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Author Topic: FTX collapse; Once bitten twice shy  (Read 203 times)
Cruxleo (OP)
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November 24, 2022, 09:39:34 AM
Merited by o_e_l_e_o (4), pooya87 (1), Lucius (1), Charles-Tim (1)
 #1

I got here of my curiosity for safety. I lost some good fortune on the recent FTX collapse.
Though I had passively heard little on such risk but it has never been detailed and explanatory. It was always directed to cases of individual(s) whose account(s) are suspended for further KYC on few occasions, which I merely viewed as person's found guilty of illegal activities on the exchange, and assumed such wouldn't ever be a risk for all. Not to think of a total collapse of such might.
To settle this curiosity, hence the following questions:
1. How can I keep my Bitcoin safe?
2. Is there an alternative to centralized exchange?
3. I would appreciate suggestions that are less technical as I'm not grounded in tech.
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November 24, 2022, 09:47:20 AM
Merited by aylabadia05 (1)
 #2

1. Software (like electrum) and hardware (like trezor and ledger) are generally the safest places for storing crypto - as long as you write down your seed and don't install shady software on your computer.
2. There are decentralised exchanges and peer to peer ones. Both generally don't hold your funds in custody, and if they do it's only for a few hours to provide escrow - some send angry emails if you leave your funds on there for too long too. Localbitcoins always felt a lot safer than most exchanges (I'd probably rate it above binance and coinbase too for safety).

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November 24, 2022, 10:52:57 AM
Merited by hugeblack (4), o_e_l_e_o (4), pooya87 (2), aylabadia05 (1)
 #3

1. How can I keep my Bitcoin safe?
Electrum cold storage option

Having a cold storage. But If you do not know much about cold storage and also need an easier alternative, use a hardware wallet. Open source hardware wallet.

For small amount, you can use Electrum.

2. Is there an alternative to centralized exchange?
There are decentralized exchanges. You can try https://bisq.network/, but you strickly need a computer for it. Going for a mobile option, but not as decentralized as Bisq, you can check this site:

https://kycnot.me/

Note that the exchanges listed are no KYC exchanges, you can read the review on the site to know how perfectly decentralized or centralized they are. Kucoin for example is centralized while Bisq is decentralized.

2. There are decentralised exchanges and peer to peer ones. Both generally don't hold your funds in custody, and if they do it's only for a few hours to provide escrow - some send angry emails if you leave your funds on there for too long too. Localbitcoins always felt a lot safer than most exchanges (I'd probably rate it above binance and coinbase too for safety).
But Localbitcoins is not decentralized, it also requires KYC.

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November 24, 2022, 11:41:05 AM
 #4

I got here of my curiosity for safety. I lost some good fortune on the recent FTX collapse.
Though I had passively heard little on such risk but it has never been detailed and explanatory. It was always directed to cases of individual(s) whose account(s) are suspended for further KYC on few occasions, which I merely viewed as person's found guilty of illegal activities on the exchange, and assumed such wouldn't ever be a risk for all. Not to think of a total collapse of such might.
To settle this curiosity, hence the following questions:
1. How can I keep my Bitcoin safe?

Get a wallet that you can have total control of like having your privatekey and mnemonic phrase. Or better yet, look for open source as well.

2. Is there an alternative to centralized exchange?

Yes, someone already mentioned Bisq.

3. I would appreciate suggestions that are less technical as I'm not grounded in tech.

I would suggest you at least be more attentive, not necessarily technical as it you can read the code or something. But understand how everything works specially in a wallet, like private keys and mnemonic phrase and how you are going to protect it. Might come in handy as you go along with your bitcoin journey.

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November 24, 2022, 12:43:59 PM
Merited by aylabadia05 (1)
 #5

1. Grab a reputable hardware wallet like Trezor/Ledger, then clearly follow the instructions. (NOTE: only write down your backup, don't store them digitally.)

2. Peer-to-peer exchanges that doesn't require AML/KYC like LocalCryptos.org

3. Go check out https://cryptosec.info for security-related stuff

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November 24, 2022, 03:01:53 PM
 #6

I got here of my curiosity for safety. I lost some good fortune on the recent FTX collapse.

