Do you trust your Bitcoin exchange?

[Kakmakr]

In recent years we have seen several Crypto currency exchanges being hacked. Do you trust these companies to secure your coins?

Do you feel that we need other alternative platforms to trade coins? < Not just decentralized exchanges >

A lot of people use exchanges as their Wallet and they store all their coins on these platforms. <24/7> This is definitely not the way to use Crypto currencies.

Some people will deposit some coins on the exchanges when they want to trade and then they will withdraw the coins or the fiat to reduce their loss, when these exchanges gets hacked. <This is highly recommended> Take Note, I said when these exchanges gets hacked, because it is always just a question of time, when it will happen and not if it will happen.  

So please, indicate where you stand on this and if there are a better solution to trade or exchange coins?

Do we need these services or should we keep to Person2Person trading?

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[Pursuer]

to me trust is not an absolute thing. it has degrees and it differs on a case by case basis. so I cant say I trust or don't trust exchanges. at the end of the day even if these exchanges never get hacked and are the safest things on the planet you are still trusting a third party with your money....

I can also call it some sort of risk management. for example if I had 10BTC I would trust exchanges with 0.5BTC of it which happens to usually be in the ballpark of what I trade with although I would love to trade with higher amounts but I keep it lower because I can not trust them with more than this. and also that is the amount I am comfortable with losing in case something went bad... of course the numbers are arbitrary.

as for p2p trading and decentralized exchanges, it is favorable but unfortunately I have not found any user friendly and easy to use one which is offering the same thing as centralized ones.

[mocacinno]

Personally, i always try to speak up whenever a newbie (or worse: a longtime member) admits to using an exchange as their wallet... Like you already said: this is not a good idear.

When i use an exchange it's usually
Deposit => wait for minimum confirmations => trade => withdraw
Usually, my coins are on an exchange less than 2 hours before they're transferred out to a different wallet (hardware wallet if my ledger or trezor support the altcoin in question, a desktop wallet if they don't).

As for your question wether or not we need these services: i personally think they're a necessary evil. P2P trading isn't without risks either, and i personally think it's a lot more hassle to setup a P2P trade compared to doing a quick trade on an exchange with a good reputation.

[Ashwin Kumar]

Yes, 100%. As long as I with Coinbase, I never ever fall into any problem even the transaction here is very smooth and fast. Other important facilities are I can trade other major cryptocurrencies nicely...

[Kakmakr]

Personally, i always try to speak up whenever a newbie (or worse: a longtime member) admits to using an exchange as their wallet... Like you already said: this is not a good idear.

When i use an exchange it's usually
Deposit => wait for minimum confirmations => trade => withdraw
Usually, my coins are on an exchange less than 2 hours before they're transferred out to a different wallet (hardware wallet if my ledger or trezor support the altcoin in question, a desktop wallet if they don't).

As for your question wether or not we need these services: i personally think they're a necessary evil. P2P trading isn't without risks either, and i personally think it's a lot more hassle to setup a P2P trade compared to doing a quick trade on an exchange with a good reputation.

I follow the exact same strategy, but it is cumbersome and you might miss some good trades whilst you wait for confirmations. < Last year, I missed a lot of good trades, because the confirmations took hours to confirm and in many instances these exchanges were overloaded and not accessible, when the price was at it's peak >

I just figured that there must be some better way to do this. Something with less risk and more user-friendly than these decentralized exchanges. < Let's Brainstorm a bit, there must be a better alternative >

[mocacinno]

I follow the exact same strategy, but it is cumbersome and you might miss some good trades whilst you wait for confirmations. < Last year, I missed a lot of good trades, because the confirmations took hours to confirm and in many instances these exchanges were overloaded and not accessible, when the price was at it's peak >

I just figured that there must be some better way to do this. Something with less risk and more user-friendly than these decentralized exchanges. < Let's Brainstorm a bit, there must be a better alternative >

I can't really think of any good alternatives, maybe that's because i don't trade often enough?

I'm still undecided wether or not i like the lightning network, but if exchanges would allow deposits over the lightning network, this could avoid confirmation times for bitcoin deposits... It doesn't change anything for altcoin deposits tough, so this idear isn't really helpfull i'm afraid.
IF you'd have a lightning channel with your exchange, you could easily deposit in a matter of seconds, withdraw in a matter of seconds, re-deposit,... everything with 0 fee and a lot less risk than keeping your funds in your exchange wallet... But like i said: at the moment it would only work for bitcoin, and it's not even 100% certain that the lightning network will take off.

