Will there ever be any safe centralised exchange ?

[Abiky]

Centralized exchanges have never been secure, not before, not now. The reason is very simple, if you store your coins on the CEC, then these coins are not actually yours, you just can see the balance that the exchange displays for you, but in fact you have no guarantees that you will be able to withdraw your coins at any time when you will need it. In addition, you may be required to pass verification, which is also not very good.

Exactly. But most people are blind enough to see this, since they're only thinking about what's more convenient for them. It's a lot easier to leave custody of your coins to a third party, than just doing it yourself. Using a centralized exchange is as simple as online banking. I'm afraid we're going to see additional disasters down the road, due to the inherent failures of centralized exchanges. This could only change if people began using decentralized exchanges more thoroughly (although they're still susceptible to hacks).

If you really want to be "safe", then just trade a small amount of coins on a centralized exchange and leave the rest in your wallet. If the CEX gets hacked or runs away with the money, your losses would be at the minimum. Regulators are paying close attention to what's happening on the crypto industry, so it's likely there will be further scrutiny against CEXs to help keep investors' and/or traders' funds safe no matter what. At least, we have a choice. As long as decentralization wins, nothing else matters. Just my opinion

[laurenB7742]

I was wondering if there could still be any safe centralised exchange in the blockchain industry. Of lately lots have been unveiling itself and centralisedexchanges are at the end of it all.  Does it mean that these centralised exchanges that are in existence lacks the capability to safeguard assets and funds after attracting investors and traders to their platforms for engagement and activities?
 How do you explain these things to the people whom have entrusted their funds and assets to you for safe keeping hoping that what they gave to you is under safe care only to wake up to a sad news of their assets being stolen by hackers. How do you explain all these.

At first identifying the problem is a basic course for rendering solutions. If these problems are not identified immediately by the exchanges for quick remedy then who's to be blamed for it. Do they really do constant check on their service to know their lapses, if they do, do they identify it immediately with utmost attention? Do they do a constant check and evaluation on their staff and  mechanisms.

With all these said, what are your opinions on this subject matter as I feel this needs to be looked into for possible measures to be taken for  so as to further prevent or minimise the rate at which exchanges get hacked or being careless with investors and traders funds.

Centralized exchanges are not safe anymore so people should not be placing their funds on it. Not just because of the FTX event, but because centralized exchanges have low level of security and privacy which means our money will be in high danger if they will remained in them in the long run.

There has never been a time when centralized exchanges were called absolutely safe both before and after the FTX crash, nothing is essentially 100% absolute, including decentralized exchanges. I agree with you when using centralized exchanges, we lose privacy, but in terms of security, not really, not all of them have a low level of security. They are a place to store a large number of assets, so they are always the target of hackers, so there are frequent attacks. Unlike you storing your assets in a personal wallet, hackers will pay less attention.

[btc78]

All exchange are not 100% safe be it centralised or decentralized. Do not forget that exchanges are always targets for hackers as they are always looking for ways to steal funds and assets from them. Do not be deceived take possession of your assets and funds in your own custody with hardware wallet sophisticated to resist hacks. Be on the safe side now to avoid a life time full of regrets. Be wise and act smart.

We have reviewed every exchange hacking case never explain hacking details instead they post news twitter has been hacked causing millions of dollars loss but hacker wallet not published never because hacker wallet will be blacklisted every deposit to other centralized exchange. Even though the Binance exchange case has replaced user funds from the reserve fund due to the hack exploiting the bridge network, there is no reason to guarantee and trust 100% the exchange. So anyone with assets on a centralized exchange is advised to switch to a personal wallet or more securely keeping a hardware wallet.

this is why we keep thinking that are those hacking are planned ? I mean there is a Inside Job since there is tons of money involved and it will be harder to prove their crimes?

so why aim for centralized exchange when the truth is? we are not trusting any of them for their long time operation.
I would rather use a owned wallet in which more secure than letting my funds stay in these scam excgange .

[MarjorieZimmermanGinger]

Every exchange has a security system developed and has a control system running, but sometimes this also does not provide full security reasons for people to keep their funds and assets on the exchange.

