Security Notice to Steemers - Exchanges are NOT secure wallets

in #crypto-news8 years ago (edited)

Since 2013 im a daily cryptocurrency trader and a lot of people ask me for DOs and DONTs.. The main one is - do not keep coins on single exchange.

This post is mostly directed to people who get into STEEM and never been intro cryptos but also to people who forget of this rule.

Exchange is NOT a wallet. Exchange is a place where you send coins to buy or sell them for other ones. They are not secure places to store money.

Exchanges get hacked, so far in the history almost all exchanges got hacked. Some gave money back to their users - some didnt. The moment you send money to exchange, you do not have control over them. If anything happends they are lost and.. exchanges are targets for hackers unlike your small local wallet.

So lets imagine you get 5000 SBD of SBD and want to exchange them into lets say Bitcoin.

Are you sure its a good idea to put 100% trust into some exchange whos owners you dont even know?

IT IS NOT.

Spread the risk - put some on Bittrex, Poloniex or even go for decentralized OpenLedger. It literally takes a minute for exchange to go down and say it was hacked and lost funds.
Or just go totally "exchange-less" with @blocktrades system http://blocktrades.us which exchanges coins on the fly.

Exchanges often first loose funds, then run some days and then.. tell you money is gone. I hardly remember any other case.

So since i like to keep it short - if you own significal amount of SBD/STEEM and really want to sell it instead of doing a PowerUP or holding - spread the risk and sell on few exchanges.

The extra advantage you get - often they have little bit different prices too. So you may make extra buck (or cents) just by doing this security measure.

Hope nothing gets hacked that has STEEM but if it does - remember the guy who told you about precautions and ..

follow @kingscrown for cryptocurrency tips and news!

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What about OpenLedger? Is it safe?

its safe, you hold the keys to your wallet, not the exchange

My steem is securely tucked away as steem power. :)

Why bother with any exchanges when you can just ShapeShift Steem to your favorite Bitcoin wallet?

Agreed, provided your favorite Bitcoin wallet isn't also an exchange like Coinbase or Poloniex ;-)

Thanks for providing this information!

Two other options are paper and hardware wallets. I recently purchased the Ledger Nano S Hardware wallet. I hear the Trezor is also a good one.

You might want to take a look at my blog on Testing Recovery of a Hierarchical Deterministic (HD) Hardware Cryptocurrency Wallet. It's always a good idea to know how to perform wallet recovery, just in case!

Thank you very informative happened

Thank you for the information.

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