5 ms·
Not your keys, not your crypto.
by cbsudux 5y ago
Not your keys, not your crypto.
- tomglynch 5y agoYes everyone says this but managing your own keys is a bloody pain.
- rawtxapp 5y agoHardware wallets make it pretty straightforward.
- Ekaros 5y agoAnd always remember they aren't your keys if the hardware isn't by you and verified to gate level.
- Karunamon 5y agoIs losing coins to a crocked hardware wallet even a thing that has happened to anyone?
- sashimi-houdini 5y agoRelevant xkcd: https://xkcd.com/538/ https://xkcd.com/538/
- tluyben2 5y agoWhy? There are so many ways to store them, why is this such a pain? I don't get it but everyone here says so but in meatspace I never hear anyone complain about it.
- robjan 5y agoMost people in "meatspace" are not involved in crypto in any serious way
- Hermel 5y agoI wonder what the statistics say: what’s the likelihood of a Bitcoin residing with a custodian being stolen or lost versus the likelihood of a Bitcoin directly held by the end user being stolen or lost?
- gillesjacobs 5y agoMy guess educated guess is that the Mt. Gox and various darknet market exit scams alone account for the majority. Those alone probably make stolen from personally managed wallets pale in comparison. Don't know about lost wallets though.
- chrischen 5y agoThat's why I keep all my assets in cash, in my shoe.
- cortesoft 5y agoYet another reason crypto will never become the de facto currency. Can you imagine if we treated other currency like that? If everyone had to protect their own cash, and if you put it in a bank you were considered foolish? Although at least with cash most people would understand how to protect it. A vast majority of people in the world are never going to understand crypto well enough to be fully capable of securing it themselves.
- derefr 5y agoReal banks are regulated and insured by government institutions like FDIC. If there were crypto exchanges with those properties, they’d be fine to trust too. Current crypto exchanges are basically like holding your money in a gaming account in an offshore casino. The companies don’t submit themselves to anyone’s jurisdiction—so there’s no implied legal safety.
- rawtxapp 5y agoMost trusted exchanges have some kind of insurance in place [1][2][3]. 1: https://support.gemini.com/hc/en-us/articles/205823016-Are-my-funds-insured- https://support.gemini.com/hc/en-us/articles/205823016-Are-m... 2: https://help.coinbase.com/en/coinbase/other-topics/legal-policies/how-is-coinbase-insured https://help.coinbase.com/en/coinbase/other-topics/legal-pol... 3: https://www.coindesk.com/bitgo-600m-insurance-capacity-big-time-bitcoin-holders https://www.coindesk.com/bitgo-600m-insurance-capacity-big-t...
- joosters 5y agoNone of these are as good as the protection of your money in a bank. e.g. Coinbase's insurance covers just their 'hot storage', but that's only 2% of your currency. Plenty of exchanges have lost their supposedly secure cold wallets to hackers.
- PragmaticPulp 5y agoCoinbase is so large that if their cold storage was compromised, the ripple effects on the entire crypto market would destroy immense value everywhere. Returning coins to users would only be part of the problem. Everyone’s coins would be worth less from the fallout alone.