Data safety on Centralized exchanges

[bountylayomi]

I think all these exchanges and other organizations should value more of the users' data and secure it by all means. Do we say they don't know what to do or how to go about it?
Thanks to project like https://bluzelle.com helping firms to safeguard their users data using the blockchain technology.
It's high time users data is being given priority to in the context of security!

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[nykka]

I don`t think really big exchanges have so weak safety level, but sometimes they can`t defend from hackers attacks and many people lose their data. Of course, centralized exchnages are not safe, but I don`t think they don`t have it at all. They always try to improve their protection to avoid hacks, because their reputation depends on it

[n0ne]

With every centralized services we're accepting a long list of terms and conditions. Within that everything gets included. Once after getting exposed, if we go for a claim we'll be described about some specific terms created for the arise of such issues. Data safety is important, and in the growing techn world it is possible, but human errors are inevitable. Firms won't do it in purpose, but at times it happens. Quite often we can see this commonly taking place with different networks.

[Rengga Jati]

This is one of the things that we always worry about when doing KYC anywhere, even at local exchanges where they have registered the legality and securities of the data we provide under the law. However, take a look at what the @bitmover:

-They can sell your data.
-They can share your data with their partners, who can do anything they want with it.
-They can be hacked, like ledger was.

Whether it's intentional or accidental, isn't it the same if our data is lost or exposed? still, this is related to the loss of our privacy. Meanwhile, in this case, we need privacy and it is unfortunate that the KYC system always endangers its users.
Maybe just with KYC using email without ID or a photo of ourselves, we still have a way to use our backup email. However, if it's KYC with our ID and photo, then this is the dangerous one.

[goaldigger]

You still think that your data is save on Centralized exchanges? Think again, today australian crypto exchange accidentally expose users information, over 270,000 customers data is exposed, what kinda mistake is this anyways?

https://ia.acs.org.au/article/2020/australian-crypto-exchange-exposes-emails.html

As if we have more choices and we have to accept this fact because its happening around the world and not just on cryptomarket. Even facebook made a huge mistake on this one and I’m sure google is also doing the same thing exposing our identity to others, even banks of course so don’t panic and make a less exposure as much as possible.

[wowz2010]

You still think that your data is save on Centralized exchanges? Think again, today australian crypto exchange accidentally expose users information, over 270,000 customers data is exposed, what kinda mistake is this anyways?

I mean, yeah it can happen with practically any centralized service out there, not only crypto related.
Thats why one wants to use decentralized services and prefer it in every possible way.

[mersal]

You still think that your data is save on Centralized exchanges? Think again, today australian crypto exchange accidentally expose users information, over 270,000 customers data is exposed, what kinda mistake is this anyways?

https://ia.acs.org.au/article/2020/australian-crypto-exchange-exposes-emails.html

No data is safe when it gets uploaded on the network servers so crypto exchanges are not an exception to this. If you never want to share your personal details on the internet then you shouldn't be using an services which asks for personal details and source of income like details then you can have your privacy to some extent.

[CryptoTech_]

No one guarantees that our data is in a centralized exchange, or any platform on the internet "SAFE", every platform on the internet must have its own weaknesses, it could be hacked.
Or what is worse could be that the platform owner sells his user data for personal gain.

[hd49728]

It is very traditional story when we are talking about exchanges. People pay most of their attention on profit and store their crypto on exchanges. They don't care or pay very little attention on non-custodial wallets to save their cryptocurrencies.

Some people are careless as they store their 2FA activation codes, private keys, mnemonic seeds on online services. They think those companies are Google (Google Drive), Dropbox, Microsoft (Azzure) and thought the storage platforms they used can save them. Any serious things need to be backed-up have to be done offline.

Data breach, email breach, hacks only wait for carelessness and chances to attack us. Be cautious and be careful when you are in crypto and online. Protect your devices, secure your accounts, save your backups.

[bluebit25]

You still think that your data is save on Centralized exchanges? Think again, today australian crypto exchange accidentally expose users information, over 270,000 customers data is exposed, what kinda mistake is this anyways?

https://ia.acs.org.au/article/2020/australian-crypto-exchange-exposes-emails.html

Even binance has been involved in controversy about this problem. There is no guarantee that Centralized exchanges are absolutely secure, except for stolen personal information your property can also be lost, but for Centralized exchanges you will also receive benefits and policies which the DEX doesn't have.

