Topic: Centralized exchanges have become the banks of the cryptocurrency world - page 2. (Read 1148 times)
February 09, 2020, 05:14:49 PM
Possibly yes, I can assure that to be honest, but we can't make a comparison between Banks and centralized exchanges in my opinion, maybe they affect negatively on the decentralized crypto but indirectly and without a big value. Plus, most of them are unprofitable and with a low value of market cap. In fact, I did not see a lot of this type of exchanges, so they are not widespread I would guess .The cryptocurrency world is deeply different than the FIAT.
February 09, 2020, 12:02:45 PM
Crypto is becoming fully centralized now. There are less and less freedom and anonimity. It goes to be another one version of fiat
February 09, 2020, 09:05:36 AM
Sadly centralized exchanges offers security, liquidity and and insurance unlike decentralize exchanges that most likely hackable and could even go down and bankrupt. What we must do is put our crypto's on a wallet or like a ledger and only deposit small amounts cos we'll never know what CEX might do.
February 09, 2020, 07:30:55 AM
In a way I can agree that some cryptocurrencies exchanges play the role of the crypto bank.
But that maybe shows that there is a need for some forn of crypto bank where users could get cryptocurrency related services.
I don't think that will influence decentralization in a bad way and ruin the very essence of Bitcoin and other cryptocurrencies. Maybe that would be something worth taking into consideration.
But that maybe shows that there is a need for some forn of crypto bank where users could get cryptocurrency related services.
I don't think that will influence decentralization in a bad way and ruin the very essence of Bitcoin and other cryptocurrencies. Maybe that would be something worth taking into consideration.
February 09, 2020, 06:01:00 AM
I am just a bit confuse on the explanation of deisik where he stated that the so called decentralized exchange are not really decentralized, but as for me, I know the big difference
The difference you are talking about is in fact quite superficial
To trade on most decentralized exchanges, you have to buy the asset of the underlying blockchain with your real bitcoins (e.g. BitShares, or whatever they are called now) that an exchange uses to enable more or less smooth trading in a seemingly decentralized way. And while the decentralized exchange may not have the keys to your wallet, they are still controlling the blockchain of that wallet. Put differently, it is just another level of control, and if you ask me, it is six of one and half a dozen of the other. It is like Bitfinex fully controlling Bitcoin's blockchain
February 09, 2020, 05:31:08 AM
With all these, I wonder why DEXs remain as options when they are clearly way much better than centralized exchanges
They are not much better
The sad truth is, it actually remains to be seen if they are overall better at all. The vast majority of so-called decentralized exchanges are in fact as centralized as any other exchange out there, though they may be centralized at a different level. To make such an exchange competitive, with trades as fast as possible, you will have to run a private (read, centralized) blockchain, and how is that different from a regular cryptocurrency exchange in terms of centralization and control over users funds and assets?
Not too many people are too technical about their differences.
IMO, what centralized meant is that you will have to trust a site, input your password and they'll in control of you assets once you deposit it.
What I understand about decentralized is like what ETHER DELTA has been offering before, you input your private key and you are ready to go to trade and it assets listing does not go with the process of a centralized exchange,.. maybe my knowledge is not too deep, and sorry about that.
Well, basically, the difference is that decentralized exchanges do not require the user to submit his/her cryptocurrencies to the platform in order to be able to do trades. On the other hand, centralized exchanges, as stated by the very subject of this thread, is becoming the banks of the cryptocurrency world primary because they have custody over your cryptocurrency assets. That difference itself is crystal clear.
In a centralized exchange, your Bitcoin is not really your Bitcoin because you do not hold them yourself. You do not have 100% control over them. Your Bitcoin is in the hands of the centralized exchanges and those platforms could easily plan an exit scam, or be hacked, or be attacked in some other ways that would bring you into a situation where you don't have any other choice but to say goodbye to your coins.
Last year alone, hundreds of millions of USD are lost due to successful hacks. For the last decade, more hackers got past the security systems of centralized exchanges and they successfully stole coins worth billions of USD. And not just coins, hackers are even stealing personal information out of KYC submissions. And how little of these stolen amounts are actually recovered?
I understand all your explanation, I am just a bit confuse on the explanation of deisik where he stated that the so called decentralized exchange are not really decentralized, but as for me, I know the big difference, you are right, we don't own the coin once we deposit it on our centralized exchange wallet address unlike in DEX where we just access in our wallet and trade and though DEX is not totally safe because there's an incident in the past that the people's private key got stolen when the website was compromise, instead they put their private key to a wrong website were all info are stolen.
February 09, 2020, 04:48:40 AM
With all these, I wonder why DEXs remain as options when they are clearly way much better than centralized exchanges
They are not much better
The sad truth is, it actually remains to be seen if they are overall better at all. The vast majority of so-called decentralized exchanges are in fact as centralized as any other exchange out there, though they may be centralized at a different level. To make such an exchange competitive, with trades as fast as possible, you will have to run a private (read, centralized) blockchain, and how is that different from a regular cryptocurrency exchange in terms of centralization and control over users funds and assets?
