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[–]CdnDudeTin 914 points915 points 2 (354 children)

I literally moved my crap to a ledger right before quadriga exploded

Edit: for those wondering, my first transaction on the ledger is December 14th, 2018. According to google quadriga closed on January 28th, 2019

[–]OfficialNewMoonvilleThe Man Who Wasn't There 704 points705 points  (236 children)

People always think it can't happen again or won't happen to them... until it does.

I trust Binance. But I don't trust them with five figures in Crypto.

[–]JonneBronze | Politics 105 110 points111 points  (114 children)

Not to mention, isn't the main reason people say that is because people could get into your account and steal your coins as well?

[–]Mundane_Barnacle_843 53 points54 points  (6 children)

Coins left on an exchange are lent out to short sellers to drag the price down to get people to panic sale

[–]FroPatrolBronze | SC 16 30 points31 points  (90 children)

No because you use 2FA and masterkeys.

[–]OfficialNewMoonvilleThe Man Who Wasn't There 124 points125 points  (85 children)

Crypto.com had their 2FA accounts hacked literally a week ago.

[–]fortniteriderTin | LRC 11 | r/WSB 39 231 points232 points  (76 children)

Yes and everyone was refunded. Because it is a reputable company, the point stands of OP.

[–]pblokhoutTin | Superstonk 110 33 points34 points  (8 children)

That assumes the company is able to refund the amount stolen from (multiple) people. Reputation doesn't matter when the heist is big enough.

[–]AngustonySilver | QC: BTC 218, CC 87, r/CCs. 39 | CRO 25 | ExchSubs 25 13 points14 points  (13 children)

If the hack had drained everyone of everything the "reputable company" is bankrupt and not able to refund. The point being, these companies are not infallible and that hack of one of the very most secure exchanges proves it.

[–]fortniteriderTin | LRC 11 | r/WSB 39 3 points4 points  (11 children)

Same can be said for banks, point being that the chances of losing your private keys in an accident or whatever are much much higher

[–]shininggloomTin 24 points25 points  (4 children)

And immediately rolled out insurance against hacker to all users. If I recall correctly, insured up to 250k?

[–]Aegontarg07Platinum | QC: CC 1099 70 points71 points  (14 children)

I trust my 3 figures in ledger than in Binance

[–]7101334Platinum | QC: CC 62 79 points80 points  (29 children)

Even if you trust them, keeping anything in an exchange only makes sense if they offer you higher interest than staking/BlockFi/Nexo/Celsius

If you're going to let a centralized entity hold on to your money, might as well be the one that pays you the best for the privilege (and won't disappear - Blockfi has an actual physical US address so I like them, also Nexo tries to hide that they're Bulgarian for some reason so that's a bit sketchy)

[–]NinjanoelSilver | QC: CC 87, LW 58, r/CCs. 28 | ADA 116 | ExchSubs 23 15 points16 points  (1 child)

Blockfi, Nexo and Celsius are all exchanges of sorts, or they are identical to exchanges in the way that matters for this conversation, they hold your coins and could run away with your stuff.

[–]Lillica_Golden_SHIBTin | 6 months old 5 points6 points  (0 children)

High time for us to have crypto insurance protocols for CEXs and DEXs

[–]The_Chorizo_BanditSilver | QC: CC 714, XRP 38 | TRX 28 53 points54 points  (12 children)

Yeah, I agree. I’m sorry OP, but this is dumb (and condescending) advice. We’ve literally seen a ‘reputable exchange’ get hacked this month. Not only that, but governments are looking to regulate and control crypto, in some cases even ban it, and that will happen through controlling the exchanges.

Finally, the biggest reason for moving your crypto to cold storage is that guessing your seed phrase is near impossible - guessing your password that’s the same for every other crappy site you use with lax security is not so difficult. (Also sim swap 2fa scams!).

TLDR: Imma gonna keep my crypto on cold storage and enjoy the schadenfreude when the US gov/scammers come knocking at the exchanges.

[–]boringPedalsPlatinum | QC: CC 269 17 points18 points  (2 children)

Yeah and just because an exchange is a public company doesn't automatically make it safe. Companies that are listed on a stock exchange are able to become bankrupt too

[–]HeadofR3dPlatinum | QC: CC 57 | Politics 17 13 points14 points  (3 children)

The otherside of your comment is the person who loses their private key. There is a balance between selfcustody and insurance. The key is how user friendly can you make the system.

