Not your key not your wallet

[Amphenomenon]

Coinbase sent this to my email to inform me that I have till September 25th before my account is disabled and I should withdraw my funds before then but the fact is that I have not completed my KYC and so I won't be able to withdraw my funds there. Good thing what I have there doesn't really worth anything. Even if I want to do kyc I still can't because getting my documents would be really tasking for me.
This is among the reason we should be cautious of Centralise exchange because they can choose to change their terms and conditions which may be unfavourable to us.
Ps : I already have this account before I joined this Forum

[1714805356]

1714805356

[1714805356]

1714805356

[1714805356]

1714805356

[Faisal2202]

Even if you use any of the SPV wallets which provide you private keys and seed phrases, none wallet is yours until you create your own full node wallet.

The point is, these exchanges are just time-to-time sources for performing transactional activities like making trades, joining some launch pads, performing staking, etc. As we all know exchanges are full of different ways to make you profit and loss too. And of course with a wallet too which provides you no key.

But do you really think, having a key to your wallet means wallet is yours? Then I own a trust wallet, metamask, and any other wallet you guys prefer to use. None of them is ours and none of them we own.

The only wallet we could own and even the key phrase is full node wallet but of course, not everyone could make one. So I know the limitations also.

Moral of the story: these types of centralized exchanges at least try their full to save the money of customers so they even mail you. I am not in favor of Cexs but only of some factors.g

[Cantsay]

I get the fact that this thread is to warn newbies about the danger of using centralise system and also how they put their privacy at risk by completing KYC process. But I couldn't help but wonder if you ever took your time to go through the ToS of the exchange before you made deposit? because it's clearly stated that all users are required to complete their identity verification before they can perform some certain activity and the fact that you didn't read the Terms also shows a wrong use of online services.

To all newbies and those who still have the habit of not read the Terms of Service of any online let this be an example to you of the danger that you put yourself. Yeah, I am aware of the fact that ToS are too long but you should use some keyword search like "identity, withdraw, VPN, KYC, fees, etc" to read the most important part before you start using that service.

Back to the Op, Since you mentioned that you created this account before you became a member of bitcointalk and now a preacher of the importance of using non-custodial wallet, do well to also practice it.

[BlackBoss_]

Coinbase sent this to my email to inform me that I have till September 25th before my account is disabled and I should withdraw my funds before then but the fact is that I have not completed my KYC and so I won't be able to withdraw my funds there.

Don't instantly trust what you receive in your email.

Scammers can send you phishing emails. Visibly, you will see their email address is like from Coinbase but it is not.

Punycode and how to protect yourself from Homograph Phishing attacks?

If you receive such emails, please check and confirm that information from Coinbase website, Twitter.

[Helena Yu]

Even if you use any of the SPV wallets which provide you private keys and seed phrases, none wallet is yours until you create your own full node wallet.

It's completely wrong to say having a key must run a full node!

Running full node mean you help the decentralization and you take a part, it could increase your privacy too. But using SPV wallets don't mean your wallet are get controlled with the central server or someone else. Either SPV or full node, your wallet has a same security.

Don't instantly trust what you receive in your email.

I mean, that's a different topic.

What's the reason someone create a fake email when it's just remind to withdraw his funds on CEX and not ask him to click anything or send to specific Bitcoin address?

[hosseinimr93]

Even if you use any of the SPV wallets which provide you private keys and seed phrases, none wallet is yours until you create your own full node wallet.

This is wrong.
If you use a SPV wallet, you don't need to download the blockchain and get the required data a server that is running a full node. This has nothing to do with security of your keys.
As mentioned by Helena Yu, the purpose of running a full node is helping the network and having more privacy.

Take note that for generating a secure bitcoin private key and address, you don't need internet connection at all, let alone running a full node and downloading the blockchain.

[Yamane_Keto]

There is a difference between your Coinbase account and Coinbase wallet. If you read the email details, you can still use the wallet and not the account.

Even if you use any of the SPV wallets which provide you private keys and seed phrases, none wallet is yours until you create your own full node wallet.

wait WHATTT Where did you get the confidence to say this? SPV wallets are the same as full-node wallets, but they are lightweight that store block headers and Merkle roots, which are primarily intended to rapidly increase Bitcoin adoption due to the difficulty for anyone to manage a full node and synchronize it periodically. The privacy that a full node provides you is higher.

But do you really think, having a key to your wallet means wallet is yours? Then I own a trust wallet, metamask, and any other wallet you guys prefer to use. None of them is ours and none of them we own.

As long as you have access to the private key, you can broadcast a new transaction even if the wallet in which you generated the private key stops working.

[Adbitco]

As a trader and someone who loves holding currencies in the exchange site you are always advisable to do your kyc completely before start storing coin inside because they may change their term of operation which would likely affects your funds and to pass the kyc.
We all know that centralized exchange are very risky to leave our funds inside due to numerous drama of hack, breakdown or bankruptcy, the best is to look for reliable wallet and store your fund nowadays the crypto exchange and wallet are not that friendly so we have to be very careful while chosen wallets or exchange.

