The Moment You Send Money To Exchange - They are Not Yours + Some Good Practices (20 000 Followers Special)

in bitcoin •  last year  (edited)

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!

Authors get paid when people like you upvote their post.
If you enjoyed what you read here, create your account today and start earning FREE STEEM!
Sort Order:  

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.

  ·  last year (edited)

Always do your own research people.
This information here posted by @kingscrown is golden but you need to ALWAYS do you own research.
I had someone who bought 1 bitcoin at the high ask me where should he store it. I told him do your research and make your own decision.

I personally feel comfortable with cold storage, I don't have a nano S but might buy one by 2020 if I see a history of success with them and they gain my trust. I personally DO NOT have 2fa but that's because the way I have myself setup I feel its safer if I do not have 2fa...

Also do yourself a favor and research any blockchain and token before putting your life savings or taking out a loan to buy whatever. Steemit says beta right underneath it if you look up and to the left of this page.
Recently for example Treyvon or whatever his name is has been taking a lot of heat for promoting Bitconnect...now I am not sure what the whole story is and haven't seen his videos but don't buy something just because literally "some guy" on the internet is doing it or telling you you should do it.
Some older man who has kids all put their money and took out loans and put it all on into something they CLEARLY didn't understand.
The same guy said "some black guys and white guys" talking about trevon, craig and other people promoting the scam, but yet he invested EVERYTHING AND MORE into something because "some black guys and white guys" on the internet told him to...sorry but go fuck yourself, it took me months of months of hours everyday of researching bitcoin putting my money in...

DO YOUR OWN RESEARCH

·

What @Kingscrown is saying is whenever you are putting your money on external exchange better activate 2FA authentication to keep your funds safe. It takes almost a week time for ACH transaction to process and many prefers it that way. By 2FA he means Google Authenticator application.
Of course everyone needs to their own research when it comes to money but their are many people on whom you could trust for information not for buying coins.
Of course this is an evolving space and no one know which coin could do well as these are only prediction anyone could ever make. Follow Andreas Antonopoulos for crypto education and you won't need anyone else predictions ever though there are trustworthy people out there. BitConnect was a joke, multi level marketing and I feel bad for those who had trust in such platform.
Good luck to all and specifically newbies...

·
·

Yeah Andreas is who got me into bitcoin back in 2014, thanks to him and Joe Rogan.

·
·
·

Andreas is a great source of unbiased information.

https://twitter.com/aantonop

·

I'm still a bit wary of the Ledger Nano S, I'll wait a while longer until I am confident in using one.

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..
Screen Shot 2018-01-29 at 8.05.28 PM.png

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?

  ·  last year (edited)

Very good your article, I am new to steemit and I know almost nothing yet

"The moment you deposit to exchange you take a bet that exchange wont die or run with your money."
This is why I don't want to invest any significant money in it.

Best advice, keep trading to a minimum as you loose on fees, always check how much it is to withdraw as this can be very expensive. Hardware wallet is also a good idea.

yes you are right

Very good advices!!!

I follow you ...

An important tip. I recommend the Ledger Nano S. It was very easy to setup and I feel safer leaving my coins that I want to HODL on my ledger instead of an exchange that might get hacked or shut down at any second.

·

Cold storage is a good option too (paper wallets). Just don't loose them! Only if you're going to HODL though as they're offline, and you have to transfer to entire balance out when you want to spend some.

·
·

Agreed- it's not easy now, which makes me think that it's a good time to be in the space. I'm sure new tech will make the process easier soon...

Solid advice that is hopefully not taken lightly by thsoe new to crypto-trading. Google Authenticator is an excellent 2FA management app that keeps multiple 2FA passcodes for you in one location on your phone or computer. Paper or "hard" copies of private keys are also a solid idea for those security-conscious individuals

·

I really like Google Authenticator too- super easy to use!

good,you are right!

@kingscrown cold storage is the best option but for others be aware that if you buy a ledger nano s or trezor from a third party seller this can spell disaster later down the road. Always check for fingerprints on your ledger nano s and if there is any trace of tampering on package send back immediately. Only buy from ledger authorized reseller or directly from company. Paper wallets are also good but are complicated for newbies to use.

