Centralized and kyc platforms can pose risks in the future

[Oshosondy]

I believe this is not only happening in my country but in all other countries, we need to be very careful before we will become criminal's targets. There are many ways criminals are thinking about ways they want to steal from us, physical harm can still involved. There was a case I read recently about someone saying he had trezor with him in his home when theives came but did not touch the trezor after stealing other valuable things.

Some thieves are unable to make use of people's Bank ATM cards because they are afraid of the account they will send the money to not to be traced, that is why some will have to go to ATM with the cards to withdraw some money, but there are daily limit that someone can withdraw, this can safe the victim not to lose money much.

But we are in the time of cryptocurrencies, no daily limit, we can withdraw as possible as we can as all can be withdrawn. We need to be careful with the information we are having online, be careful of exchanges that are custodial, even we must be careful of the so called information require while buying hardware wallets, find ways not to give right information that can make criminals trace your home or work place.

This is still the time most offline thieves know nothing about hardware wallet, that is why the trezor was not stolen, even the thieves can require for the pin and other necessary information needed to be able to transfer all coins on the hardware wallet. We are still lucky today to have those offline bad actors not to physically attack someone, but the day may come.

The advice is that we should try all possible ways to avoid custodial services, they are the threat that may favor thieves tomorrow. To use cryptocurrencies properly, go 100% noncustodial, also do not fill in right information while buying hardware wallets.

[Upgrade00]

I agree, being secure and private as a cryptocurrency user is very important. A lot of people assume anyone who they know is involved in crypto is earning a lot, especially when different markets start pumping and this can make those people targets

In addition to the points you made;
• Do not reveal you are into crypto, except if absolutely necessary, and never reveal how much you hold
• If you own a hardware wallet, use an extended passphrase to create an alternate address that can be used for plausible deniability should you find yourself in trouble.

[Bitcoin_Arena]

We can't totally avoid centralized exchanges especially if someone trades a lot or has a huge volume of crypto or funds to trade. With most decentralized noncustodial services, it's hard to come a cross an exchange of that caliber with high liquidity or trader with huge volume of assets, so people are eventually forced to use centralized services that have the volumes.

Sometimes even p2p exchanges can prove challenging security wise especially if offers involve meeting your trading partner to exchange the BTC for cash in hand. The person you are meeting could be malicious and just posing as a trader yet he's a thief/robber you could tell you to transfer your BTC at Gun point.

Also during transfers involving bank accounts and Electronic payment, you will still have to share some of your information with the other third party such as account number, email, name the account is registered to and some times even the location.

[Synerggy]

Ok, I have been using binance right from the start when it comes to Fiat withdrawal and KYC verification is been verified, are you saying criminals can track my address all the way from binance down to Africa? They will never get here successfully 🤣🤣🤣, their plane will crash before they reach their destination lol, that's just a joke thanks for sharing the warning, the best we can do is get used to P2P strategy and that's what I'm using on binance exchange right now and also stay low-key cos we don't know who is watching

[Refrumatrix]

Where I'm from people look at me like am crazy when I talk about crypto, they don't even believe one can make any good amount of money out of it, till date most people believe it's Ponzi scheme like MMM and others so people here don't care, if you talk about voodooizm and rituals then you are on point since they believe this is the only way to be a billionaire nowadays, different stores for different countries mate

[o_e_l_e_o]

Sometimes even p2p exchanges can prove challenging security wise especially if offers involve meeting your trading partner to exchange the BTC for cash in hand. The person you are meeting could be malicious and just posing as a trader yet he's a thief/robber you could tell you to transfer your BTC at Gun point.

Meet in the middle of the day somewhere very public and maybe with good CCTV coverage, such as a large shopping mall or travel hub such as an airport. Only trade with people with lots of positive feedback, or trade with the same person over time to build up trust. Bring a friend with you, and bring your own means of self defense if legal in your country. Leave extra cash, BTC, and valuables at home - only bring with you what you are going to trade.

Anyone on the street could be a thief waiting to mug you a gun point. You can trade cash in person very safely if you take some basic precuations.

