Crypto Exchange

[EmmaTalks]

Since exchanges have had a history of being prone to hacking, does any crypto exchange offers security strong enough that helps to prevent this?

[mk4]

Exchanges get hacked all the time simply because they're hugely targeted by hackers. Obviously, because there's so much money to steal and that they could potentially get away scot-free.

While some of the current big exchanges that we have right now have remained unhackable(as far as we know), like Coinbase and Kraken, there's really no guarantee that they're not going to get hacked in the future. I mean, people think that Coinbase might be "unhackable" due to it's good track record, but people thought the same with MtGox and Bitfinex in the past. Well, we know what happened to both..

This list right here, will just unfortunately be added with more and more exchanges as the years go by: https://cryptosec.info/exchange-hacks/

Now, do you want to be part of the statistic of the lost funds from these hacks? Of course not! So obviously, the way to go is to simply just purchase an affordable hardware wallet, and store your funds there instead. Only leave funds on exchanges that you actively trade, and if possible, withdraw them regularly when you don't need to trade them.

[minersday]

Most exchanges actually try their possible best to provide the best of security systems to their users but hackers always find a way to abscond with some of its funds. However, i have been trading on exchanges like Bitrue, Binance, Kucoin and i think they are pretty secured to conduct your transactions there BUT never store your funds on any exchange mate, it's so not safe.

[EmmaTalks]

Exchanges get hacked all the time simply because they're hugely targeted by hackers. Obviously, because there's so much money to steal and that they could potentially get away scot-free.

While some of the current big exchanges that we have right now have remained unhackable(as far as we know), like Coinbase and Kraken, there's really no guarantee that they're not going to get hacked in the future. I mean, people think that Coinbase might be "unhackable" due to it's good track record, but people thought the same with MtGox and Bitfinex in the past. Well, we know what happened to both..

This list right here, will just unfortunately be added with more and more exchanges as the years go by: https://cryptosec.info/exchange-hacks/

Now, do you want to be part of the statistic of the lost funds from these hacks? Of course not! So obviously, the way to go is to simply just purchase an affordable hardware wallet, and store your funds there instead. Only leave funds on exchanges that you actively trade, and if possible, withdraw them regularly when you don't need to trade them.

But even then, do certain exchanges have a certain fixed amount that needed to be on the exchange so trading can happen? And if that be so, then how is it helpful to be on the exchange after being hacked?

[mk4]

But even then, do certain exchanges have a certain fixed amount that needed to be on the exchange so trading can happen?

Of course. I assume only a small percentage is held on the exchange's hot wallet(funds being actively used), and most is on their cold storage.

And if that be so, then how is it helpful to be on the exchange after being hacked?

Not sure what you mean here? People should only use exchanges to exchange funds, not store their funds.

[kkking2333]

Cryptocurrency exchanges charge fees for trading and storing funds for their customers, but they are prone to hacks because they centralize the risk and store a part of their private keys online for real-time withdrawals. You can always purchase crypto from exchanges like Coinbase and Coinmama; however, once the transaction is complete, and if you don’t want to trade, you should send your funds to a wallet that gives you access to your private keys, preferably a hardware wallet. Ideally exchanges can be used to trade, but it's best not to leave funds lying idle there.

[TravelMug]

Since exchanges have had a history of being prone to hacking, does any crypto exchange offers security strong enough that helps to prevent this?

Exchanges might offer strong security at a highest level, but we all know that they are not safe from the hackers. We are talking about online criminal groups here, perhaps state funded, North Korea's Lazarus Group Are Most Profitable Crypto Hackers, And They're Back.

So hacking will continue, admit it or not. Again, although security measure has been in place by exchange, it will not be enough. So it's really up to us, don't put all your funds in an exchange.

[marcous]

actually no one can guarantee the security of assets, especially in the cryptocurrency exchanger. but we can be more careful and not to overly believe in storing all assets in the form of crypto in exchanges even though it is a big exchanger. some exchangers can only prevent unwanted things from happening by installing the security method. but we need to remember does not guarantee 100% of asset security.

[CodyAlfaridzi]

Since exchanges have had a history of being prone to hacking, does any crypto exchange offers security strong enough that helps to prevent this?

I think to enhance security, the exchange must sacrifice customer convenience. Most hacking happens to exchange that implement automated hot wallet withdrawal. Automated withdrawal is a convenience but poses a big risk for hacking because any withdrawal that requested below a certain amount would be done without checking. For best security practice, I think manual, batched withdrawal is the way to go. Take Bitmex for example, they implement a daily, manual withdrawal and I haven't heard them getting hacked.

[Sanugarid]

Since exchanges have had a history of being prone to hacking, does any crypto exchange offers security strong enough that helps to prevent this?

