After FTX collapse, some call for a return to decentralized roots

Abiky

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Quote from: s.tanishka on October 13, 2023, 12:46:12 PM

I'm sure that's not the case. All people have already forgotten about the FTX crash and continue to keep their funds on other CEX. If we look at their reports, there are more than 50 billion dollars stored on binance. Long before FTX there was MtGOX.

Exactly. The FTX collapse is history. People forgot all about it, and moved on with their lives. CEXs will still be around with us for quite some time, since they're the main "gateways" from both the crypto and Fiat worlds. Governments can keep track of illegal actvities involving crypto thanks to CEXs. With DEXs and privacy coins, it's almost impossible to do that. These solutions are widely unpopular due to their steep learning curve. Not everyone is willing to learn and take responsibility of securing crypto funds.

CEXs are easy to use, cheap, and fast. It's this reason why they're still afloat. I've read rumors of an "FTX comeback", so things might turn in the right direction soon. Who knows if the defunct exchange turns into a hybrid platform (centralized + decentralized) in the future?

s.tanishka

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Quote from: Iamcrypticguy on October 14, 2023, 05:45:38 AM

Quote from: Palazodeen on October 13, 2023, 01:18:22 PM

Personally, I would say FTX collapse is a blessing in disguise because if not for that, the subject of regulation might perhaps not have surfaced till date. I think regulations is what has been missing all this years hence the reason why some exchanges could just overnight announced that they are bankrupt. Taking the traditional financial institution for example where banks are under regulations from the various central banks, it's hard to hear issue of a bank collapsing with users money because there is a certain amount of deposit to be made to this bodies to ensure customer funds are safe and I think government bodies have realized this hence the reason for many countries now implementing regulations of crypto which is a welcome idea. Although crypto is meant to be decentralized but we cant ignore the importance of cex in ensuring noobs are able to buy crypto because not many have good knowledge of Dex. Am a bit surprised to see that some exchanges are reluctant to be regulated for reasons best known to them. However some exchanges have shown commitments towards been regulated which is a good sign that will give users peace of mind in keeping their assets on such platforms.

Crypto regulations come with both advantages and disadvantages, but given recent events, I believe they are a necessary step. I commend platforms such as Bitget, Binance etc for their commitment to transparency by publicly disclosing their Proof of Reserves. The former, in particular, offers an additional layer of security through its protection funds, which are currently valued at over $300 million.

But there were also doubts about whether these funds were actually held by them as collateral. In fact, we can never know 100% how things are inside the exchange. Therefore it is better to keep the money in your wallet.

vnawhf8h2

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I no longer worry about centralized exchanges. Since the FTX incident, traders have surely found their own ways to protect their assets, such as storing them in hot wallets, cold wallets, or diversifying their assets across centralized exchanges.

Marvinnous

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Quote from: ?? on ??

After the collapse of FTX, many people have realized the importance of their personal wallets or decentralized exchanges (DEX). For sure, I will not keep my assets on centralized exchanges (CEX) and will transfer my assets to my personal wallet. As for the platform you mentioned, I haven't quite grasped whether it's a personal wallet or a DEX?

If you speak about the Utopia P2P - there's a wallet within the soft and they also have a decentralized no KYC Crypton exchange. That's very convenient when you have everything in one place. I just wait for the day when they'll add more assets to their exchange and it will be perfect.

Iamcrypticguy

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Quote from: Palazodeen on October 13, 2023, 01:18:22 PM

Personally, I would say FTX collapse is a blessing in disguise because if not for that, the subject of regulation might perhaps not have surfaced till date. I think regulations is what has been missing all this years hence the reason why some exchanges could just overnight announced that they are bankrupt. Taking the traditional financial institution for example where banks are under regulations from the various central banks, it's hard to hear issue of a bank collapsing with users money because there is a certain amount of deposit to be made to this bodies to ensure customer funds are safe and I think government bodies have realized this hence the reason for many countries now implementing regulations of crypto which is a welcome idea. Although crypto is meant to be decentralized but we cant ignore the importance of cex in ensuring noobs are able to buy crypto because not many have good knowledge of Dex. Am a bit surprised to see that some exchanges are reluctant to be regulated for reasons best known to them. However some exchanges have shown commitments towards been regulated which is a good sign that will give users peace of mind in keeping their assets on such platforms.

Crypto regulations come with both advantages and disadvantages, but given recent events, I believe they are a necessary step. I commend platforms such as Bitget, Binance etc for their commitment to transparency by publicly disclosing their Proof of Reserves. The former, in particular, offers an additional layer of security through its protection funds, which are currently valued at over $300 million.

