Why Security in Crypto Matters?

[carlfebz2]

COMMONSENSE!
This is the main thing for you to protect something which is valuable to you.If you do give out importance of it then
you would be that sensible enough to seek out ways on how to secure and continue to learn on whats the new way of
scamming or security vulnerabilities.Make yourself updated and do act on whats the best to secure your holding.
Just like on what youve been doing on keeping your wallet into your pocket. 

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[pankaj1234]

Not in crypto ,you have to get security in every aspect of life. Without security you can loose what you earned with hard work. In Cryptocurrencies you have to secure your fund because people has earned this Cryptocurrencies with lots of afford.some people invested their hard work money for life to make better. If they not secured this, they can loose their crypto by hackers.
So play smartly be safe.

[Ronaktejani]

Obviously it matters.
It matters everywhere from banking transactions to crypto money transfer. Bcoz one mistake or wrong detail could be result of losing your all wealth health n happiness. You will lose all your money, your girlfriend , your party holic friends😀😀🤣
So, it does matters.
So, better to protect and use it by 2factor google or other Authenticator , use good exchanges, private key 12-15 words written in blank paper and put it in a locker.
Thanks. 👍🏻👍🏻

[eulaellison]

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?

I have 2 choices when storing assets on an exchange

1) First, if the crypto exchange stores the assets of the trader in a centralized storage, then the exchange must return the assets of the trader if one day the storage has hacked and stolen,
of course exchanges like this have a clear team and have certificates from neraga

2) secondly, a decentralized exchange, which stores assets in centralized storage, if the storage is hacked and stolen then the exchange will not return traders' assets, I will not store assets on an exchange like this

[o_e_l_e_o]

First, if the crypto exchange stores the assets of the trader in a centralized storage, then the exchange must return the assets of the trader if one day the storage has hacked and stolen

There is absolutely no guarantee of this happening. Some of the larger exchanges which have been hacked in the past have indeed used some of their profits to reimbursed the affected customers or to absorb the losses, but there is absolutely nothing to say they "must" do this, and there are countless examples of exchanges being hacked and either shutting down/going bankrupt, or simply saying "tough luck" to their users. This is also only a consideration in the exchange themselves are hacked. If your account is hacked and your wallets cleared out, no exchange in existence will refund your money.

secondly, a decentralized exchange, which stores assets in centralized storage, if the storage is hacked and stolen then the exchange will not return traders' assets, I will not store assets on an exchange like this

If they call themselves decentralized, but they hold your coins in their wallets with complete control over your private keys, then they are lying. That is not decentralized.

There is no safe way to store your coins on an exchange. If you want your coins to be secure, you must withdraw them and hold them in your own wallet.

[eulaellison]

First, if the crypto exchange stores the assets of the trader in a centralized storage, then the exchange must return the assets of the trader if one day the storage has hacked and stolen

There is absolutely no guarantee of this happening. Some of the larger exchanges which have been hacked in the past have indeed used some of their profits to reimbursed the affected customers or to absorb the losses, but there is absolutely nothing to say they "must" do this, and there are countless examples of exchanges being hacked and either shutting down/going bankrupt, or simply saying "tough luck" to their users. This is also only a consideration in the exchange themselves are hacked. If your account is hacked and your wallets cleared out, no exchange in existence will refund your money.

I thought there would be an exchange that would return the merchant's assets if the exchange wallet was hacked,

apparently I was wrong, they were 100% unable to return the assets of the trader because all trader assets were stored centrally and if this storage was successfully hacked then all assets would be lost,
Hi sir, may I ask? whether market profits are stored in different purses so that they can return a small amount of the assets of the trader

secondly, a decentralized exchange, which stores assets in centralized storage, if the storage is hacked and stolen then the exchange will not return traders' assets, I will not store assets on an exchange like this

If they call themselves decentralized, but they hold your coins in their wallets with complete control over your private keys, then they are lying. That is not decentralized.

There is no safe way to store your coins on an exchange. If you want your coins to be secure, you must withdraw them and hold them in your own wallet.

sir this advice and information is useful for newbie like me thank you so much

[o_e_l_e_o]

I thought there would be an exchange that would return the merchant's assets if the exchange wallet was hacked,

There are. For example, when Binance was hacked for 7,000 BTC, they used their profits over the coming months to refund all the affected users so no one lost any money. However, there have been plenty of exchanges which have been hacked (or claimed they were hacked and more likely exit scammed) and not refunded their users anything - MtGox losing 850,000 BTC is the most famous example, but there have been plenty of others such as Quadriga, Cryptopia, and BitGrail.

whether market profits are stored in different purses so that they can return a small amount of the assets of the trader

Depends on the exchange, and no two exchanges will have the exact same set up in terms of number or types of wallets or types of security. In general, most exchanges have one or more central hot wallets which customers deposit funds to, which consolidate all deposits together, and which pay out withdrawals. They will also have one or more cold wallets which will serve as longer term storage for the majority of their funds, and they will move funds between the hot and cold wallets as necessary.

