Crypto platforms melting down is real

[YellowSwap]

Let's not forget that in every cycle there is always that once "trusted" platform that takes the fall, they implodes when we least expected. And yet many people keeps saying this same word

"It will never happen to me."

I was a victim of QuadrigaCX myself in 2019 and there are many that have went down in similar ways.

Like FTX, Celsius, BlockFi, Mt.Gox.

What has this thought me? That losing your crypto in such manner teaches that "Not your keys, not your coins."
This is not something to joke with, I hope readers will listen and take cautious steps to avoid such thing happening to them.

Think wise before you leave your coins on crypto exchanges where you have no true control over your assets.
Platforms meltdown is real.

[Joy_learns_crypto]

Think wise before you leave your coins on crypto exchanges where you have no true control over your assets.
Platforms meltdown is real.

You are not wise to even think about it, don’t leave your coins on a cryptocurrency exchange you have nothing to think about.
Cryptocurrency platform meltdowns, exchanges hacks, exchange legal battles should make you not to leave your coins on any exchange platform.

[Zlantann]

Let's not forget that in every cycle there is always that once "trusted" platform that takes the fall, they implodes when we least expected. And yet many people keeps saying this same word

"It will never happen to me."

I was a victim of QuadrigaCX myself in 2019 and there are many that have went down in similar ways.

Like FTX, Celsius, BlockFi, Mt.Gox.

What has this thought me? That losing your crypto in such manner teaches that "Not your keys, not your coins."
This is not something to joke with, I hope readers will listen and take cautious steps to avoid such thing happening to them.

Think wise before you leave your coins on crypto exchanges where you have no true control over your assets.
Platforms meltdown is real.

Exchanges and other centralized platforms will do everything they can to make you feel that your funds are safe. They will tell you that your funds are Safu and you don't have anything to worry about. Some people only learn through a bad experience, so they will keep funds in centralized platforms. I have heard people say that since the MtGox and FTX depositors were able to recover their funds, centralized exchanges can be trusted. I want to have full control over my money. I don't also want to wait this long to recover my money when I have a better option of being my bank. If you don't own your keys, you don't have the coins, simply and short.

[Aanuoluwatofunmi]

I was a victim of QuadrigaCX myself in 2019 and there are many that have went down in similar ways.

Like FTX, Celsius, BlockFi, Mt.Gox.

If we look on the ways some of these exchanges have been clampdown for one reason or the other, we may not choose to use them again, because centralized exchanges are not safe and we can't continue to use them when we already know the risk associated in them, custodial storage are not safe and not the best for now, we should always consider the use of non custodial storages.

[Coyster]

Nothing new really, though in this case i guess it doesn't hurt to reiterate what has been said a million times already. Not your keys, not your coins. The thing is, people would still do what they want to do and if we wake up to another centralized exchange collapse, a whole lot of people would still lose their funds to it, some of them would even lose all their life savings.

[Moreno233]

We have not seen news of the collapse of any major platform I this market cycle but you are right about precious years. One thing that is common among all the incidence was that they were all CEX that is never safe for storing crypto assets. Those who lost money are those who saved money in those platform and assuming people just learnt how to use their private wallet to hold their assets, they will never fall victim to some of these challenges. In addition, holding Bitcoin mostly is a safe practice that is better than diversifying into shitcoins that usually fail.

[YellowSwap]

Think wise before you leave your coins on crypto exchanges where you have no true control over your assets.
Platforms meltdown is real.

You are not wise to even think about it, don’t leave your coins on a cryptocurrency exchange you have nothing to think about.
Cryptocurrency platform meltdowns, exchanges hacks, exchange legal battles should make you not to leave your coins on any exchange platform.

Smartass you are, right? There is no way people won't leave coins on exchanges, people got to trade, traders leave money on exchanges because they are always busy trading the upside or the downside.

Saying don't leave your coins on crypto exchanges means traders should quit trading, it is impossible, I add thinking wisely about it because it's the best thing to do, when a trader makes money they should consider taking some off the exchange and leave behind the exact amount for trading.

[nakamura12]

Having thought of storing your coins in an exchange is already a mistake to begin with that's why you learned from it since you are a victim yourself. Few years back is that it is already being discussed that not your keys not your coins and yet you still choose to store in an exchange platform and even during that time is that I didn't even store my crypto in an exchange. I also came across the news about Mt. Gox so I would know that letting others manage your coins is not a good decision to make.

[CryptSafe]

Of course, the meltdown is real, and it is only the lazy ones who are caught in the dark. They ignore the advice "not your keys, not your coin," and the repercussion is always disastrous in the end. No third-party exchange can guarantee your asset safety when they too have not fully guaranteed their platform's safety, so it is just a risk in totality, and one just needs to be wise in handling or dealing with them.

[God Of Thunder]

Let's not forget that in every cycle there is always that once "trusted" platform that takes the fall, they implodes when we least expected. And yet many people keeps saying this same word

"It will never happen to me."

I was a victim of QuadrigaCX myself in 2019 and there are many that have went down in similar ways.

Like FTX, Celsius, BlockFi, Mt.Gox.

