are crypto owners naturally paranoid?

[Woodie]

It seems to me that it would be safer (and more convenient) to keep your crypto on an exchange (coinbase, blockfi etc) than cold wallet.

In terms of security i dont think so, you are better off keeping coins on a wallet you have access and control of the private keys. Btw Coinbase does not give you this access but they advantage you would have on these platforms over a cold wallet is the ease to sell your coins for fiat or exchange them for a stable coin which is us pegged.,

Wouldn't the odds be greater that you mess up your cold storage than a large exchange being hacked or whatever (even if they are hacked, that wouldn't necessarily mean you would lose any coins, whereas if you are hacked that's a different story). I ordered a ledger nano X but it seems that the exchanges are still the way to go based on probabilities. What are your thoughts?

Some exchanges do take it upon them to refund customers but for some the damage is too much such that the exhange is forced to close down....i guess its 50-50 which is passing the liability to the exchange.

[rodskee]

It seems to me that it would be safer (and more convenient) to keep your crypto on an exchange (coinbase, blockfi etc) than cold wallet.

if that is what you think is good and better then do it, but don't ask us to do it as yours because we knew how risky holding your coins in exchange.

if you are new here , remember Mt.Gox or at least search for that about what happened and then decide yourself.

Wouldn't the odds be greater that you mess up your cold storage than a large exchange being hacked or whatever (even if they are hacked, that wouldn't necessarily mean you would lose any coins, whereas if you are hacked that's a different story). I ordered a ledger nano X but it seems that the exchanges are still the way to go based on probabilities. What are your thoughts?

I am ok in my cold storage , i put a little part in exchange for emergency use .

[AicecreaME]

You can say that. But actually, it depends.

Crypto owners have funds and assets to secure from scam, schemes, and hacking. We can't really blame someone if they are naturally paranoid or anxious about their funds' safety or whenever they do transactions because maybe that's their way to assure himself that he will not lose anything. There were several instances that despite all the efforts of someone to make their assets secure, their assets still end up getting hacked and stolen. The basic rule of not clicking any links and putting confidential information such as email, password, and seedphrase on any website or app that pops up is one way to take care of your funds. However, take note that it isn't really enough to safeguard your assets from possible disaster. Hence, most crypto users use hardware wallet which has a 2FA feature that they could use to confirm every transaction they will make. Cold storage is one of the best way to protect your account from hacking. But take note that sometimes the human error also contribute to losses so despite having hardwallet, you should still always be careful. After all, hardware wallet doesn't give you a 100% immunity from hacking and scamming. Take good care of your funds because it is your duty as an owner. You don't have anyone to blame when something happens but yourself the moment you messed up.

[marilynmanson21]

Being paranoid in bitcoin ownership is natural in my opinion, especially when we put our assets in exchange for exchange, where the fear of sending from one swallow to an exchange wallet is disrupted, because lately there have been many cases of balances. pending deposits enter the exchange wallet
here what makes someone paranoid happens, the fear of our money will be lost and undetected where our money goes

[Shasha80]

Being paranoid in bitcoin ownership is natural in my opinion, especially when we put our assets in exchange for exchange, where the fear of sending from one swallow to an exchange wallet is disrupted, because lately there have been many cases of balances. pending deposits enter the exchange wallet
here what makes someone paranoid happens, the fear of our money will be lost and undetected where our money goes

Indeed, several times there have been loss of Bitcoin when sending from one exchange to another. Therefore, it is important to choose trusted
exchanges or wallets, because choosing the wrong exchanges can make our coins disappear. Even popular exchanges such as Binance have been
hacked, this has also led to paranoid among Bitcoin owners. Moreover, the volatile Bitcoin price, makes some Bitcoin owners also feel paranoid,
afraid that Bitcoin prices will fall very low. Not to mention the legality of Bitcoin that not all countries legalize Bitcoin, it also makes Bitcoin owners
paranoid. Fear of Bitcoin being banned from time to time in many countries, the conclusion is that it is natural for Bitcoin owners to be paranoid.
The most important thing is that the paranoid we experience is not excessive and can be controlled.

[Mpamaegbu]

Can exchanges be hacked? Can they get shut down or disappear?  Perhaps try asking those that had coins at MtGox.

There have also been instances where private wallets got hacked too. There have been people who also lost passphrases/private keys to their wallets too and couldn't get out their Bitcoin. Just the same way we've people complaining of hacks with exchanges, it's the same way we have it with private wallets. Even Ledger, adjudged to be safe, will also have issue once its details are compromised. To be honest, I think a lot of crypto owners are paranoid and that's unnecessarily so. If one has anything less than 100 BTC, I don't think it should pose any sleeplessness for the owner. Breaking the quantity into several electrum/blockchain/ coinomi wallets and keeping them offline should be safe enough. I've used those wallets and don't think they're that bad to use.

[Easteregg69]

Can exchanges be hacked? Can they get shut down or disappear?  Perhaps try asking those that had coins at MtGox.

