Quoine maintains all trading wallets off-line on cold storage at all times. This effectively eliminates any possibility of bitcoin being stolen by hackers at any given point in time. Even if a hacker does manage to get through our security firewalls, all bitcoin funds are 100% safe.
Additionally, for purposes of transparency (amongst others) each one of our customer gets their own bitcoin address where their bitcoin balance is stored. Users are free to check their balances using the given addresses using third-party tools such as blockchain.info. Here is how it works:
- After a user registers and it is approved for transacting on Quoine, he/she will be assigned a bitcoin address. The bitcoin address is visible to the user that owns the account.
- User then uses that address to send their bitcoin funds to.
- Once funds are confirmed by the bitcoin network, user can transact on the exchange with the funds in that address.
The trade-off with the 100% cold storage approach is that withdrawing bitcoin from your account may take longer than usual, as we need to (1) perform balance and checks before any withdrawals are allowed and (2) Sign all transactions off-line. Signing transactions off-line requires some manual work. We believe this is a good compromise, as it ensures our customers will not lose their funds if a hacker were to break into our servers.