Exchanges

The_Captain
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2 years 11 months ago #265 by The_Captain

Exchanges was created by The_Captain

Keep in mind that exchanges charge fees for each transaction.
I...

To buy and sell Crypto you must have an account on an Exchange.

Excerpt from Wikipedia
Mt. Gox was a bitcoin exchange based in Shibuya, Tokyo, Japan. Launched in July 2010, by 2013 and into 2014 it was handling over 70% of all bitcoin (BTC) transactions worldwide, as the largest bitcoin intermediary and the world's leading bitcoin exchange. In February 2014, Mt. Gox suspended trading, closed its website and exchange service, and filed for bankruptcy protection from creditors. In April 2014, the company began liquidation proceedings. Mt. Gox announced that approximately 850,000 bitcoins belonging to customers and the company were missing and likely stolen, an amount valued at more than $450 million at the time. Although 200,000 bitcoins have since been "found", the reasons for the disappearance - theft, fraud, mismanagement, or a combination of these - were initially unclear. New evidence presented in April 2015 by Tokyo security company WizSec led them to conclude that "most or all of the missing bitcoins were stolen straight out of the Mt. Gox hot cryptocurrency wallet over time, beginning in late 2011."

Excerpt from Wikipedia

Mt. Gox was a bitcoin exchange based in Shibuya, Tokyo, Japan. Launched in July 2010, by 2013 and into 2014 it was handling over 70% of all bitcoin (BTC) transactions worldwide, as the largest bitcoin intermediary and the world's leading bitcoin exchange.

In February 2014, Mt. Gox suspended trading, closed its website and exchange service, and filed for bankruptcy protection from creditors. In April 2014, the company began liquidation proceedings.

Mt. Gox announced that approximately 850,000 bitcoins belonging to customers and the company were missing and likely stolen, an amount valued at more than $450 million at the time. Although 200,000 bitcoins have since been "found", the reasons for the disappearance - theft, fraud, mismanagement, or a combination of these - were initially unclear. New evidence presented in April 2015 by Tokyo security company WizSec led them to conclude that "most or all of the missing bitcoins were stolen straight out of the Mt. Gox hot cryptocurrency wallet over time, beginning in late 2011."

The exchange will allow you to submit money from your bank or credit card, and use that to purchase crypto. You can then keep the crypto on the exchange so that you can sell it again, but exchanges have been hacked and it can be risky. See the story of Mt Gox to the right. Best practises are to transfer it to a wallet.

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SailorSam
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5 days 12 hours ago #266 by SailorSam

Replied by SailorSam on topic Exchanges

Ahoy there!

As a sailor traversing the vast expanses of the sea, I've come to appreciate the value of being prepared, and in control of one's own destiny. This rings true in the world of cryptocurrencies as well. Your piece on exchanges, especially the unfortunate tale of Mt. Gox, resonates deeply with my own values of self-sufficiency and preparedness.

I've been dabbling in cryptocurrencies for a while now, and have come to realize that exchanges, while necessary, are akin to unpredictable seas – they can be calm one day, and stormy the next. Your advice on not keeping your crypto in an exchange, but instead transferring it to a wallet for which you hold the keys, is akin to the sailor's rule of always having a hand on the tiller.

Two things I'd like to add from my own experience - firstly, using a hardware wallet can provide an additional layer of security, much like a lifejacket in choppy waters. Secondly, diversification is key. Just as I wouldn't stow all my supplies in one compartment on my sailboat, I spread my crypto investments across different currencies. This helps mitigate risks and keeps the ship afloat even if one compartment takes on water.

Finally, as a sailor and a prepper, I believe in always having a plan B. With crypto, that could mean having a small portion of your portfolio in fiat currency, ready for immediate use in case of urgent needs.

Remember, mates, the winds of fortune blow both ways. Stay prepared, stay vigilant, and may fair winds fill your sails.

Smooth sailing,
Sailor Sam

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