There have also been instances where private wallets got hacked too. There have been people who also lost passphrases/private keys to their wallets too and couldn't get out their Bitcoin. Just the same way we've people complaining of hacks with exchanges, it's the same way we have it with private wallets. Even Ledger, adjudged to be safe, will also have issue once its details are compromised. To be honest, I think a lot of crypto owners are paranoid and that's unnecessarily so. If one has anything less than 100 BTC, I don't think it should pose any sleeplessness for the owner. Breaking the quantity into several electrum/blockchain/ coinomi wallets and keeping them offline should be safe enough. I've used those wallets and don't think they're that bad to use.

Yeah. And showing public keys on telegram not knowing better. Shock comes when you find out you are being taken advantage of.

I use the tip bot sometimes.

About the hacking. "It's always an inside job" came to no conclusion. Not talking about some demoralized old judge.

Sniping a candle is not hacking. Got you.

[n0ne]

With the available technology and security features it is possible to keep the crypto holdings in a much safer way. There is nothing to be paranoid, if you've made the holdings secured in a well planned way. Hacks are common, and for the same no need to worry that it'll happen with everyone. Rather than hacks these days phising sites resembling the original platform is the way to take control of user wallets. So, it is good that we use only the trusted link to enter any crypto platform.

[Alanaz]

being a bit more secure would be great but speaking of paranoia I think that's an overstatement.
it's true that nowadays there are lots of hacks going on and it could even be that as I'm writing about this my wallet is being targeted by bad guys who just want to get things done the dirty way.
but on the other hand we are certainly not too stupid to use a wallet that does not use security.
because it is already available and of course we already know the recommendations and the risks if this is not done.
because of most of the hacking cases that exist today the pattern is the same and this is based on the negligence of the wallet owner

[BIT-BENDER]

I don't think I would prefer storing my crypto-currency with an exchange over storing it by myself, not just about exchange being hacked, but also the an exchange can change their rules and requirements anytime and may expect you to meet up with that to the extent of confiscating or holding your crypto-currency you had put into it, also my country are attacking crypto-currency enthusiast and are well active on exchanges, with dubious schemes of confiscating the bank account of big exchanges users.

[batang_bitcoin]

It's the opposite, having your crypto assets stored on a hardware wallet is much safer than what you're thinking. I've been doing that ever since I've stepped on this market and realized that it's better to have it there than into an exchange. I'm more paranoid when I've experienced a system down to the exchange where I've stored my crypto assets and can't access it in hours. I thought that it's already gone, the life savings that I've got in crypto and that's why it taught me that it's better to hold your own crypto through hardware wallets.

[Coyster]

It seems to me that it would be safer (and more convenient) to keep your crypto on an exchange (coinbase, blockfi etc) than cold wallet. Wouldn't the odds be greater that you mess up your cold storage than a large exchange being hacked or whatever (even if they are hacked, that wouldn't necessarily mean you would lose any coins, whereas if you are hacked that's a different story). I ordered a ledger nano X but it seems that the exchanges are still the way to go based on probabilities. What are your thoughts?

My thoughts about your opinion is that you're wrong, you obviously need to do more research into these things to understand things much better, in a network were you're not meant to trust anyone, it's definitely much better to trust yourself with your funds than anyone else, including exchanges. Remember the rule of thumb that states that if it's not your keys, then it's obviously not your coins, you can't keep your funds in an exchange and obviously not have the private keys and yet feel safe, except what's in the exchange wallet is a very small amount of money.

Having said that, what you should do is learn the security protocols in the network, exactly how to keep your coins safe which is pretty easy, I've been holding my coins for years now and I have not lost anything, if exchanges gets hacked and you're affected, you're going to lose your funds, you can also 'lose' your private info to the black market, which can also be dangerous.

[Mahanton]

It's the opposite, having your crypto assets stored on a hardware wallet is much safer than what you're thinking. I've been doing that ever since I've stepped on this market and realized that it's better to have it there than into an exchange. I'm more paranoid when I've experienced a system down to the exchange where I've stored my crypto assets and can't access it in hours. I thought that it's already gone, the life savings that I've got in crypto and that's why it taught me that it's better to hold your own crypto through hardware wallets.

Being paranoid with security isnt really that bad but it turns out that you do end up on that exaggerated way or wrong kind of belief that exchange are good storage for your
coins rather than on storing it on a hardware wallet which i do totally disagree on because nothing beats out when you do store out your assets on a hardware wallet since
you do have the full control of that wallet since you do possess its keys not like when you store up on an exchange then you do really have that control
which it cant really be hacked as long no one really knows about your keys.

[TheGreatPython]

It seems to me that it would be safer (and more convenient) to keep your crypto on an exchange (coinbase, blockfi etc) than cold wallet. Wouldn't the odds be greater that you mess up your cold storage than a large exchange being hacked or whatever (even if they are hacked, that wouldn't necessarily mean you would lose any coins, whereas if you are hacked that's a different story). I ordered a ledger nano X but it seems that the exchanges are still the way to go based on probabilities. What are your thoughts?

Yes, in a way you’re kind of right. But it’s all about whether you’ll be able to manage the hardware wallet by yourself. If you'll be able to do that, then it wouldn’t be bad to have your own cold storage where you will be storing your crypto currencies and knowing that it would be safe from being hacked by anyone.