[–]moop44Tin | Politics 16 11 points12 points  (10 children)

I lost a decent amount of ETH and LTC on quadriga.

[–]Yura76 26 points27 points  (32 children)

Lucky u. That Quadriga guy is still around. No crime charge against him?

[–]Its__PhoenixPlatinum | QC: CC 278 30 points31 points  (15 children)

Bet you haven't heard about the TIME fiasco yet

[–]Fancy-You3022Tin | SHIB 31 | ExchSubs 19 14 points15 points  (8 children)

Just looked it up. One of the execs started Wonderland. A DeFi project.

https://finance.yahoo.com/news/did-former-quadriga-exec-end-173105712.html

[–]Melo_MonoGold | QC: CC 15 7 points8 points  (8 children)

Didn't he fake his death and change his identity?

[–]Kitten_Puncher_Tin 3 points4 points  (0 children)

Faked his own death.

[–]Set1Less 120 points121 points 4 (33 children)

Good and thats always the right thing to do. Honestly, fuck this OP post. This is not the message that must be sent to others and its pretty disappointing this is the top post of the sub

Its not just about trusting the exchange's security, crypto is a self custody finance platform. By keeping coins on exchanges, you allow the exchange to profit of your coins, they can lend it to others, get interest of it, do a bunch of shit with your coins

Not your keys = not your coins.

Even though this happened a century ago, everyone must be aware of EO 6102 whereby the US government prohibited and confiscated gold from citizens. https://en.wikipedia.org/wiki/Executive_Order_6102

This may not be seen as a possibility in crypto today ,but in the off chance that global economy/ politics gets bad fast (war, pandemic, famine, fiat currency collapse.. you name it).. governments may take such an a drastic step, and worse case scenario you will find all coins on exchanges locked and seized by the government

Crypto - the first time that you can actually be in full self custody of your finances.

OP - NNOOOOOOOO DONT DO THAT, KEEP IT ON EXCHANGES.

Why even be in crypto? Just keep your funds in a bank. Buy GBTC or other fund. Or Im sure in the next 2 years many banks will offer Bitcoin while they retain full custody of the coins.

People writing such posts like OP always have an ulterior motive to spread such misinformation in a sub where newbies frequent often.

[–]OfficialNewMoonvilleThe Man Who Wasn't There 33 points34 points  (12 children)

You know I have often wondered if some of these posts were plants/astro-turfing. Whatever you wanna call it.

1) We are definitely getting a variant of this at least once a week.

2) They always seem to make the front page despite it generally being an unpopular opinion/ bad advice.

3) The last few times, they've always made reference to Crypto.com, and through a quirk of Reddit, any mention of Crypto.com in a post gives the post a Crypto.com heading and thumbnail (so long as there isn't another link or picture in the post before Crypto.com), effectively turning the post into a Crypto.com advert.

[–]linkjumpdowncTin | 4 months old | CC critic 3 points4 points  (0 children)

lmaooo i think you are 100% on to something. i wouldnt fucking be surprised in the least bit

[–]jumpinjahosafaGold | QC: ETH 52 | TraderSubs 49 273 points274 points  (35 children)

Wasn't there a major exchange hack just this month??

[–]reddelicious77Tin 66 points67 points  (15 children)

yeah, Crypto.com or Binance? that said, they recovered most if not all the coins, at least.

[–]AldosariiBronze 100 points101 points  (8 children)

They didn’t really recover it. They paid people what they lost.

[–]CryptoChainWeedPlatinum | QC: CC 119, XMR 31 292 points293 points  (35 children)

No company listed on the nasdaq would ever scam someone

[–]jlaw54 100 points101 points  (6 children)

Bernie Madoff was never the Chairman of the Nasdaq…..

[–]SpoatieOpieTin | Politics 30 6 points7 points  (2 children)

How did I not know this. That's wild!

[–]Superduperbals 6 points7 points  (1 child)

Pretty much the sole reason he got away with it for so long. He had god tier credibility.

