Why I will never trust top exchanges

[Crypt0Gore]

Weeks ago Binance admits to the mistake of storing users funds in a collateral wallet, is this not why they passed the Reserve Audit?🤦 All they have to do is just move crypto assets that belongs to exchange users into their collateral wallet and pass the audit and avoid getting caught. Then they go on Twitter and make a tweet that "Funds are Safu".


https://dailyhodl.com/2023/01/24/binance-admits-to-mistake-of-storing-its-users-crypto-assets-inside-collateral-wallet-report/

I believe the came out in the open before someone else does, to keep their reputation in checked.

As for the auditors, they don't even know how to audit in the first place, or is it right to say that exchanges just know how to get smarter than auditors?

Anyway, it's easier for them to meddle with users funds and do what they feel like, FTX Sam was caught doesn't mean he is the only bad actor, others aren't pure as well.

No matter what you plan to do on centralised exchanges, do not trust them.

[1714762523]

1714762523

[1714762523]

1714762523

[1714762523]

1714762523

[mk4]

They definitely have their issues, but if I were to need to pick an exchange that I would trust, it would most likely be the top ones. At least rather than those exchanges with non-public team members.

Of course as always, withdraw your funds if you're not trading them and yadda yadda.

[Cantsay]

I don't think anyone in its right state of mind is still going to use exchange to store his or her coin, not after all the warnings that have been flying around the whole forum. And for the trading part instill would go for the top exchanges I won't even dare to send any of my funds to an exchange that just go into the ecosystem newly, at least those top exchanges have managed to gain the trust of its users.

No matter what you plan to do on centralised exchanges, do not trust them.

True, treat them the way they should be treated no special treatment should be given to any exchange, and we will see that no one will loss his or her funds anymore.

[Apocollapse]

I never trust any centralized exchanges bla bla bla

No matter what you plan to do on centralised exchanges, do not trust them.

I as a person stored so many important information on my smartphone e.g four different crypto wallets, passwords for centralised exchanges, 2fa Auth codes, e.t.c and I can't help but think what will happen if I lose my phone somehow what will I do? So I started practicing how I will recover my files, at least the most important files and information,

@OP if you don't trust centralized exchange for anything including just to sell and buy your coins, not for holding your coins. Why you're still using centralized exchange? it doesn't make sense for telling the other people to not use centralized exchange but you're actually use it.

I think many users in this forum are having 2 personality, are you have dissociative identity disorder (DID)?

[cryptoaddictchie]

It does not mean though we are using the centralized exfhange is we trust them already. We know the great saying not your key not your coin. But we like yhr products that centralized exchange offering compared storing on a non custodial. Yes maybe there are consequence but knowing that is a risk which we already knew. If Im gonna trust a cex defintiely its Binance compared to other ones. Im not sure if those who speak badly on cex, arent using it though probably they are.

[lovesmayfamilis]

I never trust any centralized exchanges bla bla bla

No matter what you plan to do on centralised exchanges, do not trust them.

I as a person stored so many important information on my smartphone e.g four different crypto wallets, passwords for centralised exchanges, 2fa Auth codes, e.t.c and I can't help but think what will happen if I lose my phone somehow what will I do? So I started practicing how I will recover my files, at least the most important files and information,

@OP if you don't trust centralized exchange for anything including just to sell and buy your coins, not for holding your coins. Why you're still using centralized exchange? it doesn't make sense for telling the other people to not use centralized exchange but you're actually use it.

I think many users in this forum are having 2 personality, are you have dissociative identity disorder (DID)?

You made me laugh. What do you want? There are a lot of storytellers here on the forum who own dozens of bitcoins, people who talk to themselves, and all this is done for one purpose only. Fishing, in almost 80 topics that I counted from the OP, cannot be said to be very effective.
So the OP is forced to deviate from his sequence.
But the expression "never" in your case, the OP, sounds a bit shaky.

[dbshck]

Weeks ago Binance admits to the mistake of storing users funds in a collateral wallet, is this not why they passed the Reserve Audit?🤦 All they have to do is just move crypto assets that belongs to exchange users into their collateral wallet and pass the audit and avoid getting caught. Then they go on Twitter and make a tweet that "Funds are Safu".

Yes, that's exactly why simply having a "proof of reserve" isn't sufficient to assess the financial health of an exchange. It only provides a snapshot of one side of the picture and doesn't give us an understanding of the exchange's liabilities. As you pointed out, the methods used by exchanges for "proof of reserve" in 2022 were easily manipulatable, as assets could be moved around.

As for the auditors, they don't even know how to audit in the first place, or is it right to say that exchanges just know how to get smarter than auditors?

