Centralized exchanges have become the banks of the cryptocurrency world - page 3.

AniviaBtc

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Quote from: Janation on February 06, 2020, 07:24:51 PM

Quote from: ScamViruS on February 04, 2020, 12:46:01 PM

This is an extreme fact. Centralized Exchange lists the shitcoin what they want. Centralized exchanges charge huge listings fees from shitcoin. Their work is worse than the bank. If you look well at centralized exchanges. Then you will understand how they are listing shitcoin and dumping it to retail traders. Because they can do whatever they want. The most annoying thing about centralized exchanges is kyc.

It is the worst.

The most reason is that we are using decentralized cryptocurrency because we are wanting to maximize the freedom that we have using them. KYCs are blocking them and we can't do anything about it since if we don't have other choices, we will be doing it. Here in our country, KYC is required to cash out your Bitcoins into fiats, I needed so I did it.

KYC are essential to lessen the risk of being scammed that's why. It is essential for the traders to become aware about their customer to prevent losses during transactions. If you don't want that kind of system, try to go to other countries that have a centralized cryptocurrency. A government will not do some adjustment just for you, if you really want to stay to your country and try to make a changes in crypto, try to promote it. It is true that Centralized Exchange uses most of the shitcoins and dumping in some beginners or newbie traders. That's why we must promote freedom in cryptocurrency by sharing our knowledge and thoughts about the advantages of decentralized cryptocurrency in a country and how it can changes the quality of the people using it.

Janation

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Quote from: ScamViruS on February 04, 2020, 12:46:01 PM

This is an extreme fact. Centralized Exchange lists the shitcoin what they want. Centralized exchanges charge huge listings fees from shitcoin. Their work is worse than the bank. If you look well at centralized exchanges. Then you will understand how they are listing shitcoin and dumping it to retail traders. Because they can do whatever they want. The most annoying thing about centralized exchanges is kyc.

It is the worst.

The most reason is that we are using decentralized cryptocurrency because we are wanting to maximize the freedom that we have using them. KYCs are blocking them and we can't do anything about it since if we don't have other choices, we will be doing it. Here in our country, KYC is required to cash out your Bitcoins into fiats, I needed so I did it.

20kevin20

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Quote from: travwill on February 06, 2020, 05:03:34 PM

Personally, I am not happy with the fact that cryptocurrency exchanges have become central links in the distribution of assets of all trading people.
In essence, we have to trade and hold detailed assets on centralized exchanges. We ourselves allow third parties to control our money.
Centralized exchanges are not trustworthy; this has already been proven 1,000 times.

We've been used to the third-party asset storage. It's hard to change that and it's even harder for someone to familiarize with Bitcoin, third-parties vs controlling your own funds and it's very hard especially for a new crypto owner to differentiate between owning your funds on a centralized, server-sided wallet vs a client-sided one.

Every wallet tells you they do not own the private key to your wallets, and people almost always confuse that with decentralization. If a wallet tells you they are not going to hold your private keys, it doesn't mean you're safe. But again, that's part of the crypto adoption challenge and people will hardly get used to it until next generation grows up ..

travwill

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Personally, I am not happy with the fact that cryptocurrency exchanges have become central links in the distribution of assets of all trading people.
In essence, we have to trade and hold detailed assets on centralized exchanges. We ourselves allow third parties to control our money.
Centralized exchanges are not trustworthy; this has already been proven 1,000 times.

Ucy

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Quote from: ScamViruS on February 04, 2020, 12:46:01 PM

This is an extreme fact. Centralized Exchange lists the shitcoin what they want. Centralized exchanges charge huge listings fees from shitcoin. Their work is worse than the bank. If you look well at centralized exchanges. Then you will understand how they are listing shitcoin and dumping it to retail traders. Because they can do whatever they want. The most annoying thing about centralized exchanges is kyc.