Ok, I have been using binance right from the start when it comes to Fiat withdrawal and KYC verification is been verified, are you saying criminals can track my address all the way from binance down to Africa?

Yes. Binance have previously been hacked for KYC information. If you were one of the unlucky ones, then not only has your real name and address been linked to the fact you own a verified Binance account and therefore you own crypto and are a prime target for muggers, but also your personal documents are probably now being sold on the dark web and you could end up with your identity being stolen.

KYC is always a risk.

[20kevin20]

Anything that is currently on the internet can pose risks in the future. Any account you have today might be compromised tomorrow. Therefore, it is a very good practice to use separate false personal information and passwords for every account you own. This way, your accounts cannot be linked together by name or passwords in case one of these are leaked, nor can your personal identity be linked to those.

Use temporary emails as often as possible for accounts you only need temporarily. Perhaps you could use a different e-mail for every domain you have activity in. Need to create a Binance account? Create a new e-mail for it, separate from your personal one. The less information there is online about you, the better. Once KYC is completed, nobody can ensure you that your information will ever disappear of the web. It's a web - information gets caught in it and it's quite hard to take it off.

[joniboini]

also do not fill in right information while buying hardware wallets.

How will you receive your package then? I don't think this is a good idea. Maybe you want to say that users should use an address or po box dedicated for delivery instead? As far as I can remember this is one of the solutions that was discussed when the Ledger leak happen.

[Stanlo]

Sometimes even p2p exchanges can prove challenging security wise especially if offers involve meeting your trading partner to exchange the BTC for cash in hand. The person you are meeting could be malicious and just posing as a trader yet he's a thief/robber you could tell you to transfer your BTC at Gun point.

Meet in the middle of the day somewhere very public and maybe with good CCTV coverage, such as a large shopping mall or travel hub such as an airport. Only trade with people with lots of positive feedback, or trade with the same person over time to build up trust. Bring a friend with you, and bring your own means of self defense if legal in your country. Leave extra cash, BTC, and valuables at home - only bring with you what you are going to trade.

Anyone on the street could be a thief waiting to mug you a gun point. You can trade cash in person very safely if you take some basic precuations.

Ok, I have been using binance right from the start when it comes to Fiat withdrawal and KYC verification is been verified, are you saying criminals can track my address all the way from binance down to Africa?

Yes. Binance have previously been hacked for KYC information. If you were one of the unlucky ones, then not only has your real name and address been linked to the fact you own a verified Binance account and therefore you own crypto and are a prime target for muggers, but also your personal documents are probably now being sold on the dark web and you could end up with your identity being stolen.

KYC is always a risk.

Many people keeps talking about the risks involved with KYC but it's the only way to swap your crypto to Fiat, it's not as if Fiat is eradicated already and all store and markets in the world are using crypto as means of exchanges, you can't do with Fiat when it comes to daily needs and life responsibility

[isaac_clarke22]

~

It would be hard as well to find social circles or community that trade cryptos. I tried to find one in Facebook and most of the Facebook Groups I joined were mostly just promoting ponzis that aren't even crypto-related, just like a dead group page.
Only thing I could think to personally buy and sell coins especially Bitcoin without KYC is through ATMs though some still require government issued IDs and it could be quite rare to find one especially in the 3rd world countries.

[o_e_l_e_o]

Many people keeps talking about the risks involved with KYC but it's the only way to swap your crypto to Fiat

No, it isn't. There are plenty of platforms designed to enable decentralized peer to peer trading, which allow you to sell your bitcoin or other crypto for a fiat of your choosing using a method of your choosing (cash, bank transfer, money order, PayPal, Perfect Money, Zelle, AdvCash, etc.) Bisq, LocalCryptos, and Hodl Hodl are the most popular such platforms. You can also find people on this forum who are willing to trade, or at local bitcoin meet ups or events.

it's not as if Fiat is eradicated already and all store and markets in the world are using crypto as means of exchanges, you can't do with Fiat when it comes to daily needs and life responsibility

Sure, it is difficult (but not impossible) to live on crypto, but you can spend it in a lot of places if you just go looking for them. The easiest method is to use a gift card site (list here: https://bitcointalk.org/index.php?topic=5208530) to buy gift cards for your chosen retailer. That way, you can shop at Amazon, Ebay, Walmart, CVS, and other big retailers, all without having to complete KYC.

