Author Topic: How secure is storing BTS on the Decentralized Exchange?  (Read 1469 times)

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Offline Troglodactyl

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The decentralized exchange is built into BitShares just like the ability to make payments is built into other cryptocurrencies, so it isn't less secure than any other wallet.  What matters is how secure your keys are.  If you set your account keys to keys that you have in cold storage, then your account is as secure as a cold storage wallet because it is a cold storage wallet.  Technically your BTS in a cold storage account is still on the decentralized exchange, you just can't trade without getting signed transactions to the network.  If you use the OpenLedger website or other web wallets, your keys stay on your device (unless the people running the website maliciously alter the site to steal your keys).  Aside from that attack vector it's security is like a desktop wallet, and to eliminate that vector you just have to download the wallet yourself and run it locally.

In short, all BTS is always effectively on the BTS decentralized exchange, and that does not make storing it any less secure.

If you hold User Issued Asset tokens (like OPEN.BTC), you're dependent on the issuer's security and honesty to keep it redeemable for whatever it represents.  This is basically the same level of risk as holding BTC or BTS on a centralized exchange, except that arguably BitShares User Issued Assets provide less surface area for hackers to attack, since the exchange itself is securely on the blockchain and only deposits and withdrawals need to be handled by the issuer.

Offline TheCryptoDude

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Hi, I don't have much BTS unfortunately so probably doesn't matter but I was wondering how secure storing BTS on the bitshares exchange?

As I understand it is safer than other centralised exchanges because it is harder to hack into and no single entity has full control? How does the security compare to desktop wallets and cold storage?

Thanks!