I think "they can do whatever they want" is why centralized exchange is very unhealthy for cryptocurrency. They still even manage to do whatever they want under government regulations. There is low chances of such abuses occurring on well-built decentralized exchange.

jostorres

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For now, centralized exchanges are leading the cryptocurrency space, maybe in the future it would be different and decentralized exchanges would take over and be more popular as centralized exchanges are right now.

I won’t really blame everyone that’s making use of CEX, they are more safe to use than using DEX. When it comes to centralized exchanges the middlemen gets involved and ensures that your transactions are safe and that’s quite unlike Decentralized exchanges, since they are decentralized there are no middlemen, traders trades direct and there are risks of losing money.

ScamViruS

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This is an extreme fact. Centralized Exchange lists the shitcoin what they want. Centralized exchanges charge huge listings fees from shitcoin. Their work is worse than the bank. If you look well at centralized exchanges. Then you will understand how they are listing shitcoin and dumping it to retail traders. Because they can do whatever they want. The most annoying thing about centralized exchanges is kyc.

bearexin

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Mostly centralized exchanges have been made KYC mandatory which might identify each of their user according to their nation, etc. Also these information about our KYC documents might be stored in a centralized server which might be accessible by any of the centralized authorities.

This makes us least safer in terms of cryptocurrency trades and that is the major reason behind why most of the people choose decentralized exchanges over the centralized exchanges. There are a number of exchanges in the markets currently but not each of those exchange has greater volume. We need to choose a exchange which has greater volume, is user-friendly, offers us few unique features like margin trading, etc.

milewilda

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Quote from: Japinat on February 04, 2020, 08:48:43 AM

Quote from: tbterryboy on February 04, 2020, 08:41:45 AM

Most of the people would not even care if it is a CEX or a DEX i....

I think you are wrong, most of the people care on what exchange they will use, if you total all the daily volume of Centralized exchange, it would at least total to $5 billion, (That's my own estimate only).. while compare to the DEX, their combine volume does not even reach $100 million or even $10 million.
Binance DEX as of now only have less than $1 million trading volume, so that speaks what people really like to use.

Just a typical thing when we do compare the volume between CEX and DEX. We do know that dex ones doesnt really have that Fiat/Crypto pair and we know that majority of us
does really need that kind of feature which are absent on dexes thats why we do end up on using cex platforms due to that main reason.
Everybody loves anonymity and decentralization but there are things that can really be considered as an exception due to our needs.

Japinat

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Quote from: tbterryboy on February 04, 2020, 08:41:45 AM

Most of the people would not even care if it is a CEX or a DEX i....

I think you are wrong, most of the people care on what exchange they will use, if you total all the daily volume of Centralized exchange, it would at least total to $5 billion, (That's my own estimate only).. while compare to the DEX, their combine volume does not even reach $100 million or even $10 million.
Binance DEX as of now only have less than $1 million trading volume, so that speaks what people really like to use.

tbterryboy

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Quote from: gentlemand on February 03, 2020, 07:06:21 PM

Quote from: aioc on February 03, 2020, 07:03:59 PM

It's really about time that one decentralized exchange lead the way for this battle against these centralized exchange, they are the one who made the most profit in this industry, look at the number of ICO based exchange they are growing and looking to get a slice of the market, Binance has become an imposing monster in the community with their huge fee.

It's up to users to migrate, however from what I've seen so far nothing out there really cuts it other than Bisq and no one is using that either.

It needs to be properly decentralised for starters - ie not tied to a domain name or hosting as that can be hijacked.

As we've seen time and again most people want to centralise for the sake of convenience and hand holding. The ones who want to shun it are noble outliers.

What people might care about is their security and assurity that their funds would not be stolen or hacked. There are a number of exchanges out there but not each of them is secure to transact. There are only few exchanges which offers us complete security which are chosen by the people.

