I don’t know about you one of my least
favorite ways to start the day is to log on to your favorite crypto exchange and
to discover that it’s no longer there today’s video is a cross between how not
to lose your crypto and crypto scam watch and we’re going to look at crypto
exchanges and we have already done so hit subscribe and that way you can stay
in the loop about future content that I make that helps you to find your way in
the crazy and often hostile environment that is crypto currency if you live in a
developed country it’s very unusual that just overnight you would wake up and
things like your country stock market or some of your country’s major banks will
have just disappeared and taken all your money with it crypto exchanges are
nothing like this as I was preparing this video I took a bit of a trip down
memory lane looking at some of the exchanges that I’d use in the past that
I simply no longer around and when they went pretty much took everyone’s user
funds with them there are three examples of exchanges I’ve had accounts with that
I think are really good examples of the kinds of things that can happen that
cause exchanges to go away so firstly we’ve got mtgox this was probably
the first major exchange failure that really shook the entire space but the
thing with mouth cocks is it wasn’t a scam really in the sense that basically
it came down to incompetence it was a mistakes that were made by the people
who were making the exchange because you know this is way back in 2012 2013 back
in the early days and to be fair mtgox was a really early mover in
this space and it wasn’t nearly as mature or developed as it is now btc-e
was another exchange that basically was shut down by law enforcement this was a
web archive snapshot or right before that happened and yep the good old troll
box… never change btc-e it was basically live chat for everyone
who was trading on the platform and as you can imagine that pretty much made I
think everyone Dumber for having read the content of that box another good
example was bitgrail that was a fairly recent one in that when Nano launched
which was called reiblocks there was this exchange called bitgrail and it
basically rode on the hype for raiblocks which is what nano was called at
the time and when bitgrail was happening there really weren’t many
exchanges that you could get reiblocks from so if you
wanted raiocks and weren’t part of the initial community distribution you had
to use this exchange I put bit Grail down as malicious
incompetence because it really started out a lot like mt.gox where you
know there were some vulnerabilities there but the way that the dev went on
to try and shift the blame to blame the developers reflects more than simply
having made a coding mistake and along the way and there are plenty more
examples where those came from so how to stay safe well the simplest and most
reliable thing you can do avoiding malicious actors human error and
government intervention is do not store large amounts of crypto on exchangers
long term even if it’s a mainstream exchange the only real way to keep your
crypto safe is to keep it on your own wallet where you control the private
keys getting a hardware wallet like a ledger and a trezor can be a really good
way to do that I’ve got affiliate links to get them in
the description as well and the reason why Hardware welts are great is not only
do they help to keep your crypto secure but I also come with well-documented and
functional wallet software to go with it the other thing with exchange is you
need to be really selective about the exchanges you do the ID process for in
the sense that if you go uploading your passport your driver’s license all of
your bank information then you are exposing yourself to potential identity
theft the exchange owner doesn’t have to be openly malicious they may simply
get hacked if you’re only new to the space another thing to avoid is anonymous
exchanges and when I say anonymous exchanges I mean exchanges that are both
anonymous in that you have no idea who actually runs the site no company no
idea where they’re based no contacts no none of those things and sites that
allow you to be fully anonymous understand there are risks that we’re
dealing with smaller exchanges that may be less known in that really at the end
of the day you might just be sending a crypto to a website someone knocked up
yesterday purely to steal your funds and you might find that when you’re good it
withdraw that nothing happens if you’re new to the space and don’t know
where to start the advice I give to people is pretty much to stick with
coinbase and binance just as to players that have
been established that a large and been in the space for quite some time if
you’d like to do some research on your own I’d also suggest you head over to bitcoin.org
that’s Bitcoin.org not Bitcoin.com and Bitcoin.org have a great list of
exchanges that are international that peer-to-peer as well as four different
countries around the world so it’s important remember that for the reasons
we’ve mentioned you shouldn’t just uncritically store huge amounts of
crypto on exchange and you know they’ve basically got that disclaimer there on
Bitcoin.org to warn you thanks for watching I hope that was helpful
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