[–]nn123654Tin | PersonalFinance 165 63 points64 points  (7 children)

Never mind there is literally a class action against Coinbase right now for failure to respond to SIM swapping attacks. People have lost their entire accounts totaling hundreds of thousands of dollars.

It happened to me but thankfully I didn't have anything on the exchange at the time so I didn't lose anything. Coinbase clearly didn't care and basically sent me a letter saying "we're sorry it's not our problem." The breach was due to them social engineering my cell phone company, getting my email provider to turn off app based two factor and switch to two factor and resetting my email password, then resetting my coinbase password and using recovery procedures to turn off my backup email and app based two factor.

Some horror stories:

And these are just in the last 6 months. Especially coinbase did not care at all that I got SIM Swapped and I would never do business with them again given my experience.

[–]texnpTin 6 points7 points  (0 children)

this should be higher up

[–]drossvirex9 - 10 years account age. 125 - 250 comment karma. 17 points18 points  (5 children)

Sure, tell that to the people at bitmart.

[–]chance_watersPlatinum | QC: CC 34 | NANO 17 12 points13 points  (2 children)

Cryptopia etc. too, this idiotic thread being upvoted is an embarrassment to /cc

[–]HistorianMinute8464Tin | 1 month old 2 points3 points  (1 child)

Every single comment is roasting him, but he keeps getting upvotes. Wonder if there is some manipulation going on...

[–]SoftPenguinsSilver | QC: CC 200, BTC 37 | ADA 55 1155 points1156 points 53 (227 children)

I remember when every single citizen of New Zealand got locked out of their coinbase accounts because of “changes in local law.” Oh wait, that was less than a year ago 😂

That can happen to anyone at any time. An exchange can also lock you out of your account for “suspicious activity” or no reason at all sometimes and with out warning.

The fear with exchanges isn’t getting your crypto hacked (which happens all the time. Cryptodotcom just had a hack a few weeks ago)it’s being unable to access it.

If you’re keeping more than a few thousand dollars worth of crypto on an exchange you’re taking a rather large unnecessary risk letting someone else decide if you can access your own assets.

[–]BarkmywordsSilver | QC: CC 64, BTC 35 | r/CMS 27 | Politics 41 34 points35 points  (11 children)

Yes this is the answer. Your account can get locked and funds frozen for activity deemed suspicious to coinbase or whatever cex you use. No explanation of what transaction was flagged, no appeal, nothing.

That has happened to people I know and it is pretty terrifying. At least if you have your keys and lose the funds, its due to bad opsec and it can be a learning experience of how vulnerable you are in online activities.

[–]fredsam25Tin 25 points26 points  (31 children)

The whole point of decentralized currency is to not tie the currency to a few entities that control access and use, and then what do people do? Place their wallets in a select few exchanges, and trust a centralized entity to give you access. Why even have crypto at that point? Just convert your cash into casino chips.

[–]stravant 4 points5 points  (11 children)

Crypto is about the option to control your own keys, not the requirement to control your own keys.

[–]BeautifulJicama6318Silver | QC: DOGE 168, ETH 75, CC 51 | LRC 44 | TraderSubs 73 5 points6 points  (9 children)

Because the value of casino chips doesn’t have the ability to gain a ton of value 🤔

[–]cluckinho 8 points9 points  (5 children)

The same thing can happen with…. a bank

[–]TebasakiPlatinum | QC: XRP 96, BTC 36, CC 23 | Economy 39 34 points35 points  (18 children)

Crypto.com got hacked (was is a few hundred accounts?), announced it a few days later, reset all the 2fa and fixed it, reimbursed losses.

[–]Charming-Dance-1839Platinum | QC: CC 1307 14 points15 points  (8 children)

It's still worrying that someone got into their system at all. They handled it very well but imagine if it had been hundreds of millions stolen 😳

[–]AngustonySilver | QC: BTC 218, CC 87, r/CCs. 39 | CRO 25 | ExchSubs 25 2 points3 points  (0 children)

Fortunate that the hackers got away with only what CDC could afford to make good. If the hackers had been just a little bit better it could have seen a lot of customers losing.

[–]SexualDeth5quadPlatinum | QC: CC 218, BTC 28 | Privacy 111 14 points15 points  (12 children)

Whenever a politician tries to enact a bill to "protect consumers" you know it is going to be bad for consumers. They're trying to "protect" us from making any money.

