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