Why can't we have a good cryptocurrency exchange?

[jackg]

Ima be blunt, based on the fact that loads of people are still without exchanging trade pairs because the likes of binance and such have decided to close deposits indefinitely (gcse computer science and business for us teaches how to develop disaster recovery regimes) so the fact that high profit exchanges can't do it is just off.

Most of these exchanges do stuff with customers money too while on there especially if they haven't withdrawn for a long time. Coinbase, poloniex, bitmex and binance I believe will all be susceptible to this, as well as bitfinex who have already proven how great their money management strategies are (I luckily only had a dollar on there at the time of that hack)...

[rijaljun]

So basically you want and high reputable exchange that never be a victim of hackings or not possible to get hacked so it will be totally safe for everyone to store their funds? That kind of exchange won't be exist, hackers will be always smarter time by time. Also, everyone are supposed to not storing their assets on any exchanges. You can trade and make profit there but store your assets only on your private wallet.

We don't need to have that kind of exchange as we are supposed to trust no one.

[jackg]

So basically you want and high reputable exchange that never be a victim of hackings or not possible to get hacked so it will be totally safe for everyone to store their funds? That kind of exchange won't be exist, hackers will be always smarter time by time. Also, everyone are supposed to not storing their assets on any exchanges. You can trade and make profit there but store your assets only on your private wallet.

We don't need to have that kind of exchange as we are supposed to trust no one.

Is that an intentional paradox?

The fox will eat the sheep if unattended by the farmer but the farmer must leave for 20 minutes each day and must keep the sheep safe. He can't take either with him and no one else is allowed to watch. Solve the problem (without digging holes or building fires).


I'm after an exchange that doesn't have inside attacks from it's staff which is clearly what happens (who stores 33% of their clients' funds on a hot wallet)? Where were the hacked funds sent to? How can we know they were hacked when no address proving the hacking was published (as far as I am aware at least)?

[Ailmand]

So basically you want and high reputable exchange that never be a victim of hackings or not possible to get hacked so it will be totally safe for everyone to store their funds? That kind of exchange won't be exist, hackers will be always smarter time by time. Also, everyone are supposed to not storing their assets on any exchanges. You can trade and make profit there but store your assets only on your private wallet.

We don't need to have that kind of exchange as we are supposed to trust no one.

Is that an intentional paradox?

The fox will eat the sheep if unattended by the farmer but the farmer must leave for 20 minutes each day and must keep the sheep safe. He can't take either with him and no one else is allowed to watch. Solve the problem (without digging holes or building fires).


I'm after an exchange that doesn't have inside attacks from it's staff which is clearly what happens (who stores 33% of their clients' funds on a hot wallet)? Where were the hacked funds sent to? How can we know they were hacked when no address proving the hacking was published (as far as I am aware at least)?

So, are you suspecting that the recent binance attack was an inside job? Well, some of my friends had the same idea, honestly most platform attack has possibilities of an inside job. It's not far from reality, even if the funds of traders are SAFU, what's bothering is even the top platform gets attacked this will affect the credibility and secirity of all platforms.

[figmentofmyass]

Ima be blunt, based on the fact that loads of people are still without exchanging trade pairs because the likes of binance and such have decided to close deposits indefinitely (gcse computer science and business for us teaches how to develop disaster recovery regimes) so the fact that high profit exchanges can't do it is just off.

indefinitely? they immediately said "early next week" (now this week) and their last update said deposits/withdrawals will be resumed tomorrow: https://www.binance.com/en/blog/334367288279687168/Binance-Security-Incident-Update-3

has something changed?

Most of these exchanges do stuff with customers money too while on there especially if they haven't withdrawn for a long time. Coinbase, poloniex, bitmex and binance I believe will all be susceptible to this, as well as bitfinex who have already proven how great their money management strategies are (I luckily only had a dollar on there at the time of that hack)...

just look at what mainland chinese exchanges were caught doing: https://www.ccn.com/report-chinas-biggest-bitcoin-exchanges-used-150-million-user-funds

i guess it's the nature of third party trust. if you trust someone with money, they'll eventually (if not immediately) abuse the trust.