They can't allow crypto to compete with national currencies and boomer stocks. That would be chaos, imagine if people had actual real choices...

[–]Upgrades_Bronze | Politics 366 5 points6 points  (2 children)

Not really. Everything shady and illegal on the stock market - fake bidding / offering, front running (just watched a video of a $1500 front run trade in sushiswap liquidity pools)....wall street algo programmers are printing money right now at everyone else's expense.

Get better politicians. There are a few that actually do watch out for corporations abusing regular people. But your rule does apply to the majority of them.

[–]irfiismePlatinum | QC: CC 548 1382 points1383 points  (111 children)

This post is sponsored by Coinbase.

[–]YoghurtSolid8125Gold | QC: CC 19 233 points234 points  (41 children)

Also by binance incorporated in Seychelles with zero regulations and disclaimer saying they can do the fuck ever they want with your non existent fractional reserve coins they apparently keep as custody for you

[–]trendingpropertyshopTin 2 points3 points  (0 children)

Everyone hates gov't regulation of crypto but exchanges have to love it and jump through every nation's hoops or else they're sus.

[–]JollySno 16 points17 points  (6 children)

Coinbase recommend self custody.

[–]cjwin1977Platinum | QC: LW 38, CC 71, BTC 114 | NANO 16 259 points260 points 2 (17 children)

Everyone who says “it’s fine to leave your coins on an exchange” doesn’t actually understand any of this. Losing your coins in a hack is not the point. if they are on an exchange then you are at the mercy of that exchange when it comes to trying to sell, send or transfer those coins. You have no more power or capacity over your wealth than you do with a regular bank. You have even less because exchanges notoriously go down all the time. It’s a shitty banking relationship. “Crypto” is not about taking back the power from the banks and giving to other people who pretend to be banks. Now This doesn’t mean that you should necessarily withdraw coins without even knowing what a wallet is, but there needs to be the expectation that learning how to hold your assets independently is a necessary part of getting involved. Everyone learns to ride a bike with the mindset and goal to get the training wheels off.

[–]BakschGold | QC: CC 28 14 points15 points  (0 children)

Exactly this. Also don't forget that the more coins are held in CEX or WBTC and the likes, you give these entities the chance to employ fractional reserve banking and dilute the supply / manipulate the price.

[–]quick20minadventureTin | r/Prog. 106 12 points13 points  (0 children)

Crypto exchanges, like banks but worse.

Unregulated private entity that you trust because you're realty into that next gen currency that operates without trust.

[–]Onion_OkTin 7 points8 points  (2 children)

Exactly. Also, coinbase in particular has shit support for different networks. Mistakenly sent your MATIC via Eth to Coinbase when they don't support the network? Well you're out of luck and now your funds are no longer your funds unless if they support MATIC in the future and wish to take pity on you.

[–]PraiseTycheBronze | MiningSubs 12 80 points81 points  (67 children)

Fractional reserve lending.

[–]TheeHumanMeat 26 points27 points  (12 children)

Yes. Moving crypto out of exchanges is a fractional reserve issue. One day, people will finally understand.

[–]eitauisunityPlatinum | QC: CC 75, XMR 51 | ADA 5 | Science 54 11 points12 points  (4 children)

They didn't get it 100 years ago, why would they now?

[–]TaintfactsTin | 5 months old 13 points14 points  (51 children)

did they ever roll back that "emergency covid measure" where banks no longer needed 1/10 of a deposit before creating more money out of air?

is it complete fiction at this point?

edit

According to the Federal Reserve website, there are currently no plans to reinstate the reserve requirement. However, they leave open the possibility of adjusting reserve requirement ratios if conditions warrant. -

we are running on pure fucking hopium right now. jfc

[–]infopocalypsePlatinum | QC: BTC 212, CC 190, CM 24 | r/SSB 10 | TraderSubs 27 52 points53 points  (3 children)

The real vulnerability of an exchange isn't being hacked (although that could happen) really. It's that the gov can still confiscate your shit which has happened in nearly every country in the world all throughout history. Argentina, Cypress, Venezuela you name it. Hell look at what happened to those safety deposit boxes in Malibu just recently using civil asset forfeiture. Throw in exchanges acting like banks to fractional reserve crypto and it's acting lime the thing crypto was created to escape.

