Were do I store my money

[Webutxo]

Any non-custodial storage that gives us complete privacy and allows us to maintain the necessary security measures means there is nothing that will make us forfeit our coins to hackers. Most of the incidents we are seeing today regarding hacks and scams are related to our individual mistakes and lack of information about using a non-custodial wallet instead of a custodial wallet, while the possible scams are also related to not being informed of the necessary steps to take to secure our assets from scammers.

Whether you use a centralized exchange or decentralized wallet that are self custodial, if we don't handle security very well, hackers will get into your wallet and steal your coins and privacy play a crucial role in this. If you are using a non custodial wallet and you are very poor at privacy, you don't know how hide your self online, you always like to show off or sometimes do it unaware, you can still get hack and loose all the coins you used years to accumulate.

The recent Binance hack, they have claimed for years that they are the best exchange, they have never been hack before, they looks solid until one of their employees privacy was leaked and they hack into his computer to sign a transaction with his key. If he uses a laptop that was never connected to the internet and completely offline, there is no way on earth the hacker will get to him. This is why privacy is important. If you let lose, they will get to you even if you do non custodial wallet.

[panjul07]

The recent Binance hack, they have claimed for years that they are the best exchange, they have never been hack before,

Not completely true to say that they have never been hacked before, as I remember they have been hacked before on 2019 and 2022 but the current one can be said as the biggest one.
Anyway, the latest hack in various exchanges as well as issue in hardware wallet, makes many people worry about their crypto assets as some people start to be confused to decide where to store their bitcoin or other assets.
We need to keep our assets secured as we are responsible for our own assets and of course hoping that we wont be affected or become a victim of hacking attempt ever.

[MisFoxie]

One thing that I have to say is that there is no exchange or wallet that can not be hack, i know we should be panic because these are the place where we think we can store our coins and it has become something that we can not trust anymore but we should not also forget that the exchange are also doing their best to protect our coins because they can not lose their customers, as long as your coins is not touched when the exchange was hacked you don’t need to panic, I am not saying that we shouldn’t look for another exchange or wallet to store our coins but we should remember that those once we trust can also be hack too.

When an exchange gets hacked it means the hacker has somehow managed to get access to that exchanges hot wallet. These hot wallets always stay online and complete all the transactions of the exchange. Whenever the exchanges system gets hacked hackers can also gain access to the exchange's hot wallets which is why they were able to transfer funds directly from those wallets. But most of the time they cannot hack cold storage because these are never online. So to keep funds safe cold storage must be used. Obviously you have to make your own cold storage to be safe.

[Perfect-World]

The recent Binance hack, they have claimed for years that they are the best exchange, they have never been hack before,

Not completely true to say that they have never been hacked before, as I remember they have been hacked before on 2019 and 2022 but the current one can be said as the biggest one.
Anyway, the latest hack in various exchanges as well as issue in hardware wallet, makes many people worry about their crypto assets as some people start to be confused to decide where to store their bitcoin or other assets.
We need to keep our assets secured as we are responsible for our own assets and of course hoping that we wont be affected or become a victim of hacking attempt ever.

Yea, Binance has been hacked previously, and like you said, the present is biggest. This only puts pressure on customers and am sure, such incidents have given rise to such threads and questions all over..

However, non custodial wallets are recommended. While Binance try to fix things and get everything moving again, which is good, but with non-custodial wallets, you wouldn't get to face such disruption. You get to operate as your own bank, handling and managing your assets. If you are able to keep your seed phrases well, then you are safe. Sometimes, the carelessness of some people exposes this phra, and puts you on risk. But if it's well kept, then you are safe from criminals or any thing related to what happened to Binance and other exchanges or casinos.

[Adiljutt156]

We? There is no system that is 100% secure by default, the devs still have a responsibility to audit and check their system regularly, to ensure there are no critical bugs that can be exploited. This is the reason why open source and well-reviewed wallets are recommended, not because they are immune to breaches, but because they can be easily identified and patched.