[avikz]

Ima be blunt, based on the fact that loads of people are still without exchanging trade pairs because the likes of binance and such have decided to close deposits indefinitely (gcse computer science and business for us teaches how to develop disaster recovery regimes) so the fact that high profit exchanges can't do it is just off.

Most of these exchanges do stuff with customers money too while on there especially if they haven't withdrawn for a long time. Coinbase, poloniex, bitmex and binance I believe will all be susceptible to this, as well as bitfinex who have already proven how great their money management strategies are (I luckily only had a dollar on there at the time of that hack)...

Hacking doesn't have to do anything with the reputation of an exchange. Any and every exchanges are prone to hacking no matter how stringent information security mechanisms they have! The reputation matters when an exchange gets hacked and how they manage the entire scenario to get back online and refund their customers.

On the recent hack on Binance, I believe they are trying really hard to get the situation under control. The owner is being upfront in communicating their plans and they have created a fund called SAFU to deal with such unforeseeable events. That's where the reputation comes from!

[BossMacko]

There are lots of exchange that you can choose to. But looking for a good crypto exchange that is for you to experience by trying one by one. People have different opinion and experience so we cant just belive opinions.

[mu_enrico]

I enjoy using IDEX with smart contracts and instant exchanges like Changelly, ChangeNOW, ShapeShift... but I'm just a casual user, so I don't care much about trading performance. I think these exchanges are sufficient for casual users.

As for traders and whales, I think they always end up in centralized exchange due to performance (and liquidity) superiority. I'm afraid that the centralized exchanges would end up like the Wallstreet IMO for more security.

[CryptoBry]

In the market, we are enjoying a long list of famous and not-so-famous cryptocurrency exchanges big and small. Of course, we have Binance which is now considered to be the leader of the industry but we also have like Kucoin, Bittrex, Okex and even decentralized exchanges all competing for our money, attention and loyalty. The recent Binance hack should not stop us from exploring the nooks and crannies of the cryptocurrency industry. That hack is a big lesson for security as there is virtually nothing that can be safe these days...hackers are always ahead of the game and it is just a matter of when they will pull on their punch on an exchange and this is the reason why exchanges have to be always careful and hack-proof all side of the parameter without sacrificing function and good user experience.

[86B]

In the market, we are enjoying a long list of famous and not-so-famous cryptocurrency exchanges big and small. Of course, we have Binance which is now considered to be the leader of the industry but we also have like Kucoin, Bittrex, Okex and even decentralized exchanges all competing for our money, attention and loyalty. The recent Binance hack should not stop us from exploring the nooks and crannies of the cryptocurrency industry. That hack is a big lesson for security as there is virtually nothing that can be safe these days...hackers are always ahead of the game and it is just a matter of when they will pull on their punch on an exchange and this is the reason why exchanges have to be always careful and hack-proof all side of the parameter without sacrificing function and good user experience.

Well said. This is precisely what Blocknet has done with their DEX.  If you initiate a trade with confirmations, it's literally 100% bullet-proof.  No aspect of the exchange process whatsoever can compromise your funds... ever.  Your client verifies and confirms terms and trade amounts by checking the raw transactions themselves (in a CLTV atomic swap) and you're always in full control of your funds.

[rijaljun]

Is that an intentional paradox?

The fox will eat the sheep if unattended by the farmer but the farmer must leave for 20 minutes each day and must keep the sheep safe. He can't take either with him and no one else is allowed to watch. Solve the problem (without digging holes or building fires).

Simply put the sheep in a huge cage where only the farmer has the key, why not? Nothing can steal that sheep now.

I'm after an exchange that doesn't have inside attacks from it's staff which is clearly what happens (who stores 33% of their clients' funds on a hot wallet)? Where were the hacked funds sent to? How can we know they were hacked when no address proving the hacking was published (as far as I am aware at least)?

