Why Security in Crypto Matters?

[joaocardoso87]

As many of you may already know, the list of Crypto Exchange hacks keeps growing and it's very important to maintain your funds safe.

Always remember this popular statement: not your keys, not your crypto.

Actually, without keys there's no crypto at all, so one of the first and most important things we should learn and remember is to keep our keys safe. You may write them on a paper and put it in a safe place only you know, or maybe create a document with all your keys... Although I wouldn't recommend this unless you store that file protected with a password and mainly open it offline.

Some people have backups offline in external devices. That could be another good choice.


Custody: a choice that matters.

Let's say you buy some crypto whether because you want to hold or trade them. So you register in an exchange of your trust, put your payment data and buy a bunch of crypto.

Now, here's the key part: what do you do next?

Do you hold your crypto in the exchange or do you transfer them to your private personal wallet?

In other discussions, a few days ago, the importance of custody was addressed, and the article emphasized: watch out with holding your crypto in an exchange with centralised custody.


Why?

Simply because of the topic mentioned at the beginning of this article: exchanges can be hacked and you can lose all your funds. Thing is the majority of exchanges have a centralised custody system, meaning that you don't own your exchange's wallet private keys. And what happened if you don't own your keys...? Exactly.

To summarize, be sure you keep your funds safe. Whether it's on your private wallet, or trading in the new generation exchanges that have a transparent custody system, meaning that only you can access your funds and they will be safe in case there's a hack to the exchange.


Tell me: What's your strategy to secure your funds?



Resources
https://www.uptrennd.com/post-detail/why-security-in-crypto-matters~MjE5Nzk5

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[Mahanton]

If people are just responsible and be careful on their private keys then losing funds is lesser and also using up centralized or custodial wallets should really be avoided.

Security does matter but people do still end up on using centralized platforms either they dont have any choice or just too dependent on it.Its just a matter of
risk management and awareness about particular risk.

[bL4nkcode]

It always happens to people who are used to regarding saving money in traditional way, like on banks, people keep trusting banks as if their money are 100% safe there. With that, once these people enters crypto, same thing they will do, they wil trust these centralized exchange even though there are lots of them already hacked.

And sure thing, security matters when it comes to finance.

[sunsilk]

I don't keep my funds on any exchange if I do so, it's very minimal and not that much of amount that I can't avail to lose. I have read somewhere this strategy of hiding your files and folders, although it's not that of a security but it's another way to simply add and keep your important files that contains your keys (if you are keeping it on a file format).

A backup is a must so don't depend mostly on your single file that keeps your PKs or the written format that you make. Always create a backup or duplicate or even more where you can keep it in a very safe storage that can't be find out by others.

[maxig.boroday]

blockchain is all about security and transparency but it looks like this exchanges were not focusing on it, they look like they are focusing on earning their funds.

[charlesmichel1]

My strategy is simple as much as possible. I newer keep my funds on an exchange, use only non-custodial wallets and write down a seed-phrase for storing it in a safe place (in a strongbox). I believe it's enough.

[ralle14]

I use the same strategy which is using a different wallet specifically with a private key. If i'm going to use an exchange and trade a significant amount i'd split my balance in smaller pieces if safety is my first priority over profit.

blockchain is all about security and transparency but it looks like this exchanges were not focusing on it, they look like they are focusing on earning their funds.

All exchanges focus on making profits and there's not much they could improve on since most exchanges are centralized.

[hugeblack]

I don’t know why these discussions are renewed? Everyone knows that the primary purpose of crypto is to get rid of the need for a third party to protect the funds, if you want to deposit them on the platforms, then why not deal with banks?
Do you guarantee that the platforms will return your coins to you?

As for how to protect your coins, a quick search on Google will give you many options.

[aefasshaikh]

It is always the case of those who are used to saving money, such as companies, who hold trustworthy banks as though their money is 100% protected there. Therefore, once these people come into the crypt, they trust this central exchange, even if many of them are already compromised.

[ultrloa]

blockchain is all about security and transparency but it looks like this exchanges were not focusing on it, they look like they are focusing on earning their funds.

Some of them not focusing on it since they are aftering the profit they can get on token listing and we should avoid them up to get out from possible danger in future but there are some exchange which is still good like binance and although they got issue of been hacked before but still they manage to shoulder back the possible losses on their investors.

[Moshaid]

A huge percent of people in the cryptocurrency sector stores their crypto token on their exchange account which is why they easily lose their assest due to exchange attacks and the likes. If this exchanges out there secure their platfrom with high end security as well as a reservation for safu when an attack is launched to their exchange to help user recovery their stolen funds, people won't be bothered about saving their assets on exchange. But regardless of this, it is expected for everyone to always keep a huge amount of their holding in their blockchain wallets.

[o_e_l_e_o]

maybe create a document with all your keys... Although I wouldn't recommend this unless you store that file protected with a password and mainly open it offline.

Having a document with your private keys or seed stored in plain text is a huge security risk. If you have such a file on an internet enabled device, then all your coins are at risk and you should transfer them to a new wallet immediately. The only time I would ever even consider storing private keys or seeds in an electronic document is under secure encryption on a permanently airgapped device.

exchanges can be hacked and you can lose all your funds.

