Exchange vs exchanger

[scrollerz]

Recently, we are increasingly seeing problems with exchanges. Some may block an account, others may be subject to hacker attacks. As you know, recently, after the death of the founder of QuadrigaCX, millions of dollars were unavailable, because he was the only person who knew the password to the “cold wallet”. It causes some thoughts to me. We do not know who is behind the exchange, and what actions are taken. User funds can be used for criminal activity. Therefore, it seems to me that exchangers, besides the fact that they are simpler to use, are much safer. Now I am looking for an exchanger, and I would like to learn from the community about those platforms that offer the best conditions.

[TheUltraElite]

I will try to make a few points clear here.

About accounts getting blocked - some people tend to use exchanges as offshoring off money they got from illegal sources. Generally that is the reason why a legit and reputable exchange might question you or block your account. Again new exchanges may have been scams so do your own research for those.

About funds being stolen - there are precautions that you can take. Do not store funds on exchange after you complete trading. Withdraw them as soon as possible. Though this has been said to everyone since a long time but few learn the lesson only to forget in again in future.

About the legal problems with exchanges - you simply cant do anything about them in case funds get moved away. Crypto does not have rules and regulation in every country and you will actually waste time by explaining what is to the authorities than actually get anything back other than a smirk smile on their faces and getting dismissed and trolled. Sad reality.

[mk4]

The thing is, exchanges gets targeted by hackers all the time simply because if they successfully hack an exchange, they could potentially steal millions or more worth of dollars, while they could also potentially get away without a single trace. Hence, really expect exchanges to get hacked all the time, no matter how big or how small that exchange is. Heck, even Bitfinex got hacked in the past; and yes, even giants like Coinbase and Binance aren't vulnerable to hacks, even though they might be more secure compared to the smaller exchanges.

To decrease the risks of you losing your funds one way or another, simply just withdraw your funds that you aren't trading like TheUltraElite said. Instead, use your own wallet; preferably, a reputable hardware wallet.

To learn more about wallets:

• https://bitcointalk.org/index.php?topic=1631151.0
• https://cryptosec.info/cryptocurrency-wallets/

[OmegaStarScream]

P2P and decentralized trading is the solution to every point you brought. I've been in the crypto scene for five years now and I don't remember any incident where I was forced to provide my real info or lost funds due to the exchange being hacked or having an inside job etc. The rule is simple. If you have control over your private keys, you control your funds otherwise you don't and If not, you should expect the worst case scenario at all times.

[Bostraticus]

I had problems with Bittrex when they blocked my account, and therefore, I started using services without registering. I can advise you changenow. I considered several options, but with Changenow, I found a fixed rate. They show a good speed of claims processing (from 2 to 15 minutes), so I can advise you this service, but only you can choose the most convenient option for you.

[timerland]

Recently, we are increasingly seeing problems with exchanges. Some may block an account, others may be subject to hacker attacks. As you know, recently, after the death of the founder of QuadrigaCX, millions of dollars were unavailable, because he was the only person who knew the password to the “cold wallet”. It causes some thoughts to me. We do not know who is behind the exchange, and what actions are taken. User funds can be used for criminal activity. Therefore, it seems to me that exchangers, besides the fact that they are simpler to use, are much safer. Now I am looking for an exchanger, and I would like to learn from the community about those platforms that offer the best conditions.

It all boils down to how long and how often you are storing your funds with an exchange.

An "exchanger" in the form of some third party that processes transactions are still not trustless, except your funds stay on their platform for less time, and is sent to you directly after the transaction. That's the only advantage, here. They are still able to hold your funds, block transactions, and it has happened. So don't blindly believe in these so called "exchangers" either. If you use a platform like Binance and withdraw all funds straight away after conducting your trade, you're essentially achieving the same effect.

If you really want to, bestchange.com has a nice list that you can search through for these automated exchangers. I personally use changer.com and never had issues, but the thing with these sites are that their fees are incredibly high for the convenience you get.

As Omegastarscream said, p2p trading is probably the way to go these days. LBC and Paxful both are quite respected and even though their KYC is getting stricter as well, they provide quite good support and allow you to withdraw your funds in almost all instances. But decentralized exchanges in the future will be the way to go, as even p2p isn't trustless.

[LeGaulois]

What about not using exchange platforms to store your coins? It's a golden rule that we say over and over as time pass. Doing so you don't care of an exchange hacked, to bother to give your ID, and so on. And an exchanger can be less safe at some points.

