Why do people trust centralized Bitcoin/Altcoin exchanges? Conspiracies?

[HitbtcSCAM]

After having a 130,000 usd amount of money stolen by Hitbtc.com I now have to ask people why we transfer our money to no name and no face organizations? .Why do you think there are exchanges with fake addresses like Hitbtc.com operating (Hitbtc is located in Delelware) and poloniex with addresses that have no real people working on them. I dont know how a company established in the usa is allowed to steal so much money from the users of altcoins and the government does nothing to stop the thieves.Just because they have a company established with a lawyer and a website does not mean they are legitimate and how can they put fake addresses or not share their address? I thought the government was supposed to be in charge of justice?

[1714959764]

1714959764

[1714959764]

1714959764

[squatz1]

Well if you actually were to lose that amount of money, I'd expect you to be one that stays off the internet and has been on the phone with different lawyers for days upon hours upon end. But in the case that you're actually being truthful, something like this wouldn't be allowed to happen. If the company is a registered corporation / any sort of company within the US they'd be able to be brought to court for stealing property, or in this case, currency.

People trust these places though because they've built their trust, if something goes wrong they go to the right sources for help. That's what you should be doing.

Good luck.

[HitbtcSCAM]

So now you are calling me a liar? What evidence do you have or are you just a scammer working with the conspiracy?
They offered to fix my account so I could takeout my money but they do not do it.They are not registered.You tell me where they are registered to their information is hidden and secret.FACT

People trust these places/exchanges because they are deceived.

[HitbtcSCAM]

https://bitcointalk.org/index.php?topic=2217068.msg22361603#msg22361603

They offered to fix my account and do the right thing.I just need to send in documents and then they would return MY PROPERTY  to me.Guess what I did it and send what they asked and now no response

[HitbtcSCAM]

Why is this website hitbtc.com not down.I wonder why for 4 years they could operate with aliases and fake office addresses and nothing happens.They can steal 100k + usd and nothing happens and then a poor person steals a $5 hamburger because they are hungry and goes to jail for 5 years??

[bitart]

People trust exchange or exchanges because they have to, if they want to exchange the cryptocurrencies. There are several precautions to keep in mind using an exchange to prevent possible problems.
This is a kind of situation where you have cryptocurrencies, working in a trustless environment, but you need to trust an exchange, if you want to trade them. This will change as soon as atomic swap  goes live on the bitcoin blockchain.
https://captainaltcoin.com/atomic-swap/

[Pearls Before Swine]

It's because it's in human nature to do two things. One is to get caught up in a huge bull market,
and another is to trust other human beings (and institutions).  People are doing those two things
when they use exchanges like Yobit....and Mt. Gox, and Cryptsy. 

I don't happen to think there's any conspiracy, and I trust a few exchanges myself.  It isn't in my
nature to be paranoid or to entertain far fetched conspiracy theories.  I don't trust them all, though.

[DaMut]

why we transfer our money to no name and no face organization ?
because they are the only one that offer us that kind of service,if we can find something 'better' we will choose that.
but,no matter what is it.they can not guarantee your money.
for example if i remember it correctly.a regulated exchanger under UK law can not keep their costumer money safely.
and they get hacked by people,they lost it for more than $5M dollars.
what does that mean ?
nobody can guarantee your money,except yourself

[1Referee]

nobody can guarantee your money,except yourself

It basically means that one is better off doing peer to peer trading, which is probably the best form of trading in the way that you don't depend on any service, but it obviously lacks convenience. It's not for nothing that peer to peer trading has taken off in the last months, and now in China too due to the shut down of Chinese trading activities, but this market is still extremely small. As long as people always prefer convenience over security, they will continue to depend on centralized services that at every moment might turn into a scam, get hacked, or whatever other reason resulting in a loss of funds. With that in mind, I am quite certain that absolutely nothing will change when it comes to the majority of the people, unless they are forced to do so, like what happened in China.

[HeRetiK]

After having a 130,000 usd amount of money stolen by Hitbtc.com I now have to ask people why we transfer our money to no name and no face organizations? .Why do you think there are exchanges with fake addresses like Hitbtc.com operating (Hitbtc is located in Delelware) and poloniex with addresses that have no real people working on them. I dont know how a company established in the usa is allowed to steal so much money from the users of altcoins and the government does nothing to stop the thieves.Just because they have a company established with a lawyer and a website does not mean they are legitimate and how can they put fake addresses or not share their address? I thought the government was supposed to be in charge of justice?

That's why people have been warning against storing larger amount of coins on exchanges for years. Storing coins on centralized exchanges is beside the point of crypto-currencies. Centralized exchanges apparently being a necessary evil for the moment being, I guess it's mostly a matter of greed and convenience.

Sorry for your loss, but what the hell were you thinking? There's no reason to keep a crazy amount of money like that on a single exchange.

[richardsNY]

Sorry for your loss, but what the hell were you thinking? There's no reason to keep a crazy amount of money like that on a single exchange.

It's quite a lot money, that for sure, but people are trading even with millions of funds sitting in the wallets of a centralized exchange. We have to accept that there are differences between traders, and then mainly their financial resources -- for me $10,000 is a lot, and especially the $130,000 of OP, but that for him might be an amount he can justify to invest/trade with. Important factor is that people must understand and accept the involved risks of trusting an 'unknown' entity with a large sum of funds.

[khufuking]

Maybe because we really do not have any other options or to be more accurate the other options do not offer the same thing , For example etherdelta , Because lets be honest the profit is in trading on those centralized exchanges no option until this moment come close to what this exchanges offers wither we are talking about volume , the speed etc . With all that said you will find yourself forced to use this centralized exchanges . But even tho you are kinda forced to use them you can still protect yourself by taking some measures like always keep only the amount you will use for trade do not ever treat exchanges as if they are wallets , always look into there terms and conditions most exchange stating the limit of money you can withdraw before asking you about you ID .
I really hope you get your money back it is a lot . 

[HitbtcSCAM]

I just can not understand how this can happen with a company that is suppose to be in th eusa and they work like this and there is no justice to rob.You can steal a  sandwich and you are in a cage for years but these office steal enough to buy a house and nothing silence.There is a conspiracy obviously.
Why does someone not make a  non central exchange??

[HitbtcSCAM]

Cobinhood , another piece of evidence how the us government mafia wants to put their ( WhiteHouse CIO)people into the e-curreny markets to monitor and control the sheep who have no idea that evil and police state are growing stronger

[HitbtcSCAM]

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