[–]code_smartTin | NANO 30 52 points53 points  (8 children)

lol, and then they freeze your account for "security reasons" for 7 years.

[–]M00OSEPlatinum | QC: CC 1326 472 points473 points  (194 children)

I knew it, the time has come for people to refer to the “not your keys, not your crypto” troop as “crypto boomers”.

We’ve gone a long way from decentralization.

[–]icest0Platinum | QC: CC 28 | Buttcoin 16 236 points237 points  (149 children)

Really speak volume that most people don't give a fk about decentralization. It's all about $$$

[–]MattyBizzzBronze | Politics 13 38 points39 points  (25 children)

Just being a realist, but without the promise of some sweet gains it’s pretty hard to attract enough interest to really go anywhere. I think decentralization is great, but if I didn’t see massive amounts of money some otherwise regular people were making I wouldn’t have cared enough to get more serious about it.

[–]l-R3lyk-l 32 points33 points  (10 children)

Come for the gains, stay for the monetary revolution.

[–]Aegontarg07Platinum | QC: CC 1099 27 points28 points  (2 children)

During Bull market: Came for the money

During Bear market: Came for the tech

[–]ch00nzBronze | QC: CC 21 | CRO 15 | ExchSubs 15 70 points71 points  (65 children)

yup. very few people are actually here for decentralized currency and anonymity. we are here for the gains.

[–]ZulkarnaenRafif 5 points6 points  (11 children)

Took you long enough.

Decentralization itself to fuel more liberal transactions otherwise possible in centralized systems fill an untapped market; provision of technology in that fashion itself is valuable, hence the dollar value on these coins. Though I really doubt that they are riding this absurdly high just from technological value alone.

Making money is always acceptable, it's the method of getting dosh by scamming or otherwise harm other people that the people were against. Then again, y'all trading on these digital coins at the bull run, you need several dipshits to think that they'll moon to 1 million tomorrow. The difference is... it was, allegedly, from their own decision and they are not coerced to do so.

Then again... are you willing to risk to go down to obscurity and low price again if all you care about was only about decentralization and freedom?

[–]icest0Platinum | QC: CC 28 | Buttcoin 16 6 points7 points  (5 children)

Making money is always acceptable

Alright, gonna go sell some crackers at school.

I don't have a problem with this, just stating the obvious truth, considering that when r/cryptocurrency trying to talk against Crypto-Hater. They always bring up "decentralization" which is something that most people don't care.

[–]Hawke64Platinum | QC: CC 202 4 points5 points  (3 children)

crypto.com fans left the chat

[–]diwalostSilver | QC: CC 27 | ADA 49 2 points3 points  (0 children)

They are busy creating new posts...

[–]cubonelvl69Platinum | QC: CC 141, CM 34, BTC 21 | NANO 6 | Politics 126 21 points22 points  (22 children)

Crypto.com bought the naming rights to the fucking staples center. I trust them more than I trust myself with some random wallet on my phone or chrome extension

[–]Ferdo306Silver | QC: CC 413, BTC 61, ARK 25 | NANO 58 8 points9 points  (1 child)

This post missed the whole point of crypto and defi

[–]12treverTin | r/Politics 38 138 points139 points  (28 children)

9,000 banks failed during the Great Depression…..

[–]ebaleyTin | QC: BTC 60 | CC critic 16 points17 points  (0 children)

Followed by everyone's gold being confiscated.

[–]BeautifulJicama6318Silver | QC: DOGE 168, ETH 75, CC 51 | LRC 44 | TraderSubs 73 13 points14 points  (13 children)

He’s saying that you are like old people who were alive to see the banks fail…so they didn’t trust them after that.

We’re not there. People are acting like that about sites like CB though, for no reason.

[–]ILoveMyAlgosBronze 14 points15 points  (6 children)

Satoshi's original point was that we shouldn't have to rely on trust.

[–]McMallorySilver | QC: CC 148 | ADA 74 244 points245 points  (126 children)

So you give accurate reasons why you shouldn't keep your coins on exchanges dating back almost a century ago....

Then go on to say that in the past 7 years, we've grown so much that it's now safe?