Let's not forget that the first reason why self-custodial wallets are recommended is because its users control their keys and they cannot be locked out of their funds. However, how their devs manage the software and fix vulnerabilities is another thing.

I completely agreed with your statement because there is nothing 100%. Everything needs updates and developments. Devs need to stay alert with the changes that are happening. AI is exploiting security, and things are going on at a level where it's never been easy to handle them without having enough developments.

Self-custody is having enough for accumulators, but they always need to have enough knowledge and security things under their control. Firstly, never share your crypto with anyone because now it's also the biggest security threat.

Never try to have enough engagements on social media, which is increasingly having issues and not allowing people to live freely and securely using wallets, which give you control and keys, always the best option now.

[Just Say]

One thing that I have to say is that there is no exchange or wallet that can not be hack, i know we should be panic because these are the place where we think we can store our coins and it has become something that we can not trust anymore but we should not also forget that the exchange are also doing their best to protect our coins because they can not lose their customers, as long as your coins is not touched when the exchange was hacked you don’t need to panic, I am not saying that we shouldn’t look for another exchange or wallet to store our coins but we should remember that those once we trust can also be hack too.

When an exchange gets hacked it means the hacker has somehow managed to get access to that exchanges hot wallet. These hot wallets always stay online and complete all the transactions of the exchange. Whenever the exchanges system gets hacked hackers can also gain access to the exchange's hot wallets which is why they were able to transfer funds directly from those wallets. But most of the time they cannot hack cold storage because these are never online. So to keep funds safe cold storage must be used. Obviously you have to make your own cold storage to be safe.

Yes when an exchange is hacked it means that hackers have somehow gained access to the hot wallet of that exchange too I agree with you on this and in most cases their access gets into the hands of the hackers. The main thing is that the wallets of the exchange that are directly connected to the Internet are called hot wallets. Basically these platforms keep a small part of their total funds in this wallet to provide users with fast withdrawal and trading facilities.

Also if hackers can access CEX central server, API and any official's system through phishing, then we can assert that hackers can steal hot wallet's private keys. You are right that most of the times hackers cannot hack cold storage but we should not forget that cold storage is not hundred percent risk free considering that hackers can use phishing attacks, malware,And cold storage can also be hacked through supply chain attacks.

[Ultegra134]

Pretty bleak predictions As for hacked wallets and exchanges goes, wasn't it always been a god practice to keep money on exchange as short as possible ever since mtgox ?

Also there are alternatives to hardware wallets. At this point I don't think of any hardwre wallet as safe, either bought directly from manufacturer, either ones that were bought from distributors.

So far I am still relyng of keeping seed on encrypted USB memory stick, also I use laminated paper - I write the seed on paper and protect it with transparent duct tape. As for spending there are multiple solutions - from using airgapped pcs, to using live memory sticks with portable OS.

The majority of well-known exchanges have gone through being hacked at least once in the past few years, this isn't the first time Binance has been exposed, something similar had occurred a few months/a year ago. The same applies to Coinbase and other exchanges. It's also extremely disheartening to see hardware wallets having vulnerabilities that could end up in major losses. I was actually considering to purchase one approximately a year or so ago, but news of such exploits/hacks dissuaded me from acquiring one.

I'm in the process of isolating my older laptop from internet and keeping my non-custodial wallet there. So far, it seems the safest option.

[Lidger]

I think there is a difference between buying and storing a coin and actually controlling it. Exchange wallets have been hacked and are currently being hacked, and personal wallets are not completely secure. Personal wallets also contain some important information such as private keys or seed phrases, if we can store them safely and if none of the wallet information goes to anyone else, then I think such wallets are more secure than exchange wallets.

So for long-term storage, it may be safer for investors to use hardware wallets.

I think we should be as conscious about storing our personal information safely as we are about choosing a wallet, and this can prevent such unwanted incidents to a large extent.