You need to read these articles :
https://www.coindesk.com/hackers-are-shuffling-binances-stolen-bitcoin
https://www.cryptoglobe.com/latest/2019/05/binance-hacker-consolidates-stolen-bitcoin-to-seven-addresses/

[freedomgo]

I would like to share my opinion, I guess if we will treat the exchanges like a Bank, then maybe we will have a good exchanges in the market.
Regulators will go after erring exchanges and will be penalize accordingly.
Also, they will require the exchange to be subject for insurance, to protect the money of the traders and investors.

[hatshepsut93]

Because exchanges are barely regulated, they don't face any legal repercussions when they do their shady stuff, which incentivizes them to do that shady stuff or just be careless with funds. And I have a feeling that governments simply don't want to regulate crypto, because they don't care about it, it's pretty small compared to other markets, so they are okay with some traders becoming victims of exchanges, manipulators and other malicious entities on this market.

[davis196]

Ima be blunt, based on the fact that loads of people are still without exchanging trade pairs because the likes of binance and such have decided to close deposits indefinitely (gcse computer science and business for us teaches how to develop disaster recovery regimes) so the fact that high profit exchanges can't do it is just off.

Most of these exchanges do stuff with customers money too while on there especially if they haven't withdrawn for a long time. Coinbase, poloniex, bitmex and binance I believe will all be susceptible to this, as well as bitfinex who have already proven how great their money management strategies are (I luckily only had a dollar on there at the time of that hack)...

We can't have a perfect crypto exchange platform,because of the greed of the platform owners.
Bitcoin should turn back to it's basics and be a complete peer-to-peer currency again.
Coinbase,Poloniex,Binance,Bitmex and Bitfinex are the new crypto banks.We've been fighting against banks,but know we have crypto banks that are almost the same as fiat banks.

[hugeblack]

Why do we need a good cryptocurrency exchange?  It's a third party we have to trust. If you do not trust them, do not use them.

The Question Why is there so much ambiguity about hacking? I think that's because of the weakness of regulation rules, the laws stand on the side of those platforms where any "bankruptcy report" can steal users coins just as happens in some banks.

[traderethereum]

I think we already have a good exchange and there is many of the exchange which can work well for us.
But the problem is they cannot always protect their website, and that will be a point for the hacker to try to penetrate inside the website.
That will be a big job for the exchange to always secure their website from the attackers and they will need to always stay maintain for their site, so there is no chance for the attacker to hack the website.
I am sure that they will give their best works always to protect their member and their website, so we don't have to worry about the hackers.

[target]

One post that I remember in bitcointalk was the one which says exchanges that were once hack are going to be more secure and hardened because they now knew which to protect and they are now aware what hassle it could bring to them when their business is compromised. But if you want the safer ones, its going to be the DEX that you should be going.

[mensahkkofie]

It seems all exchanges are susceptible to attacks by hackers. Possibly in the near future, we are hopeful that things would get better through higher security systems with modern technology. It is always disheartening to see or hear news when exchanges are hacked. This implies we are all vulnerable to attacks since we trade on these exchanges.

[posi]

So basically you want and high reputable exchange that never be a victim of hackings or not possible to get hacked so it will be totally safe for everyone to store their funds? That kind of exchange won't be exist, hackers will be always smarter time by time. Also, everyone are supposed to not storing their assets on any exchanges. You can trade and make profit there but store your assets only on your private wallet.

We don't need to have that kind of exchange as we are supposed to trust no one.

I'm glad the OP brought out this issue and yes we do need a good crypto currencies exchange because the situation happening with exchange site here and there is a huge turn off for new investors and existence users either. However, we are not talking about trust here and if nothing is do about the situation it might be a bigger for crypto sphere in the future.

[jackg]

Someone mentioned changelly which I'd overlooked. Shapeshift require kyc and that's just a bug fishy for me (I don't think it's unlikely exchanges wanting kys are going to sell it on because no one can track it being them doing it).