[harizen]

Recently, we are increasingly seeing problems with exchanges. Some may block an account, others may be subject to hacker attacks. As you know, recently, after the death of the founder of QuadrigaCX, millions of dollars were unavailable, because he was the only person who knew the password to the “cold wallet”. It causes some thoughts to me. We do not know who is behind the exchange, and what actions are taken. User funds can be used for criminal activity. Therefore, it seems to me that exchangers, besides the fact that they are simpler to use, are much safer. Now I am looking for an exchanger, and I would like to learn from the community about those platforms that offer the best conditions.

That's the thing you need to deal on every exchange.

Even we don't like the idea, there will be really a time that you will used a service of a centralized exchange because of a)less hassle way of deposits especially if your country was supported b)some of them are reputable c)processing a smooth withdrawal d) daily volume e) any many other more.

Now I am looking for an exchanger, and I would like to learn from the community about those platforms that offer the best conditions.

Following to my response above:

a) if your purpose is to just hodl coins, then you can choose a reputable one, make some order, then get out (withdraw). Stored it on your wallet where you control your private keys and just moved it when you think it's time now to make some actions.

b)if your purpose was to trade, you really need to deal with the risks of using a centralized exchange as it was hassle to do transfer from exchange to your wallet and vice versa. To minimized the risks, just choose the reputable ones. If you already have some coins but it's not listed reputable exchanges, then up to you to sell it P2P or deal with the risks of using the exchange where it was listed.

[BitHodler]

Heck, even Bitfinex got hacked in the past; and yes, even giants like Coinbase and Binance aren't vulnerable to hacks, even though they might be more secure compared to the smaller exchanges.

These exchanges have their reputation at stake, and for that reason I highly doubt that they will admit being hacked. The fact that you highlight these exchanges once again shows that people value them above anything else.

It definitely wouldn't surprise me if turns out that Coinbase or Binance have been hacked in the past. They hold so many coins (coins that people don't withdraw), that no one will even notice something.

They generate enough profits to fill up the gaps at a later point. Coinbase holds over 800k BTC on behalf of their users, Binance at least 250k BTC. With these amounts you can imagine that no one will miss 5-10k BTC in case of a hack.

[mk4]

It definitely wouldn't surprise me if turns out that Coinbase or Binance have been hacked in the past. They hold so many coins (coins that people don't withdraw), that no one will even notice something.

There's definitely a good possibility; this is something that would only be uncovered if everyone decided to withdraw their funds(which as we know is very unlikely). Though it's really concerning, what's important is we still have access to our funds I guess? Regardless if they have been hacked or not.

[Ave_Maximus]

What about not using exchange platforms to store your coins? It's a golden rule that we say over and over as time pass. Doing so you don't care of an exchange hacked, to bother to give your ID, and so on. And an exchanger can be less safe at some points.

but when you need to swap coins you'll spend extra money on fee. also, a lot of exchanges asked id for verification.
I'm using changenow and they didn't ask me for it

[Matematic]

I had problems with Bittrex when they blocked my account, and therefore, I started using services without registering. I can advise you changenow. I considered several options, but with Changenow, I found a fixed rate. They show a good speed of claims processing (from 2 to 15 minutes), so I can advise you this service, but only you can choose the most convenient option for you.

yes, we can choose the most convenient ourself, but sometimes it's useful to take advice. I've used cryptopia until it was hacked.

btw, I'm using changenow now.

[LeGaulois]

What about not using exchange platforms to store your coins? It's a golden rule that we say over and over as time pass. Doing so you don't care of an exchange hacked, to bother to give your ID, and so on. And an exchanger can be less safe at some points.

but when you need to swap coins you'll spend extra money on fee. also, a lot of exchanges asked id for verification.
I'm using changenow and they didn't ask me for it

Ahhh, people consider themselves as a trader, with a big investment, behave often like a financial expert but they still can't pay just some cents for the fees 
Nobody is forcing people to use an exchange that needs your ID, there are alternatives. But if someone prefers to be vulnerable to a hack to be able to save some pennies then no problem.

[electronicash]

DEXes doesn't ask KYC, it must be your best option.  if you are looking for a DEX which you as a user keeps the private key, you might want to check the WAVES DEX. its sort of wallet by installing it, you can try using the chrome app.  along with this chrome app gives you the access to the DEX. its an all in one package, a wallet and a DEX with your private key with you to keep. there is just not much volume there though.