Kudos to you for having the courage to admit that you are one of the victims of something that smelled like a nasty scam from the beginning, and not because it was technically poorly designed, but because behind it all was a person who I personally would not let run a chicken coop. No matter how much this life lesson costs you, I hope you learn not to trust spoiled rich people no matter what fairy tales they tell.

Though I had passively heard little on such risk but it has never been detailed and explanatory. It was always directed to cases of individual(s) whose account(s) are suspended for further KYC on few occasions, which I merely viewed as person's found guilty of illegal activities on the exchange, and assumed such wouldn't ever be a risk for all. Not to think of a total collapse of such might.

Such things are always written in very fine print and no one reads them, and because of this, all those who make such scams can mostly get away with the help of an army of lawyers. I don't wonder at all if something like that will happen again, it's just a question of who is next - and I would say that these are the ones who are the loudest in terms of bragging that they are the best, but in fact they are one step away from everything collapses like a house of cards.

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November 24, 2022, 03:21:00 PM
Last edit: November 24, 2022, 07:15:24 PM by Cruxleo
 #7

For small amount, you can use Electrum.

Thank you all for your advise and suggestions so far. I opted to use electrum wallet, has selected "standard wallet" on the set up and it asks if I want "segwit" or "legacy". I want to know the difference between the two as it's not well elaborated therein.
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November 24, 2022, 03:32:33 PM
 #8

Centralized exchange is kind of essential for me, in my locality finding someone who you can trust to run a P2P transaction can be a kind of difficult so making use of few centralize exchange as an escrow means is the only way most of us have. Since FX has taught lot's of people lesson, I will always advice buy with centralize exchange that's at your reach, after that move your funds into a safe wallet which you have 100% control over it.
Lots of cold and hardware wallets have already been suggested above, just pick one that you can afford and move your funds from Cex to personal wallet, it's safer their.

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November 24, 2022, 03:36:31 PM
 #9

To settle this curiosity, hence the following questions:
1. How can I keep my Bitcoin safe?
2. Is there an alternative to centralized exchange?
3. I would appreciate suggestions that are less technical as I'm not grounded in tech.
To maintain bitcoin security much better is to use a hardware wallet it will be more secure than anything I use Nano Ledger X to store Bitcoin assets. Or you can use Electrum, Trustwallet, Coinomi, Exodus which is important to have a private key that we can control ourselves.

Namely decentralized exchanges as an alternative maybe you can try some of the decentralized exchanges mentioned, but I myself still use centralized exchanges but I never keep them there too long just simply trade or convert and then withdraw them.


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November 24, 2022, 04:16:50 PM
Merited by pooya87 (2), FatFork (1), aylabadia05 (1)
 #10

Thank you all for your advise and suggestions so far. I opted to use electrum wallet, has selected "standard wallet" on the set up and it asks if I want "segwit" or "legacy". I want to know the difference between the two as it's not well elaborated therein.

Without any doubt, without going too much into technical details, choose a SegWit address - let's say that you will be able to save on fees for all future outgoing transactions. If you ever need a legacy address for some reason, you will simply create a new wallet within Electrum and name it Legacy wallet.

Read more in this thread -> Legacy vs segwit

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November 24, 2022, 04:53:12 PM
Last edit: November 24, 2022, 07:17:40 PM by Cruxleo
 #11

Without any doubt, without going too much into technical details, choose a SegWit address - let's say that you will be able to save on fees for all future outgoing transactions. If you ever need a legacy address for some reason, you will simply create a new wallet within Electrum and name it Legacy wallet.

Read more in this thread -> Legacy vs segwit
Thank you. I appreciate the follow up.
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November 24, 2022, 06:17:57 PM
 #12

You see ... It's simply one the little de-merits in decentralization. Since your stocks are not floating, and you have them totally in your control then, securing them is another ball game.
TREZOR One could cut a life time security deal as it's one of the safest hardware wallets - AFAIK. Since crypto is digitally designed, we all really need to keep our eyes on 'em. I'm sorry that you fell for FTXs scammy projects already; you've really learnt it the hard way...yeah, and lessons like that are indelible as it'll simple get plunged in your blood -- and make itself a part of your perception during your crypto tour.