[drangos]

One thing that I have to say is that there is no exchange or wallet that can not be hack, i know we should be panic because these are the place where we think we can store our coins and it has become something that we can not trust anymore but we should not also forget that the exchange are also doing their best to protect our coins because they can not lose their customers, as long as your coins is not touched when the exchange was hacked you don’t need to panic, I am not saying that we shouldn’t look for another exchange or wallet to store our coins but we should remember that those once we trust can also be hack too.

When an exchange gets hacked it means the hacker has somehow managed to get access to that exchanges hot wallet. These hot wallets always stay online and complete all the transactions of the exchange. Whenever the exchanges system gets hacked hackers can also gain access to the exchange's hot wallets which is why they were able to transfer funds directly from those wallets. But most of the time they cannot hack cold storage because these are never online. So to keep funds safe cold storage must be used. Obviously you have to make your own cold storage to be safe.

Even with cold storage online attack risks are reduced but your money is not necessarily safe. Self custody also implies that you are answerable for safeguarding your seed phrase. And recovery backup. If someone were to have access to your recovery phrase. Then a hardware wallet wouldn't help you. I would also not store the one backup in the same location as the device. With long term holdings. Security should involve security both offline. And a recovery plan it's not so much the location of your Bitcoin storage. But whether you can retrieve it safely if you lose your device or if it gets damaged.

[SPIDERMAN008]

I think there is a difference between buying and storing a coin and actually controlling it. Exchange wallets have been hacked and are currently being hacked, and personal wallets are not completely secure. Personal wallets also contain some important information such as private keys or seed phrases, if we can store them safely and if none of the wallet information goes to anyone else, then I think such wallets are more secure than exchange wallets.

So for long-term storage, it may be safer for investors to use hardware wallets.

I think we should be as conscious about storing our personal information safely as we are about choosing a wallet, and this can prevent such unwanted incidents to a large extent.

I agree with you. Hardware wallets are very effective for long time holding. But what I think is more important is to backup the seed phrase properly. It cannot be stored in a way that is likely to be lost. Or it can go to someone else as a result, control of your wallet will be lost. Many people store it in such a way that later they cannot find that seed phrase themselves. In this case you have to be responsible.

Just as it is necessary to protect against hacking or scams, it is also important for an investor to maintain his wallet completely responsibly. Another thing is not to discuss anything related to bitcoin publicly. There are many who like to talk about this topic publicly. This can make them a target. Lastly what I understand is to backup the seed phrase properly, choose the right wallet and protect your privacy, this is how we can strengthen our security.

[DanWalker]

The recent Binance hack, they have claimed for years that they are the best exchange, they have never been hack before,

Not completely true to say that they have never been hacked before, as I remember they have been hacked before on 2019 and 2022 but the current one can be said as the biggest one.
Anyway, the latest hack in various exchanges as well as issue in hardware wallet, makes many people worry about their crypto assets as some people start to be confused to decide where to store their bitcoin or other assets.
We need to keep our assets secured as we are responsible for our own assets and of course hoping that we wont be affected or become a victim of hacking attempt ever.

To be precise, Binance did get hacked in 2019. Hackers drained 7kbtc , and Binance covered it with the SAFU. 2022 was a different case, that was an exploit on BNBChain, not Binance itself getting hacked directly.

OKX might be only exchange that's never been hacked so far, but hard to guarantee it won't happen in the future.

Tbf, Im kinda lost myself on where to store BTC and other assets so they're actually safe these day. Exchanges can get hacked or freeze your fund, while hardware wallets aren't completely immune to security vulnerabilities either.

[Kelward]

The recent Binance hack, they have claimed for years that they are the best exchange, they have never been hack before,

Not completely true to say that they have never been hacked before, as I remember they have been hacked before on 2019 and 2022 but the current one can be said as the biggest one.
Anyway, the latest hack in various exchanges as well as issue in hardware wallet, makes many people worry about their crypto assets as some people start to be confused to decide where to store their bitcoin or other assets.
We need to keep our assets secured as we are responsible for our own assets and of course hoping that we wont be affected or become a victim of hacking attempt ever.

