Please Do Not Store Crypto on Any Exchange, Warns CEO of Major Crypto Exchange Kraken

Jesse Powell, the CEO of a major crypto exchange Kraken, warned users of digital assets to not store funds on trading platforms.

 

The warning of Powell follows a high profile security breach suffered by Cryptopia, a New Zealand-based crypto exchange known for its listing of a wide range of small market cap tokens.

Why Investors Shouldn’t Hold Crypto on Exchanges

Any application or platform connected to the internet by nature is hackable. In essence, centrally operated crypto exchanges are similar to banks in that they hold the private keys and funds of users.

If a hacker gains access into the central servers or internal management system of an exchange, the hacker can steal user funds, private information, and financial data.

As Powell said, a more secure way of storing cryptocurrencies is in a hardware wallet or a non-custodial wallet that allows users to manage their own private keys.

“Please do not store more coins on an exchange (including @krakenfx) than you need to actively trade. Use Ledger or Trezor. DEXes are not a panacea — look at the DAO. Open source just means exploits will be discovered sooner (probably not by good guys),” he noted.

Some experts have argued that major centralized exchanges can be safer for casual or beginner crypto users because it is possible for new users to mismanage private keys and sensitive data.

ledger
Kraken CEO Jesse Powell has advised crypto adopters to store their coins in offline hardware wallets like Ledger, pictured above. 

Well regulated cryptocurrency exchanges like Gemini, for example, have insurers in place that are able to reimburse investors in an unlikely event of a security breach or a hacking attack.

In October, Gemini revealed that it obtained insurance coverage from Aon, one of the largest insurance service providers in Europe.

In light of recent hacking attacks on cryptocurrency exchanges, certain markets including South Korea have requested trading platforms to obtain insurance to protect investors and their capital.

Centralized crypto exchanges are still vulnerable to security breaches and it is difficult to have all of the user funds insured by insurance companies.

The risk in storing crypto in a hardware wallet or a non-custodial wallet is the lack of presence of a company or a representative that could help an investor recoup funds in an event that a private key is lost.

But, the responsibility is fully on the investor to securely manage funds and back up wallets on a regular basis and as long as the wallet is well maintained, there exists no possibility of a security breach.

Cryptopia Situation

The Cryptopia hack, which prompted Kraken CEO Jesse Powell to ask investors to avoid storing funds on an exchange, is currently being investigated by the New Zealand police.

In an official announcement, the New Zealand police said:

A significant value of crypto-currency may be involved and Police are taking this very seriously. We are currently talking to the company to gain a further understanding of what has occurred. A dedicated investigation team is being established in Christchurch including specialist police staff with expertise in this area.

It remains uncertain whether the exchange will be able to reimburse every investor affected by the hack.


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Author: JOSEPH YOUNG
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New Exchange to Offer Customizable Dashboards — Giving Traders the Information They Want

A new exchange says it has the goal of becoming “the most professional, global and secure marketplace for digital assets” — utilizing state-of-the-art technology that it claims can deliver a processing capacity of 1.5 million order matches per second.

ProBit says its platform is “fast, robust and reliable” — helping to give its users an upper hand while trading. The company says security is a priority, and this is why it promises to store “95 percent or more of digital assets in a cold wallet” — protecting users against security breaches and theft. Hardware security keys are also being made available to traders, which are “impossible for hackers to crack,” yet convenient to use.

According to the company, many traders end up using multiple exchanges because they cannot find the trading pairs they want — or because the user interfaces are too difficult to understand. ProBit aims to remedy this problem through a modular dashboard — meaning that the layout can be personalized around the needs and interests of a trader. Instead of pushing the same information to every user, Probit appreciates different crypto enthusiasts are interested in different things, and wants to put the power in their hands.

Through ProBit, “a wide array of the most trusted coins and tokens on the market” can be traded — and the company says that more than 150 cryptocurrencies will be available. This is complemented by hundreds of trading pairs. Five of them — Bitcoin, Ethereum, USDT, EOS and the native ProBit token among them — serve as “base currencies.”

Customizable user interface for traders of all levels

According to ProBit, many of the exchanges out there at the moment are failing to hit the sweet spot when it comes to attracting users from all backgrounds. It says that, as a rule, most exchanges are geared toward inexperienced traders or experts. Although some platforms do enable traders to toggle between basic and advanced modes, the ProBit says this just means that every user is not getting what they fully need.

This is the rationale behind the fully customizable interface. Every component can be moved and resized as per their priorities — enabling traders to benefit from a service that acts as the left hand to their right hand. This personalization even extends to the colors used on tickers, giving users the chance to find a layout tailor made for them.