Most of the people would not even care if it is a CEX or a DEX if the exchange is giving them benefits, they would join in. What people needs is benefits. They are with trading only because they need to earn a decent amount of money and hence they would only go for exchanges which might show them unique but best features.

deisik

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Quote from: Jating on February 03, 2020, 09:56:34 PM

Checking out bisq, $79,232.82 USD

https://coinmarketcap.com/exchanges/bisq/

I guess we are really that far on people using DEX like bisq because almost majority thinks that CEX is the only exchanges that exists out there. The promotions of those top tier CEX is what really pushes out DEX of the picture and not gaining traction specially for newbies

Personally, I don't think this is the case here

DEX's have been known since at east 2015 as this is when BitShares came about which became bisq later (correct me if I'm wrong here). So it is not like they are completely unknown to the wider trading public, while the root of the problem lies somewhere else. And I can tell you where exactly. The sad truth is that these so-called decentralized exchanges are not truly decentralized at all, whatever they may claim to the contrary

They are as centralized as any other exchange out there but on a completely different level. Regular cryptocurrency exchanges are centralized on the currency level by holding the private keys to the trader account wallets, while decentralized exchanges maintain control over the blockchain itself which is the backbone of the whole shop. Put shortly, it is six of one and half a dozen of the other

Jating

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Checking out bisq, $79,232.82 USD

https://coinmarketcap.com/exchanges/bisq/

I guess we are really that far on people using DEX like bisq because almost majority thinks that CEX is the only exchanges that exists out there. The promotions of those top tier CEX is what really pushes out DEX of the picture and not gaining traction specially for newbies.

And unless we here another exchanges being hacked, exit scamming, beginners are not going to learn DEX, in my opinion.

gentlemand

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Quote from: aioc on February 03, 2020, 07:03:59 PM

It's really about time that one decentralized exchange lead the way for this battle against these centralized exchange, they are the one who made the most profit in this industry, look at the number of ICO based exchange they are growing and looking to get a slice of the market, Binance has become an imposing monster in the community with their huge fee.

It's up to users to migrate, however from what I've seen so far nothing out there really cuts it other than Bisq and no one is using that either.

It needs to be properly decentralised for starters - ie not tied to a domain name or hosting as that can be hijacked.

As we've seen time and again most people want to centralise for the sake of convenience and hand holding. The ones who want to shun it are noble outliers.

aioc

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Quote from: alyssa85 on January 26, 2020, 06:14:33 AM

https://www.ccn.com/the-dark-side-of-becoming-the-next-bitcoin/

Quote

Your favorite altcoin’s path to becoming the “next Bitcoin” is a lot more treacherous than you think.

The CEO of uPlexa (UPX) told CCN.com about the financial and ethical minefield faced by upstart altcoin projects in the cryptocurrency industry. Kyle Pierce – the project’s co-founder and lead developer – paints a miserable picture of an industry that may already have been taken over by its worst people.

The “king-making” ability of centralized exchanges is no secret. The CEO of DigiByte (DGB) claims he was asked for $300,000, plus 3% of his 58th ranked altcoin’s entire coin supply, to get listed on Binance.

The demands made of the 1,371st-ranked uPlexa were equally outrageous. According to Pierce:

We’ve had offers for 50% of the premine to get listed on an exchange. 50% of our premine that’s allocated to exchange listings, marketing, hiring, founding team, core members, security audits, etc. They somehow believe that one hour of their time is worth nearly 6,000+ of our current man hours into this project.

Pierce says the saturation of centralized exchanges is making matters worse. Over 1,500 exchanges now compete for the same territory. As that number increases, the desperation of each rises accordingly.

There’s 1500+ centralized exchanges that offer the exact same service, and they’re starting to lose volume. So they artificially boost the volume and hire VA’s to go around soliciting every team member of every project in hopes to quickly make a quick buck before their watering hole dries up.

These exchanges have become a choke-point for the cryptocurrency industry. The only way to get listed is to play their game. That means new cryptocurrency projects have their development plans dictated to them before they’ve even begun.

For projects who did not participate in the IEO/ICO stages and have no funding, it is nearly impossible to get listed on an exchange. So, firstly, not only are people predominantly trading on centralized exchanges in a decentralized area, but the exchanges that are making huge sums of money are killing off the potential for real-world technologies to get noticed/adopted.