[cryptoaddictchie]

The person you are meeting could be malicious and just posing as a trader yet he's a thief/robber you could tell you to transfer your BTC at Gun point.

This is kinda worse. But what is realistic happening is the money on p2p exchange used has been involved in money laundering. Now you are the one receiving the money and of course you'll end up being investigated and possible locked of your bank account if the money paid or used was proven came from scam or malicious activity.

I've witnessed this before happening on some of our local users.

[Lucius]

The advice is that we should try all possible ways to avoid custodial services, they are the threat that may favor thieves tomorrow. To use cryptocurrencies properly, go 100% noncustodial, also do not fill in right information while buying hardware wallets.

This is a challenge that most people are not up to, some because they simply do not know that there are alternatives (DEX - Decentralized crypto exchanges or P2P markets), and others for whom privacy and protection of personal data is not a priority in life. In addition, people generally equate crypto exchanges with banks, and therefore think that there are insurance mechanisms in what they consider crypto banks. Living in the belief “my crypto and my data are safe” is certainly very enjoyable until something bad happens.

The real problem is that most of those who collect user data (not just related to crypto) have an almost amateurish attitude to the security of that data - and that just shows that they don't care too much about their customers. All of these companies should be forced to raise security measures to the maximum in order to prevent data leaks - and the only way for them to take this seriously is extremely high fines in the event that such things happen to them.

[o_e_l_e_o]

But what is realistic happening is the money on p2p exchange used has been involved in money laundering.

Any data to back up that statement? Or is that just a guess? Just because someone cares about their privacy does not mean they are doing anything illegal.

Now you are the one receiving the money and of course you'll end up being investigated and possible locked of your bank account if the money paid or used was proven came from scam or malicious activity.

I have traded exclusively peer to peer for years and have never once been investigated or had any problems whatsoever. If this is a concern of yours, then either only trade with people who have lots of positive feedback, or only trade in cash or similar and avoid direct bank transfers.

Still, you'll face much worse than a locked bank account (such as a criminal record and being liable for tens of thousands of dollars of credit and loans you didn't take out) when your KYC data is leaked, hacked, or sold and your identity is stolen.

[cryptoaddictchie]

Any data to back up that statement? Or is that just a guess? Just because someone cares about their privacy does not mean they are doing anything illegal.

Yes but I am looking for it. There is a local user on our boards posted his experience with it. His bank account got locked cause he got a transaction with someone who has involved on malicious activity so he got investigated too. That's what I remember, I just forget this user name and the thread in particular.

If this is a concern of yours, then either only trade with people who have lots of positive feedback, or only trade in cash or similar and avoid direct bank transfers.

Yeah that's what I do or at least limiting my transaction to those who are verified and somehow trusted by most. I wanted to try peer to peer but of course Binance p2p is way convenient if you are in need of cash.

[CryptocurencyKing]

but there are daily limit that someone can withdraw, this can safe the victim not to lose money much.

But we are in the time of cryptocurrencies, no daily limit, we can withdraw as possible as we can as all can be withdrawn. We need to be careful with the information we are having online, be careful of exchanges that are custodial, even we must be careful of the so called information require while buying hardware wallets, find ways not to give right information that can make criminals trace your home or work place.

So you can see at times that the solution can also pose some sort of a problem! Where the freewill to transact as you wish could be harmful in the sense that, should a scammer or hacker with the know how get your privacy details and with the fact that, there is no daily limitation to how much that can be transfered within the day, with one swipe, one can be left with nothing. Too bad but, its actually one of the distinguishing factor between traditional banking system and the cryptocurrency blockchain system.

