Say I use Bitstamp to buy a crypto and tomorrow they go bankrupt.
Do I lose my investment?
And the Korean exchange that recently collapsed, how did that affect investors?
"An idea whose time has come cannot be stopped by any army or any government" - Ron Paul.
"To learn who rules over you simply find out who you arent allowed to criticize."
Crypto is perfectly safe. Nothing could go wrong.
Never. Mt Gox. Or this one just a couple of weeks ago:Originally Posted by Schifference
http://www.businessinsider.com/cyber...-knees-2017-12
A South Korea-based cryptocurrency exchange was brought to its knees by a cybersecurity attack.
Yapian, the operator of crypto-exchange Youbit, halted trading of cryptocurrencies on its venue Tuesday and filed for bankruptcy after a hack, according to reporting by The Wall Street Journal.
The Journal reported the exchange had 17% of its digital currency holdings stolen. The company witnessed a similar attack in April.
The crypto world has seen its fair share of hacks and cyber issues. Most notably, Mt. Gox, a Japanese cryptocurrency exchange, was forced to declare bankruptcy in 2014 after a hacker moved hundreds of thousands of bitcoin from the exchange to his own account.
And earlier this year, an estimated $280 million worth of the cryptocurrency ether was locked up by crypto-wallet company Parity because of one person's mistake. An unidentified user accidentally deleted the code library required to use recently created digital wallets within Parity, according to a security alert posted on the company's blog in November.
Are you not aware that Mt. Gox was sued and paid out some settlements to customers?
"He's talkin' to his gut like it's a person!!" -me
"dumpster diving isn't professional." - angelatc
"You don't need a medical degree to spot obvious bullshit, that's actually a separate skill." -Scott Adams
"When you are divided, and angry, and controlled, you target those 'different' from you, not those responsible [controllers]" -Q
"Each of us must choose which course of action we should take: education, conventional political action, or even peaceful civil disobedience to bring about necessary changes. But let it not be said that we did nothing." - Ron Paul
"Paul said "the wave of the future" is a coalition of anti-authoritarian progressive Democrats and libertarian Republicans in Congress opposed to domestic surveillance, opposed to starting new wars and in favor of ending the so-called War on Drugs."
They have not paid out anything, it is still up in the air and I doubt I will get my money back. I posted about my experience with mt.gox here on 1-20-2014 and they went out of business a month later. http://www.ronpaulforums.com/showthr...e-alternatives
This was when they handled 70% of all bitcoin transactions worldwide. The news media at the time would talk about mt.gox like they were a PR arm for them so there was no indication they were going to go out. What I described in that post is typical of how some of the exchanges are out there right now.
I thought I would simply transfer money from bitstamp to mt.gox for a week and transfer it back out. Never got it back.
I am not trying to dissuade anyone from investing but lets not sugar coat the harsh reality that it is a significant risk. Be prepared to lose everything you have invested as if you are gambling.
If there is a solar flare that takes out the entire worldwide internet and the bitcoin blockchain, we'll be living in the world without anything modern. I'm going to assume guns, ammo, and food will be the currency of choice then. Everything of value will be worthless if you can't eat.
“…let us teach them that all who draw breath are of equal worth, and that those who seek to press heel upon the throat of liberty, will fall to the cry of FREEDOM!!!” – Spartacus, War of the Damned
BTC: 1AFbCLYU3G1dkbsSJnk3spWeEwpqYVC2Pq
Think of bitcoin like cash. If your bank goes under, the money in the bank is gone. (Let's ignore insurance for the moment). If you had withdrawn your money it's still under your mattress.
Now some places do insure their customers. Coinbase does, I'm not sure about bitstamp or others.
Some of those exchanges people keep coins on for trading purposes. Unless they are insured, which is unusual, then it's a risk to consider. The korean hack probably caused some people to lose crypto.
If you are buying bitcoin and don't plan on using it right away then it's often best to transfer your coins from a bitstamp to something you personally control. This ensures safety.
