The Moment You Send Money To Exchange - They are Not Yours + Some Good Practices (20 000 Followers Special)
I have just crossed 20 000 followers on Steemit so i want to remind some rules, because from comments that i read it seems there is lots of newbies checking me out trying to learn.
So let me explain this. Coins are your only if you have them on wallet that you have private key for. Not password on some website wallet or password to exchange.
The moment you deposit to exchange you take a bet that exchange wont die or run with your money.
The moment you give them coins they only give you promise to pay back. But they may fail (happened many times).
So only transfer to exchanges amounts you can lose.
Lately:
- CoinCheck exchange was hacked losing millions of USD mostly in NEM
- Cryptopia lost bank acconts
- BitGrails owner decided to sell XRB into BTC + make mandatory KYC
Of course to trade you need an exchange so here is few good practices to follow:
- always use 2FA with Google Auth or Authy apps on phone
- use email verification for withdrawal if possible
- have different and very long passwords to every exchange
- do not leave money that you are not using for long times on exchanges
- put 2FA on email (if possible)
- do not enter exchanges from google, bookmark them
- always use SSL
Follow, Resteem and VOTE UP @kingscrown creator of http://fuk.io blog for 0day cryptocurrency news and tips! |
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Never leave coins on an exchange and always use a hardware wallet...
That is true. I just had gotten my Ledger Nano S hardware wallet. So much easier than I had thought to use. Just basically plug in, open app on computer, and use wallet.
What's your favorite product for doing this?
tips are worth appreciating
Thank you for the advice!!
Exactly right. I’ve been saying this for months but most people (especially newcomers) are not interested. Many do not understand crypto and are just speculators.
Having been burnt by the mt gox collapse, I will never leave coins on an exchange. Transfer in, trade, transfer out! Usually using a hardware wallet where possible!
They'll learn the hard way.
true. Good reminder for experienced traders as well @kingscrown . I just the news of some bank accounts being frozen as they were associated with an exchange :(
Power to the people, but, with power must come responsibility..
Hidden Fees that prevent users from withdrawing small amounts of coin are also a common scam among popular exchanges.
Transferring your coins to a wallet on your own device is my best advice. TOS change too quickly and without notice.
very true! they do not want you to withdrawal so they put high fees often
Or having silly minimum withdraw amounts like 250 usd minimum for bitfinex.
I got caught out with that scam, they don't tell you until you go to withdraw them. Very sneaky.
I have about $30 in Binance crypto dust because in he early days I was moving currency around between a lot of altcoins. One option on Binance - for the coins that they have pairs for - is to use BNB (Binance coin) because you will only pay 50% of the standard fee. Unfortunately, the dust issue hasn't yet been solved - but on the Binance subreddit, the official crew has stated they are working on a solution, though the ETA is vague.
Robinhood - the zero fee market - will help solve this, but for the meantime, be mindful - especially those of you just getting started with trading on Binance and similar fee-based exchanges.
Great tips. I don't trade crypto due to what happened to mt. gox.
Great article @kingscrown. I'm not yet registered in any exchange, but i would like to know based on your experience which one you recommend that permits to convert steem into FIAT (euro) with low fees?
Very good your article, I am new to steemit and I know almost nothing yet