Another exchange told Pierce they would be happy to list his project, if only they moved away from “the whole privacy thing.”

There is a lot more in that article about the perils of launching a coin.

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.

It's really about time that one decentralized exchange lead the way for this battle against these centralized exchange, they are the one who made the most profit in this industry, look at the number of ICO based exchange they are growing and looking to get a slice of the market, Binance has become an imposing monster in the community with their huge fee.

Japinat

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Not totally yet, only few of the total number of centralized exchanges have that features where we can deposit and withdraw usd.

Based on my experience, I have only tried Bittrex which I did transfer money from such exchange to my bank account which I can spend the balance through my ATM card, that process alone is good, its just like banking fiat, so hopefully more banks will get license from the government so they can fully give the comfort to their clients to easily convert bitcoin to fiat and be useful in daily lives.

shield132

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Well, they are becoming at some point because for example on bitcoin's case, exchanges hold more bitcoin than ever. According to article that was published on longhash, coinbase holds 1 million bitcoin in it's cold wallet. That's bad cause not your keys, not your coins and that's 100% right without doubt, crypto isn't something that gives you ability to request chargeback and etc.
Let's move on OPs post, there is a problem of exchanges not accepting altcoins? When there is demand, there is supply. Imagine exchange not accepting btc, ether and others, their popularity would fall dramatically and their business too. These developers have to create demand on their coins and you have to make situation like if exchange doesn't accept it, they'll lose a lot. That's hard to do...
There are 6686 according to coinmarketcap, 95% of them are more than shit. From that 5%, 4% is shit. In 1% you may find some really good.

beerlover

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And I am not really against it as long as they do it right. The difference between central exchanges and banks is the fact that banks do not have the money they claim they do, whereas central exchanges all have that money, sure they are making a profit from just holding your coins, yet that doesn't change the fact that they still have it on their cold storage or on hot wallets just so they can withdraw.

The biggest example here could be the fact that every single person can withdraw all of their money from binance and even tho it may take some time to withdraw, they will be capable of doing it, if every single person wants to withdraw their fiat from the banks, banks won't be able to give that kind of money to people since they actually don't posses it on their vaults.

Edit: Sorry accidentally deleted but re-posted.

gentlemand

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Quote from: ?? on ??

And I am not really against it as long as they do it right. The difference between central exchanges and banks is the fact that banks do not have the money they claim they do, whereas central exchanges all have that money, sure they are making a profit from just holding your coins, yet that doesn't change the fact that they still have it on their cold storage or on hot wallets just so they can withdraw.

Well, that's the great unknown. I'm sure places like Coinbase would quickly get whistles blown if giant holes were found in their claimed holdings. I couldn't say the same for many of the other 'top' exchanges. We have zero idea what's going on behind closed doors.

We're still transitioning into respectability. Look at Coinbase's BCH launch. If that was in the area of conventional finance they'd be nailed to fucking the wall for it.

I expect in future there'll be 10-15 titans worldwide with legacy investment and owners that decides what becomes top tier and what doesn't. Below that I don't think the tidal wave of nothing exchanges will ever let up.

If your coin manages to blow up the world organically then you'll have an in. There'll be no more buying or tricking your way to prominence.

hello_good_sir

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It's true. But it's actually a lot damaging to the crypto-space because businesses or people who want to bank with banks aren't charged such huge amounts of money to work with them. Whilst any top exchange charges anywhere from $100,000 to $500,000, not including the altcoins they receive. It's a very monopolistic approach towards things, and it's one of the biggest issues that people face in crypto, as exchanges are so crucial for development.

However with these prices and the chokehold that these exchanges have on the market and future growth, it'll be impossible for some projects to get off the ground, and it may completely decimate the start-up aspect of crypto-currencies, as such high numbers are only affordable for already developed businesses, or ones with huge amounts of institutional investments.

The future growth will be heavily determined by how exchanges and DEXs will dominate.

Topic: Centralized exchanges have become the banks of the cryptocurrency world - page 3. (Read 1167 times)