The good part is that, Coinbase sent you a reminder to notify you on their operation because sometimes most of the exchange do not notify their customers before closure or any change of service operations.

[hosseinimr93]

There is a difference between your Coinbase account and Coinbase wallet. If you read the email details, you can still use the wallet and not the account.

Right. OP can still use coinbase non-custodial wallet, but even their non-custodial wallet should be avoided. It's worth mentioning that coinbase non-custodial wallet is close-source and there is no way to know how the keys are generated and whether they have access to the keys or not.

[Mr.right85]

The point is, these exchanges are just time-to-time sources for performing transactional activities like making trades, joining some launch pads, performing staking, etc. As we all know exchanges are full of different ways to make you profit and loss too. And of course with a wallet too which provides you no key.

Using a centralised exchange for reasons other the above mentioned could be doingvit wrong and I say this with particular stress on storage.
Even staking itself could be another means in which, you indirectly use an exchange for storage purposes. By staking, you are locking a coin on the exchange and providing liquidity for that coin and in a way, your leaving that coin there which translates to indirect storage.

But do you really think, having a key to your wallet means wallet is yours? Then I own a trust wallet, metamask, and any other wallet you guys prefer to use. None of them is ours and none of them we own.

The only wallet we could own and even the key phrase is full node wallet but of course, not everyone could make one.

You might forgive his misconception, am sure he meant it differently,
Not your keys, not your coin.

[Dunamisx]

Let me start by making a little slight mistake on your topic that it's not your keys not your coins, anyone has the right to claim using any wallet he decided to choose and that wallet turns to be your own preferred choice even though the coins were not stored in the wallet, they were stored on the blockchain and the kind of wallet we use gives us access to having the unblocking keys required to decode the encoded coins we are having stored on the blockchain, some custodial wallet will not give you access to those keys and when such happens, it's not your keys not your coins.

[Amphenomenon]

I get the fact that this thread is to warn newbies about the danger of using centralise system and also how they put their privacy at risk by completing KYC process. But I couldn't help but wonder if you ever took your time to go through the ToS of the exchange before you made deposit? because it's clearly stated that all users are required to complete their identity verification before they can perform some certain activity and the fact that you didn't read the Terms also shows a wrong use of online services.

I did know about their previous ToS till they changed it, at that time (before I knew about the dangers of Kyc) I wanted use it to store my coins since I won't be able to withdraw without Kyc because at that time I couldn't get the required documents for the Kyc (till now though) but the fact is I never expected them to change their ToS good thing I don't have any coin of high value there.
This is not about their privacy only but the fact that the exchange can change their ToS which may be unfavorable to some customers

Back to the Op, Since you mentioned that you created this account before you became a member of bitcointalk and now a preacher of the importance of using non-custodial wallet, do well to also practice it.

Yes but I have done alot of dumb things, thinking Kyc was secured where as they are alot of dangers surrounding it. I recommend this post for anyone who wants to know about the dangers of Kyc Why KYC is extremely dangerous – and useless

Snip

Thanks though but this is from them, I do get emails frequently for though.

[sunsilk]

This is not about their privacy only but the fact that the exchange can change their ToS which may be unfavorable to some customers

It's a good warning not just for the newbies but those that have been here for quite a while. It doesn't matter whether you trust or not the exchange you're using and where your funds deposited at.

The fact that they can change their TOS anytime is what's also worrying for users that trusting their huge funds on them. In your case, as you've said that it is not that much and nothing to worry about.

But we can sense that if the amount is quite high and this has happened to you or to anyone, that's stressing. So for those that has plans for long term holding, do not do it on an exchange.

[CryptSafe]

Truly, holding your assets on Centralized exchange is not worth the risk. Holding it there is just like you pouring water into the basket. You have no access to the private key only them, you are not in charge of your assets only them, they trade and make profit from your assets and you do not share the profit with them, when they get hacked, you suffer the loss and they do not because they have external storage safe for their assets which you know nothing about and in all, you are being charged fee for trading, withdrawal as well. So with all these do you think in the right sense it is advisable to keep holding your assets with CEX?

OP it is nice you received such mail and i commend them for that as it is amongst what they should be doing to keep customers abreast ahead of time to get them engaged as well.

Lastly, it is advisable to make such you scale through any kyc you have done with any exchange before moving your asset to the exchange so as not to be told the story that touches the hearth.

[Sim_card]

This is one of the disadvantage of using a centralized exchange to store your coins,they can come up one day and change their ToS and your funds will become trapped in their exchange. OP and  newbies make sure that you read the ToS of any exchange or platform that involves deposit and withdrawal of funds so that you don't get your funds stuck in it due to  ignorance. I hope those users that have their funds in coinbase will have access to transfer their funds to a noncustodial wallet for safety. Our privacy and total control over our funds matters a lot.

[Faisal2202]

Either SPV or full node, your wallet has a same security.

i read a topic yesterday, which have the same security concerns about the SPV and full node wallet. i would like to mention it here, but let me quote other members too because they had also made the same statements.