On the internet, no where could be entirely safe. The know how might not have been discovered yet but in time, it will. Thats why there is a need for regular checks by platform prgrammers, updates on prevailing circumstances and for us to be mindful of what details we put out on the web.

[o_e_l_e_o]

I wanted to try peer to peer but of course Binance p2p is way convenient if you are in need of cash.

I don't understand what appeals to people about Binance P2P at all. It is all the worst bits of peer to peer trading, in that it isn't as fast as a centralized exchange, combined with all the worst bits of a centralized exchange, in that you have to complete KYC, give up custody of your coins, give up your security, and give up your privacy. If you are happy sacrificing all that, then why not just use a centralized exchange?

Where the freewill to transact as you wish could be harmful in the sense that, should a scammer or hacker with the know how get your privacy details and with the fact that, there is no daily limitation to how much that can be transfered within the day, with one swipe, one can be left with nothing.

Nobody should be relying on that as protection for their coins. Your accounts should be secured with long, random, and unique passwords, and should all have 2FA enabled, preferably from a hardware key but at a minimum from a 2FA app on a separate device and never from email or SMS. Even better, none of your coins should be stored long term on an exchange, service, or web wallet, but rather withdrawn to your own wallet for safe keeping.

[cryptoaddictchie]

I don't understand what appeals to people about Binance P2P at all. It is all the worst bits of peer to peer trading, in that it isn't as fast as a centralized exchange, combined with all the worst bits of a centralized exchange, in that you have to complete KYC, give up custody of your coins, give up your security, and give up your privacy. If you are happy sacrificing all that, then why not just use a centralized exchange?

Binance is a centralized exchange, its p2p is just another product or feature. For convenience isnt bad for us cause example in our country you can easily get the payment to your bank account and or remmitance supported in our country. Let say, I will only use peer to peer, its possible but it's gonna be hassle when no one can transact to you at the time you needed it.

Perhaps you have plenty of time to do actual peer to peer. Is there a dex that supported an easy money to my bank account? If you can give me I'll use it instead.

Lots of user here belongs to our country are probably all using that. I'm sure of it more than 90% and above.

[cabron]

Ok, I have been using binance right from the start when it comes to Fiat withdrawal and KYC verification is been verified, are you saying criminals can track my address all the way from binance down to Africa?

Yes. Binance have previously been hacked for KYC information. If you were one of the unlucky ones, then not only has your real name and address been linked to the fact you own a verified Binance account and therefore you own crypto and are a prime target for muggers, but also your personal documents are probably now being sold on the dark web and you could end up with your identity being stolen.

KYC is always a risk.

Many people keeps talking about the risks involved with KYC but it's the only way to swap your crypto to Fiat, it's not as if Fiat is eradicated already and all store and markets in the world are using crypto as means of exchanges, you can't do with Fiat when it comes to daily needs and life responsibility
[/quote]

If the hacker got our info, then there could be the possibility of this going to happen. When they have the intention of getting some money from the easy target, they could do it, especially if you live in a vulnerable spot. I could be a target.

Although I really don't have a lot of coins, it's more alarming because if they can't get the coins they expect from me, they might sodomize my ass.

[o_e_l_e_o]

example in our country you can easily get the payment to your bank account and or remmitance supported in our country.

In your country, is it easier to receive a bank transfer from another person peer to peer than it is to process a bank transfer withdrawal from Binance's standard exchange?

Let say, I will only use peer to peer, its possible but it's gonna be hassle when no one can transact to you at the time you needed it.

That's kind of my point. Peer to peer has some obvious down sides, the main one being speed, but some people (myself included) accept these down sides for the considerable upsides of better security and better privacy than using a centralized exchange. If you are going to give up your security and privacy anyway by using a centralized platform such as Binance, then peer to peer brings very little benefit, so why not just use Binance's standard exchange?

Is there a dex that supported an easy money to my bank account? If you can give me I'll use it instead.

It's not really the case of a DEX supporting bank transfers, but rather the individual traders on that DEX. I predominantly use Bisq.