Of course, using a crypto exchange for the first time can be a daunting experience — and this is why ProBit offers an array of preset layouts for new users. This serves as a starting point which enables traders to figure out how they want to lay out the vast amounts of information that the company exchange has to provide.

ProBit says that its platform will be active 24/7, and customer support will be available in multiple languages — cementing its goal of becoming a global exchange.

A global player

The company is clear that it wants to be more than a copycat exchange that seems to offer identical features to the platforms already out there. ProBit says this ambition is going to be realized thanks to its team of executives. While CEO Hyunsu Do worked as an accelerator for fintech and blockchain-based companies, CTO Steve Woo amassed 25 years of experience in the software industry thanks to his tenure as CEO of Linux International.

The main sale of ProBit tokens — known as PROB — is taking place on Dec. 3, 2018 and will last for only one day. The company stresses that these tokens are never going to be used for marketing or bounty services. Moreover, its team adds that they are not going to charge listing fees for projects to be traded on ProBit for three reasons: to protect users, because it amounts to a conflict of interest and because it enables them to be selective.

Ronald Chan, the director of partnership for ProBit, shared that projects from around the world have submitted themselves for listing on ProBit because of the co-marketing campaign that ProBit and crypto projects will conduct together. He added that this win-win partnership raises the visibility of both parties.


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Author: Connor Blenkinsop
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Binance Opens Its First Fiat-to-Crypto Exchange – Binance Uganda

Binance Uganda officially announced that they would open up trading by accepting deposits and withdrawals on October 17, 2018. While Binance plans to launch other fiat-crypto exchanges in Singapore, Malta, and Lichtenstein, they are keen to help the African economies grow and prosper. The Binance Executive team see a lot of growth potential for Uganda and their neighboring African countries.

After four months of anticipation, Binance Uganda will officially open up trading by accepting deposits and withdrawals of Ugandan Shillings on Wednesday, October 17, 2018. According to the press release, Binance Uganda will also begin standard Know Your Customer (KYC) procedures.

Binance Uganda Opens up Trading

According to the official statement, Binance announced the launch of Binance Uganda four months ago, in June 2018. As promised, Binance Uganda users, during the first month of trading, will have zero trading fees. The cryptocurrency exchange will support the trading of Ugandan Shillings (UGX) with Bitcoin (BTC) and Ethereum (ETH), with the addition of more trading pairs in the future.

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In terms of the technical capabilities, Binance Uganda can undergo 1.4 million transactions per second. They also have 24/7 live customer support. Not only is Binance Uganda one of the first Binance-based cryptocurrency exchanges in Africa, but it’s also Binance’s first crypto-fiat exchange.

We are extremely proud to officially launch our first fiat-crypto exchange in Uganda,“ said Wei Zhou, the CFO of Binance.

“We have been diligently preparing for this exchange with our local partners since our team first visited Uganda in April 2018. This is only the first step in our efforts to use blockchain technology to support sustainable economic development in Africa, and we look forward to bringing more innovations to the region.”

Binance Keen to Transform Uganda’s Economy

While the land-locked East African country may not be a country of choice for many cryptocurrency exchange founders, Changepeng Zhao, the CEO and founder of Binance, sees great potential in Uganda’s people and economy.

Earlier this year, in April 2018, Zhao visited the Ugandan President, worked with the local blockchain community, and even partnered with Crypto Savanna, a Ugandan blockchain startup. As seen in his Tweet, Binance is keen to become apart of Uganda’s economic transformation by providing investment opportunities and bringing in jobs for the Ugandan youth.

The Blockchain Association of Uganda quoted Zhao as he mentioned that:

“Binance is tailor-making partnerships according to the environment. We want to understand the landscape and grow our understanding of the market.”

With a population of more than 44 million people, while Uganda is considered one of the world’s poorest countries, it is, however, recognized as a first-mover when it comes to the adoption of blockchain technology. The African country is currently booming with blockchain associations, communities, conferences, and is also well supported by the Ugandan Government and their regulators.

Zhao, however, has grander plans for Binance. Binance Uganda is just one cryptocurrency exchange in Binance’s plan. The cryptocurrency exchange giant plans to launch fiat-crypto exchanges in a number of different countries including Singapore, Malta, Lichtenstein, and plans to expand and continue further development in Africa.

Africa, the Next Frontier for the Cryptocurrency Industry

According to a detailed blog post published on August 31, 2018, by Benjamin Rameau, the director of Binance Labs, a social impact fund to incubate and invest in blockchain and cryptocurrency projects, expressed great confidence in Africa as he believes it will become the next frontier for the cryptocurrency industry. Binance has therefore invested heavily in Africa as the continent is a key component of Binance’s expansion strategy. He believes that an investment in Africa today could be one of the best forms of trade for the century.