You mentioned the exchanges only. But there are other types of crypto-related platforms. Casinos, for example. There were some popular casinos, such as Freebitco.in and another one, the name of which I don't remember, but they were pretty active in this forum. Later, they turned out to be scam casinos. Freebitcon.in users have been waiting for their withdrawals for a long time, while the other one went down, stating that the website would be under maintenance. This actually proves that any platform could go down.

People should never keep their money on online exchanges, casinos, or any other service where they do not have direct control.

[aysha9853]

This keeps happening because people trust platforms more than they should, every cycle there is a new big name and everyone thinks this one is different.

[Asuspawer09]

It is surely a thing in cryptocurrency platform because the business itself is investing in cryptocurrency which is a very volatile asset, probably the most volatile of all when it comes to assets, compared to gold, real estate or stock market the volatility of cryptocurrency is just too high for so it is a really risky business for platforms to do, not to mention the legalities itself since its a new thing for some of the countries you are going to have a lot of problems on different country, Also need to have a solid security since you are asking for money on your users like you are encouraging them to put there money on your platform, so its a huge responsibility and not doing so is going give you a huge problem.

When the market is down that could mean that your business is also at risk since your asset is going to drop as well, you could notice that a lot of exchanges or platform get bankrupt especially when the market is down, since they are a huge fear in the market and a lot of users are pulling out there investment on exchanges, and if you are not careful you could get stuck in the crossfire where your money could get lose when that happened. It is a good practice to only store your asset on secured wallet, atleast wallet that has seed phrase, know what you are doing, putting your money on an exchange just means its a custodial wallet you dont have any control, at any moment exchange could freeze your asset and there was nothing you could do about it.

[sunsilk]

It's never a joke to remind other people that they shouldn't keep their funds in the exchanges even how much trusting they are.

Because they'll never know when something bad will happen to them. Even with the most popular ones like Binance, they've been hacked before.

So, whether it's with centralized or decentralized exchanges, we all need to be vigilant in using them and don't keep huge funds in any of them.

[reagansimms]

Think wise before you leave your coins on crypto exchanges where you have no true control over your assets.
Platforms meltdown is real.

You are not wise to even think about it, don’t leave your coins on a cryptocurrency exchange you have nothing to think about.
Cryptocurrency platform meltdowns, exchanges hacks, exchange legal battles should make you not to leave your coins on any exchange platform.

Yes, some of the risks you mentioned are clear evidence of why exchanges are not a safe place to store assets because there is no guarantee that the assets stored there will be safe. Hacking, bankruptcy, or even being frozen by the government are unavoidable risks and these events can happen at any time without warning, which is why it is better to store assets in a secure wallet whose private key can be controlled.
If you want to keep your assets safe, never store them on an exchange, unless for other purposes such as to facilitate transactions, avoid transaction fees and of course the assets stored there are in an amount that you can afford to risk.

[pliego]

Think wise before you leave your coins on crypto exchanges where you have no true control over your assets.
Platforms meltdown is real.

probably better to use a hardware wallet and sleep easy at night

[Vaculin]

It is true that some unpredictable things might happen to an exchange when we least expect it, and eventually force to stop its operation, leaving us in great loss. This is a constant reminder to never trust an exchange more than your personal wallet. Or you can leave a small amount to an exchange that you can afford to lose when time comes.

Crypto platforms melting down happens, so we shouldn't be too confident putting our funds into it. Not your keys, not your coins, so never risk your hard-earned coins just to lose even from a reliable exchange, particularly those centralized ones.

[Felicity_Tide]

I hope readers will listen and take cautious steps to avoid such thing happening to them.

I guess a decent number of users who have used this forum are certainly aware of this, but mind you, there are far too many people out their who still rely heavily of these Cex platforms in storing their coins even when they don't use them frequently. They feel these platforms are not vulnerable to hacks probably because they believe the exchanges ought to have the best security in safe guarding all that's in their possession. But we've seen cases, and even the one that happened earlier this year if I remembered correctly.

A lot of people might have heard about this risk, and choose not to take responsibility for their own coin just because they feel that it won't happen to them. I hope people do not have to learn the hard way.

[Porfirii]

It happened to me with Cryptopia several years ago, but the examples are numerous and not restricted to the ones mentioned in the OP. In fact, it's rarer for very big exchanges to fall that way than for little ones that cam exit scam or are more vulnerable to attacks because of weak security measures, but it can happen to anyone.

In the case of cryptopia, after years waiting, many users recovered a good part of their coins, but this kind of cases don't usually end that well. So never deposit more than the strictly necessary in exchanges, and the same gores to other platforms with custodial wallets.

[ozgr]

Never keep your funds on any crypto exchange long term. Back in 2015, Poloniex was considered one of the best exchanges. Today, even binance, once seen as one of the safest, has lost a lot of trust. I personally lost over $10k on cryptopia and hitbtc

[fortunecrypto]

Think wise before you leave your coins on crypto exchanges where you have no true control over your assets.
Platforms meltdown is real.

The only reason you will leave it on the exchange of your choice is that you understand and accept the risk and are an active trader with daily activity on that exchange.
If you're a passive trader, it's better not to even if it's a small amount. However, some exchanges guarantee payment in the event of a hack, but it's not worth it because the time to resolution is too long; you could have sold it for a profit or to cut your losses, as you have no control over your coins.