The nature of the Exchange is completely controlled by the developers, which means technical issues are their responsibility, whereas the people using do not have access to their security system, therefore it is not completely safe to deposit funds and place assets on any exchange. To make transactions I think Binance is worth trusting because this exchange still has a good reputation, but it is not recommended to keep funds and assets, because it is better to use them when we trade.

[passwordnow]

this is why we keep thinking that are those hacking are planned ? I mean there is a Inside Job since there is tons of money involved and it will be harder to prove their crimes?

It can be helped, whether you're a victim and your funds are lost there or you're just speculating and looking at the situation. The idea and thought that those hacks are the inside job will always be one of the opinions of many. But as long as there's no proof, it cannot be done.

so why aim for centralized exchange when the truth is? we are not trusting any of them for their long time operation.
I would rather use a owned wallet in which more secure than letting my funds stay in these scam excgange .

If you have to sell, you have to use exchanges. Decentralized or centralized but it's up to you if you like to use them and get your targeted coin for that sale.
But the most important matter there is you don't keep all of your funds in any exchange mostly in centralized platforms because they hold the keys for you and you don't.

[gabbie2010]

All exchange are not 100% safe be it centralised or decentralized. Do not forget that exchanges are always targets for hackers as they are always looking for ways to steal funds and assets from them. Do not be deceived take possession of your assets and funds in your own custody with hardware wallet sophisticated to resist hacks. Be on the safe side now to avoid a life time full of regrets. Be wise and act smart.

We have reviewed every exchange hacking case never explain hacking details instead they post news twitter has been hacked causing millions of dollars loss but hacker wallet not published never because hacker wallet will be blacklisted every deposit to other centralized exchange. Even though the Binance exchange case has replaced user funds from the reserve fund due to the hack exploiting the bridge network, there is no reason to guarantee and trust 100% the exchange. So anyone with assets on a centralized exchange is advised to switch to a personal wallet or more securely keeping a hardware wallet.

The best bet and the safest means of securing our assets is hardware wallet, the alarming rate of hackers hacking centralized exchanges is becoming worrisome and that is why to always secure your assest by having access to your keys, the recent hacking of FXT where coins worth $477 million were stolen is another cogent reason of untrustworthy of centralized exchanges irrespective of how reputable they are in crypto world, we had read similar stories of hacked exchanges were millions of assets were also stolen therefore as a trader and investor always keep small funds in a centralized exchange.

[suzanne5223]

All exchange are not 100% safe be it centralised or decentralized. Do not forget that exchanges are always targets for hackers as they are always looking for ways to steal funds and assets from them. Do not be deceived take possession of your assets and funds in your own custody with hardware wallet sophisticated to resist hacks. Be on the safe side now to avoid a life time full of regrets. Be wise and act smart.

We have reviewed every exchange hacking case never explain hacking details instead they post news twitter has been hacked causing millions of dollars loss but hacker wallet not published never because hacker wallet will be blacklisted every deposit to other centralized exchange. Even though the Binance exchange case has replaced user funds from the reserve fund due to the hack exploiting the bridge network, there is no reason to guarantee and trust 100% the exchange. So anyone with assets on a centralized exchange is advised to switch to a personal wallet or more securely keeping a hardware wallet.

The best bet and the safest means of securing our assets is hardware wallet, the alarming rate of hackers hacking centralized exchanges is becoming worrisome and that is why to always secure your assest by having access to your keys, the recent hacking of FXT where coins worth $477 million were stolen is another cogent reason of untrustworthy of centralized exchanges irrespective of how reputable they are in crypto world, we had read similar stories of hacked exchanges were millions of assets were also stolen therefore as a trader and investor always keep small funds in a centralized exchange.

Firstly, to answer the OP question. No centralized exchange will ever be safe and no hardware wallet either will ever be safe. We don't need to deceive ourselves with the belief that using hardware wallets is totally safe. Please don't get me wrong, I don't support the idea of keeping crypto on CEX but the truth is that nothing is ever safe.

The best safest bet is every cryptocurrency investor and holder knows the cons and pros that will make their crypto holding safe while also avoiding human error and making use of hardware or paper wallet.

[tjtonmoy]

Everyone everywhere is saying the same thing all over the internet.

Not your key, not your coin

Yet, why people are still talking about centralized exchanges? There are many decentralized exchanges. Buy a hardware private wallet and trade on them.
Everything on the internet is hackable if the right person chooses to.
In centralized exchanges, they have every info they need about you. If the hackers have access to that, not only your funds are in danger, also your privacy.
Ever imagine those hackers selling your info to others? Try to interact as little as possible with centralized exchanges.

