't solve that.

I'm also pretty skeptical of attempts to peg cryptocurrencies to fiat values. It never ends up working out in practice, and I don't think it works in theory.

[mayax]

Reputation becomes important because some exchangers eventually become a scam, this we must be aware that we are not exposed to a scam.

use a regulated exchanger and the possibility to be scammed is almost zero.

It's still prone to fraud (like regulated banks and investment companies e.g mutual funds) but the good thing here is, since it's regulated, chances are low to happened and we can sued them and can able to get back our funds.

Just take note that regulated exchanges requires verification which for me, I don't see any problem to that.

Seems you have not read the Poloniex Terms of Service; Regulation means nothing except that they share your information with the government, and you waive your right to sue them or have your money returned in event of fraud or a hack, period.

See: https://bitcointalk.org/index.php?topic=2063536.0

Poloniex is NOT regulated. They are like BTC-e. So, their terms are null.