Quote from: Zer0Sum on July 11, 2014, 02:05:14 AM

Quote from: farnsworth7 on May 31, 2014, 02:34:15 PM

What I personally do : I own about 30 btc, and I let them sit on Kraken.
I keep them there for several reasons :

- I dont trust myself to keep a paper wallet safe for a long time.
- I mostly trust Kraken, in particular because they have automated audits.
- I want to be ready to sell quickly in case of a huge crash.

Just wow... you are gonna get a BIG lesson in counter-party risk someday.

It would probably be a better idea to have 12 BTC at an exchange that allows 2.5x leverage and simply sell bitcoin short in the event that you wish to sell all of your bitcoin. You could keep the rest in a blockchain wallet for example.

Another option would be to use the second market bitcoin fund. You would need to pay some fees but the counterparty risk would be much less.