Palazodeen

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Personally, I would say FTX collapse is a blessing in disguise because if not for that, the subject of regulation might perhaps not have surfaced till date. I think regulations is what has been missing all this years hence the reason why some exchanges could just overnight announced that they are bankrupt. Taking the traditional financial institution for example where banks are under regulations from the various central banks, it's hard to hear issue of a bank collapsing with users money because there is a certain amount of deposit to be made to this bodies to ensure customer funds are safe and I think government bodies have realized this hence the reason for many countries now implementing regulations of crypto which is a welcome idea. Although crypto is meant to be decentralized but we cant ignore the importance of cex in ensuring noobs are able to buy crypto because not many have good knowledge of Dex. Am a bit surprised to see that some exchanges are reluctant to be regulated for reasons best known to them. However some exchanges have shown commitments towards been regulated which is a good sign that will give users peace of mind in keeping their assets on such platforms.

s.tanishka

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Quote from: ?? on ??

After the collapse of FTX, many people have realized the importance of their personal wallets or decentralized exchanges (DEX). For sure, I will not keep my assets on centralized exchanges (CEX) and will transfer my assets to my personal wallet. As for the platform you mentioned, I haven't quite grasped whether it's a personal wallet or a DEX?

I'm sure that's not the case. All people have already forgotten about the FTX crash and continue to keep their funds on other CEX. If we look at their reports, there are more than 50 billion dollars stored on binance. Long before FTX there was MtGOX.

Huppercase

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Quote from: Abiky on October 12, 2023, 07:46:47 AM

What good does it make to use a hardware wallet when you'd need to eventually move your coins for trading? The security lies in the exchange itself. Not your wallet. Your best bet would be to only send the amount your willing to sell in a centralized exchange. For large amounts, decentralized exchanges (DEXs) would be the way to go.

People just need to follow proper security measures to avoid losing it all in an instant. It's just that the majority is not willing to put their time and effort to do this. Everybody wants "the easy route". Convenience goes on top of everything else, right? Hopefully, people will realize CEXs aren't as safe as they claim to be. As long as decentralization wins, nothing else matters. Wink

Trading on dex from a non custodial wallet is the best security wise but they have their own challenges. They are limited with coins that you can trade, they may lack volume too and in the process of trading, bots can outrun your trade with high slippage. The biggest problem of them is bridging between chains to trade, for example, if you want TRX and you have ETH, you will have to bridge in between chain to be able to swap between TRX and ETH or any other altcoins. Some bridges are not also safe, you can lose your funds if you communicate with the wrong contract execution.

Each exchange have it's own advantage and disadvantages but for non traders, there is no any reason to keep your coins on exchanges, personal/non custodial wallet is the best of them and if you must trade everytime, don't put all funds in a single exchange.

asriloni

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Quote from: s.tanishka on September 30, 2023, 07:52:58 AM

Guys just keep only those assets in the exchange that you are going to allocate to the transaction. You don't need to hold absolutely all assets. If the amount of your trades is very large, then trade on several exchanges and even if 1 exchange scam, you will still have 50% of your funds on another exchange.

So true, that's why i have been spreading my assets into the several exchange sites and im not obviously putting 100% of my assets on the exchange sites. To be honest if im so lazy in sending back my funds back to the my wallet and that's my reason why i kept em on exchange sites. it's making me feel easy to manage it. Moving it out from exchange site is not too complicated and it needs a few seconds or minutes but i must say that if lazyness has become the main reason why most of people are not sending back their money to their wallet. I don't know why but this is happening to me too. Your suggestion was making sense but sometimes people are only centralizing their funds on the bigges site like binance due to the liquidity problem.

Abiky

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Quote from: yazher on October 11, 2023, 11:46:04 AM

This is good advice but not really recommended because the safest thing you could do is save your cryptocurrencies in your personal wallet and no 3rd party exchanges are involved because they have their own owners and are prone to hackers and scammers. In order to protect your crypto especially when you have a huge amount of it, you need to acquire a hard wallet that has some good security and convenience to use because you gonna save your crypto there for a long time when you want to save and hold certain coins for long term.

What good does it make to use a hardware wallet when you'd need to eventually move your coins for trading? The security lies in the exchange itself. Not your wallet. Your best bet would be to only send the amount your willing to sell in a centralized exchange. For large amounts, decentralized exchanges (DEXs) would be the way to go.

People just need to follow proper security measures to avoid losing it all in an instant. It's just that the majority is not willing to put their time and effort to do this. Everybody wants "the easy route". Convenience goes on top of everything else, right? Hopefully, people will realize CEXs aren't as safe as they claim to be. As long as decentralization wins, nothing else matters. Wink

yazher

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Quote from: s.tanishka on September 30, 2023, 07:52:58 AM

Guys just keep only those assets in the exchange that you are going to allocate to the transaction. You don't need to hold absolutely all assets. If the amount of your trades is very large, then trade on several exchanges and even if 1 exchange scam, you will still have 50% of your funds on another exchange.

