The danger of leaving your money on an exchange!

[kryptonick 2659]

Really cool advice and we have to remember a lot from this. It is a good lesson for everyone as we see exchanges get hacked so often and we have to secure the coins we own in non custodial wallets that we own the keys to use and access and not some centralized company.

[Amir YT 202]

On 3/25/2020 at 3:18 AM, johant123 said:

(Posting this on the section for beginners on purpose, because I want to warn them)

 

Here is another case of the owner of an exchange losing the private key that gives access to a large stack of Bitcoins, probably not even belonging to himself. The timing is most unfortunate (for everyone else) because the exchange owner was under investigation already;

 

https://thenextweb.com/hardfork/2019/11/01/ceo-loses-private-key-crryptocurrency-exchange-wallet/

 

This link was shared here in the forum earlier, but the comments from many of the members really scare me! Many seem to believe that the owner really lost access, and was a very careless and unlucky man. Well ... that is possible, in theory .... but ...

 

I think there are two things going on here:

- isn't it very convenient that the owner loses the keys when the funds are under investigation?

- this shows that your funds are never really yours, unless you have the private key of your wallets!

 

The most important lesson, in my opinion: never ever leave large sums of money in an exchange, or in a custodial wallet! And don't believe someone just on his sad story ... it may well be a fraud!

In these previous years hackers stole billions of assets from different exchanges. Hackers are the king of internet. They just need a small bug to hack anything. So we all need to store our assets to an offline wallet which is more secure.

[PabloC 108]

I think this is an issue of privacy and that brings the question that if we as participants of the laws and rights of a country, have to declare every asset that we have, for tax reasons, i dont think that it is etical because we are entitled to our privacy and to our assets and if we contribute to the tax fund with normal buy and sell goods taxes, why they have to mess with income taxes. I think that is one of the great things of the crypto system, that it is private and people dont have to say to anyone how much does they have. Would it be legal that the goverment investigate wallets and investments of an individual even if they are not in a national currency? That is a nice question, if anybody has a though, please let me know.

[julioespinoza07 52]

Internet is full of deceitful people, that's why we must be attentive to these things, I never leave much money stored in any place, hahaha I always spend it, when I go to invest in some page, that I don't do it regularly, I investigate, I ask a lot for it, but if I get to invest, at the moment of recovering my investment I take it out and what is left is profit, because many times the platforms last very little time. I am grateful for the information you have given us

[Zeshan Khalid 2577]

Always note down keys somewhere private and always give the control of your wallet to a trustee as well because the wallets with huge sum of bitcoin automatically become suspicious for authorities

[Amer19 320]

On 3/24/2020 at 11:18 PM, johant123 said:

(Posting this on the section for beginners on purpose, because I want to warn them)

 

Here is another case of the owner of an exchange losing the private key that gives access to a large stack of Bitcoins, probably not even belonging to himself. The timing is most unfortunate (for everyone else) because the exchange owner was under investigation already;

 

https://thenextweb.com/hardfork/2019/11/01/ceo-loses-private-key-crryptocurrency-exchange-wallet/

 

This link was shared here in the forum earlier, but the comments from many of the members really scare me! Many seem to believe that the owner really lost access, and was a very careless and unlucky man. Well ... that is possible, in theory .... but ...

 

I think there are two things going on here:

- isn't it very convenient that the owner loses the keys when the funds are under investigation?

- this shows that your funds are never really yours, unless you have the private key of your wallets!

 

The most important lesson, in my opinion: never ever leave large sums of money in an exchange, or in a custodial wallet! And don't believe someone just on his sad story ... it may well be a fraud!

Your words are correct. I distribute capital to more than one platform, more than one currency, and more than one wallet for fear of any breach of the platform or the wallet. We must pay close attention because now all of our money is in the digital world

[eywizard 103]

The risk of having the money in an exchange is that you do not have the private keys of your wallet, but they are the ones who keep them. So if the exchange is hacked or there is a problem, you would lose all your deposited money and perhaps there is no right to refund later.

[Carleinys 23]

Exchange sites are one thing and wallets are quite another, leaving large sums of money on an exchange is a risk that, unfortunately, due to misinformation, many commit and do not end up in any other way than scammed and with losses. Good information.

[Sergiowa 135]

On 24.03.2020 at 23:18, johant123 said:

 

I think there are two things going on here:

- isn't it very convenient that the owner loses the keys when the funds are under investigation?

- this shows that your funds are never really yours, unless you have the private key of your wallets!

That's surely the way things are. To my mind, as soon as your funds are transferred to the exchange, you have to be ready that your money can be lost.

On 24.03.2020 at 23:18, johant123 said:

The most important lesson, in my opinion: never ever leave large sums of money in an exchange, 

Right and one has to develop a habit of taking a good portion of profit gained from the exchange on regular basis. 

[estmerbol 257]

Many experts on the subject speak that this is a reality that investors should know. Your money is really safe in safeguard wallets, the day it reaches good amounts of money it will be best to use hardware wallets and our investments will truly be safe.

[TimopheyKa 3900]

In fact, this is a very sad situation! And many people get very big losses from this. Many do this as a result of a Scam, or through their own fault. But I think that this can be solved, and never again break such rules by saving the code!