Ofcourse Binance have been hacked before but this recent hack is by far the biggest, not only in Binance but the entire crypto related platforms, I'm sure that Binance took precautionary measures before this last hack especially since they were hearing about other recent hacks still they became a victim again. This should tell you that the crypto storing platforms including exchanges, wallets and crypto casinos are all at risk of being hacked because of the sophistication of these modern hackers.

These hacks doesn't leave us crypto holders in a safe place because cryptocurrency are not physical cash or assets that we can hold directly by ourselves, we have to rely on these sources to hold our Bitcoin and cryptocurrency. Our best option to store our cryptocurrency remains self custody, despite the report of compromises on a hardware wallet the option remains the most trusted so far because hardware are not connected online. I cannot priotize any exchange to store my coins, they will always be for trading purposes and p2p transactions.

[Localhostspeed]

I agree with you. Hardware wallets are very effective for long time holding. But what I think is more important is to backup the seed phrase properly. It cannot be stored in a way that is likely to be lost. Or it can go to someone else as a result, control of your wallet will be lost. Many people store it in such a way that later they cannot find that seed phrase themselves. In this case you have to be responsible.

Just as it is necessary to protect against hacking or scams, it is also important for an investor to maintain his wallet completely responsibly. Another thing is not to discuss anything related to bitcoin publicly. There are many who like to talk about this topic publicly. This can make them a target. Lastly what I understand is to backup the seed phrase properly, choose the right wallet and protect your privacy, this is how we can strengthen our security.

What a company can do, human can do the same and even better. There is a human error and there is company error and both can happen even if you buy a hardware wallet. It's possible to buy a hardware wallet and not well secure with entropy RNG, Coldcard is one factory error. They used to be consider as the best wallet in town but one factory error destroyed everything they have built for years.

A wallet DIY airgap wallet created by you is more safer and better than some hardware wallet and if there is any error from your airdrop wallet, it's because you didn't do it well. Doing an airgap wallet by yourself protect you from company mistakes and if done very well, you will are going to use your wallet for years without any problem or error.

[ovcijisir]

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The majority of well-known exchanges have gone through being hacked at least once in the past few years, this isn't the first time Binance has been exposed, something similar had occurred a few months/a year ago. The same applies to Coinbase and other exchanges. It's also extremely disheartening to see hardware wallets having vulnerabilities that could end up in major losses. I was actually considering to purchase one approximately a year or so ago, but news of such exploits/hacks dissuaded me from acquiring one.

I'm in the process of isolating my older laptop from internet and keeping my non-custodial wallet there. So far, it seems the safest option.

My current setup is to use old laptop (isn't airgapped) and use it with live USB that has TailsOS installed. This is very good combo in my opinion as TailsOS runs only in RAM and writes nothing on the disk of the computer.

TailsOS also has Electrum pre-installed so there is no need to connect to the internet. I can just run it offline, then enter seed in Electrum and sign the transaction offline and when I turn off the computer no information is stored anywhere.

Pretty good alternative to HW wallet in my opinion, the only downside is that laptop can't be carried in a pocket.

[SeriouslyGiveaway]

My current setup is to use old laptop (isn't airgapped) and use it with live USB that has TailsOS installed. This is very good combo in my opinion as TailsOS runs only in RAM and writes nothing on the disk of the computer.

TailsOS also has Electrum pre-installed so there is no need to connect to the internet. I can just run it offline, then enter seed in Electrum and sign the transaction offline and when I turn off the computer no information is stored anywhere.

If people want to use TailOS but still don't know how to do that, it's a good helpful thread.
How to Install Tails OS on USB flash drive for Wallet Purpose.

Some security reminders for using Electrum wallet safely.
[GUIDE] How to Safely Download and Verify Electrum.
The paranoid user's security guide for using Electrum safely.