Correct - If you give the details of your private key to the exchange platform then your're at their mercy and hoped they're systems do not get compromised.

I've been told that https://www.bitcoin.de/en has a different approach to how it handles keys. I'm going to drop them an email and see what they say. The problem is, like all other crypto sites, they say they're experiencing high volumes blah, blah, blah..

One thing is for certain. I'll not part with any money until I can be 100% sure that I'm the only one who can access it. I prefer to pack my own parachute..!

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I am sorry to hear that, truly..

I studied public key encryption 20 years ago after reading about PGP by Phil Zimmerman. If you are serious about crypto currency, I strongly suggest you take 60 minutes of your time to read his website. Here's a good start: https://philzimmermann.com/EN/essays/index.html that will only take you 5 minutes of your time and it will probably the best 5 minute read you've done in a long time.

It is painfully obvious from reading messages on this site, that the majority of people understand crypto, currencies and the blockchain and are up to date with the latest twitter ramblings and self-proclaimed YouTube prophets, but have no clue about the most important part that keeps your money safe. If you give your private key to anyone then you do not understand how the system should work.

Please accept my sincere apologies to all if I am mistaken and that you do not have to reveal your private keys to an exchange or anyone else. My above paragraph is based on what I have read so far on these forums. If you have to reveal your private key to anyone else then there is something wrong with the process. The blockchain may have been proven to be secure, but all that security is undone when you give your private key away. This is analogous to having the most secure vault in the world, and then leaving the door open..

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Exactly - great answer. This is crazy - you create a private key then give it an 'exchange', who is not regulated, whom you have no idea of their security, policies, structure - probably set up in the 'goldrush' as few years ago and people wonder why?

Your private key is private - it is not meant to be shared with anyone, not even an exchange. An exchange should be able to facilitate a request but not have access to you private key. If an exchange knows your private key then why bother with keys? Why not let the exchange just provide you with an ID that they have created?

If you have to give your private key away in order to get your money then there is something very wrong with the process...

Hi,

If the blockchain always tells the 'truth' and it's 'impossible' to be hacked because it's a distributed ledger, how is it possible to get hacked? (not counting letting someone have access to your private key).

If my bitcoin is encrypted on the blockchain, and, I'm the only person to have the private key, how is it possible someone else can hack it? My bitcoin is still on the blockchain, right? And I'm the only one with the key!

I've read horror stories on the net about companies going bust (people shitting themsleves when kraken went dark), and reports saying that people could lose bitcoins. How is this possible? The coins are on the blockchain so you can just collect the coins later, with the next, latest and greatest crypto exchange, right? Even if Kraken went bust, pffft.. who cares? Your coins are safe on the blockchain right?

Be interested to hear from the experts..

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That's my concern. I'm a professional programmer/data specialist and I've been doing it successfully for around 25 years (never been out of work so must be doing something right!?). My first approach whenever I come across a new system/technology is to 'take it apart' to see if it 'holds water'.

A few days ago, Kraken scared the living daylights out of the crypto community when it went 'dark'. Crypto is in it's infancy, it's just like the klondyke era and lot's of companies are trying to get a foothold on the action and learning as they go along, mistakes and all. Sure, the banks I work for are exploring crypto but, there is no way on Gods earth they'd be working with a company like Kracken until it's well established, proven itself and is reliable. That'll take many years. If you don't think it's possible to go tits up, look at Lehamn Brother in 2008 the world-wide crash they caused.

Thanks for your input, much appreciated..

Hi and thanks to all for chipping in with your input but..

I must say I'm still missing something - and I'm happy to say, maybe something has clicked yet for me..

I know the blockchain verifies that a trail of events (transactions) remains true, this is it's purpose. If you read the article on the bitcoin wiki (https://en.bitcoin.it/wiki/Secure_Trading) it says that "Bitcoin users may want to trade bitcoin directly with each other in what is known as an over-the-counter market", this suggests that I can pass a bitcoin directly from my wallet to your wallet without the blockchain. Or when the say "directly" do they mean by-passing exchanges etc?

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Complex is OK. I prefer to spend 100 days trying to understand than blindly accepting the things I don't.

I'm sorry but struggling to understand this point you made: <>

Could you ellborate?

Hi All,

First post so please be gentle!. I'm trying to get familiar with crypto currency and understand 'how it works'. I've reached a block and I'm hoping someone can shed some light on a particular point.

I understand the process of using public and private keys, back from the time when Phil Zimmermann created PGP. PGP allowed a user to encrypt a file, eg: an email/file (technically, just a bunch of ones and zeros) so that when the other user decrypted the file, they would see the words/file again. Or, to phrase it another way, the encryption was just a 'wrapper' for the content - ie, the words in my email or the file I sent.

Now, if someone sent me a bitcoin, how would I know what I was looking at? With an encrypted email, once decrypted I would be able to see something (text/file) and realise that I had actually received something. But, if someone sent me a bitcoin, what would I be looking at when I decrypted with my private key? A file filled with ones and zeros? Or maybe a simple text file with words inside saying, "Hey, this is 1 bitcoin!"

Can someone shed some light on what it I actually receive when I purchase a bitcoin and how I can verify that what I have 'in my hands', is actually a bitcoin and not just a bunch of ones and zeros? I understand that the blockchain is supposed to verify what is what but, what if I wanted to pass my bitcoin directly to you without the blockchain. Again, how would I know, what I received - was a bitcoin?

Thank you for your time and patience with my lack of understanding!

Regards,

Staffs Lebowski..