Do we need to backup Screenshots balance on exchange?
Do we need to backup Screenshots balance on exchange?
Hacking cases are still the biggest scourge on any crypto exchange. It doesn’t matter whether the exchange is large or small, this incident can have fatal consequences for the exchange and even go bankrupt, even though there are several other factors that cause an exchange to collapse, such as FTX and so on.
The impact of this incident was none other than traders/consumers who saved/had funds in crypto on the exchange and had not yet had time to withdraw the funds. In this incident, the exchange’s customers will lose time and materially. The long process of recovering customer funds and the amount of funds returned also does not match what the trader had before. Not to mention the added terms and rules that make it impossible for traders to get their money back.
If this continues to happen, there will be a lot of potential for consumers to lose funds in the future. To avoid something similar we might need to do:
1. Take care of your money, manage it properly and carefully.
What I mean here is that you need to be wise and careful in storing, organizing and managing it. If you trade on an exchange, then when you finish trading, put your money back into your personal wallet (take your crypto out of the exchange and move it to your hardware wallet or mobile wallet)
Do this after finishing trading. Because actually the most dangerous thing is storing money/crypto on an exchange.
2. If you are forced to store your funds or crypto on an exchange, don’t forget to take a screenshot of your balance and account. This SS is useful if at any time something bad happens so you already have proof that you have funds there. Usually SS balance is a requirement for claiming recovery money. Sorry about the screenshot, I mean this is to remind us, what is our balance, what crypto do we have on the exchange and the amount.
3. KYC
KYC is now important because usually in the process of recovering funds in cases of collapse or hacking on an exchange, we will be subject to KYC, where the data we input will be checked against each other. If it matches, the fund recovery process will run smoothly. If we do not carry out KYC when registering on an exchange, we will likely have problems when faced with fund recovery requirements.
4. If you choose not to do KYC then do point 1 in a disciplined manner.
Just as you have pointed out the best advice is do not save on exchanges, right there is No secondary advice attached to this except that they have their risks. The first is since it will be harsh or probably just too much of a problem on traders to be withdrawing their funds everyday back to their individual wallets. Personally I think this might even lead to send to a wrong address either by mistakenly typing the wrong one or during copy and paste which would be easier one could fall into the mistake of getting affected with clipboard malware.