[fulled]

Im not too confidance to hodling my funds on Centralize exchanger, but sometime i must trading there to trade with good price, i hope soon more DEX become famous so many trader trade at there

[oegarod]

Till date I haven't experienced any negative effects from the exchanges. I've got accounts in different exchanges for the trading purpose, and particularly I don't engage into trading activities similar to a day trader. I believe, most cases of bitcoin loss from the exchanges takes place due to some mistakes from the respective user.

[BitcoinHodler]

i think we should first clarify that there are two different things here that shouldn't be confused with each other:
1. using exchanges as your wallet or conversely to store your coins.
2. using exchanges to trade and being forced to leave some funds there in open orders

the first one is obviously wrong and there is no argument there. and even if you found the most trustworthy and safe exchange out there you still should use it as your wallet because you do not control the private keys so you have no control over your keys.

but the second one is as mentioned earlier a necessary evil and we all use them. and we are forced to leave our funds on exchanges if we want to trade like opening an order and waiting for it to be filled.

[Kakmakr]

i think we should first clarify that there are two different things here that shouldn't be confused with each other:
1. using exchanges as your wallet or conversely to store your coins.
2. using exchanges to trade and being forced to leave some funds there in open orders

the first one is obviously wrong and there is no argument there. and even if you found the most trustworthy and safe exchange out there you still should use it as your wallet because you do not control the private keys so you have no control over your keys.

but the second one is as mentioned earlier a necessary evil and we all use them. and we are forced to leave our funds on exchanges if we want to trade like opening an order and waiting for it to be filled.

We cannot ignore the fact that there are people out there that are introduced to Bitcoin and Crypto currencies by people and the first thing they would tell them is to open an account on a Bitcoin exchange. <Like Coinbase>

Most of these users never take the next step to secure their coins and simply use the exchange as their wallet. So that is why I have mentioned that.

The ideal scenario will be for people to be provided with information to store their coins on more secure platforms, but the exchanges will not do that for them. 

Hardware wallet providers should actually partner up with these exchanges and sell their devices at a discount, to allow people to control their own coins. <Private keys>

Until things like that happens, we should help educate these people in the "proper" storage of coins on platforms like this.

[Missterio]

I'm not sure about exchanges at 100%. But I can trust them because I see the reviews of other real people who have already done the exchange there before. That's why I can trust them.

[m_f_o_c]

If you want to secure your cryptocurrencies, then keep them at home, do not trade on the exchange. Now there are no such services, so that you can secure your crypto-cash assets in the network by one hundred percent.

[gantez]

A lot of people use exchanges as their Wallet and they store all their coins on these platforms. <24/7> This is definitely not the way to use Crypto currencies.

Storing coins on exchange to me is a risk. If it is not traded, I see no reason to leave coins there on the Exchange if the coin has its own private wallet. Or unless it is been tethered.

[bitbunnny]

I have only minimal trust and use exchange only for the purpose they are made and that is trading.
Exchanges are not ment to be wallets, this is not their purpose and keeping coins permanently there represents a significant risk. They might get hacked or even be exposed to internal fraud.
So on exchanges always keep only amount of coins you want to trade in a limited period of time.

[Sofiyah]

I believe with a bitcoin exchanger, but not with all exchangers. I just believe in a big or famous exchanger. why should believe, because want or not we have to use the services of exchangers to sell our bitcoin into real money. if not so, how else can we really make money from bitcoin.

[Remainder]

Bitcoin exchanger are not guaranteed 100% hacked proof that's why i did't not put my tokens their for long, i place it their when it is really needed to exchange or trade and put back to my wallet for security measures.

[gantez]

I'm not sure about exchanges at 100%. But I can trust them because I see the reviews of other real people who have already done the exchange there before. That's why I can trust them.

Well...I will still say that the fact that people have used or succeeded in one exchange does not mean it will almost be succeeding. Take the instance of banks,  some collapse even when not expected. The point is being careful, hopeful and not to put all in pause.

[bitfocus]

unless I trust them, why would I keep my coins there? well, I never keep many coins on my exchange, only the part I might need to change to fiat for my bills.

[mahvia]

I have trust in some of them that i use. But still i don't keep all my stash in one place. so far using ca 6 different exchanges

[dothebeats]

I do trust my exchange as I've been using it for the past 4 years and so far nothing bad has ever happened to my balances nor any problems arose that's associated my account. It's a local exchange based on the Philippines, and even though I'm currently situated overseas due to my job, I can still use it for my daily transactions on the said country even though I'm far away. Pretty sure they don't have the intention to do something stupid knowing that the government already acknowledges their existence and help for the people there.