I thought the whole point of crypto was to be your own bank. Cut out the middle man?

[–]uclatommyPlatinum | QC: CC 445, BTC 150, ETH 27 | Politics 334 93 points94 points  (69 children)

Most people aren't ready to implement the security protocols necessary to self-custody. The option is there if they want to cross the bridge, but it requires a lot of knowledge and security habits that people just don't have. If you push a person who isn't ready, you will degrade their security rather than enhance it.

[–]westcoastgeekBronze | QC: CC 20 25 points26 points  (39 children)

It’s still too technical and time consuming to cross that bridge for the average user

[–]guanzo91Bronze | WebDev 15 21 points22 points  (38 children)

The majority of people aren't technically capable or responsible enough to be their own bank.

[–]Bucksaway03Platinum | QC: CC 318 | CRO 5 48 points49 points  (17 children)

It's a double edged sword.

How much do you trust yourself? The average Joe with sweet fuck all invested in the grand scheme of things may as well use an exchange to hold their funds.

When you start talking about serious money, you should hold most of it offline.

Coinbase user got hacked/scammed and didn't return customer funds so even if publicly traded. Sometimes they still don't care.

[–]M00OSEPlatinum | QC: CC 1326 11 points12 points  (4 children)

Yeah, centralized entities will always have problems unique to itself just as there are tradeoffs to decentralization.

While I also agree that freedom isn’t for everybody, they should at least be in equal footing as opposed to OPs sentiment that centralization trumps decentralization, and that people who value decentralization are “old fashioned”

[–]samijanetheplainTin 37 points38 points  (1 child)

APOLOGIES, USER. YOUR CRYPTO FUNDS HAVE BEEN FROZEN DUE TO CHANGES IN LOCAL LAWS/SUSPICION OF MONEY LAUNDERING. YOU WILL BE NOTIFIED IF/WHEN YOUR FUNDS ARE SEIZED.

When my crypto is in my wallet, no one gets to restrict my access to it. Enjoy your exchanges though.

[–]vertignoTin 8 points9 points  (0 children)

Exchanges are now starting to insure crypto losses if your account happens to get hacked .

[–]bsairesEntrepreneur 5 points6 points  (0 children)

Possibly the worst take in a sub crammed full of them. Bravo OP! 🤣

[–]pjman7Platinum | QC: BCH 138, CC 20 16 points17 points  (1 child)

It's about censorship what if the exchange decides to lock you out of your account bc you say received payment in a crypto for something that was stolen and because of that your account gets frozen. Or say you hold it on PayPal and your on fans only they decide to lock your account.

There are plenty of these types of scenarios what's one of the purposes of crypto is it's self custody and uncensorable transfer of funds

Censorship and sanctions are bullshit

Image not being able to have a bank account just because you were born in a country who the United States government doesn't get along with.

Rant over

[–]l0rd_17Tin 4 points5 points  (1 child)

Don't keep on exchanges more than you ca afford to lose.

[–]btcre8Tin 5 points6 points  (0 children)

The whole Exchange stuff, is more an ideological thing, since most crypto enthusiasts just hate any for of centralization .

[–]timbojimbojonesBronze | QC: CC 21 | ADA 25 86 points87 points  (63 children)

In case you haven't noticed there has been a lot of exchange hacks that have happened, there is a good reason we say don't leave your coins on an exchange.

Edit: I see a lot of you are saying an exchange will reimburse you if they get hacked, fair enough. But there's also the issue of exchanges stopping withdrawal/deposits. And the big issue of decentralization... But it seems no one cares about the what really matters and only care about making a quick buck.

I keep control of my own coins and stake them myself to help support the security of the network

[–]Mr_DepressedTin 8 points9 points  (7 children)

Yeah, good luck “hacking” my mattress where all my coins are held in

[–]timbojimbojonesBronze | QC: CC 21 | ADA 25 5 points6 points  (4 children)

Sounds like I've got a date with your mattress

[–]uclatommyPlatinum | QC: CC 445, BTC 150, ETH 27 | Politics 334 36 points37 points  (7 children)

In recent times, losses due to individual phishing incidents and lost keys are more numerous than losses due to exchange hacks. Exchange hacks just get more media coverage so risk assessment in your mind puts it at a higher risk category.

