Another reason and proof to keep funds in your wallet not in an exchange

[BitcoinPanther]

The problem with people is that they are lazy researching how to secure their wallet after they create it.  They are too lazy to move their funds from exchanges to their own non-custodial wallet and they do not want to take the responsibility for their coins thinking that exchanges will take responsibility when it is hacked.  Little that they know that not all exchanges take responsibility when the fund of their client was hacked.  Aside from that exchanges are created not to be a stash to store our coins but rather it is a platform where we do our trade. 

So it is better not to leave our funds when we are done with our trading.  After all once our coins is in an exchange, we lost the full ownership of the coins since exchanges can have the 100% access to our coins and can do whatever they decided on it and even block our account and confiscate our funds.  Worst, if the exchange gone rouge, they can even run away with it scamming their client.

[Dr.Bitcoin_Strange]

This has been talked about over and over again on the forum and some LB, and I think that many people should already be aware of the warning, "Not your key, not your coin." Although some people are always reluctant to follow instructions, this is the reason why some investors still keep their money on centralized exchanges and end up losing their funds if there is a hack incident with the exchange they store their money on. Also, I think that some people outside the forum don't really know the risk of storing their assets on CEX, so I think we should always warn some cryptocurrency enthusiasts outside the forum. In the past, I have stored my assets on CEX, but after I realized the risk involved, I stopped saving and staking on cex.

[Peanutswar]

If you are an active trader in their platform it's just okay to make less hassle with the deposit again and again repetitively of course there's a fee but using an exchange as a wallet is not the most ideal because first you are not the owner of your money you don't have the fully authorization still have limitations and next you don't have the private keys in case there's some issue occur you cannot pull out your funds immediately.
There's a lot of issue with the exchange like hacking, scams and etc. So if you don't use your funds and want just to store it ideal to use cold or hot wallet.

[dansus021]

and now CoinEx assures users that the missing coins make up “just a very small portion of CoinEx’s total asset”, and that losses will be covered.

That is what they always say, basically because they don't want their users to panic, but the truth is that when the process starts, it could take as long as possible without the victims getting their compensation or a refund. CoinEx would definitely struggle to offer any compensation here, even though they posted that what was lost is only a "small amount". I don't take what they say seriously anyway, because anybody can check what their daily trading volume was before this incident, as well as what their 'reserves' held, it is obvious that the amount lost is substantial to CoinEx and what they are saying is bullshit. If you had coins in CoinEx, i'm afraid it is going to be a long and frustrating process, which might not yield anything positive.

Hahahaha so true and I'm not a CoinEx user but I already know how long this is going to take place.
Things that I still didnt believe is how the hacker could manage steal all the private key from multiple different chain. There is crazy skill here on this an insider job.

Lasly they still insist that gonna repay all customer using backup money from their cold wallet - https://announcement.coinex.com/hc/en-us/articles/19187420867348-Latest-Progress-of-the-Hacking-Attack-on-Sep-12-2023-Updated-on-Sep-14-

[reagansimms]

Although this has not happen to our exchange where we put our funds for a long time,

Who can guarantee that the same incident will not happen on the exchange where you store funds. You gave Another reason and proof to keep funds in your wallet not in an exchange, but without realizing it you have told us you still keep funds in the exchange (based on what you wrote in the piece of sentence I quoted).

There are so many different wallets available to store Bitcoins, so why store them on an Exchange. Incident after incident continues to occur, such as exchange hacks which result in huge losses for the exchange and users who store their funds there, but every time there is a new case there are always users who also lose their funds. This incident needs to be spread widely in order to remind each other how dangerous it is to store funds on an exchange, the safest place to store funds is a wallet where you can control the private key.

[Note3]

Hacking is often not the work of actual hackers, there are insiders involved or also used as an excuse to make their business look clean from dirty employees.

The exchange is only a place to exchange or trade, if it is used to store coins there, those who do it already use it not according to its designation, it could be because they are lazy to learn about wallet security so they prefer a simple one, which they will pay dearly for by losing their assets there.

[Z390]

Not all safe wallet are safe, not all hardware wallets are safe.

There are different types of crypto wallet and not knowing the difference can cost you some money, some hardware wallets are closed source, and you can still lose money using them, some wallets are custodial, the developers have access to your fund, and they can decide to steal them anytime.

You need to learn and read about the differences between crypto wallets, right now Trezor is safer than a Ledger hardware wallet, and for others, it's better to use an Electrum wallet, if you are into altcoins, find an open-source wallet to use.

When I read about the CoinEX hack I instantly withdrew all my tokens from BKEX and MEXC, exchanges because they could be a victim too, I don't like leaving my assets on exchanges but I am using these to gather some altcoins before moving out due to withdrawal fee.