[eulaellison]

I thought there would be an exchange that would return the merchant's assets if the exchange wallet was hacked,

There are. For example, when Binance was hacked for 7,000 BTC, they used their profits over the coming months to refund all the affected users so no one lost any money. However, there have been plenty of exchanges which have been hacked (or claimed they were hacked and more likely exit scammed) and not refunded their users anything - MtGox losing 850,000 BTC is the most famous example, but there have been plenty of others such as Quadriga, Cryptopia, and BitGrail.

I am very surprised to hear the Binance Market can be hacked, I think the binance market is the market number 1 largest of the top 10 best crypto markets in coinmarketcap to be completely safe from hackers. apparently that's not true

Sir, if like this, is it true that the best and most popular markets do not guarantee the security of traders' assets stored in the crypto market

whether market profits are stored in different purses so that they can return a small amount of the assets of the trader

Depends on the exchange, and no two exchanges will have the exact same set up in terms of number or types of wallets or types of security. In general, most exchanges have one or more central hot wallets which customers deposit funds to, which consolidate all deposits together, and which pay out withdrawals. They will also have one or more cold wallets which will serve as longer term storage for the majority of their funds, and they will move funds between the hot and cold wallets as necessary.

oh like that, now I understand, and I don't have any more questions about this, thank you very much, sir

[o_e_l_e_o]

I am very surprised to hear the Binance Market can be hacked

The hack I referred to above took place on May 7th last year for slightly more than 7,000 BTC. You can read more about it here: https://binance.zendesk.com/hc/en-us/articles/360028031711-Binance-Security-Breach-Update
They were also hacked on August 7th last year, this time not for coins, but for a bunch of their customers' KYC data and documents: https://www.binance.com/en/blog/371631019142385664/Update--Action-Response-ThirdParty-Vendor-KYC-Matter

I think the binance market is the market number 1 largest of the top 10 best crypto markets in coinmarketcap to be completely safe from hackers.

There is no such thing as "completely safe" from hackers. Every exchange and every wallet has the potential to be hacked, but storing bitcoin on an exhange (regardless of how reputable you think it is) carries a significantly higher risk of losing your coins than storing them securely on your own wallet.

[pragna]

Everything is okey that i have to save my private keys so that i can save my wealth but one problem is that if i am a trader i must have to keep my coins into exchanges for batter rates but when exchanges hacked what can i do then? On the other hand if i save my coins only my wallet i can not gain batter profit because good rate never come to me in time that i can sell coins instant.

So basically i have to use third party exchange must and if it hack nothing to do. Here i must say exchanges must secure their exchanges wallet or web security system so that they may earn money as well as mine.

[Sadlife]

But the problem with these is in order to trade you need to deposit a big amount of Crypto in order to make profits and even if you have manage to make your money double or triple. There's a problem that you must withdraw immediately in case a big hack or something like Bitmex happens where they manipulate the volume and rekt every traders money.

The best way in my opinion is to dont keep your money in one place.

[Ridwan Fauzi]

The best way in my opinion is to dont keep your money in one place.

It would be wrong too if you make a lot of wallet in some exchanges and you use the same password and etc then you are being hacked at the end, finally your asset is lose.

I think this is depend on someone purpose, if they are a trader then they have to spend money that they afford to lose, be it losing his money because he doesn't have a good strategy or he loses money because being hacked.

And two if their intention to buy some coins for long term investment, just use cold wallet. It is the safest way AFAIK rather choosing an exchange who considered as reputable exchange, it will be useless. You'll never be comfortable for it, you'll always worried to your asset. But you choose cold wallet you just need yourself to keep it.

[ethereumhunter]

The best strategy to secure our coins does not keep the coins at the exchange for a long time because we don't know if they can online for a long time or not. It is better you keep your coins in a separate wallet, and you can use so many wallets available for each coin you have. But you can also you multi wallet which can keep many altcoins together at once, and that can help you to have so many wallets in one device. If you still want to keep your coins at the exchange, make sure you activate all of the protection that available on that exchange so at least, you can prevent from the hackers that trying to break your account.

