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
