Are my XRPs safe?
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Yes , I am your customer. I am happy that you guys created this subreddit to allow people to ask you any questions. This makes you more transparent and hopefully truthful in your responses. My question is : can you tell me how do you keep my XRPs safe in your exchange? Are my XRPs insured for loss due to hacks?
Thank you
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Hi, thank you for your kind words. Bitstamp employs best practices in terms of security by utilizing advanced security technologies. We have implemented the Multi-Sig technology to our hot wallet, where we keep only a very small portion of cryptos (around 2%), while the majority of them is safely stored offline, in cold storage systems. However, we offer no insurance. Please note that Bitstamp is not a wallet provider, therefore we always recommend our users storing their cryptos in a hardware wallet.
Hackers think of various ways to steal your personal information, from your computer, smartphone, email etc. That’s why it’s very important that you protect your personal information and that your system is secure and free of any malware. If you have any additional questions, you can always send me a PM.
No really wish I had a fake account to say. No we used your xrp went down the pub and got pissed haha.
On the other hand you have a valid question and I also would like to know the answer
You could store your XRP on an exchange but you do have to realize that your XRP are technically not yours. It’s just a value in a database that says “This customer has the right on <insert value> <insert currency”>”. If said exchange gets hacked and their wallet’s get drained, they can become in to an position where they are not able to give you your funds.
So it is always safer to open an account on the chain of said cryptocurrency and store your funds there. The only problem is that you do need to protect your private key. One way to do that is making use of a paper wallet. Another option is using an hardware wallet. That is technically a complicated sim-card that never exposed your private key.
Also note with XRP you do need a 20XRP reserve to open an account. This is needed to protect the ledger from getting spammed with empty accounts.
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