Sandra 💇

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November 24, 2022, 06:55:21 PM
 #13

Trustwallet, Coinomi, Exodus which is important to have a private key that we can control ourselves.
For a newbie who was just recently unlucky to lose his money to ftx collapse, and any crypto user at all, it would be best to recommend open source wallets to them, closed source wallets codes cannot be verified and the users can't be sure of what the developers are doing behind the scene. Trustwallet is also owned by CZ or Binance crypto exchange, so i'm sorry not recommended.
but I myself still use centralized exchanges but I never keep them there too long just simply trade or convert and then withdraw them.
Many crypto users think it is okay to use centralized exchanges in this way, and it is correct they may not lose their money if they are moving their funds out of the exchange fast, but it is better to learn how to use decentralized exchanges, it isn't only your money you can lose on centralized exchanges, if there is a hack you can lose your privacy, information that is personal to you can be sold. The exchange can also turn on you and seize your money, or report you to the government and blockchain analysis companies, it is unsafe to use centralized exchanges in many ways.

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November 24, 2022, 08:48:03 PM
Merited by FatFork (1), Charles-Tim (1)
 #14

Thank you all for your advise and suggestions so far. I opted to use electrum wallet, has selected "standard wallet" on the set up and it asks if I want "segwit" or "legacy". I want to know the difference between the two as it's not well elaborated therein.
STOP!

Electrum no longer shows you the option to create legacy wallets, and hasn't for over 18 months. While you may simply have downloaded an old version by mistake, you may also have downloaded a malicious version which is waiting to steal your coins. The current version is 4.3.2. You should download it from this link and only this link: https://electrum.org/#download. Ideally, you should also verify your download by following the instructions on that page.

Electrum remains one of the best choices of wallets to use, but you must make sure you are using it safely before you send any coins to it. I would also suggest that after creating a new wallet and backing up its seed phrase (after you are sure you are using a legitimate version of Electrum), you practice restoring from your seed phrase back up before funding the wallet.

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November 25, 2022, 06:46:22 AM
 #15

Thank you all for your advise and suggestions so far. I opted to use electrum wallet, has selected "standard wallet" on the set up and it asks if I want "segwit" or "legacy". I want to know the difference between the two as it's not well elaborated therein.
Likely you downloaded a malicious Electrum or an old version, followed the link that o_e_l_e_o provided you to download Electrum, you can find this interesting about how to verify the wallet that you downloaded, [GUIDE] How to Safely Download and Verify Electrum [Guide]

Sending from segwit to segwit address, 1 input 2 outputs, you can safe up to 42% on fee if compared it with sending from legacy to legacy address, with 1 input 10 outputs, you can safe up to 50% on fee. Best to use segwit and it is generated by default right from Electrum 4..2.1 or so, up to the lastest version.

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November 25, 2022, 12:59:12 PM
 #16

1. How can I keep my Bitcoin safe?
2. Is there an alternative to centralized exchange?
To save your Bitcoin I will suggest to use hardware/cold wallet. There are many like Electrum tezos Nano and many others.
If you have big amount of assets and you wan to hold them so you should use cold wallet.

2. Is there an alternative to centralized exchange?
Yes there are decentralized exchanges. But I will recommend these exchanges too. Because these are also online. And Online things always risky. So always be careful. And keep your funds safe wisely. Smiley

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November 25, 2022, 04:36:16 PM
Last edit: November 26, 2022, 08:46:00 AM by LDL
 #17


1. How can I keep my Bitcoin safe?


Day by day people are losing faith in the exchange after the FTX Centralized Exchange was hacked.  Now people don't want to store their cryptocurrency on centralized exchanges.  So they want to choose trusted wallets as an alternative to centralized exchanges.  A trusted wallet usually refers to a hardware or cold wallet.  Because the private key of the hardware or cold wallet is usually controlled by the user.  So there is no possibility of hacking.

Some hardware & Cold wallets...

Ledger Nano S
Trezor M1
Safepal S1
Steel Bitcoin wallet
Trezor Model T for Next Generation
Secux W20
SecuxV20
D'CENT Biometric wallet

Ellipal titan Bundle
Ellipal titan mini
Coolwallet pro
Atomic Wallet
KeepKey
Armory offline bitcoin wallet
Bitbox


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