Some of the top firms have conducted audits for well-established exchanges. For example, the audits for Coinbase are performed by Deloitte, which is a reputable auditing firm. Given that Coinbase is a publicly traded company in the US, it's safe to assume that its audit process is thorough and rigorous. So when top auditing firms deny audit requests from exchanges such as Binance, it surely raises red flags and questions.

[Rikafip]

As for the auditors, they don't even know how to audit in the first place, or is it right to say that exchanges just know how to get smarter than auditors?

There are reputable auditor companies that can do a proper audit, but bigger question are exchanges and how much access they give to those audit companies so they can do their job properly. So in the end many of them don't even want to have anything to do with exchanges, like Mazars removed Binance proof of reserve audit from their website and halted all the other ongoing audit for other exchanges.

No matter what you plan to do on centralised exchanges, do not trust them.

You are preaching to the choir. An average bitcointalk member is well aware of all the dangers of dealing with centralized exchanges, but unfortunately we make only a microscopic portion of entire crypto community so too many are still using them as a bank.

@OP if you don't trust centralized exchange for anything including just to sell and buy your coins, not for holding your coins. Why you're still using centralized exchange? it doesn't make sense for telling the other people to not use centralized exchange but you're actually use it.

I haven't noticed OP saying that you shouldn't use centralized exchanges at all, but rather no matter you do, don't trust them (meaning being aware of the fact that every time you send your money to CEX it may the the last time you see it).

[Crypt0Gore]

I never trust any centralized exchanges bla bla bla

No matter what you plan to do on centralised exchanges, do not trust them.

I as a person stored so many important information on my smartphone e.g four different crypto wallets, passwords for centralised exchanges, 2fa Auth codes, e.t.c and I can't help but think what will happen if I lose my phone somehow what will I do? So I started practicing how I will recover my files, at least the most important files and information,

@OP if you don't trust centralized exchange for anything including just to sell and buy your coins, not for holding your coins. Why you're still using centralized exchange? it doesn't make sense for telling the other people to not use centralized exchange but you're actually use it.

I think many users in this forum are having 2 personality, are you have dissociative identity disorder (DID)?

Are you running a centralised exchange? Because I don't know how you get hurt with my points, I never said no one should use centralised exchange, I am saying people using CEX must not trust them with their funds.

I still use Binance exchange but I don't trust them, there is a difference between not trusting and not using. Master 2know.

[Findingnemo]

Weeks ago Binance admits to the mistake of storing users funds in a collateral wallet, is this not why they passed the Reserve Audit?🤦 All they have to do is just move crypto assets that belongs to exchange users into their collateral wallet and pass the audit and avoid getting caught. Then they go on Twitter and make a tweet that "Funds are Safu".


https://dailyhodl.com/2023/01/24/binance-admits-to-mistake-of-storing-its-users-crypto-assets-inside-collateral-wallet-report/

I believe the came out in the open before someone else does, to keep their reputation in checked.

As for the auditors, they don't even know how to audit in the first place, or is it right to say that exchanges just know how to get smarter than auditors?

Anyway, it's easier for them to meddle with users funds and do what they feel like, FTX Sam was caught doesn't mean he is the only bad actor, others aren't pure as well.

No matter what you plan to do on centralised exchanges, do not trust them.

So you are saying to use an exchange like yobit instead of Binance? It sucks more when we use the non-reputed exchanges so for trading preferring the best which is having fewer issues with their customers but all you need to do is don't use them for storing your crypto assets for a longer period no matter what exchange it is the cause as long as it's custodial you are not really the actual owner of those assets.

[CryptopreneurBrainboss]

As for the auditors, they don't even know how to audit in the first place, or is it right to say that exchanges just know how to get smarter than auditors?

Anyway, it's easier for them to meddle with users funds and do what they feel like, FTX Sam was caught doesn't mean he is the only bad actor, others aren't pure as well.

No matter what you plan to do on centralised exchanges, do not trust them.

Binance has a habit of buying the whole industry, binance has the cash to pay anybody off so I won't be surprised if they're paying this auditors off to give them a free pass. We're in a world that all you just have to do is have money and you can be treated differently. Exchanges aren't smarter because if they were a little bit smart then some mistakes that they do that causes investors huge losses could have been easily avoided.

It's no secret that a thief is only declared a thief when he's caught, if he hasn't been caught then he's a free man just like the rest of us. SBF was caught and it's just a matter of time before others get exposed as well. I believe all centralized exchange are guilty of similar crimes but just that the industry is not regulated so they can get away with all their evils deals. Exchanges are never to be trusted and your funds are never saved with them irrespective of how they try to make us believe that our coins are secured on their platforms.

[jeraldskie11]

I think it's right if you trust top exchanges than with not-known exchanges. They are called top exchanges because they have the highest volume in 24 trading, this only means that there many investor who trusted that exchange.