[Ave_Maximus]

What about not using exchange platforms to store your coins? It's a golden rule that we say over and over as time pass. Doing so you don't care of an exchange hacked, to bother to give your ID, and so on. And an exchanger can be less safe at some points.

but when you need to swap coins you'll spend extra money on fee. also, a lot of exchanges asked id for verification.
I'm using changenow and they didn't ask me for it

Ahhh, people consider themselves as a trader, with a big investment, behave often like a financial expert but they still can't pay just some cents for the fees 
Nobody is forcing people to use an exchange that needs your ID, there are alternatives. But if someone prefers to be vulnerable to a hack to be able to save some pennies then no problem.

if you'll pay some extra cents every time, you'll lose your money

[gentlemand]

Why is OTC never mentioned as an option?

Obviously it's for larger amounts but if I wanted to buy or sell a larger amount that would be the first place I'd check. You get personalised service, a tailored deal and money does not linger anywhere. I do not fancy the idea of a ton of money being locked up by some $15 an hour asshole at Coinbase and becoming a forgotten ticket number.

[ChangeNOW]

As a rep for an exchange service (exchanger in your words) I can attest to the fact that if you are not a day trader, using an exchanger is far safer and more convenient. Storing your coins on an exchange is just about as dumb as handing your wallet to a stranger on the street and hoping they don't lose it or run off with it. There's been a TON of recent cases that serve as proof. Now, with an exchanger, you just come in, drop the EXACT amount of funds you'd like to have swapped, and voila! We send the exchanged money to a wallet of your choice. We do have selective KYC checks, but they're rare and you can opt out with a refund if you want.

[scrollerz]

As a rep for an exchange service (exchanger in your words) I can attest to the fact that if you are not a day trader, using an exchanger is far safer and more convenient. Storing your coins on an exchange is just about as dumb as handing your wallet to a stranger on the street and hoping they don't lose it or run off with it. There's been a TON of recent cases that serve as proof. Now, with an exchanger, you just come in, drop the EXACT amount of funds you'd like to have swapped, and voila! We send the exchanged money to a wallet of your choice. We do have selective KYC checks, but they're rare and you can opt out with a refund if you want.

I tested you by exchanging some coins. This is really good, considering that my claim was processed in a few minutes and I did not register. I had good impressions and thank you for telling me about your service.

[magneto]

Recently, we are increasingly seeing problems with exchanges. Some may block an account, others may be subject to hacker attacks. As you know, recently, after the death of the founder of QuadrigaCX, millions of dollars were unavailable, because he was the only person who knew the password to the “cold wallet”. It causes some thoughts to me. We do not know who is behind the exchange, and what actions are taken. User funds can be used for criminal activity. Therefore, it seems to me that exchangers, besides the fact that they are simpler to use, are much safer. Now I am looking for an exchanger, and I would like to learn from the community about those platforms that offer the best conditions.

Yep. But this risk comes with pretty much all third parties which hold your funds for a given period of time. Not just exchanges.

The fact that instant exchanges (or as you call it, exchangers) holds your funds for only a few minutes before your transaction is delivered does reduce the risk. Though make sure you are able to provide any KYC that they may ask, because this is becoming a trend in recent days.

P2P and OTC trading are also alternatives if you're really privacy conscious, you could even find some currency exchangers on this forum. Though obviously, the process may take longer (though if you use localbitcoins it will be streamlined) and rates may be slightly worse. But the main thing isn't about the type of exchange you use - it's about the quality of the service as well as just not storing funds long term on any third party's wallet.

[ChangeNOW]

As a rep for an exchange service (exchanger in your words) I can attest to the fact that if you are not a day trader, using an exchanger is far safer and more convenient. Storing your coins on an exchange is just about as dumb as handing your wallet to a stranger on the street and hoping they don't lose it or run off with it. There's been a TON of recent cases that serve as proof. Now, with an exchanger, you just come in, drop the EXACT amount of funds you'd like to have swapped, and voila! We send the exchanged money to a wallet of your choice. We do have selective KYC checks, but they're rare and you can opt out with a refund if you want.

I tested you by exchanging some coins. This is really good, considering that my claim was processed in a few minutes and I did not register. I had good impressions and thank you for telling me about your service.

That's awesome, thank you so much!