Privacy and the use of exchanges.

[Jet Cash]

The recent purchase of a hacking company seems to have kicked off some anti-CoinBase feelings. I've seen a lot of people saying you should withdraw your funds, and stop using them. I'm not sure that I agree with this. Of course, you shouldn't use exchanges for long term Bitcoin holdings, but you should move your savings into a secure wallet over which you have sole and complete control. I can't see this is the issue with trading funds though, and this thread is intended to be a general discussion, and not specific to one exchange. You aren't really going to get any privacy with any exchange in my opinion, and even less so if you are running Windows.

I see the employment of hackers as beneficial, as they can help to secure the exchange, and avoid all the wallet thefts that seem to be happening at the moment. If an exchange starts to hack into customers computer, it will soon become public knowledge, and that would be the time to leave.

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[joniboini]

I think Coinbase acquisition of Neutrino is quite different. They're not just some ex-hackers, but they have a long history of working with government or selling spyware. So their reputation is more or less a "government right hand". For some people, this means that it's quite possible government still controls them from behind, or it's more on ethical reason (if you're fine hiring some spyware seller with a long shady history, how can we trust you'll manage our funds and data safely).

I agree that interacting with CEX will never give any privacy (unless the CEX doesn't comply with regulations), but this move by Coinbase spark further worry to crypto users.  Especially if they hire those who make some journalist who is critical to governments got arrested and then sentenced in prison.[1]

I'm pretty sure public reaction would be different if Coinbase acquires a company or a team who did "white-hat hacking" in their past.

[1] https://cointelegraph.com/news/deletecoinbase-exchange-users-respond-to-acquisition-of-a-firm-run-by-former-spyware-developers

[Jet Cash]

I'm a bit ambivalent about the CoinBase purchase. I'm not really too bothered about privacy, and it amuses me that people who happily use Windows, Google, Facebook and other similar services, posture about privacy with a centralised crypto bank. My greatest concern is that the flight of accounts will disrupt the market on CB. If the acquisition means that my wallet there is going to be more secure, then that is a good thing in my opinion. I will move some Bitcoin into one of my private wallets though, but this is really because I think of my account at CB as a trading account, and not as a holding account.

[joniboini]

I'm not really too bothered about privacy, and it amuses me that people who happily use Windows, Google, Facebook and other similar services, posture about privacy with a centralised crypto bank.

Well, that's what makes people unique. I think for them Google, Windows or Facebook is more or less "better" than Neutrino, so they happily use it with the cost of their privacy. Nearly all of my friends (who don't know crypto though) use them, it's like Google and the gang is part of their life, and so far they're happy with it.

My greatest concern is that the flight of accounts will disrupt the market on CB.

I think the volume might decrease, but I'm pretty sure Coinbase won't just disappear like that. I'm not a user of Coinbase but based on some news and report that I've read, there are a lot of users there. Maybe the majority think like you, so the disruption won't be that much.

f the acquisition means that my wallet there is going to be more secure, then that is a good thing in my opinion. I will move some Bitcoin into one of my private wallets though, but this is really because I think of my account at CB as a trading account, and not as a holding account.

Well, we don't know exactly what they do behind us.

In general, I do agree that privacy is not going to happen in centralized exchanges. The only way if people want to get pure privacy is to use decentralized exchanges, with some mixer if they want to cash out (depends on where they live).

[Jet Cash]

One thing that has come out of my efforts to support the new forum software is a review of my unused VPS. I'm pretty shocked, but maybe not surprised, by the number of attempts to hack into it. As a result of this, I'm reviewing my whole security structure, and I'm going to start using encrypted ftp, and locking server access to specific machines. It's probably something that I should have enabled years ago.

Securing your Bitcoins has been mentioned several times on various boards, but it is worth reemphasising this. If you don't control the keys to your wallet, and you don't secure access, then the coins aren't yours, and you risk losing them. This is why Facebook coin and the like is of no interest to me.

[joniboini]

One thing that has come out of my efforts to support the new forum software is a review of my unused VPS. I'm pretty shocked, but maybe not surprised, by the number of attempts to hack into it. As a result of this, I'm reviewing my whole security structure, and I'm going to start using encrypted ftp, and locking server access to specific machines. It's probably something that I should have enabled years ago.

Maybe that's a bot looking for sites/server that can be attacked for whatever reason. The same thing happened to a community site of one project that I followed, even though the content of the site is not that important. You should step up the game JC, pretty sure there will be more attack, and maybe more sophisticated than just a simple DDoS.

[TECSHARE]

Coinbase has been a banker trojan horse from day 1.

[Jet Cash]

The introduction of mini-charges for market makers is more of an annoyance. It's only pennies, but it has caused a bit of a mental shift foe me, It's put me off scalping for a few pounds.

With regards to security and privacy, I've noticed that a few trades are being made using hardware wallets with coins in them. This must be the equivalent of cash, and transactions will be off the blockchain and the trading stats.

[bitmover]

Coinbase has been a banker trojan horse from day 1.

Every exchange is. Because they must obey the law, otherwise government will shut them down. So they have to obey those regulations such as anti terrorism, anti money laundry, etc etc... they must then ask you where your money comes from (anual income), documents, ID, address, etc... Just like a bank..

Of course, you shouldn't use exchanges for long term Bitcoin holdings, but you should move your savings into a secure wallet over which you have sole and complete control. I can't see this is the issue with trading funds though, and this thread is intended to be a general discussion, and not specific to one exchange. You aren't really going to get any privacy with any exchange in my opinion, and even less so if you are running Windows.

My main concern is not about privacy (this is completely lost in exchanges already). But i am worried about my funds beign frozen or the exchange hacked.

There are many reasons a government may want to frozen funds in an exchange.
Maybe that exchange in involved in money laundry (or is under investigation), or new law in the country it is based comes up baning bitcoin transactions, or whatever. There are things that are out of our control, even if you are an honest guy doing everything by the book (especially in this ecosystem that is full of scammers)