Danger of keeping your crypto on an exchange

OutlawJoseyWales said:
I'm talking about the central banks, the controllers. They are not invested in Bitcoin
Click to expand...
El Salvador and the Central African Republic would disagree with you there ... also
www.forbes.com

Central Banks Are Increasingly Studying Bitcoin

In recent years, a growing body of research has emerged from central banks and financial institutions, focusing on Bitcoin and its potential impact on monetary policy.
www.forbes.com www.forbes.com

OutlawJoseyWales said:
They will create their own digital money. All governments have too do is outlaw Bitcoin and it will die pretty quick as users will adopt their digital money creations.
Click to expand...
you're certainly right about them wanting control over everything, but how do you truly control a 2 trillion dollar market cap asset that trades over 100 billion dollars daily?

they seem to have taken a bit of a "if you can't beat them, join them" approach, at the very least they will seek to build up a reserve to fight forex battles with, which is one thing they cannot do with their own CBDC's
 
NarrowBandFtw said:
slight correction, you seem to be making the same semantic error as the article:


the tokens are never transferred to the hardware wallet, the hardware wallet secures the keys to the on-chain address, that on-chain address "contains" the tokens

for that matter it is also never "self-hosted" given that it lives on the blockchain, should have read "self-custodied"

it's not all that important a distinction, but once people start to use hardware wallets it is usually an assumption that gets dispelled for them

good practice of course to:
- have a key phrase for recovery
- have it physically separated from the hardware wallet

only thing it the recovery phrase can be used by anyone if they get their hands on it, at least the hardware wallet still asks for a PIN code or some such ... i.e. it is safer for the hardware wallet to be stolen than the recovery phrase
Click to expand...
Thanx, this is why my 20 word seed phrase is split into 2 pieces of paper.
On the 1 piece of paper numbered 1 to 10 is my actual seed phrase, then words 11 to 20 are fake seed phrase words.
On paper 2 is 1 to 10 fake words and then 11 to 20 is actual seed phrases.

I store these pieces of papers in 2 totally different parts of the garage well hidden and fire proof. If anything were to happen to my hard wallet I would then need both pieces of paper to recover my wallet on the exchange
 
The other "danger" is that the exchanges now send SARS your transactions so the next time you sell, you'll get a nice letter from them demanding an audit of your crypto activities.
 
UB40 said:
You gotta be an absolute idiot for keeping your crypto on the exchange for a long time. Mine is stored safely on my Nano X Ledger in my safe at home and my 20 word key phrase is written down on paper in my garage far away from the house.
Click to expand...

just bundle your ledger and seed phrases together and leave them in your Suzuki glove box, no one will ever steal that, perfectly safe!

Street-Spotted: Suzuki Carry KC 4WD
 
OutlawJoseyWales said:
None of the big players own Bitcoin.

Therefore the powers that be are not going to use something they don't control. Bitcoin is a dream and a whisper that will crash when governments release their own digital currencies.
Click to expand...

when you realise how many individual wallets own close to $1bn of bitcoin, you will be shocked... the lists are all public knowledge
 
Wrath of Khan MD said:
just bundle your ledger and seed phrases together and leave them in your Suzuki glove box, no one will ever steal that, perfectly safe!

Street-Spotted: Suzuki Carry KC 4WD
Click to expand...
I would give anything for a 4x4 Suzuki Supper Carry but @JSparrow does not import them to South Africa :(
 
wingnut771 said:
What if you go on holiday and you get some squatters moving in and they burn it down by accident?
Click to expand...
Or even worse someone stumbled onto the piece of paper

Not just that he advertised where they should look

First rule of Private keys are like fight club you don't talk about it

So this weekend all his not so great buddies will offer to help out on some job

Scratch that I keep my private keys in the garage somewhere
 
OutlawJoseyWales said:
None of the big players own Bitcoin.

Therefore the powers that be are not going to use something they don't control. Bitcoin is a dream and a whisper that will crash when governments release their own digital currencies.
Click to expand...
Governments will never release deflationary money (limited quantity)

The point of Bitcoin is that it isn't controlled by any government

Any block chain that isn't public/decentralised is a database Basically what we have now ie a bank

Agreed the cult is strong around Bitcoin
It is a broken husk of what it was/meant to be and yet it prevails

The self fulfilling prophecy part is coming true as much as some hate it
 
The interesting thing is many that have a way better understanding of how BTC works vs new wave of investors

Have lost access to coins

For some keeping it on decent exchange may actually be the best decision they make

Do disable Crypto withdraw on luno
It does mean you will have to endure a 24hrs wait if ever you want to send coins

But will help if someone gains access to your account as long as you don't ignore the emails when it happens


No delay on ZAR withdraws as that only happens to bank accounts matching luno account holder


And naturally have 2FA enabled
 
Wrath of Khan MD said:
just bundle your ledger and seed phrases together and leave them in your Suzuki glove box, no one will ever steal that, perfectly safe!

Street-Spotted: Suzuki Carry KC 4WD
Click to expand...
There is an even better deterrent
Hiding it In a fiat

LIke the joke says when they had to make changes to help reduce thefts the security improvement they made was enlarging the logos
 
You must log in or register to reply here.
Back
Top
Sign up to the MyBroadband newsletter