Centralized Exchanges Are Hacker’s Playground

[suzanne5223]

It is because centralized exchanges have lots of users who have funds in there even though it is not ideal to store in an exchange.

Yes, but the last time I checked, they can likewise move their fund out of the CEX since they have passed their KYC and AML requirements instead of using CEX as a crypto storage, which is against the concept and dream of Satoshi when create Bitcoin to be a payment model with full
p2p features, with no trusted third party.

[BuckyLucky]

Convenience always looks attractive until something breaks. Holding your own keys isn’t about paranoia, it’s about responsibility and understanding what Bitcoin was designed for in the first place.

[Davidvictorson]

If you are only using centralized exchange for quick transactions then that is fine but if you are using it for holding then they are hackers playground. Although, I wouldn't say so because in the past two years the hacks on these centralized exchanges have reduced. Maybe they have developed a robust security structure or maybe because people already know the truth about centralized exchanges and only treat them as market places for buying and selling. Due to the nature of crypto in my country, we are "force" to use centralized exchanges for P2P services and that brings about another problem- scammers.

[Odogwu-Blockchain]

From the last centralized exchange hack news that took over the internet, the funds that usually got tampered with are the ones in the cold storage and not the ones in the spot balance. I've always got myself confused in this,and asked, why in other storage and not in order storage?

[SeriouslyGiveaway]

From the last centralized exchange hack news that took over the internet, the funds that usually got tampered with are the ones in the cold storage and not the ones in the spot balance. I've always got myself confused in this,and asked, why in other storage and not in order storage?

Spot balance, order storage, what are you talking about?

You must know most basic things about centralized exchanges and how they manage their user money as well as their exchange treasury. When users make deposits to a centralized exchange, the deposited coins will be in a hot wallet first, then exchange has tools to move these coins from hot wallets to exchange cold wallets and credit the deposits to user account's balance.

Hackers mostly aim at hot wallets of centralized exchanges.

[ColdLava40]

Due to the nature of crypto in my country, we are "force" to use centralized exchanges for P2P services and that brings about another problem- scammers.

Reduced? I don't think so, most of the ones that's widely known are most popular exchanges. For smaller exchange we don't get to hear much about the hacks but they happen all the time.

Scammers on P2P are quite different from hackers. They are small minded and to beggars in the disguise of P2P merchants. Most of them wants to double their profits and try to sway you into believing that price is flaucuating.

For hackers, you don't get to know their next move until it happens.

[BlackBoss_]

Due to the nature of crypto in my country, we are "force" to use centralized exchanges for P2P services and that brings about another problem- scammers.

Peer to Peer services are only good to use if they're not from centralized exchanges. If such services, marketplaces are built up and operated by centralized exchanges, they're not good ones. It's not decentralized, not private for users.

Scammers are everywhere and with P2P trades, people must aware about most common scams in P2P trading in order to avoid these scams. It's not hard to avoid scams, and people lost money to scammers as they were both unknowledgeable, careless and too naive.

Scammers on P2P are quite different from hackers. They are small minded and to beggars in the disguise of P2P merchants. Most of them wants to double their profits and try to sway you into believing that price is flaucuating.

For hackers, you don't get to know their next move until it happens.

Hackers are hackers, and scammers are scammers, let's differentiate them well first.

You can lose your money to scammers in a P2P trade while your account is not hacked. There is no engagement of hackers in that scam.

The exception is if you are scammed with a phishing link and that scammer can log in your account and steal your money. Otherwise, if you send your money to scammer by yourself, it's not hack.

The cryptocurrency scambook.