This is actually probably the least of your worries when you use a centralized exchange. The most common thing we are seeing recently is more and more exchanges springing unannounced and ridiculous invasive KYC requirements on their customers, and holding their customers' coins hostage until they comply, so you are forced to either give up your privacy or forfeit your coins. Even if you do comply, in some cases the exchange still decides that's not good enough and you can't access your coins. Exchanges can decide that something you have done is "suspicious" (although they hardly ever explain what that "suspicious" activity was) and lock your account. There are also plenty of new exchanges which eventually just exit scam with all their customers' deposits. Exchanges can shut down, disappear, refuse service, become bankrupt or insolvent, or any number of other things which can jeopardize your coins.

Tell me: What's your strategy to secure your funds?

Don't use centralized exchanges, trade peer-to-peer, keep control of your own coins at all times.

[Harlot]

For your average crypto investor where they buy and just hold the crypto this thing would be easier for them since sending their crypto to their wallet after buying them is just a one time process. However if we are talking about traders especially the day traders they can't risk their capital lying around in there wallet because they will miss some opportunities there. So maybe the best option for then really is to trade in a reliable exchange where they can have piece of mind trading or at least go to those crypto insurace coverages that protect them against crypto hacks and thefts which I think will be the preferred option for them.

[maxig.boroday]

If people are just responsible and be careful on their private keys then losing funds is lesser and also using up centralized or custodial wallets should really be avoided.

Security does matter but people do still end up on using centralized platforms either they dont have any choice or just too dependent on it.Its just a matter of
risk management and awareness about particular risk.

They also should make sure that they have their keys hidden and there's  backup so losing wont happen. In investing, people should be more careful as there's more scams nowadays.

[dioanna]

I don't know why It should be a question. Security is needed obviously everywhere. It should really matter.

just read this
https://cryptoadventure.org/a-guide-on-why-security-is-important-in-driving-cryptocurrency-adoption/

[shield132]

When we talk about holding bitcoins yourself and holding bitcoins on exchanges, I want to say something about that.
First of all there are two types of people:
1. Who can take responsibility and take care of their bitcoins
2. Who can't take responsibility and blame others in case their bitcoins get lost (exchanges).
First type of people know that security matters and they value it while second type of people - no, they want security but don't value it and risk.

My strategy to secure bitcoins is that I create another secure (let's call it places) and all of these place contains my keys and etc. But it's not like ABC, they are still more secured and these are the things that only I know.

[old fart]

This shouldn't even be up for debate, security should be first thing in mind when it is a matter of funds. The best way to secure your funds is by putting them under your own control. This is why I tell people to avoid storing tokens on exchanges. Always use a non-custodial wallet to store your coins.

[Kurokonobasuke]

As we can see crypto is a digital money that can only transact with online transactions. As we notice “it’s a digital money” so that it is intangible and cannot be touch once we convert our physical money into digital money. Once our money is a virtual money we are not 100% responsible on it because the platform that we trusted has also and access onto your money. You cannot manipulate it at 100%. In choosing our trusted digital coin platform we need to review well their rights or is it legal platform because when we hurried to use those platform, we can’t fully checked their platforms if it is legit or just a scammer.

[imstillthebest]

As we can see crypto is a digital money that can only transact with online transactions. As we notice “it’s a digital money” so that it is intangible and cannot be touch once we convert our physical money into digital money. Once our money is a virtual money we are not 100% responsible on it because the platform that we trusted has also and access onto your money. You cannot manipulate it at 100%. In choosing our trusted digital coin platform we need to review well their rights or is it legal platform because when we hurried to use those platform, we can’t fully checked their platforms if it is legit or just a scammer.

 there are legit platforms but some of them control your funds . what if they got hacked or anything bad happen to them one  day ? you wont know if they will still refund you  . this why its better to store funds that allows you have your private keys  .

 you can still print those keys or seeds and you can keep them physically   . security really does matter not just on crypto but also on anything that we do because we dont want to loose our money    . not unless if you are careless that you just want to donate your money to someone else  

[Taskford]

As we can see crypto is a digital money that can only transact with online transactions. As we notice “it’s a digital money” so that it is intangible and cannot be touch once we convert our physical money into digital money. Once our money is a virtual money we are not 100% responsible on it because the platform that we trusted has also and access onto your money. You cannot manipulate it at 100%. In choosing our trusted digital coin platform we need to review well their rights or is it legal platform because when we hurried to use those platform, we can’t fully checked their platforms if it is legit or just a scammer.

 there are legit platforms but some of them control your funds . what if they got hacked or anything bad happen to them one  day ? you wont know if they will still refund you  . this why its better to store funds that allows you have your private keys  .

 you can still print those keys or seeds and you can keep them physically   . security really does matter not just on crypto but also on anything that we do because we dont want to loose our money    . not unless if you are careless that you just want to donate your money to someone else  

If they get hack you will also at lose but if they refund their user well that's cool for the platform to offer but I guess there's only less platform doing this that's why we need to be careful on where we are putting our money since its always at risk especially if we are putting it on un safe platforms here.