[BlackRexuz]

Doesn't every exchange have its own security system and has even been tested very strongly to secure user accounts, but it's also difficult to find exchanges that are truly safe, indeed in the last few years there have been several exchanges that have experienced hacking, whatever the cause, at least we can find solution in choosing a safe exchange, and sometimes there are some users who are careless or careless and in the end get hacked from their carelessness, actually a centralized exchange will be safe and no hardware wallet will be safe in the Crypto world, no matter how sophisticated the exchange is , so it's up to each of us to secure our account, but it's different if the hack is done by an insider, then it's also very difficult to recover, the solution is to let our money be stolen by the exchange.

[Oneandpure]

We have reviewed every exchange hacking case never explain hacking details instead they post news twitter has been hacked causing millions of dollars loss but hacker wallet not published never because hacker wallet will be blacklisted every deposit to other centralized exchange. Even though the Binance exchange case has replaced user funds from the reserve fund due to the hack exploiting the bridge network, there is no reason to guarantee and trust 100% the exchange. So anyone with assets on a centralized exchange is advised to switch to a personal wallet or more securely keeping a hardware wallet.

All exchange with hacking cases never transparent about wallet receiving from hacker, I don't sure with all hacked is true from hacker or have possibility with exchange market internal team its self. I think easy for several bigger exchange how to blacklist with address used by hacker, when depositing to exchange market account suspend or freeze and refund to exchange have been exploit.

Can't 100% trust with exchange market, third largest exchange around the world FTX market become scam and how come with small exchange market trust? I believe personal wallet more secure for saving our fund than keep it in exchange market.

[Tanvi50_]

As long as anything that exists on the internet, that is not safe. And you are giving your funds to someone and also exposing your private information. I don't know how safe are they. They manually verify your identity in order to approve the KYC application. So they do have access to your information. Your info is not encrypted and stored in their system, they are open and available.
there are a lot of things that could be said here. But for now, I will stick to this. And the answer is this, No there will never be any safe centralized exchange.

[isaac_clarke22]

~

Well there are different mindsets anyway. For starters, it would not really hurt to start first in relying your coins to a trusted third party. There would be factors such as KYC that would make people just stop using these centralized exchange and I gotta be honest that sometimes I just want to say "fuck it I'll hold it for now in a custodial wallet for its service offered as well".

There is no perfect security nor perfect safety, but we could help risking our money to strangers that would not think twice stealing our money. Back when I was day trading, I did not trade small amount but in the end I still withdrew it all.

[Alpha Marine]

At the moment I can't vouch for any exchange to be safe even if there are any. It's too risky leaving your funds in exchanges but I do believe in future exchanges would be trusted and they would keep people's coins safe. I do not know when, I do not know if it would even be in this life time but I believe it will happen.
Take the banks for example, they first started like this. Going insolvent and losing people's money. As time went on they evolved and things change. In today's world I've never heard of somebody that lost his money because the bank crashed or was hacked. Regulations have been made to prevent things like this from happen and the customer interest have also been protected should anything happening.

I believe this is the beginning stage of crypto exchanges. These are the baby steps. These are the things that happen that make them learn and evolve and become better. It's how the history and evolution of man works. So I really believe if crypto doesn't die in future (which I know it won't) exchanges would play a big part in it.

[Abiky]

Well there are different mindsets anyway. For starters, it would not really hurt to start first in relying your coins to a trusted third party. There would be factors such as KYC that would make people just stop using these centralized exchange and I gotta be honest that sometimes I just want to say "fuck it I'll hold it for now in a custodial wallet for its service offered as well".

There is no perfect security nor perfect safety, but we could help risking our money to strangers that would not think twice stealing our money. Back when I was day trading, I did not trade small amount but in the end I still withdrew it all.

It's so much easier to use a centralized exchange simply because someone else holds custody of your coins. You don't need to worry about securing your coins against hacks, theft, or many other undesired situations. Also, fees per trade are pretty cheap compared to those charged by a decentralized exchange. That's why I think people won't abandon CEXs altogether, even if the FTX collapse caused some distrust among traders and investors alike. These unfortunate series of events will force CEXs to provide some proof of reserves audited by a reputable entity or face serious consequences from the government.