[alexforneus]

There are already too much of reasons to not store your money on the exchange if you are not a trader

[Tallylat]

this due to carelessness on the path of the exchange management. management has the responsibility of protecting users' documents. but this does not mean all CEX are nonchalant with users' document.

[PerfectCircle]

Why would anyone trust centralized exchanges with their data? If you don't know you should, the law and government have the power to ask any centralized platforms for their users information and thy have to abide, it's the whole idea why decentralized platforms should be the right place to be but unfortunately centralized platforms better forcing many and myself to stick with CEX

[Ucy]

I guess the exposure was a mistake by the company rather than a hack? Thought they should be deleting customers private identities, or at least hide them somewhere until they are needed by the authority for what they where collected for. Unfortunately, it's hard to trust the centralized exchanges/platforms to keep people's private data safe

[SaRmY]

I have already understood that for large companies we are human beings. It has long been proven that Facebook and Google sell user data. Or use them for their own purposes. But do not forget the human factor happens everywhere. Such a mistake has fully taken place.


Therefore, decentralized exchanges will develop. Perhaps this is a decentralized revaluation.

[Stanlo]

It's not a must to share your data with centralized exchanges, I'd have advice you to start using DEX but we all know that DEX can't meet up with the advantages of Centralized exchanges, there are few top Centralized exchanges that allows trading and withdrawal with no KYC verifications like binance and huobi, there is only limits per withdrawal in 24hrs and that's cool enough, this is what I do as I can't share my data or use DEX

Despite it's quite possible to use the withdraw margine set for non verified users, it's still not that safe. The can freeze your balance at any time and start asking for KYC (maybe a deep one). Everyone should be responsible for his choice, so either you chose centralised exchanges with real identity or enjoy less features with decentralised exchanges.

There is one thing called reputation in crypto space and it's very important for any project that wants to take their platform to a higher level that's why you can never see binance exchange going back on their words, limits are been put on withdrawal for those who don't want to go through any verifications to avoid illegal fundings, forcing KYC on users is ruining their reputations unless the user try cheating the system

[taufik0911]

no system is completely secure, all systems have loopholes so you have to be really careful to store your assets in exchanges or centralized wallets even though it helps you to collect various assets in one wallet but it is very risky
This is my suggestion that you better store your assets in your own wallet, not in a centralized wallet

[firmino10]

When you consent to the terms and conditions of those CEX, at that point expect that your own data isn't protected any longer since I accept they are selling without your permission. That isn't a slip-up, that is the evidence that we are undependable and better believe it, this is the danger we ought to consistently consider

[Kavelj22]

It's not a must to share your data with centralized exchanges, I'd have advice you to start using DEX but we all know that DEX can't meet up with the advantages of Centralized exchanges, there are few top Centralized exchanges that allows trading and withdrawal with no KYC verifications like binance and huobi, there is only limits per withdrawal in 24hrs and that's cool enough, this is what I do as I can't share my data or use DEX

Despite it's quite possible to use the withdraw margine set for non verified users, it's still not that safe. The can freeze your balance at any time and start asking for KYC (maybe a deep one). Everyone should be responsible for his choice, so either you chose centralised exchanges with real identity or enjoy less features with decentralised exchanges.

There is one thing called reputation in crypto space and it's very important for any project that wants to take their platform to a higher level that's why you can never see binance exchange going back on their words, limits are been put on withdrawal for those who don't want to go through any verifications to avoid illegal fundings, forcing KYC on users is ruining their reputations unless the user try cheating the system

I well understand your point but let me give you this nice example:
daily withdraw limit for non-verified users in Kucoin is  btc, and as i can remember it's 2 btc in binance.
2-5 btc daily is also a big money and in their TOS the platform has the right to suspend withdrawals for any user even just by suspection especially if find someone reaching the daily withdraw limit everyday; in simple words, if you want to lunder 20 btc then just split it into 4 and use Kucoin to withdraw 5 btc everyday.
That's how i think we shouldn't use centralised exchanges if we are not ready to go with KYC procedure.

[Debonaire217]

It's an exchange, and it is centralized so what should we expect? There's no system that is safe except those that are decentralized and audited many times. The problem is just that if the decentralized exchange encountered an error, it will be hard to fix as there will be no one guide or contact except the developer of the platform. But since it is decentralized, the developer basically doesn't have the responsibility to supervise each and every user. Meaning, use the system at their risk.

Going back, Centralized exchange has a feature that could help the users to somehow regulate their accounts, but this is the downside, their personal data needs to be collected and if there's a massive breach, it could be exposed.