No matter what you plan to do on centralised exchanges, do not trust them.

It's because they can control your account anytime they want. So better to choose only a wallet that your the owner of the private key or phrase for safety. I would suggest to use only CEX if you're going to trade or convert in different currency and withdraw it immediately.

[Taskford]

No perfect exchange exist since they all have issues, look at those top exchange at the past some of them became scam and other are became slow performing. So if you see a good exchange at the moment then maybe its good not to fully trust them your funds and always have second doubts to avoid repeat scams happened in crypto scene. If we want to hold much better we grab we have the keys to make it more secure. This is more ideal than believing that top tier exchange will never be hacked by anyone.

[macson]

They definitely have their issues, but if I were to need to pick an exchange that I would trust, it would most likely be the top ones. At least rather than those exchanges with non-public team members.

Of course as always, withdraw your funds if you're not trading them and yadda yadda.

this is also my concern, there are several exchanges that are in the top 10 but the team members are not known to the public, at least trading on exchanges where the team members are known can provide a little feeling of comfort to users.  but yeah, all the choices are with you, as long as you don't store your assets on CEX and keep them in your personal wallet, you are definitely safe enough.

[Eternad]

Binance and CZ is trying to control the auditors which is why they never have complete audit signed by the auditors. CZ probably bribing the auditors to overlook Binance lapses but the auditors don’t do it that result to the failed audit. So far no auditors done a complete official audit on Binance because no one wants to get involved on this shady exchange.

Blind follower CZ is just covering his ass due to self interest but the moment that they can’t provide a quick audit when they are ask is already a red flag for me. Binance is same with other shady exchange like Huobi and FTX. I’m not trusting too this scumbag exchange but we don’t have a choice to use them for now because they are the only gateway from cypto to fiat and vice versa for me.

[Jatiluhung]

If you don't trust a top exchange then there is no reason for you to trust any other exchange with a lower rating.  I think that Binance is the most comfortable to use. even withdrawal and deposit transactions have never had a problem since I used it. Low fees are also an advantage. but to store assets in it for a long time then of course it cannot be trusted in any exchange.
But everyone has the right to choose which is their favorite exchange. and everyone also has the right to judge for himself. but at least Binance has been tested with very large drawdowns in a few days. But Binance is not budging and showing how they are staying strong. even the Fud that had circulated did not have much impact on Binance.

only use the exchange to make exchanges or trades and withdraw our assets when done. exchange is not to keep our assets there for a long time. it's just a temporary place while we do the exchange.

[taufik123]

-snip-
 Binance is same with other shady exchange like Huobi and FTX. I’m not trusting too this scumbag exchange but we don’t have a choice to use them for now because they are the only gateway from cypto to fiat and vice versa for me.

Binance came out on top, being the most needed exchange by many because it is a bridge between Crypto and Fiat.
Binance may still be hiding behind the "SAFU" fund which is touted as the best strategy to secure users' funds when the unexpected happens.

The SAFU Fund has been filled with around $1B which is certainly a very large amount.
But will it be a sure guarantee of safety? we can all only hope Binance isn't like the “Bastard FTX” exchange.

https://www.binance.com/en/blog/community/topping-up-safu-to-$1b-8460049926432191856

Never trust any platform when it comes to money and digital wealth. Manipulation will still occur, and intentional or unintentional errors will also occur.
Securing what needs to be privately secured must be done, for sure we must have full control over what we have.

[348Judah]

There's no difference be it top exchange or not as long as they were centralized exchanges they can impose same level of risk to its users, so to remain safe is to do all it takes by getting decentralized which means you don't have to go around any form of centralized exchanges, what people don't know especially the newbies is that they believed once it's bitcoin they are investing with there's always full decentralization regardless of the exchange they uses, this kind of presumed assumptions affects alot of newbies to fall into hands, get your bitcoin in your wallet not on centralized exchanges.

[Darker45]

Don't trust them, yeah, but if you were to somehow trust a centralized exchange at some point, you better give that trust to a more popular rather than to an unknown exchange.

It's always easy for these centralized exchanges to meddle with the users funds because the users themselves all agreed to the terms and conditions set by these platforms. If you could remember the terms and conditions of the bankrupt Celsius, it was like you give them your money as soon as you made the deposit. Users all agreed to that ridiculous term.

[aysg76]

They are running for the personal profits in the first end so they don't care for you but if they claim your funds are safe then it's completely imaginary statement from their side to keep your attached to the exchange but the one's who trust them are real fools.

The top exchange like Binance or Coinbase are not safe at all because your funds are in their custody and they also have your keys to spend it or even lock your out of your account.The next thing Coinbase also said in case of bankruptcy they can use the funds as it's their and Binance selling your information to government and other sources so what else safety we are expecting from them?