Not too many people are too technical about their differences.
IMO, what centralized meant is that you will have to trust a site, input your password and they'll in control of you assets once you deposit it.
What I understand about decentralized is like what ETHER DELTA has been offering before, you input your private key and you are ready to go to trade and it assets listing does not go with the process of a centralized exchange,.. maybe my knowledge is not too deep, and sorry about that.
Well, basically, the difference is that decentralized exchanges do not require the user to submit his/her cryptocurrencies to the platform in order to be able to do trades. On the other hand, centralized exchanges, as stated by the very subject of this thread, is becoming the banks of the cryptocurrency world primary because they have custody over your cryptocurrency assets. That difference itself is crystal clear.
In a centralized exchange, your Bitcoin is not really your Bitcoin because you do not hold them yourself. You do not have 100% control over them. Your Bitcoin is in the hands of the centralized exchanges and those platforms could easily plan an exit scam, or be hacked, or be attacked in some other ways that would bring you into a situation where you don't have any other choice but to say goodbye to your coins.
Last year alone, hundreds of millions of USD are lost due to successful hacks. For the last decade, more hackers got past the security systems of centralized exchanges and they successfully stole coins worth billions of USD. And not just coins, hackers are even stealing personal information out of KYC submissions. And how little of these stolen amounts are actually recovered?
February 09, 2020, 04:31:01 AM
With all these, I wonder why DEXs remain as options when they are clearly way much better than centralized exchanges
They are not much better
The sad truth is, it actually remains to be seen if they are overall better at all. The vast majority of so-called decentralized exchanges are in fact as centralized as any other exchange out there, though they may be centralized at a different level. To make such an exchange competitive, with trades as fast as possible, you will have to run a private (read, centralized) blockchain, and how is that different from a regular cryptocurrency exchange in terms of centralization and control over users funds and assets?
Not too many people are too technical about their differences.
IMO, what centralized meant is that you will have to trust a site, input your password and they'll in control of you assets once you deposit it.
What I understand about decentralized is like what ETHER DELTA has been offering before, you input your private key and you are ready to go to trade and it assets listing does not go with the process of a centralized exchange,.. maybe my knowledge is not too deep, and sorry about that.
February 09, 2020, 02:41:30 AM
With all these, I wonder why DEXs remain as options when they are clearly way much better than centralized exchanges
They are not much better
The sad truth is, it actually remains to be seen if they are overall better at all. The vast majority of so-called decentralized exchanges are in fact as centralized as any other exchange out there, though they may be centralized at a different level. To make such an exchange competitive, with trades as fast as possible, you will have to run a private (read, centralized) blockchain, and how is that different from a regular cryptocurrency exchange in terms of centralization and control over users funds and assets?
February 08, 2020, 11:09:47 PM
Centralized exchanges suck. They literally suck the money out of projects that want their coins to get listed on their platforms. Other than that, they also suck the personal information of their users through their KYC implementation. And then they suck traders with their trading fee and withdrawal fee.
Despite all these, they are quick to delist coins and pairs with low or no trading volume even if listing fees are already paid. They also freeze accounts and hold withdrawals of users despite KYC due to suspicions.
With all these, I wonder why DEXs remain as options when they are clearly way much better than centralized exchanges.
Despite all these, they are quick to delist coins and pairs with low or no trading volume even if listing fees are already paid. They also freeze accounts and hold withdrawals of users despite KYC due to suspicions.
With all these, I wonder why DEXs remain as options when they are clearly way much better than centralized exchanges.
February 08, 2020, 10:05:21 PM
You are right in saying that centralized exchanges can become a drag if cryptocurrency is becoming a world Because they're trying to create a decentralized and decentralized world, these problems can cause many problems. They pay low-interest rates with different banks in their profits. i feel in Binance such a lot but it's no value this is often why these centralized exchanges should be avoided.
February 08, 2020, 09:16:27 PM
Great article, and I think that might be a top two problem in the crypto world. I used to think it was just Binance charging the equivalent of millions of dollars to get listed. I used to hold this coin that had no funding, all community driven. A lot of hope and excitement, except that it's going to go nowhere because to get listed on a major exchange requires hundreds of thousands of dollars that's not available.
February 08, 2020, 07:31:47 PM
It's strange how much time it takes for people to get familiar with changes and accept them. The first step was making them go from a completely centralized fiat system to semi-decentralized Bitcoin. Now they're slowly getting ready for a completely decentralized system with anonymous cryptocurrencies and DEX.
I'm only afraid that it will take another 20 years and we'll be old farts unable to fully enjoy it when it comes.
I'm only afraid that it will take another 20 years and we'll be old farts unable to fully enjoy it when it comes.
