Why NOT to keep your Crypto on Exchanges! MUST READ!
Why NOT to keep your Crypto on Exchanges! Most people involved in Crypto investments operate on the “TRUST” mindset and think it’s safe to store their hard-earned cryptocurrencies on the exchanges.
Most exchanges are unsafe and do NOT properly protect customer accounts. Why??? Why would they???
If they get hacked or claim to get hacked, they are not regulated, and they choose how to handle the situation.
Let’s look at this from simply a “PROFIT” mentality. Someone opens an exchange business to a make a profit and that’s ALL they are interested in. NOT people, NOT helping people, simply the PROFITS!
After six months of running a successful exchange, they have 500,000 customers with an average of $2500 in each cryptocurrency account. That’s $1,250,000,000 total in ALL accounts!
Now all they need to decide is do they want to be a millionaire or a billionaire???
The “HACK” now takes place and it’s up to them 100% how to handle the situation.
They may choose to simply close the business down, attempt to return the funds to customers, or issue a statement, "we will let you know in the future how we plan to handle this unexpected and horrific event".
Whatever option they choose people are NOT going to be happy!
Most customers felt their cryptocurrencies were safe on the exchange, and insured to protect consumers. If they were insured, it was to protect them and NOT you the customer.
I personally believe most hacks on exchanges are inside jobs, or at the very least they had some help from the inside.
I keep most of my crypto in cold storage, why wouldn’t they???
With most exchanges it’s a complicated process for the real account holder to withdraw the funds. Yet simple for the hacker?
Let’s look at this outside of the crypto world. Would you deposit your life savings in a financial institution (BANK) that did not have a vault, customer accounts were NOT insured, you could never speak with anyone, withdrawal of funds may be restricted or limited, account errors are NOT corrected in a timely manner, they are NOT responsible for computer errors or glitches, ETC!
The answer is to be your own bank. Purchase a hardware wallet like the Ledger or Trezor hardware wallet and store your own crypto.
Be responsible for your own crypto!!!
When you purchase crypto do NOT purchase from small exchanges. You will get burnt at some point!
I use small exchanges when it’s the only option and immediately transfer my crypto off that exchange to a protected wallet.
That said I am owed 1,000,000 coins from one of the smaller exchanges. They had a “GLITCH” in the system and the withdrawal transaction shows complete, however when you check the ‘Block Explorer” it was never sent to my hardware wallet.
They have been looking into the error for months and the ticket shows pending!? I will update in detail on this in the near future, if they do NOT resolve the "ISSUE".
I am a big fan of cryptocurrency and believe it’s 100%!!! our future payment and barter system.
I personally believe everyone on the planet should convert ALL “FIAT” currency into some type of CRYPTO! If we ALL put these Bankers on notice, and regain our “SOVERITY” then and only then can we experience the magnificent and joyful life we all deserve. A life of travelling the planet, experiencing new and exciting things, and to not worry about creating or maintaining false “FIAT” wealth!
Have a great day my fellow Steemit Members! I wish you ALL the best!!!
Below are a few of the hacks that have taken place:
January 2018 Coincheck Hack
November 2017 Tether Hack
August 2017 Enigma Hack
July 2017 Veritaseum Hack
July 2017 Parity Hack
July 2017 CoinDash Hack
August 2016 Bitfinex Hack
January 2015 Bitstamp Hack
March 2014 Mt. Gox Hack
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Thank You very much for your support. Have a great night! Be sure to use the hardware wallet to protect the bulk of your crypto. Exchanges are in fact very risky. Have a great night!
i am here because of YOU Jerry. i tagged you in my first post but you prolly missed it... im good fun and enjoy computers and technology.. in fact im a computer specialist that has rebuilt and repaired pc computers as a job going back to around 1993... before that i was limited to my only other computer system ( ive owned personally..) the atari 800. we have come a longggggggg way since 1978 no more are the days of 32k memory ;), or the suffering involved of having the ONLY modem available for the atari 800... a 300 baud speedster. ( $500 itself ! and it used couplers !! and also would take 24 hrs to download 1.44k disk @ 2400 baud IF no error !!! )
This scenario sounds probable.
Thank You for commenting on my post. Do you store your crypto on a hardware wallet??
I have several different wallets I use which are on my iPhone.
The wallets on the iPhone simply are not safe. Your secret keys being stored on the iPhone is NOT a good idea. Please be sure to get a hardware wallet to protect your crypto. Thank You for your comments.
hats EXACTLY right fellas... that IS also WHY i still have some bitcoin to my name... you see when "nicehash" almost got hacked for $65m in bitcoin i had my shit in my hardware wallet... in that way i was NOT robbed by anyone not even the ppl who run nicehash program ( the easiest way to mine currently without thinking and setting up a LOT of other shit..)