Of course, that doesn't mean CEXs will become hack-proof or anything at all. We should always be careful when depositing coins in a CEX due to their highly-risky nature. As long as you don't put large amounts of money on them, you'll have nothing to worry about. Just my thoughts

[btc78]

this is why we keep thinking that are those hacking are planned ? I mean there is a Inside Job since there is tons of money involved and it will be harder to prove their crimes?

It can be helped, whether you're a victim and your funds are lost there or you're just speculating and looking at the situation. The idea and thought that those hacks are the inside job will always be one of the opinions of many. But as long as there's no proof, it cannot be done.

so why aim for centralized exchange when the truth is? we are not trusting any of them for their long time operation.
I would rather use a owned wallet in which more secure than letting my funds stay in these scam excgange .

If you have to sell, you have to use exchanges. Decentralized or centralized but it's up to you if you like to use them and get your targeted coin for that sale.
But the most important matter there is you don't keep all of your funds in any exchange mostly in centralized platforms because they hold the keys for you and you don't.

there are other ways to sell and that is p2p , and like in our group  , we are buying and selling with each other but of course will small amount because of the risk and there is no escrow involvement .
but yes let us admit it that Exchange is the true medium to buy and to sell for safer but never keep your coins inside for more than an hour , just take it out after the buy/sell.

[LogitechMouse]

Centralized exchanges have never been secure, not before, not now. The reason is very simple, if you store your coins on the CEC, then these coins are not actually yours, you just can see the balance that the exchange displays for you, but in fact you have no guarantees that you will be able to withdraw your coins at any time when you will need it. In addition, you may be required to pass verification, which is also not very good.

Too simple yet too hard to swallow.

If you are a trader, then maybe this doesn't affect you at all but if you are a mid to long term investor, putting and storing it on a centralized exchange isn't the best option for you. I'm not a trader at all (although I tried to be one, but I failed) that's why I'm not putting any coins into any centralized exchanges.
Just think about this OP, once you put your coins into any centralized exchange already, it isn't yours already therefore it isn't safe. Not your keys, not your coins. Just use exchanges whenever you will buy or sell your coins, but never store it there for a long time.

[Thuy Anh]

Centralized exchanges are already working hard to improve their security defenses. But the security of the exchange has been attacked by hackers all the time.
Don't think of exchanges as banks, they are not a match.
The "absolutely safe" centralized exchange should not have appeared yet.

[redsun114]

Yes, there are. How about; Binance, Kucoin, Houbi and there are exchanges that are much older than them but are still trusted up to this date. Exchanges like Bittrex, Poloniex, Coinbase, and many more. People shouldn't be paranoid and think that every other known and trusted exchange can turn out to be a scam because that can only make them crazy. What if those exchanges don't have that intention?

But, those exchanges are only trying their best to improve their security and deliver a great service to their customer, in order to become the best in this field. Okay for their confidence, they can also store funds which they can afford to lose easily.

[Minor Miner]

Yes, there are. How about; Binance, Kucoin, Houbi and there are exchanges that are much older than them but are still trusted up to this date. Exchanges like Bittrex, Poloniex, Coinbase, and many more. People shouldn't be paranoid and think that every other known and trusted exchange can turn out to be a scam because that can only make them crazy. What if those exchanges don't have that intention?

But, those exchanges are only trying their best to improve their security and deliver a great service to their customer, in order to become the best in this field. Okay for their confidence, they can also store funds which they can afford to lose easily.

The exchanges you listed are all those that have been around for many years, and they also have a certain reputation in the market, I love coinbase and binance, the top 2 exchanges right now. But in this market, anything can happen, they were safe in the past and so far, they are safe but that doesn't mean they won't crash in the future. Mtgox was the biggest exchange in 2014, no one thought it would crash until it did.

Everything has risks, especially centralized projects, so it's better to be careful, we still use them but don't rely on them too much or trust them completely.

[Victorik]

I do not think there's any centralized exchange that can boast of being 100% safe. No matter how well they work hard to ensure safety, there are also people working tirelessly and round the clock to ensure that they find a loophole to hack their system.

That an exchange appears to be safe today doesn't mean it is invincible to hacking.