This is good advice but not really recommended because the safest thing you could do is save your cryptocurrencies in your personal wallet and no 3rd party exchanges are involved because they have their own owners and are prone to hackers and scammers. In order to protect your crypto especially when you have a huge amount of it, you need to acquire a hard wallet that has some good security and convenience to use because you gonna save your crypto there for a long time when you want to save and hold certain coins for long term.

Abiky

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Quote from: s.tanishka on October 07, 2023, 09:01:50 AM

The problem with many people is that they think that if they invest all their money in cryptocurrency they will become rich very soon. But unfortunately the opposite happens and they lose all their money and remain in debt. But this is not the problem of CEX or DEX, it's the problem of people who can't manage their money properly.

Exactly. You can't lose if you only put a small amount of coins in an exchange. Unfortunately, most people believe CEXs are reliable custodians like banks so they leave their coins and forget about the rest. Convenience goes on top of everything else, right? Because of this, we should expect another major crypto exchange from collapsing in the future. This simply can't be avoided.

At least, it's not that bad. CEXs may be a constant victim of hacks and closures/seizures, but they often have good liquidity and unmatched performance. DEXs are safer but they have low liquidity and are often expensive to use (due to increasing network fees). Which exchange to use is entirely up to you. As long as you act responsibly, there should nothing to worry about.

Marvinnous

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Quote from: Abiky on October 04, 2023, 01:38:17 PM

CEXs are the only gateways between the crypto and Fiat worlds, so don't expect them to disappear anytime soon. As you've stated before, it's always important to "never keep all of your eggs in one basket". You'd minimize risks of loss if one exchange goes all the way down the drain in an instant. Leaving only a small amount of coins for trading purposes would help you protect against undesired events. If you're keen on trading large amounts of crypto, DEXs and P2P trading platforms would be the way to go.

People need to be properly educated to help avoid getting into another disaster caused by mainstream crypto exchanges. What matters is that crypto stays decentralized so it could stand the test of time. I'm confident crypto will live alongside Fiat currencies for generations. Wink

And can you name the top decentralized crypto? At least 3 points. As I know that all top coins are centralized and can be tracked. And only privacy coins let you remain more or less anonymous. And top privacy coin is only Monero.

s.tanishka

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Quote from: iv4n on October 02, 2023, 12:09:15 PM

Quote from: Abiky on October 02, 2023, 11:10:32 AM

Quote from: iv4n on September 29, 2023, 10:21:08 AM

...

There's no reason to leave all of your crypto in an exchange, other than the amount you're willing to trade at the moment. It has always been advised to leave small amounts in an exchange due to hacks and/or other undesired events. It's just that people don't listen, because they want "the easy route". Convenience goes on top of everything else, right? We should expect further "scandals" from CEXs due to the way they're designed.

The question is: Will people continue to trust CEXs with their money? I'd say, yes. At least, we'll have decentralized exchanges (DEXs) at our side. Who knows if someday DEXs get the same level of performance and cost-efficiency as their centralized counterparts? Just my two sats

If I decide to use some exchange I trust it enough to leave some funds hanging there. Some funds, for some time... never "all in" and never "all the time". If I don't trust it, I will not use it, simple as that. And yes, we will continue to trust CEXs with our money, numbers are clear about that, simply CEX has a lot to offer. Because of that I am ready to close my eyes on security and risk some amount just to take advantage of some stuff. In my case, it's mostly staking.

But I never risked some big amounts on that, for me it's like gambling, I will never risk more than I can afford to lose. But some people are ready to risk literally "all-ins", and that is not smart/wise! In years we saw many exchanges/casinos/cryptoservices falling down just like that, so that old one worked and will work all the time "Never keep all of your eggs in one basket"!

The problem with many people is that they think that if they invest all their money in cryptocurrency they will become rich very soon. But unfortunately the opposite happens and they lose all their money and remain in debt. But this is not the problem of CEX or DEX, it's the problem of people who can't manage their money properly.

Abiky

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Quote from: iv4n on October 02, 2023, 12:09:15 PM

If I decide to use some exchange I trust it enough to leave some funds hanging there. Some funds, for some time... never "all in" and never "all the time". If I don't trust it, I will not use it, simple as that. And yes, we will continue to trust CEXs with our money, numbers are clear about that, simply CEX has a lot to offer. Because of that I am ready to close my eyes on security and risk some amount just to take advantage of some stuff. In my case, it's mostly staking.