Cheers

Dante

Put in cold storage. I don't even like having it in a wallet on my desktop or phone.

·

yeah anywhere safe :)

good job tnx for upvote

Nice post. This article very important for public in Steemit.

Great, simple tips to help the community! Thanks!

This post has received a 4.50 % upvote from @aksdwi thanks to: @kingscrown.

  ·  last year (edited)

I AM not a newbie but still some of the above points I wasn’t aware about !!

Thanks for the reminders.

C263309E-48EB-400D-B816-5C38FD22C358.png

Congrats on the followers kingscrown! I hope to eventually get that many. That would be super fun!

when are they gonna make a nano ledger you can see your erc20 tokens on

Unless you spilt your assets between many exchange wallets. Its still risk but its calculated and spread.

Great Article. Some newbies in this space don't take enough precautions and this is a necessary reminder for investors to be safe.

Obvisly they could do that

The more internal trading that goes on (BTW these trades dont hit and activate the blockchain they are all internal) means more and more cryptos for them! I tend to only do large trades and get them off the exchange asap.

Cryptos should have low fees but some even those other then bitcoin can be eaten up crazy fast!

good post @kingscrown if you are not busy, please visit my blog for a look around. ;)

Great reminders. Exhanges often shut down wallets for maintenance so although you still hold the coins, you can't access, sell or move them which can be really frustrating.

gracias kingscrown muy valiosa tu información y recomendaciones a lo que estamos entrando nuevos en esta comunidad nos servirá de mucho se te agradece

Hi help me so I can succeed like you @khalil380 thank

thank you it is quite interesting and useful.

We new here so these are very useful advices, thanks for sharing :)

Everyone should resteem this for the security tips alone. Excellent post!

man congratulation for 20k followers may it hit 30k soon.

Nicee broo

thank you..
hope so we will do it..
upvoted

·

@oznev (40) Your comment above looks very spammy.

I looked at your other comments and they are similar in style, not including any intelligent or interesting discussion about the blogger’s topic. You don’t include anything to even show the authors that you read their blog.

This reeks of insincerity and laziness. It looks like you are trying to draw attention to yourself, probably hoping for upvotes or follows.

Spam posts like this risk getting flagged.

Before you make another comment, please read some of the many excellent steemit guides. Here are some examples which are particularly relevant to you

https://steemit.com/steemit-abuse/@spaminator/updated-your-reputation-could-be-a-tasty-snack-with-the-wrong-comment

https://steemit.com/steemit/@miti/a-complete-guide-for-newcomers-and-minnows-to-avoid-a-possible-spam-and-to-write-good-comments

If you liked the blog but have nothing interesting to add, then an upvote is generally sufficient.

Yes!! It is up to you. Someone my friend sold 50sbd as 50$only. Research man!!!

I was just trying to get into crypto business I did't know a lot I did my own research on internet and I found there are loop holes so you gotta put your keys to some safe place. Than I get to know about the cold wallets. The usb wallet and harddrive wallets. One thing that I wanna know, is that, those online wallets those are protected by 2FA are secure or not . Help me I am going to start mining for that reason I really need your help . Thanks for sharing @kingcrown

Is that right choice for us to invest in Cardano (ADA) ?

Important article really especially for people leaving there money on exchange.

wow.....wow.....wow....congratulations on the 20,000 followers benchmark AWESOME man love to be like you some day soon

nice exposition on the safety rules to follow on the exchanges really sad how some are just setup to seal users funds sad indeed........like i always advise people before you go all out with any exchanges always test their withdrawal policy, if there is any clause to it then please do yourself a big favor and move elsewhere with you coin

just as @kingscrown put it better safe than sorry

This is very valuable info and tips, thanks for sharing!

The more people that pile into cryptocurrencies the more criminals will be targeting weaknesses and vulnerabilities. Everyone invested in crypto should do their due-diligence!