I think to enhance security, the exchange must sacrifice customer convenience. Most hacking happens to exchange that implement automated hot wallet withdrawal. Automated withdrawal is a convenience but poses a big risk for hacking because any withdrawal that requested below a certain amount would be done without checking. For best security practice, I think manual, batched withdrawal is the way to go. Take Bitmex for example, they implement a daily, manual withdrawal and I haven't heard them getting hacked.

They say, "if there's a will, there's a way" so it is necessary for them to implement a program that will enhance the security of the exchanges for the customer to become more comfortable when dealing with crypto exchange.

There are some trading bots that isn't being hacked because of the quality of its security even when you don't monitor it.

[bitvalak]

The logic is that no matter how strong a security system an exchange site must have a gap that is always exploited for hacking.
It depends on how we trust the reputation of the exchange that we are currently using. Even if lost due to hacking, the important thing is they are able to guarantee compensation for the amount lost.

[bitcoinguy111]

Huobi Global never been hacked in a LOOOOOOOOOOOOOOOOOOOOOOOOONG history www.hbg.com!

[Sadlife]

There's no such thing like that, every exchange has an vulnerability waiting to be discovered by pentesters or hackers. We'll first of all it wouldn't be easy to hack if the owner of exchanges hires pentesters in the first place and for us end users there's no real way of telling if that site is vulnerable or not, so instead we improvise and learn how to diversify our investment and to not put all of our money in one place.

[mk4]

Huobi Global never been hacked in a LOOOOOOOOOOOOOOOOOOOOOOOOONG history www.hbg.com!

Sure. But it doesn't necessarily mean that they won't get hacked sometime in the future though. Remember, all exchanges were once "never been hacked"

[znation]

Exchanges contain the biggest money accounts of investors and hackers are always looking for ways to get that money, so a level of security and confidentiality is necessary for exchanges. We do not know when hackers will do it, it is best not to leave a large amount of money on the floor for future hacking attempts.

[DabsPoorVersion]

There's no such thing like that, every exchange has an vulnerability waiting to be discovered by pentesters or hackers. We'll first of all it wouldn't be easy to hack if the owner of exchanges hires pentesters in the first place and for us end users there's no real way of telling if that site is vulnerable or not, so instead we improvise and learn how to diversify our investment and to not put all of our money in one place.
 

Yes, even the biggest exchange as of today which is binance, has been once a subject to hacking. Every exchange is vulnerable to hacking, its just a matter of fact of how the exchange will maintain the security and how they will avoid being compromised as much as they can.

[Casdinyard]

And if that be so, then how is it helpful to be on the exchange after being hacked?

Not sure what you mean here? People should only use exchanges to exchange funds, not store their funds.

The problem is that some used to store their funds especially those who do day trading and it's in fact hassle to deposit and withdraw their funds. And you'll just be annoy if you miss those dump that you don't have any funds on your wallet.

So yeah, store funds you could afford to lose though.

[figmentofmyass]

Huobi Global never been hacked in a LOOOOOOOOOOOOOOOOOOOOOOOOONG history www.hbg.com!

Sure. But it doesn't necessarily mean that they won't get hacked sometime in the future though. Remember, all exchanges were once "never been hacked"

for all we know, they have been hacked. mt gox was hacked in 2011 but it didn't collapse from insolvency until 2014. same story with cryptsy (if you believe big vern's version of events). consider hitbtc---selective KYC scamming left and right, and widely believed to be insolvent. have they publicly admitted to being hacked? of course not.

[Sanitough]

Since exchanges have had a history of being prone to hacking, does any crypto exchange offers security strong enough that helps to prevent this?

Exchange that has a big volume and are popular in the space are expected to have a good security system, however, it seems like there is no exception for hacking because hackers are targeting small and big exchanges, so any exchange are vulnerable to hacking.

by the way, Binance is quite unique because they have a SAFU funds, that save them from their hack incident this year.

[mk4]

Huobi Global never been hacked in a LOOOOOOOOOOOOOOOOOOOOOOOOONG history www.hbg.com!

Sure. But it doesn't necessarily mean that they won't get hacked sometime in the future though. Remember, all exchanges were once "never been hacked"

for all we know, they have been hacked. mt gox was hacked in 2011 but it didn't collapse from insolvency until 2014. same story with cryptsy (if you believe big vern's version of events). consider hitbtc---selective KYC scamming left and right, and widely believed to be insolvent. have they publicly admitted to being hacked? of course not.

Yeap. No way to know until it's too late. One thing you know suicide hotlines will be pinned on cryptocurrency subreddits again. Unfortunately, even though there have been more than a dozen hacks in the past, people still leave funds on exchanges. If they can't even do simple due diligence, then idk.