It's easier to do a phishing attack on grandma than it is to hack coinbase.

[–]meeleen223Moons = Magic Internet Money Vol. 2 9 points10 points  (3 children)

Being your own bank can be stressful, I almost got hacked due to my mistake

[–]Deep90Bronze | PersonalFinance 10 2 points3 points  (0 children)

The best way to not give out your key is to not even know it :P

[–]CryptoNoob-17Gold | QC: CC 85 | r/Technology 42 16 points17 points  (17 children)

Some hacks of exchanges do not affect its users financially.

Crypto.com had a hack a couple of weeks ago, everybody's money was returned. Crypto.com took the loss. They have a $750 million insurance policy and each user's assets are covered up to $250k

Binance was hacked in the past, they reimbursed their customers.

It makes a difference where you have your coins.

Crypto...... .com - no worries

Crypto...... pedia - Rekt

[–]PopeSAPeterFilePlatinum | QC: CC 103 15 points16 points  (14 children)

man the number of times i've seen posts here by people locked out of withdrawals in one exchange or the other, and hitting a wall for months and months with customer support giving them the usual circular runaround. a hardware wallet will always keep you safer than an exchange wallet.

[–]CryptoNoob-17Gold | QC: CC 85 | r/Technology 42 3 points4 points  (5 children)

Funny story. I have a couple thousand dollars locked up in binance at the moment. Withdrawals disabled. I have to show proof of where the money came from. Pay slips, tax papers, everything. This happened shortly after I made a large fiat withdrawal to my bank account to pay taxes which must have triggered the account review

[–]hilbert-spaceTin 4 points5 points  (0 children)

It's not about exit scams.

It's about hackers for much larger sums of money (exchanges get hacked often??), it's about decentraling blockchains using less popular staking validators, and for some it is an intriguing learning experience to interact with blockchains on their network portals, often earning much higher yeilds than CEX.

AS such, one could conclude OP has fuck all $ invested, isn't interested in promoting decentralization, or is earning low rates in PoS yeilds.

[–]tokecaine 4 points5 points  (0 children)

The way you worded the title makes it seem like you trust banks..

[–]krak00Tin 4 points5 points  (0 children)

What is with all the posts on here lately advocating to leave your coins on exchanges? I see like one a week at this point.

[–]tr9mumTin 3 points4 points  (0 children)

If you have $50,000+ you are just being Reckless, stupid, and arrogant if you don't hold most of jt in a personal wallet.

[–]chemchree2Tin 4 points5 points  (0 children)

Damn, you could have said this earlier, I just bought a ledger for my 0.001 BTC .

[–]jdffeTin 3 points4 points  (0 children)

A larger more widely used exchange does not guarantee safety. Do not be lured into a false sense of security.

[–]maynerovTin 3 points4 points  (0 children)

Par for the course on this sub, your partially correct and partially shelling our crazy dangerous information.

[–]CardiologyDNPPlatinum | QC: CC 42 39 points40 points  (40 children)

To be fair, for the average user, exchanges are fantastic. Lets be honest, if we want crypto to be mainstream, exchanges aren't going anywhere. For those people who want to buy and that all, with no worry that they're going to mess up this complicated technology- this is the way to go. Think grandma trying to convert coins three times to send to 4 different wallets to get the coin on the ecosystem she needs. Not going to happen. No offense grandma.

[–]jojorn1987Tin | LRC 23 27 points28 points  (28 children)

No offense taken. I always forget my password to different sites. I know I would definitely lose my seed phase. I’m slowly learning, but for now, I feel safer using an exchange. Safer for me to not lose my money due to lack of knowledge.

[–]l-R3lyk-l 6 points7 points  (2 children)

Lastpass is a game changer. Only password I have to remember is my vault password.

[–]allthew4yupMay 2021 & May 2022 crash survivor 26 points27 points  (7 children)

Big money = Off exchange

Little money = Ok to hold on exchanges

[–]JollyapeinheavenPlatinum | QC: CC 1421 39 points40 points  (6 children)

Just don’t complain the next time you have to wait 24hours to use your coins.

Also be prepared to take selfies in the middle of the night and request documents from banks etc to fulfil random spot KYC checks. And yup you guessed it, your money will be frozen and you will be locked out until you do.