[JasonBriggs]

I`m partially new on this topic, but I think that any funds that you intend to use virtually should be protected better than physical money. And if you send it somewhere, it should be your own responsibility. Maybe in future we will be able to create our own wallet systems lol.

[o_e_l_e_o]

It would be wrong too if you make a lot of wallet in some exchanges and you use the same password and etc

You shouldn't be using the same passwords on any two sites or services, and certainly not on sites or services dealing with your money or personal information. Use a password manager such as KeePass to generate and store long and random unique passwords for each site. You should also be using 2FA with an open source authenticator app such as Authy or Aegis on all exchanges.

But you can also you multi wallet which can keep many altcoins together at once, and that can help you to have so many wallets in one device.

Most (all?) multi-coin wallets are closed source, and so should be avoided, but having said that, most altcoins are trash and should also be avoided. If you are intent on keeping a variety of useless coins, then at least invest in a hardware wallet to store them securely.

Maybe in future we will be able to create our own wallet systems lol.

Not sure what you mean by this? It is not only possible but highly recommended to create your own wallet and store your coins yourself, rather than relying on third party to store them for you.

[Jating]

I`m partially new on this topic, but I think that any funds that you intend to use virtually should be protected better than physical money. And if you send it somewhere, it should be your own responsibility. Maybe in future we will be able to create our own wallet systems lol.

That's why we have our old adage here: "Not your keys, not your coins'. So if you deposited your coins to an exchanges then you relinquished everything to them as they have now the full control over it. Well sending is very easy, you just have to get the senders btc address, but what goes after sending it to the exchanges is very different.

Although exchanges truly do their best to up and tempo and their security against those criminals. But usually criminals are like two steps of the game. Billions and billions worth of coins have been hacked and i seems that we are very helpless against this criminals. So we should be very careful, educate ourselves first on how to protect our assets, like 2FA, good email practices etc.

[o_e_l_e_o]

So we should be very careful, educate ourselves first on how to protect our assets, like 2FA, good email practices etc.

You are right, of course, but there is only so much you can do to protect yourself if you hold your coins on an exchange or web wallet, and even the most careful and secure exchange or web wallet user is still exposed to exponentially greater risk than if they held their coins themselves. Using a unique email address with a long and random password, a different long and random password for the exchange, (both generated by an open source password manager), a secure 2FA method for both logging in and making any trades or withdrawals, ensuring your computer is absolutely free from malware, ensuring your internet connection is secure, etc., etc., will protect your individual account from being hacked. But there is absolutely nothing you can do to protect yourself from the exchange exit scamming, going bankrupt, shutting down, making a mistake with their security, compromising their own keys, losing access to their wallets, having their servers or wallets hacked, having malicious employees steal your funds, and the list goes on.

The only way to mitigate these risks is to not hold your coins on an exchange or web wallet at all.

[tukagero]

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.

i also do these things in order to keep my money safe, exchanges are still not safe in storing funds, its still up to us to protect our funds, we must be careful in every way cause our money is always at risk.

[Jating]

So we should be very careful, educate ourselves first on how to protect our assets, like 2FA, good email practices etc.

You are right, of course, but there is only so much you can do to protect yourself if you hold your coins on an exchange or web wallet, and even the most careful and secure exchange or web wallet user is still exposed to exponentially greater risk than if they held their coins themselves. Using a unique email address with a long and random password, a different long and random password for the exchange, (both generated by an open source password manager), a secure 2FA method for both logging in and making any trades or withdrawals, ensuring your computer is absolutely free from malware, ensuring your internet connection is secure, etc., etc., will protect your individual account from being hacked. But there is absolutely nothing you can do to protect yourself from the exchange exit scamming, going bankrupt, shutting down, making a mistake with their security, compromising their own keys, losing access to their wallets, having their servers or wallets hacked, having malicious employees steal your funds, and the list goes on.

The only way to mitigate these risks is to not hold your coins on an exchange or web wallet at all.

Right, holding coins is not really a good practice as we have heard horror stories of crypto investors leaving huge amount of money to the tune of five to six figures in an exchange and the next day, it was either hack or pull an exit scam. I wouldn't put myself on that position either.

Yes, you can play and trade on an exchange, but you can't really say that you are secured there, with so many ways to get your money lost as you have mentioned. Moved your funds right away to a wallet that you have control or better yet, a hardware wallet.

[Timmzzy]

Without saying much, or prolonged this question, have you ever wondered why you need secure your funds in bank. I believe you don't just worked hard for it and at the end of every savings you have made an outsider will just wipe off everything. So definitely security in crypto-currency really matters alot.