For the latest Crypto news, please read my post: https://steemit.com/bitcoin/@nzfxtrader/hot-off-the-press-cryptonews

thanks, this is very usufull

Very useful article, I am new to steemit.
Please upvote and follow me, help me grow. --@linhduong :)

Very nice info. Thank you!


thanks for your valuable information and sharing about crypto money and wallet.

As a minnow, I've also been advised to

backup my login, public /private keys, and to archive and secure my backup directory... Thanks a bunch for this post @kingscrown !

Congratulations @kingscrown, this post is the third most rewarded post (based on pending payouts) in the last 12 hours written by a Hero account holder (accounts that hold between 10 and 100 Mega Vests). The total number of posts by Hero account holders during this period was 401 and the total pending payments to posts in this category was $14210.62. To see the full list of highest paid posts across all accounts categories, click here.

If you do not wish to receive these messages in future, please reply stop to this comment.

This post has received a 37.38 % upvote from @moneymatchgaming thanks to: @kingscrown. Upvote this Post to Support the MMG Community on Steemit! :)

·

hello friend @moneymatchgaming how could I make my publication call a little more attention and can earn a little more?
https://steemit.com/bitcoin/@srmit/how-to-get-the-usd-from-steemit-to-localbitcoin

Use BitShares (DEX)!

Great material. Please be sure to see my material as well guys. I provide free technical analysis and look out for the crypto community. Currently over 70,000 followers/subs on social media platforms. Give me a shot! I may just very well improve your crypto trading game by 10x!

Always, good to remind people of the fundamentals. I've heard more and more horror stories.

Good $

Thanks. I'm new to this. It was very helpful

awesome tips ! probably a little add on for google auth. do remember to screenshot or print physical code for recovery incase missing device or change device.

Right said newbies like me are checking on you to learn and your content practical guidelines. I never though the moment i send money to exchanger they are not longer mine it sound scary, but real," money i earned no longer mine". Thanks for the good practices outlined, i have to bookmarked this page for referencing. Resteemed as well

Need your help. I am new.

Great tip, you´ve got my follow aswell.

For me, I store it in https://www.blockchain.com/

·

Addition to that I also use security like 2FA Authy, email and mobile number.

Congrats on 20k! Epic Milestone! Really solid advice, I'm waiting on a hardware wallet at the moment for my longer term holdings, it just seems like the only responsible way!

thank you!!!

What recommended wallets would you suggeat? Most of my money are in exchanges.

·

Buy a Ledger Nano S. Very nice, secure and easy to use hardware wallet.

If you can't afford it, as software wallets I would always advice to use the official ones from each project.

If you prefer to have a multi-coin wallet, then I would say Exodus is a nice choice. It allows you to export the private keys and their interface is awesome.

Soon we will have many interesting projects with promising wallets like ETHOS and Bread.

Thanks for your info. There are so many "newbies" out there pretending to know more than they really do. This is very common on YouTube. There are some awesome channels, but there are some with lots of disinfo/misinfo.

you forgot to mention condoms

You've got to back up data.

Hello friend @kingscrown very good post I really like your good performance that you have I follow and vote. if you could give me a help with my publication would be very pleasant for me would motivate me to follow my ideas greetings and thanks for which you can help me a little.
https://steemit.com/bitcoin/@srmit/how-to-get-the-usd-from-steemit-to-localbitcoin

Congrats. Amd thanks for the info.

yup I always recommend people better to store crypto assets on paper wallets and never trust anyone

Important to understand the reality. Great post! Upvoted and Resteemed by @cryptoryno33

First of all, congratulations on reaching such a huge milestone! You deserve it! Secondly, thanks for the great tips. Even if some of them are tried and true methods of security it is great to have an additional perspective in terms of keeping our crypto safe! Goodluck with the future!

I've written a few posts like this on my channel, but there can never be enough safety posts likes this in my opinion.

Well s***, I better withdraw my INT from OKEx right now. Your post reminded me that I forgot to withdraw. Thanks

Ok for mainstream coins, but how do you store ADA or IOT off the exchange? I have lost money on transfers too, so try to move my coins as little as possible. Most wallets only take a few main currencies.