Dan Wasyluk discovered the hard way that trading cryptocurrencies such as bitcoin happens in an online Wild West where sheriffs are largely absent.
Wasyluk and his colleagues raised bitcoins for a new tech venture and lodged them in escrow at a company running a cryptocurrency exchange called Moolah. Just months later the exchange collapsed; the man behind it is now awaiting trial in Britain on fraud and money-laundering charges. He has pleaded not guilty.
Wasyluk's project lost 750 bitcoins, currently worth about $3 million, and he believes he stands little chance of recovering any money.
What to use, then? Is there any automatic way of exchanging cryptocurrencies? Maybe some smart contract, on top of Ethereum?
Your own private/public keys. Never leave the exchange with control over your crypto.
But, if I send a certain amount directly to a public key adress, then what guarantees that the other half will send the same value in the other crypto?
Should I rely on the benevolence and honesty of some random internet strangers? That doesn't sound reasonable.
Yes this is the way it is with all centralized exchanges, choose the most reputable and move your crypto out immediately. Decentralized exchanges and Atomic Swaps are the future alternatives.
Thanks for enlightening! I was expecting a different answer, but I guess the world is different than my needs.