While Africa bears the scars from colonialism, civil war, and dictatorial governance in the last few centuries, Rameau noted that Africa could very much surprise the world with their capabilities and potential. The cryptocurrency industry can create a robust financial system, which will become the backbone to a growing economy.

In Sub-Saharan Africa, only 43 percent of people above the age of 15 own a bank account, a significantly lower number than the global average of 69 percent. The cryptocurrency and blockchain industry can provide Africans with greater access to financial services to save, borrow, loan, and lend. The renewed optimization will kickstart the modernization of African economies.

However, it’s not just the investors that are excited, according to Forbes, Africans are searching for new ways to become more involved with the cryptocurrency industry. The top three nations include South Africa, Nigeria, and Ghana. While African nations are considered the world’s poorest and most corrupt countries, Africans may also benefit the most when it comes to cryptocurrencies since it can potentially address the plethora of problems plaguing African fiat currencies and economies.


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Author: Cindy Huynh
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Is it Worth Signing Up to 0% Commission Exchanges?

Most cryptocurrency exchanges charge between 0.1% to 0.25% commission on each trade. While this may not seem much, for active traders who enter and exit positions on a daily basis, exchange fees add up and eat into their trading profits.


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To provide a solution to this problem, a number of zero-fee exchanges have been launched. However, are these digital exchanges really a better alternative to the large fee-incurring established exchanges?

Top 5 zero-fee exchanges by 24 hour trading volume (GMT 7:20 AM):
1. BitMEX (USD 2.75 bn)
2. Quoine (USD 124m)
3. Fisco (USD 68m)
4. Zaif (USD 68m)
5. CoinBene (USD 61m)
Source: coinmarketcap.com

Zero-fee exchanges are not free
There are two types of zero-fee exchanges. There are exchanges that do not charge trading fees on specific currency pairs, such as BitMEX for USD/BTC for example, and there are exchanges that charge zero trading fees across the board, such as the recently launched digital currency exchange Cobinhood.

The former have enabled zero-fee trading for specific currency pairs to attract more users to their platform so that users trade other currency pairs or other financial products, such as digital currency derivatives, for which trading fees are being charged.


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Full zero-fee exchanges, on the other hand, do not charge trading fees on spot trading but usually charge a fee for margin trading or other products they offer. Cobinhood, for example, does not charge a fee for spot trading or margin trading but does charge fees for its ICO service, where it aids blockchain startups in launching their token sales.
Zero-fee trading platforms are obviously still for-profit businesses and will charge their users elsewhere such as withdrawal fees, margin trading fees, or for other products or services.

Are zero-fee exchanges worth it?
When it comes to choosing a cryptocurrency exchange, there are many factors that need to be considered. Fees are only one of these factors. Others include reputation, security, accepted payment methods, geographical location, whether they are regulated or not, user-friendliness and, perhaps most importantly, the number of currency pairs on offer.
Zero-fee exchanges such as Cobinhood and Quoine can help active traders to reduce their trading costs and, thereby, indirectly increase their profits. That is their key selling point.
Having said that, all zero-fee exchanges available today are limited to only a few digital currency pairs, which is not very helpful for altcoin traders or those looking to actively trade ICO tokens. Furthermore, most zero-fee markets are found on Asian exchanges, which are not always accessible to those in other regions. Also, most zero-fee exchanges are largely seeing low trading volumes compared to the most popular (fee-charging) exchanges such as Binance, Bitfinex, GDAX, and Kraken. That makes trading large volumes more difficult on zero-fee exchanges. However, in terms of trading volume BitMex is the largest bitcoin exchange now.

The zero-fee exchange model is definitely growing in popularity, even if it is mainly used as a way to attract users to then charge them for other products or services. Having said that, currently, cryptocurrency traders seem to be ok with being charged a commission on each transaction as the bulk of trading volume still occurs on fee-charging exchanges.


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Author: Alex Lielacher
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Investment Giant Planning Crypto Exchange

US-based investment management giant Fidelity Investments is believed to be working on setting up a cryptocurrency exchange on its own, according to several media reports.


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Fidelity, which is already known as crypto friendly for allowing their clients to hold bitcoin in their accounts through a partnership with the Coinbase exchange, is currently hiring engineers “to help engineer, create and deploy a Digital Asset exchange to both a public and private cloud,” according to a report by Business Insider.

The move comes after the veteran investment bank Goldman Sachs on May 2 finally admitted publicly that “bitcoin is not a fraud,” and announced plans to launch a bitcoin trading operation.While Goldman Sachs has been a sharp critic of bitcoin and cryptocurrencies in general, Fidelity has maintained a much more positive view, and the company’s CEO Abigail Johnson is known as a long-time supporter of bitcoin.