But I never risked some big amounts on that, for me it's like gambling, I will never risk more than I can afford to lose. But some people are ready to risk literally "all-ins", and that is not smart/wise! In years we saw many exchanges/casinos/cryptoservices falling down just like that, so that old one worked and will work all the time "Never keep all of your eggs in one basket"!

CEXs are the only gateways between the crypto and Fiat worlds, so don't expect them to disappear anytime soon. As you've stated before, it's always important to "never keep all of your eggs in one basket". You'd minimize risks of loss if one exchange goes all the way down the drain in an instant. Leaving only a small amount of coins for trading purposes would help you protect against undesired events. If you're keen on trading large amounts of crypto, DEXs and P2P trading platforms would be the way to go.

People need to be properly educated to help avoid getting into another disaster caused by mainstream crypto exchanges. What matters is that crypto stays decentralized so it could stand the test of time. I'm confident crypto will live alongside Fiat currencies for generations. Wink

Marvinnous

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Quote from: iv4n on September 29, 2023, 10:21:08 AM

Or you can use some coin swap service for quick swaps... I have the amount on the exchange that I use for trading, it's not big, and I don't wish to pay withdrawal fees after every trade I make. I am an amateur trader, and I don't trade with some big amounts so I don't feel some big need constant moving of my trading capital. What you are saying is fine and advisable for people who trade with big capital.

Aw, I didn't think about the withdrawal fees. As every swap also contains some fee.. I usually store all the funds on my wallet and withdraw it according to my needs with a concrete person from my country. So fees are everywhere, I guess, but the services I use have the lowest one that I don't even mention.

iv4n

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Quote from: Abiky on October 02, 2023, 11:10:32 AM

Quote from: iv4n on September 29, 2023, 10:21:08 AM

...

There's no reason to leave all of your crypto in an exchange, other than the amount you're willing to trade at the moment. It has always been advised to leave small amounts in an exchange due to hacks and/or other undesired events. It's just that people don't listen, because they want "the easy route". Convenience goes on top of everything else, right? We should expect further "scandals" from CEXs due to the way they're designed.

The question is: Will people continue to trust CEXs with their money? I'd say, yes. At least, we'll have decentralized exchanges (DEXs) at our side. Who knows if someday DEXs get the same level of performance and cost-efficiency as their centralized counterparts? Just my two sats

If I decide to use some exchange I trust it enough to leave some funds hanging there. Some funds, for some time... never "all in" and never "all the time". If I don't trust it, I will not use it, simple as that. And yes, we will continue to trust CEXs with our money, numbers are clear about that, simply CEX has a lot to offer. Because of that I am ready to close my eyes on security and risk some amount just to take advantage of some stuff. In my case, it's mostly staking.

But I never risked some big amounts on that, for me it's like gambling, I will never risk more than I can afford to lose. But some people are ready to risk literally "all-ins", and that is not smart/wise! In years we saw many exchanges/casinos/cryptoservices falling down just like that, so that old one worked and will work all the time "Never keep all of your eggs in one basket"!

Abiky

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Quote from: iv4n on September 29, 2023, 10:21:08 AM

Or you can use some coin swap service for quick swaps... I have the amount on the exchange that I use for trading, it's not big, and I don't wish to pay withdrawal fees after every trade I make. I am an amateur trader, and I don't trade with some big amounts so I don't feel some big need constant moving of my trading capital. What you are saying is fine and advisable for people who trade with big capital.

There's no reason to leave all of your crypto in an exchange, other than the amount you're willing to trade at the moment. It has always been advised to leave small amounts in an exchange due to hacks and/or other undesired events. It's just that people don't listen, because they want "the easy route". Convenience goes on top of everything else, right? We should expect further "scandals" from CEXs due to the way they're designed.

The question is: Will people continue to trust CEXs with their money? I'd say, yes. At least, we'll have decentralized exchanges (DEXs) at our side. Who knows if someday DEXs get the same level of performance and cost-efficiency as their centralized counterparts? Just my two sats

forexandcryptoauditor

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Even though, hacking of exchanges alarmed cryptocurrency holders many times, in truly manner collapse of FTX has awakened and shaken them hardly. I feel hardware wallat is the best way to keep cryptocurrencies safe. However, this will cover BTC and ETH and other blockchain coins in well manner, but for altcoins we need to keep ourselves updated as we may not know when the project will switch the blockchain network. Also keeping assets in hardware wallet is difficult for users who are day traders. So for investment purpose, that too long term, that is the best option.

s.tanishka

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Guys just keep only those assets in the exchange that you are going to allocate to the transaction. You don't need to hold absolutely all assets. If the amount of your trades is very large, then trade on several exchanges and even if 1 exchange scam, you will still have 50% of your funds on another exchange.

Topic: After FTX collapse, some call for a return to decentralized roots (Read 2016 times)