Just to clarify, i have already mentioned in my reply that I know the limitation also. which means the same what you just discussed above, I do know, to run a full node you have to download the full blockchain which is more than 350 GB (roundabout) plus you need a better CPU with an internet connection. To make a full node wallet you do need some more ingredients in comparison to SPV wallets.. As mentioned by Helena Yu, the purpose of running a full node is helping the network and having more privacy.

And Yamane_Keto also does not agreed with my statement

wait WHATTT Where did you get the confidence to say this? SPV wallets are the same as full-node wallets, but they are lightweight that store block headers and Merkle roots,

First of all, let me tell you i was born confident, and i do have 100% confidence to say that SPV and the full node don't provide the same privacy and security features. Let me tell you all, that, I came to this statement due to this topic.

Due to the privacy limitations of SPV wallets like Electrum and Sparrow, in the case you use them connecting to public servers, I would like to know if there is a SPV wallet which does only rely on other nodes/servers to download block headers and certain groups of blocks to verify transactions myself, without sharing data like transaction IDs or addresses.

Maybe, I took the context of OP's post wrong here, but let me repeat it. I meant to say, SPV wallets do provide us with the key phrase, but what if the services behind that any SPV wallets got attacked and started to misbehave which could lose you money even if you have the seed phrase. Take an example of the latest hack on Atomic Wallet which caused a loss of around $35 million dollars. The point here is, if we do not own the wallet, then how can we be so sure and satisfied with that wallet amid the difference of open and close source? Because we own nothing they are also software made by some third parties. (maybe i am wrong here).

But full node wallets, are not made by any third parties because you configure the inbound and outbound network securities here. and also own the wallet too. (have you ever heard the hack of full node wallets? if yes, then what is the ratio here.)

You might forgive his misconception, am sure he meant it differently,
Not your keys, not your coin.

Are you agree with me?   because it's an encouraging point for me because others didn't agreed with my point, but your positive reply had increase my confidence about which Yamane_Keto had raised questions.

[hosseinimr93]

I meant to say, SPV wallets do provide us with the key phrase, but what if the services behind that any SPV wallets got attacked and started to misbehave which could lose you money even if you have the seed phrase.

If you use a trustworthy open-source wallet like electrum, that's not possible. In electrum, you sign your transactions locally. You are the only one who has access to the private keys and you never send them to third parties.

Take an example of the latest hack on Atomic Wallet which caused a loss of around $35 million dollars.

Atomicwallet is close-source and we don't know how it generates the keys. Whenever you use a close-source wallet like Atomicwallet, everything is possible.

You may lose your fund if there's a vulnerability in the wallet. If you use a trustworthy open-source wallet like electrum, you can be sure there is no vulnerability. Electrum being a SPV wallet doesn't mean it's not secure. It's open-source and there is nothing hidden from users.  

You may lose your fund if your device gets compromised. If your device is compromised, it no longer matters you were using an open-source wallet or not and it no longer matters whether you were running a full node or not.

[letteredhub]

Centralized KYC exchanges are like a necessary evil for all traders no matter how was may disdain them due to previous ugly circumstances surrounding their operation and how it has affected their users. That's why it's so important to always give in time to read through the T& C's of any exchange we're to make use of so we can have a good idea of what we're dealing with.

OP failed to complete his KYC and not the fault of the exchange as op knew from the start that KYC is part of the registration process and an allusion that used by Cex to trap their customers money at any opportunity. Let's always do well to do the needed to avoid losing our coins to these avoidable situations not to always transferring the blames to Cex all the time.

[Fiatless]

Coinbase sent this to my email to inform me that I have till September 25th before my account is disabled and I should withdraw my funds before then but the fact is that I have not completed my KYC and so I won't be able to withdraw my funds there. Good thing what I have there doesn't really worth anything. Even if I want to do kyc I still can't because getting my documents would be really tasking for me.
This is among the reason we should be cautious of Centralise exchange because they can choose to change their terms and conditions which may be unfavourable to us.
Ps : I already have this account before I joined this Forum

Before you use an exchange you should carefully read the terms of service. Your account will be disabled because you failed to provide the complete KYC so you don't have to blame them. If you want to continue with them provide your details, if not allow them to close the account. But some exchanges keep on changing their terms of service, I don't blame them sometimes because the government keeps pushing them to get more personal information from customers. But it will be ideal for these exchanges to inform their customers about the change of some policies instead of secretly changing the ToS.

[Coyster]

some custodial wallet will not give you access to those keys and when such happens, it's not your keys not your coins.

Not some, but all custodial wallets won't give you any seed phrase and they will hold the keys to your coins, if you want to spend or withdraw your coins you must have to go through the custodial service provider.

But do you really think, having a key to your wallet means wallet is yours? Then I own a trust wallet, metamask, and any other wallet you guys prefer to use. None of them is ours and none of them we own.

If you have the keys and the seed phrase, the wallet and the coins are yours, but do not use trust wallet and other closed source wallets even if they give you your keys, that's because they are closed source and you have to trust them without being able to verify their code or anything about the wallet.