Tokyo-based cryptocurrency exchange hacked, losing $530M: NHK

Re:Tokyo-based cryptocurrency exchange hacked, losing $530M:... by ht85 on Friday January 26, 2018 @12:55PM (#16241241)

I think the biggest problem is having a single point of failure. I personally keep about half my coins on exchanges, but no exchange holds more than 10%.

Storing your coins might be the best solution in theory, but in practice unless you're very savvy about the whole stack - hardware, OS, software and blockchain tech, it's hard to be sure you're not making a dumb mistake and exposing your whole stack.

Even hardware wallet can have vulnerabilities, and any form of "paper wallet" can be physically lost or destroyed.

My opinion is that you should hedge to make any loss tolerable, instead of trying to prevent it completely.

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Re:Tokyo-based cryptocurrency exchange hacked, losing $530M:... by dangero on Friday January 26, 2018 @01:04PM (#16241361)

paper wallet generation software can also have bugs or be intentionally rigged and people have definitely reported both quite a bit.

You're right on with your approach -- I think the answer is multiple wallets -- even multiple brands of hardware wallets, multiple exchanges, multiple computers, multiple different types of paper wallets stored in different places, even multiple cryptocurrencies in case one has a catastrophic issue.

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Re:Tokyo-based cryptocurrency exchange hacked, losing $530M:... by Retric on Friday January 26, 2018 @01:30PM (#16241601)

I am not saying your wrong, but that kind of defeats the point of using a crypto coin in the first place.

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Re:Tokyo-based cryptocurrency exchange hacked, losing $530M:... by dangero on Friday January 26, 2018 @02:19PM (#16242062)

Absolutely! This is not consumer ready at all. It's important to continuously point that out.

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Re:Tokyo-based cryptocurrency exchange hacked, losing $530M:... by naveen99 on Friday January 26, 2018 @06:04PM (#16243604)

You can keep just 10% on bitmex and use upto 10x leverage. If you get liquidated take another 10% out. If you make profit, send it back to the icebox.

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