“…let us teach them that all who draw breath are of equal worth, and that those who seek to press heel upon the throat of liberty, will fall to the cry of FREEDOM!!!” – Spartacus, War of the Damned
BTC: 1AFbCLYU3G1dkbsSJnk3spWeEwpqYVC2Pq
personal control by no means "ensures safety". It simply transfers the responsibility for keeping it safe from others to yourself.
oh the god damn personal responsibility
For example, this Ripple, there are a few companies linked off their site which trade the coin.
Its taking forever to open an account but once I do, and buy the goddam thing, could I then transfer the coins to my own "wallet"?
"An idea whose time has come cannot be stopped by any army or any government" - Ron Paul.
"To learn who rules over you simply find out who you arent allowed to criticize."
Yes.
Would you be able to or mind providing more specific guidance?
"An idea whose time has come cannot be stopped by any army or any government" - Ron Paul.
"To learn who rules over you simply find out who you arent allowed to criticize."
To be honest and not trying to be an $#@!, but if you can't do the searches and study/figure it out yourself, then its probably safer if you leave it on the exchanges.
I like the Ledger Nano S hardware wallet. It's about $135 on amazon, make sure wherever you get it (even amazon) that it is a trusted seller.
Just be really careful, follow the instructions, and learn how to use the device with very small amounts of crypto, learn how to recover your main wallet and hidden wallet if you use that feature. There are all sorts of tutorials and youtube and such. Once you feel really comfortable using it and restoring it and moving crypto around, then you can start putting larger amounts on there.
Your 24 word passphrase is crucial, you cannot lose that or you are completely screwed unless you have a working wallet and pin and can get the funds off. It should not be on a computer unless it is encrypted and really secure, and even then kinda dangerous. You can keep it in a fireproof safe or a safety deposit box or something, you can get kinda creative but be smart. I.e. you could stamp it into a steel plate, put it in a ziplock and bury it on your property or in the wilderness and just write down the GPS coordinates. If you can have a secure backup copy somewhere else, that's good too.
Last edited by dannno; 01-02-2018 at 10:46 PM.
"He's talkin' to his gut like it's a person!!" -me
"dumpster diving isn't professional." - angelatc
"You don't need a medical degree to spot obvious bullshit, that's actually a separate skill." -Scott Adams
"When you are divided, and angry, and controlled, you target those 'different' from you, not those responsible [controllers]" -Q
"Each of us must choose which course of action we should take: education, conventional political action, or even peaceful civil disobedience to bring about necessary changes. But let it not be said that we did nothing." - Ron Paul
"Paul said "the wave of the future" is a coalition of anti-authoritarian progressive Democrats and libertarian Republicans in Congress opposed to domestic surveillance, opposed to starting new wars and in favor of ending the so-called War on Drugs."
You're testing the banker's globally tracked currency system so there's a lot of databases your personal info has to be propagated to around the world. Be patient. Registering yourself as a global citizen will be much quicker once the bugs are worked out and their global currency is officially rolled out.
Last edited by devil21; 01-02-2018 at 06:52 PM.
"Let it not be said that we did nothing."-Ron Paul
"We have set them on the hobby-horse of an idea about the absorption of individuality by the symbolic unit of COLLECTIVISM. They have never yet and they never will have the sense to reflect that this hobby-horse is a manifest violation of the most important law of nature, which has established from the very creation of the world one unit unlike another and precisely for the purpose of instituting individuality."- A Quote From Some Old Book
Let's say it's ripple, since that is decentralized and far easier for them to control.
Ok, I'm going to use bitcoin instead.