I really hope more people see your post and heed your warning. Very well written, thanks for putting this out for others to see!
Thank You very much for your positive comments . I believe all crypto investors should have the hardware wallet to protect their hard earned crypto currency. Have a great weekend.
A hardware wallet is on top of my To-Do list. Maybe sometime next month if all goes well.
Sounds like a great idea. The hardware wallet is one of the best purchases a Crypto investor can make. Have a great night!
thats EXACTLY right fellas... that IS also WHY i still have some bitcoin to my name... you see when "nicehash" almost got hacked for $65m in bitcoin i had my shit in my hardware wallet... in that way i was NOT robbed by anyone not even the ppl who run nicehash program ( the easiest way to mine currently without thinking and setting up a LOT of other shit..)
google is your friend ( sorta minus the EVIL.) or just look on their facebook page "nicehash" is all she takes matey!
yup, very true! Using Ledger, better keep your crypto offline!
Thank You for your excellent comments. I completely agree if you are wanting to protect your crypto currency the hardware wallet is an absolute.
Really good advice. I think it's ok to leave some small amounts on the likes of Coinbase/ Gdax for trading with but for larger amounts it really should be safely stored offline. I totally agree. Resteemed 👍
You are exactly correct. Leave what you need for trading on exchanges and save the bulk offline safety. Thank You and have a great weekend!
Thanks David. Same to you.
Solid advice and a good thing to keep in mind. Some things come to mind...
What if you have such a small amount on the exchange that the withdrawal fee would eat all of it? (Cryptopia has a 500k satoshi withdrawal fee for BTC. I started with 125k for trading...)
Which exchange are you referring to? CoinsMarkets? Lol, they got a bunch of my money, too but I made it all from trading and staking the 125k i previously mentioned.
Good luck out there!
Thank You for your questions. If you have a small amount on an exchange, I would recommend purchasing more of the same crypto then transferring the total amount to the hardware wallet. This will greatly reduce the fees. I am referring to all exchanges large and small they are unsafe. Thank You for commenting on my post. Have a great night!
Thanks for the tip. Indeed, all exchanges are suspect. All my coins came from faucets and trading, so losses will hurt, but at least they won't be mortal wounds.
Unrelated: you are very active at responding to your commenters! I appreciate that, so I am now following you, even if I don't always comment. Have a good night as well.
Thank You very much! I really appreciate your positive comments.
hats EXACTLY right fellas... that IS also WHY i still have some bitcoin to my name... you see when "nicehash" almost got hacked for $65m in bitcoin i had my shit in my hardware wallet... in that way i was NOT robbed by anyone not even the ppl who run nicehash program ( the easiest way to mine currently without thinking and setting up a LOT of other shit..)
I explain these dangers to people regularly, and it often goes ignored. Even the potential dangers of keeping (do I dare say?) all your SDB earnings in Steemit. In a world where you aren't in a physical (handshake/contract/human contact) situation extreme caution and care must be taken to protect yourself. Nicely written, thank you @futuremind
Thank You for taking time to comment on my post. We can inform crypto investors on the dangers of storing crypto online and they will need to act on the information. I wish everyone would get a hardware wallet and stop trusting exchanges. You made a great point about SBD as well. Thank You for sharing.
Very important. Unfortunately, it does not help to save time and fees. In Crypto world one of the most important things is to keep the private key yourself.
Exactly right! Holding your private keys is most important. Have a great weekend.
That’s why I’m at waves platform, they offer a decentralized wallet :-)
The waves platform is a fantastic alternative to the regular exchanges. I still would recommend holding large amounts of crypto on a hardware wallet. Thank you for your excellent comments. Have a great weekend!
I agree but it also depends on exchange. Bitstamp must have at all times at least 98% of coins in hard wallets! They are regulated and that is 1 of the things they have to comply!
Very nice point! Bitstamp is one I use an a regular basis and one of my favorites. That said, they make the decision when and when you can not remove your funds. My own daughter put $2500 on bitstamp and once it had grown to $30,000 in value, I instructed her to transfer the $30,000 from bitstamp to her hardware wallet. The point is to be your own bank and do not let these exchanges control your crypto. I highly recommend putting the bulk of your crypto on the hardware wallet. Have a great day.
I totally agree we must have on hard wallets coins we plan to hold long term. Your daughter cause listening to you is already taking good care for her bring future :) Wish you massive profits.
Thank You very much! Have a great day!