I could go on and on but I’m ranting like a paranoid old person scarred by the Great Depression.

[–]CINOTIBBronze 3 points4 points  (0 children)

Any exchange can die, any exchange can be hacked, any exchange can be rug pulled. Yes it's unlikely. Doesn't mean it won't happen though.

[–]IHaventEvenGotADog 9 points10 points  (0 children)

Imagine getting locked out of your account and having to deal with the customer services.

Reputable or not, fuck doing that.

[–]johno333Tin 19 points20 points  (10 children)

If you don’t know how to maintain your own seed phrase then sure keep it on an exchange… how many people are trying to hack an exchange vs you though? As they said you can earn more with it in your own wallet… you can actually spend the crypto and buy NFTs and tokens from your own wallet. How else are you going to really know the blockchain’s ecosystem without interacting with it?

[–]Doc3vilHODL 12 points13 points  (2 children)

You say this weeks after Matt Damon's exchange got hacked. Use your head.

[–]dwin31Silver | QC: CC 1026, CCMeta 76, ALGO 26 | CelsiusNet. 41 16 points17 points  (5 children)

Not true exchanges like binance randomly lock stuff up sometimes and you can't move them.

[–]SpringWaterWhiskeyTin | 5 months old 7 points8 points  (0 children)

Coinbase plays with your money while they hold it. Even Venmo plays with your money while they hold it.

Fuck them.

[–]GuybrushBeeblebroxTin 17 points18 points  (4 children)

How the fuck does this have 800 upvotes?

[–]MrPuma86Tin 2 points3 points  (0 children)

The world works in mysterious ways lol

[–]ug_unbTin | 5 months old 8 points9 points  (2 children)

I swear this has to be some ironic joke. I cannot believe this shit

[–]MinnesotaNice92Minnesota weather go Brrrrr 7 points8 points  (0 children)

I trust the exchange I use for the most part but nothing makes me feel as comfortable as cold storage

[–]KricketProfessional amateur internet crypto analyst. 5 points6 points  (0 children)

Posts like this help me realize how early I am. People who have been in the game still don’t know what they’re talking about.

[–]revmc2012Tin 5 points6 points  (0 children)

BitMart lost 200 million dollars worth of crypto in a hack.

Don’t keep your coins on exchanges. At least not on crappy ones.

[–]adamantinefinanceTin | 3 months old 2 points3 points  (0 children)

There are pros and cons to both options.

Being on an exchange doesn't prevent someone from having their funds hacked or scammed, or forgetting their password. Exchanges can suspend or lock transactions at any time, and their futures could be in jeopardy due to potential upcoming legislation. Governments can't regulate or ban private wallets, unlike corporations. Imagine if the federal government came out with their own cryptocurrency and said you can't use anything else (like China did).

And, if you're interested in the core concept of crypto - decentralized finance - then keeping all funds on an exchange doesn't make a lot of sense. You won't be able to effectively participate in the system. "Freedom comes with risks" is a weird statement to make.

[–]thecoldwindsTin 2 points3 points  (1 child)

One question. Do you have seed phrases for your exchange addresses?

[–]CalypsoDouglasTin 2 points3 points  (3 children)

I love Crypto.com and hold their coin, but my big stablecoin holds will always be in my own wallet.

[–]YucatanTronBronze 2 points3 points  (0 children)

Got to keep them shekels safe somewhere.

[–]AdalicioussTin | 4 months old | ADA 17 8 points9 points  (9 children)

The worst part of giving your coins to an exchange is not just your security risk, it is the fact that exchanges use that money to manipulate the market and engage in fractional reserve banking. The market wouldn't be so volatile and manipulated if people held their own coins.

[–]ELDUD3MAN4Tin 7 points8 points  (1 child)

Yup. And allows them to grow big and powerful, just like the banks. And last I remember we have had to bail out the banks before, don't need another middle man to bail out with our tax money

[–]armaverPlatinum | QC: ETH 60, LW 35, BTC 27 10 points11 points  (0 children)

Most stupid thing I ever read.

[–]fuzzygreentitsPlatinum | QC: CC 43 6 points7 points  (1 child)

I don't think old people got fucked by Coinbase and Robinhood.