[Rockstarguy]

Although this has not happen to our exchange where we put our funds for a long time
Earlier there is a news that Coinex have been hack, where the hacker transfer and drain the wallet, with ETH, Polygon, Tron etc, i think this is the first time this exchange has been hack, i say i have coins there but no value, but if you have lots of eth and others thats is a major concern, since we don't know if they can refund the loses.
so to be safe store your bitcoin and other coins to safe wallet, like hardware wallet etc.
this is the link of the news :https://cointelegraph.com/news/coinex-crypto-exchange-suspected-hacked-crypto-moved

This is not new about exchange,  it is a common issue that occurs with an exchange that is why exchange should never be a wallet to hodl  because  it has never been reliable from experience to see an exchange as a comfortable place to bitcoin,  with the usual network problems exchange always have  that makes users unable to have access to their money, with this Challenge that occurs all time it is very risky to leave money in exchange because anything can happen.  Their are some exchange I know that Normally go showdown for hours all in the name of maintenance,  this is how exchange in the past got showdown and till now .

[Xal0lex]

Although this has not happen to our exchange where we put our funds for a long time, this should prove that its not safe to be there for months or years, you have to secure your money, or tokens/coins to your hardware wallet, or electrum wallet etc since you have full control unlike CEX.
Earlier there is a news that Coinex have been hack, where the hacker transfer and drain the wallet, with ETH, Polygon, Tron etc, i think this is the first time this exchange has been hack, i say i have coins there but no value, but if you have lots of eth and others thats is a major concern, since we don't know if they can refund the loses.
so to be safe store your bitcoin and other coins to safe wallet, like hardware wallet etc.
this is the link of the news :https://cointelegraph.com/news/coinex-crypto-exchange-suspected-hacked-crypto-moved

It is always dangerous to store your money somewhere. It does not matter whether it is a centralized or decentralized service. People lose money in decentralized services more often than in centralized ones. Smart contracts are not famous for their security and that is why almost every day there are hacks of various protocols. Storing money on exchanges, staking, providing liquidity in decentralized pools, interacting with smart contracts, all of these are dangerous environments for your funds. Centralized exchanges are just a small part of the dangerous cryptocurrency sector.

[Mr.suevie]

Although this has not happen to our exchange where we put our funds for a long time, this should prove that its not safe to be there for months or years, you have to secure your money, or tokens/coins to your hardware wallet, or electrum wallet etc since you have full control unlike CEX.
Earlier there is a news that Coinex have been hack, where the hacker transfer and drain the wallet, with ETH, Polygon, Tron etc, i think this is the first time this exchange has been hack, i say i have coins there but no value, but if you have lots of eth and others thats is a major concern, since we don't know if they can refund the loses.
so to be safe store your bitcoin and other coins to safe wallet, like hardware wallet etc.
this is the link of the news :https://cointelegraph.com/news/coinex-crypto-exchange-suspected-hacked-crypto-moved

The major cause why people actually fall victims to such cases it's because CEX are way more popular than DEX and there is also the human nature of arrogance to blame because if you are truly interested in Bitcoin you would have known that the major purpose of having Bitcoin or it's creation was  to avoid third party control involvement in your financial life then why would you choose to actually save your money in a centralized exchange which operate like the government.

[JunaidAzizi]

Although this has not happen to our exchange where we put our funds for a long time, this should prove that its not safe to be there for months or years, you have to secure your money, or tokens/coins to your hardware wallet, or electrum wallet etc since you have full control unlike CEX.
Earlier there is a news that Coinex have been hack, where the hacker transfer and drain the wallet, with ETH, Polygon, Tron etc, i think this is the first time this exchange has been hack, i say i have coins there but no value, but if you have lots of eth and others thats is a major concern, since we don't know if they can refund the loses.
so to be safe store your bitcoin and other coins to safe wallet, like hardware wallet etc.

Coinex claims that the hacking was done due to the phishing site. The exchange does not tell about whether they recover the loss or not, but this is a reminder for those who store their fund in the exchange. This hacking shows that even a reputable exchange can be hacked, it is not safe for the users to store their funds in the exchange besides storing their funds in their wallet.

this is the link of the news :https://cointelegraph.com/news/coinex-crypto-exchange-suspected-hacked-crypto-moved

Also, Op you gave a link for the verification but it does not work You made a small mistake in it. Please give a space between : and http so it will be good and yeah it will be start working.

[Rikafip]

Coinex claims that the hacking was done due to the phishing site.

Hm, I can't find the source of that info so can you maybe share it? All that I could find is Coinex saying that private key of their hot wallet got leaked but they don't explain in detail how exactly that happened.

This hacking shows that even a reputable exchange can be hacked, it is not safe for the users to store their funds in the exchange besides storing their funds in their wallet.

While I do agree that even the most repuatble exchanges can get hacked (and they do) I don't think that Coinex falls into that group. Addiitonal problem is that they are a relatively small exvchange so hack of $70M is not somehing that they can sort out easily and might even endanger the existence of the exchange.