Why are you calling Bitcoin "semi-decentralized"? It's pretty much the most decentralized cryptocurrency out there thanks to its node count, hashpower and global community. The ecosystem of Bitcoin and cryptocurrency exchanges is centralized, but it's not caused by any of the Bitcoin's properties, so it's wrong to say that altcoins are the future. And privacy has little to do with decentralization, they are different topics, and usually decentralization is needed to achieve privacy - not the opposite.
February 08, 2020, 06:23:59 PM
Sadly, to build a community around a coin, you'd still need staunch supporters right? And most, if not all, would try and use the money to advertise it so in the end, it falls to the factor of, again, the problem of money.
Besides the lack of promotion and lack of volume, DEX also the trustless system which need require deeper knowledge to control it, this is what the newcomers avoid the platform, plus the UI/UX that are not familiar in the eyes.
It's strange how much time it takes for people to get familiar with changes and accept them. The first step was making them go from a completely centralized fiat system to semi-decentralized Bitcoin. Now they're slowly getting ready for a completely decentralized system with anonymous cryptocurrencies and DEX.
I'm only afraid that it will take another 20 years and we'll be old farts unable to fully enjoy it when it comes.
February 08, 2020, 04:30:45 PM
I suppose in Satoshi plans there was no decentralized exchanges. I am not familiar with the profits registered by various DEX but in percentage probably goes hand in hand with the banks(20-30% profit netto).
February 08, 2020, 04:02:49 PM
I'm not surprised, and I think anyone who's surprised has to be really naive. Of course centralised exchanges are banks. So are the so-called custodians. Biggest wallets have long ago belonged to these people, and BitGo, Coinbase, Binance etc. have only gotten bigger and grown fatter. Sure, that's all funds legally belonging to their users, but you know as well as most of us do, technically, the users have no control over their coins.
And now that many of these exchanges are also offering lending options. They truly are following in the footsteps of banks.
And now that many of these exchanges are also offering lending options. They truly are following in the footsteps of banks.
February 07, 2020, 09:39:04 PM
Of course they are different, I don't get how people think that Banks and centralized exchanges are even remotely the same. Banks are not stock exchanges, at least they are not "just" stock exchanges, they are literally doing loans, savings, investments, insurance and many other stuff with their business plus the ability to have a card where you can spend your money anywhere you go.
Centralized exchanges are just a place where you can change your coin to another coin and that's it, you can also deposit and withdraw, this is literally the only thing you can do with a centralized exchange and that is all you allow them to do. Plus, banks can use your money however they want as long as they can allow you to withdraw, centralize exchanges can't really do that.
Centralized exchanges are just a place where you can change your coin to another coin and that's it, you can also deposit and withdraw, this is literally the only thing you can do with a centralized exchange and that is all you allow them to do. Plus, banks can use your money however they want as long as they can allow you to withdraw, centralize exchanges can't really do that.
February 07, 2020, 06:44:47 AM
The only solution it seems to me, is to build a community and then get that community to use a decentralised exchange. The only reason Dex's arn't being used is because there isn't volume there - but that can be solved if an entire community decides to use a particular Dex.
But how many people would be that community must have? it's a good solution to encourage more people to dwell with decentralize exchange, however, how many of them are willing to use it.The ones that don't have a good experience with one of it, doesn't have the balls to try it again.
February 07, 2020, 03:09:33 AM
The sad remark - this isn't the future Satoshi wanted to see for crypto.
Centralized exchanges have already became bitcoin bank. Users have to do KYC verification.
Centralized exchanges have already became bitcoin bank. Users have to do KYC verification.
February 07, 2020, 02:54:50 AM
Centralized exchanges are no different than any Banks out there, because the operate under the same rules and regulations that are prescribed by their governments.
They are also profit driven financial organizations with shareholders and partners from the financial world. Many of them have worked in the financial industry for years, so it is natural for them to operate in the same manner.
They do not have the goal and aspiration for this technology to grant people financial freedom, because they are purely profit driven. They could care less, as long as they are making a huge profit. They will not even allow you to sign a message with your private key or do it for you, because you are simply a entry on their internal ledger system.
They came into the Bitcoin scene to cash in on the opportunity to make some more money, not to make the on-ramp and off-ramp into Bitcoin easier and more convenient. 
They are also profit driven financial organizations with shareholders and partners from the financial world. Many of them have worked in the financial industry for years, so it is natural for them to operate in the same manner.
They do not have the goal and aspiration for this technology to grant people financial freedom, because they are purely profit driven. They could care less, as long as they are making a huge profit. They will not even allow you to sign a message with your private key or do it for you, because you are simply a entry on their internal ledger system.
They came into the Bitcoin scene to cash in on the opportunity to make some more money, not to make the on-ramp and off-ramp into Bitcoin easier and more convenient.
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