[tanim22 70]

We must be aware from those types of exchange.  Always use trustable and higher lavel of exchange.  which gives you to make advantage from the distance of scammed. Don't be greedy with attractive promotion And also never try to hold your money on any exchange. 

[Michaelx018 0]

I think the most important part is to always store your currency in a secure and well reputed wallet you should not take risks with wallet which give you offers but not safety ,also never disclose your keys.

[yasuocum 3]

I always have a risk. Because I wanna be rich. I am lucky. Wait. 

[taha elnagdy 7]

My dear brother, the sites and platforms on the Internet are full of fraudsters, so you should not trust anyone with whom you deal with him from the first time, so you must use a famous wallet to save your money, as well as the stock exchange. I believe that there is no risk in the stock exchange because the stock exchange is country and stock transactions that increase and decrease, so there is no Pitched.

[yuriblanco 27]

On 3/24/2020 at 6:18 PM, johant123 said:

(Posting this on the section for beginners on purpose, because I want to warn them)

 

Here is another case of the owner of an exchange losing the private key that gives access to a large stack of Bitcoins, probably not even belonging to himself. The timing is most unfortunate (for everyone else) because the exchange owner was under investigation already;

 

https://thenextweb.com/hardfork/2019/11/01/ceo-loses-private-key-crryptocurrency-exchange-wallet/

 

This link was shared here in the forum earlier, but the comments from many of the members really scare me! Many seem to believe that the owner really lost access, and was a very careless and unlucky man. Well ... that is possible, in theory .... but ...

 

I think there are two things going on here:

- isn't it very convenient that the owner loses the keys when the funds are under investigation?

- this shows that your funds are never really yours, unless you have the private key of your wallets!

 

The most important lesson, in my opinion: never ever leave large sums of money in an exchange, or in a custodial wallet! And don't believe someone just on his sad story ... it may well be a fraud!

Many make the mistake of leaving money on exchange sites, without thinking that this site can receive pirate attacks and thus run out of our coins, so it is advisable to store the coins in a reliable place

[Hiroyuki476 54]

Hi, 

Speaking from experience, leaving one's funds on the exchange could become an albeit disastrous ordeal. Contacting support regarding this issue could also make matters worse in the sense that they typically do not save users' data (ergo, the use of pass phrases). Although this seems to be the case, properly budgeting your funds prior to sending them to an exchange is the best way to mitigate the negative effects of that situation.

Best, 

@hiroyuki476 

[Just_Lucky 55]

Very helpful information scam and hack are everyone in the Internet right now. And personal wallets hack is really hard thing to do since you have a private key and 2f authentification on it. Maybe anyone can advise some more security measures ?  

[ahmed alaraby 117]

First of all, we need to know what the stock exchange is. The stock exchange is an organized market for the sale and purchase of securities. As for the functions of the stock exchange, the stock exchange has two important functions, namely, the primary markets where companies, governments and bodies can direct the savings of investors to productive projects.
As for the legal function, it is the secondary markets, in which investors can sell securities to other investors, as stock exchanges impose strict and legal rules that are binding on all trading parties, and investment in the stock exchange depends on buying ownership shares in a company known as ordinary shares.
Whereas, the return on investment depends on the success or failure of the company in which the investment was made
So we come to stock market risks
There are several types of stock market risk, for example interest rate risk - inflation risk - liquidity risk - market risk -

[JorgeOvalle111 222]

Leaving your money in an exchange is somewhat risky, I usually send my cryptocurrencies to a cold wallet to have them more secure, take out only the ones that I am going to trade

[invertirencripto 109]

Luckily, many large exchanges have insurance and our funds are partly insured. I wouldn't leave all my funds on one exchange, but I don't feel uncomfortable leaving some of them on exchanges either.

[Josephine Benson 29]

One danger of leaving your money in your wallet is that the site can be closed down without your notice and you can end up loosing all your investment. It happened to me couple of years ago. Do not leave your money in your wallet for long or can be hacked. 

[Chrenova 182]

You have to be very careful where you put your money. Because you have to act responsibly, I recommend using the best known exchanges, such as binance or Yobit, because as in this case, something like this can happen and they lose the money and tokens of all the people who have an account on your platform. In addition to the case that you are mentioning, it is very rare that one of the owners of an Exchange lose Access, when the security system they use has to be very high and very difficult to use. I also say that it is not good to have all the money in a hot wallet, it is better to invest a few dollars in buying a nano ledger and put your coins there and always have it with you.

[gagwdadada 534]

Совершенно не согласен с вот этим высказыванием "Самый важный урок, на мой взгляд: никогда не оставляйте большие суммы денег в обменнике или в кошельке хранителя! И не верьте кому-то только по его грустной истории ... вполне возможно, что это обман!" Все совершенно безопасно .

[PabloC 108]

I was reading about this the other day and I think that whenever you open an account everywhere, its a responsability to keep the ids and password under safe control, even more regarding money, you cant be careless. So the sites having no consideration of people making mistakes is a way of protection to fraud and problems that can arise when they have the power to access accounts. It is better to learn it the hard way and lose a little than to have a lot and lose it for being careless, so the knowledge found in this situation is to always do the extra and keep all of your information in two to three sites and in a notebook, just in case your computer fails or something happen.