"He's talkin' to his gut like it's a person!!" -me
"dumpster diving isn't professional." - angelatc
"You don't need a medical degree to spot obvious bullshit, that's actually a separate skill." -Scott Adams
"When you are divided, and angry, and controlled, you target those 'different' from you, not those responsible [controllers]" -Q
"Each of us must choose which course of action we should take: education, conventional political action, or even peaceful civil disobedience to bring about necessary changes. But let it not be said that we did nothing." - Ron Paul
"Paul said "the wave of the future" is a coalition of anti-authoritarian progressive Democrats and libertarian Republicans in Congress opposed to domestic surveillance, opposed to starting new wars and in favor of ending the so-called War on Drugs."
You don't get it, do you? Bitcoin and Ripple and all the rest essentially communicate with each other. The entire purpose of the exchanges is to study and hone how to track interactions between various blockchains so all transactions around the planet can be 100% logged, identified and tracked. The notion that you are trading one "coin" for a different "coin" is idiotic. There is no coin. There are only records of interactions on a single chain and interactions between multiple chains across the planet. And you all are doing the testing for them.
"Let it not be said that we did nothing."-Ron Paul
"We have set them on the hobby-horse of an idea about the absorption of individuality by the symbolic unit of COLLECTIVISM. They have never yet and they never will have the sense to reflect that this hobby-horse is a manifest violation of the most important law of nature, which has established from the very creation of the world one unit unlike another and precisely for the purpose of instituting individuality."- A Quote From Some Old Book
Unless you are insured you lose everything .
If you're lucky, the exchange might be able to raise additional money from investors to pay back customers (see what happened with NiceHash). Otherwise there might be a class action suit where you might be able to recover a fraction of the funds.
Bottom line - don't store crypto assets on exchanges. If you don't have the private keys you don't own the coins.
Keeping crypto on exchanges does carry some risk, Ledger S Nano and Trezors make good hardware wallets.
"He's talkin' to his gut like it's a person!!" -me
"dumpster diving isn't professional." - angelatc
"You don't need a medical degree to spot obvious bullshit, that's actually a separate skill." -Scott Adams
"When you are divided, and angry, and controlled, you target those 'different' from you, not those responsible [controllers]" -Q
"Each of us must choose which course of action we should take: education, conventional political action, or even peaceful civil disobedience to bring about necessary changes. But let it not be said that we did nothing." - Ron Paul
"Paul said "the wave of the future" is a coalition of anti-authoritarian progressive Democrats and libertarian Republicans in Congress opposed to domestic surveillance, opposed to starting new wars and in favor of ending the so-called War on Drugs."
With cryptocurrencies you have to accept full 100% responsibility for your own assets. Imagine that. Having to accept personal responsibility for something in this day and age. People aren't used to that, even in the so-called "liberty movement."
Chris
"Government ... does not exist of necessity, but rather by virtue of a tragic, almost comical combination of klutzy, opportunistic terrorism against sitting ducks whom it pretends to shelter, plus our childish phobia of responsibility, praying to be exempted from the hard reality of life on life's terms." Wolf DeVoon
"...Make America Great Again. I'm interested in making American FREE again. Then the greatness will come automatically."Ron Paul
+1 The weirdest thing about the fear pr0n I see being peddled about crytpo could almost exactly be said of FRNs that are held in accounts of various types. They're all just numbers in computers nowadays. I don't even own any crypto yet-I can just see that the haters have terrible arguments.
$#@! all that sound money bull$#@!, right? That's soooo 10 years ago. Digital chip implants is where it's at now, bro!
Last edited by devil21; 01-04-2018 at 05:37 PM. Reason: nm I already know what happened
"Let it not be said that we did nothing."-Ron Paul
"We have set them on the hobby-horse of an idea about the absorption of individuality by the symbolic unit of COLLECTIVISM. They have never yet and they never will have the sense to reflect that this hobby-horse is a manifest violation of the most important law of nature, which has established from the very creation of the world one unit unlike another and precisely for the purpose of instituting individuality."- A Quote From Some Old Book
what happens when a bank collapses? what they hold for you can be gone, so assume it will be. Yay for lack of regulation!!
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