The reason why a lot of people prefer cold storage is because exchanges are usually a target for hackers, they would always go for any exchange that doesn’t have a good enough security and once they have the access, they steal the money from the exchange.

A lot of exchanges has been shut down through this means, when they lose customers’ funds they are unable to continue their business and that also results to their users losing their money as well. Then as for you not being able to keep your hardware wallet safe, if you misplace it,that’s another problem again. So, you should learn how to keep it safe and where to keep it in your house and not carry it around.

[TelolettOm]

are crypto owners naturally paranoid?

It is not about paranoia, it is about carefulness and also take the responsibility for our own assets.
You may talk about that so easily, but it will be different from other people's cosniderations.
Crypto is technology, every wallet will have the risks, whether hot or cold wallets. But what we can pick here is how high the risks are.
So far, online wallet or wallet on exchanges, platforms, and similar others will have risker than in hardware or cold wallet.
If we only have little amount of BTC, we may consider only put it in software wallet, electrum or even in exchange wallets. Moreover, if we are trading them.

however as other said, we talk about long term investment, mmany amount of BTC,a nd others.
So, if we think that cold or hardware wallet is better and less risks, why should be said as paranoid?

[EdenHazard]

It seems to me that it would be safer (and more convenient) to keep your crypto on an exchange (coinbase, blockfi etc) than cold wallet. Wouldn't the odds be greater that you mess up your cold storage than a large exchange being hacked or whatever (even if they are hacked, that wouldn't necessarily mean you would lose any coins, whereas if you are hacked that's a different story). I ordered a ledger nano X but it seems that the exchanges are still the way to go based on probabilities. What are your thoughts?

Yes, in a way you’re kind of right. But it’s all about whether you’ll be able to manage the hardware wallet by yourself. If you'll be able to do that, then it wouldn’t be bad to have your own cold storage where you will be storing your crypto currencies and knowing that it would be safe from being hacked by anyone.

The reason why a lot of people prefer cold storage is because exchanges are usually a target for hackers, they would always go for any exchange that doesn’t have a good enough security and once they have the access, they steal the money from the exchange.

A lot of exchanges has been shut down through this means, when they lose customers’ funds they are unable to continue their business and that also results to their users losing their money as well. Then as for you not being able to keep your hardware wallet safe, if you misplace it,that’s another problem again. So, you should learn how to keep it safe and where to keep it in your house and not carry it around.

That is true , technology here to help youdoing things easier and cold wallet is your whole answer.
but still there is like a boomerang , you can get hit even harder! so becareful using any kind tech savvy stuff.


aand crypto itself full of techy stuff. So .. ready or not , you need to learn how to store your coins safely other than making an exchanger even richer!
too much risk and putting your coins at very high risk to lose / hacked. lets not use that option , nobody recommend it.

[Yamifoud]

With the available technology and security features it is possible to keep the crypto holdings in a much safer way. There is nothing to be paranoid, if you've made the holdings secured in a well planned way. Hacks are common, and for the same no need to worry that it'll happen with everyone. Rather than hacks these days phising sites resembling the original platform is the way to take control of user wallets. So, it is good that we use only the trusted link to enter any crypto platform.

Not anymore, even you use a hard wallet, that couldn't give the 100% safeguard of your accounts as hackers might find a leak that leads them to track and get your funds. It is really becoming serious, hacking has been our biggest threat and we can't underestimate these people as they are really smart and have the highest level when it comes to computers. Every single mistake that we have, that certainly their pathway to success and that we need to avoid, perhaps, it was really hard.

[krusepig]

Does anyone know the breakdown of retail crypto that is kept on exchanges vs cold wallets?

I'm guessing majority (>>50%) is kept on exchanges, especially now with Robinhood and Coinbase which are two multibillion dollar publicly traded companies.

Also is it fair to say that if you have let's say 100K in Crypto, that the paper your pass phrase is written on is the equivalent to a 100K bill, you lose it or it gets stolen then POOF. The hardware wallet key fob itself is worthless.

[suzanne5223]

It seems to me that it would be safer (and more convenient) to keep your crypto on an exchange (coinbase, blockfi etc) than cold wallet.

That's because you understand that these exchange sites also operate in the same manner as bank and whats the point of decebtralization if you cant keep your coins by yourself.

Wouldn't the odds be greater that you mess up your cold storage than a large exchange being hacked or whatever (even if they are hacked, that wouldn't necessarily mean you would lose any coins, whereas if you are hacked that's a different story).

I don't know maybe you're from Mars because a lot of exchange users have lost their coins to exchange hacked. The best option is to be your own bank

I ordered a ledger nano X but it seems that the exchanges are still the way to go based on probabilities.

I think you're unclear about the ease of using exchange and the benefit of using cold storage.

[karanggatak]

i think, wallet have more probability to save your crypto than exchanger. big exchanger will pay attention every problem, they will solve or do the best what they can do to get trust from many people, and customer still use their things.
people will store their coin in exchanger to make easy the movement, when want to sell or buy or anything.