During the Consensus 2017 conference in New York, Johnson told attendees “I love this stuff – Bitcoin, Ethereum, Blockchain technology – and what the future holds!”
No official statement has been issued by the company regarding the rumored new crypto exchange.


Here at Dollar Destruction, we endeavour to bring to you the latest, most important news from around the globe. We scan the web looking for the most valuable content and dish it right up for you! The content of this article was provided by the source referenced. Dollar Destruction does not endorse and is not responsible for or liable for any content, accuracy, quality, advertising, products or other materials on this page. As always, we encourage you to perform your own research!

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Author: Fredrik Vold
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One of the Largest Crypto Exchanges is heading to the Caribbean

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Bitfinex and Tether

Bitfinex which is one of the biggest virtual-currency markets has been some kind of mystery in the crypto world. Wells Fargo & Co dumped it last year and from the time, it has been secretive of how fiat money can be transferred without a bank.

According to knowledgeable people in the subject matter, Noble bank which is based in San Juan took over the necessary banking duties for Bitfinex in 2017. Bitfinex was, therefore, involved in third-party account strings in Panama City in order to stay active.

Tether has also been affected and as it shares the management team with Bitfinex which includes the CEO Jan Ludovicus van der Velde. There is little information in regard to how Tether was created and therefore, it trades at the $1 price level due to the fact that each of the coins should be backed by around $1 of fiat. The currency entered the trading world in 2015 and can be an alternative to the Bitcoin volatility.

Global Impact

Therefore, other intractable enshroud the two corporations. According to a person who has information in regard to the matter, regulators have been involved in Tether investigation on the $2.1 billion customer money backing n the virtual coin. The organizations have not yet provided the evidence to the public domain and this lack of transparency has led to critics to Bitfinex and Tether.

Tony Arcieri, who is a software engineer and also a security analysis said this in a report;

“I, and many others, suspect Tether is being used to effectively counterfeit hundreds of millions of dollars of perceived value, which are being immediately reinvested into Bitcoin.”

The US-based Justice Department opened a criminal probe to ascertain if the traders might be manipulating the bitcoin price and also the other cryptocurrencies. Tether and Bitfinex have had market repercussions and this had made the banks fear for money laundering and also other insecurities.

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Strict Rules

Most of the financial organizations have strict rules linked to the customer verification and money laundering and they don’t want to associate themselves with the criminal activities. The Bank of America Corp, the capital One financial corps and also Discover financial services have banned the customers from the purchase of virtual money with their credit cards.

Puerto Rico has been involved in cash influx linked to cryptocurrencies last year. The cash and also the equivalents of cash which are held by the islands financial entities, for instance, Noble reached $3.3 billion in 2017 which was from $191 million in 2016.

$31 million Hack

Noble is involved in the use of the Bank of New York melon Corp as a custodian. Bitfinex was established in Hong Kong in 2013 and in 2016, the exchange was hacked an amount of $68 million. One year later around $31 million worth of Tether was stolen in another hack.

Calls made to the general council on Bitfinex were not answered. Other concerned individuals did not, however, comment on the matter such as Jonathan Gasthalter.

Reputational Risk

Noble is obligated to report the various suspicious financial activities which might help the US government eliminate cases of money laundering. However, foreigner accounts can be anonymous if the assets are declared trusts.

Noble is involved in the connection of the exchange users though housing company and customer accounts internally. By the use of the interbank transfers, a Bitfinex user who has a noble account may have euros or dollars moved internally to their Bitfinex account.

Before Noble

The troubles of Bitfinex started in 2017 march at a time when Wells Fargo passed the message to four banks involved with Tether and Bitfinex that it would not process the wire transfers which were coming to the US.

Therefore, just before Noble started the transactions, Bitfinex had looked for banking solutions everywhere. The firm also was seeking help from Crypto Capital Corp. through its president, Ivan Molina Lee, Crypto Capital was linked to bank Spoldzielczy in Poland which Bitfinex was involved in the use for the euro-based deposits.

A crypto capital representative declined to make a comment and a request made to talk to lee was not answered. Therefore, through a spokesman, they said that the bank did not deal with cryptocurrencies.

Roberts Jan den Haan a Dutch researcher involved in researching Bitfinex and the Tether saga said;

“Essentially, Crypto Capital Corp. and their bank accounts enabled Bitfinex to maintain their access to fiat deposits and withdrawals. No access to fiat banking would make it quite problematic for Bitfinex to function as it is today, especially in relation to Tether and its one-to-one dollar backing.”


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Author Wilfried Paul 
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