[Queentoshi]

so to be safe store your bitcoin and other coins to safe wallet, like hardware wallet etc.

The advice is not enough.

There is also the need to know how to keep your wallet safe from thieves who are not online. Even if it is a Hardware wallet you use, It can still be stolen and your bitcoins lost. Your attitude offline is also a factor that will determine the safety of your bitcoins if stored in a hardware wallet or on a device in a safe wallet. If you are garrulous, you need to watch the habit, so you do not go about talking about your bitcoin holding when and where it is not important.

[qwertyup23]

You should not trust any exchange. Even the most popular are caught to doing the most horrible practices, like fractional reserve system, horrible security, market manipulation, exit scams, and generally there is lack of regulation, so anything you do can be turned against you. The only time I can find some rationale behind using such companies, is when you want to buy / sell / trade shitcoins.

You should be using no-KYC, peer-to-peer exchanges to trade fiat for bitcoin otherwise. (And obviously do self-custody with your bitcoin)

While I still recommend the use of an exchange if your country has one, for maximum security, it is still definitely better to have your own hardware wallet to store your cryptocurrencies.

The reason on why I still use an exchange to keep my BTCs is due to its convenience. Our country, the Philippines, has a designated local exchange in which the government recognizes. With this, I can easily convert my BTCs to our local currency in order to pay our bills, etc. The only catch is, the requirements for a person to access the exchange are tons of KYC documents (including bank statements and financials, etc.) in order to maximize its benefits.

While this may be the case, having a hardware wallet in order to store your funds for long-term investment is still the best solution and method up to this date.

[GeorgeJohn]

So many of us has already know the implications of keeping bitcoin or any other coin in exchange, the implications or disadvantages of it, is that the exchange can be hacked and they may made away with your coins, that is while is not encouraging to keep your coin in exchange, let me use binance as illustrations, because sometimes in the forum I have come across of a thread binance was been discussed about group of people that hacked the exchange and it affected everyone who their coin were in the custody of binance and binance as exchange did not repay everyone in same value of the coin that was been displaced in their exchange, because the did not recover all the coins, its better as someone who wants to invest in bitcoin to use a custodial wallet to save its coins.

[Mpamaegbu]

Earlier there is a news that Coinex have been hack, where the hacker transfer and drain the wallet, with ETH, Polygon, Tron etc, i think this is the first time this exchange has been hack, i say i have coins there but no value, but if you have lots of eth and others thats is a major concern, since we don't know if they can refund the loses.

I know it's not a wise thing to hodl coins on an exchange, especially for the traders amongst us. It's for the ease and convince in assessing them that make traders and investors leave them on exchanges. When we take out time to lampoon those who fall victim to exchange hacks, we should also state it clearly that even personal wallets do also get hacked. So, there's no fool proof to all of this. Just caution, that's what should be the watch word in this crypto space. Since this is the first hack Coinex is experiencing, I don't think it will batter its imagine that badly. It will shake it off.

[armanda90]

Coinex claims that the hacking was done due to the phishing site. The exchange does not tell about whether they recover the loss or not, but this is a reminder for those who store their fund in the exchange. This hacking shows that even a reputable exchange can be hacked, it is not safe for the users to store their funds in the exchange besides storing their funds in their wallet.

Have been common reason with all exchange market when trying scam will give reason their exchange are hacking and can't guarantee with user or member assets will refund, seems the only FTX never give reason about their exchange have been hack before scamming their member. Before Coinex I think MtGox ever hacked and until right now the user assets not refund yet although hacker have been under arrest and they have got back their bitcoin assets.
After FTX crashing seems not any new exchange have been hacked and sees secure for holding assets in exchange market although saving in wallet most recommended. Can't predicting with reputable exchange trusted will exist until how long depend with FTX is most trusted exchange and finally become scam without refund the user assets.

[icalical]

Yeah, never let our coin stay in the exchange wallet for too long, only when we want to exchange it to another coin or to fiat. Only use non-custodial wallet to store our fund in a long run. But all that being said, in this particular case, at least CoinEx said that they will compensate the hacked fund entirely, let's just hope they will actually do that, https://cointelegraph.com/news/coinex-compromised-private-keys-behind-70-million-hack

[Razmirraz]

This message has been conveyed more than 10 times in forum, it is very common to hear in forums "not your keys, not your crypto". Storing assets on an exchange is not recommended for anyone working in the crypto field because there have been many cases of losses by Exchange users that have occurred before. The case that occurred with FTX is enough of a lesson for anyone working in the crypto field not to entrust their assets stored on the Exchange. Other cases have also occurred, such as exchange hacking which resulted in many losses experienced by exchange users.

Previously @theymos had also conveyed this message to all Bitcointalk forum users, you can find the thread here. Reminder: do not keep your money in online accounts