Topic: CEX deserves all criticism but not the hate (Read 476 times)

CEX have played major role in the spread about cryptocurrencies. In specific only through CEX more number of people who hadn't got much knowledge about cryptocurrencies and technical skills have turned to be the part of cryptocurrency network. Often we used to see problems out of the CEX, for that we can't come to conclusion it isn't necessary for the cryptomarket.

Covertly using users' funds was an extremely condemned and unforgivable way, it became the starting point of their downfall. and the impact of course affects all CEXs which are currently operating properly. The reputation of every CEX is questionable and regarding the security of user's funds they will be very careful. Nothing is safer when we store in our own private wallet, have full control and no one can manipulate. but also need to be aware of the security of the wallet. Dishonest CEX will only be trashed and abandoned like FTX.



The bitcointalk forum is a link for all crypto users to exchange ideas and discuss what is happening right now, such as the FTX crash and the bad security of CEX which misused user funds. it will all be discussed here and get a lot of criticism and condemnation, so CEX like that will be destroyed and all its users will leave it.

I agree with the OP, in as much as we criticize Centralized exchanges for several of their issues like lack of transparency and the likes, we still should not hate CEX, CEX have indeed contributed greatly to the adoption of bitcoin and cryptocurrencies in our societies, like its said, everything, even the good all have their pros and cons, and as we castigate CEXs for the roles they played in some or most of the major issues the cryptocurrency market in general have experienced over the years, we should not also fail to commend them for their effort in taking crypto to several people in the world .   

If only the CEX operator are honest. Does not use the users funds secretly and then improve their security at all times then I think users won't have a problem at using them even if they store their funds on it for a long time but also the user must ensure that they are also fair and follows the CEX rules so that no problems are going to happen.

What CEX can do, DEX can too. Which is like you said to connect traders, So it would be better if you can just say that a crypto exchange are the ones who connect traders all over the world. This forum is also another example where traders around the world can connect. They can talk here and exchange ideas other than coins.

Honestly, I never hated CEX, even if FTX's demise happened, FTX is just 1 small exchange, and it doesn't represent all other exchanges. I have been using coinbase for more than 7 years and I have never had a problem with it, and I have not heard from anyone about coinbase solidity, they just spread the demise of FTX. It's like someone hates CEX and intentionally spreads Fuds about it.

What I still find amusing about CEX, is that there are people who still have no damn clue of what they're buying. I mean, they know it's an Internet currency, and they know theoretically that there are miners and so on, but even science can't explain their behavior; they still decide to leave coins to strangers rather than hold them themselves. That deserves criticism for sure.

Yes, FTX is an isolated case and it is not worth comparing with other exchanges. But many people have taken advantage of the collapse of FTX to spread and slander CEX, and they think that CEX should not be trusted and exist in this market. But I also agree that storing assets on CEX is not advisable, and not only CEX, but we should absolutely not put our trust in anyone in market. This is finance, and people take each other's money to survive, so don't expect to find trust or tolerance in this market.

The op seems to have explained earlier about using an exchange as a store of funds which is certainly not safe and should not be recommended. Safer storage is to store in a non-custodial wallet that you can manage yourself, but will it always be safe? of course not, because the main security is in the users themselves.
CEX is currently a bridge to connect trades and several investments to be made, as well as to convert Crypto to Fiat or vice versa. Must be selective in choosing a CEX that provides asset security and provides guarantees for assets to remain safe and intact.

Bro, FTX is an isolated case where it abused the users funds by transferring money to their other company, and many more shady things. It's a single company that is getting hated, not the entire CEX. I don't think anyone hate CEX because of FTX.

True that and the thing is people still seem to forget that vital aspect of using the CEXs. I personally don't have any hate for CEXs as well, I have used many of the services from trading, p2p, direct bank deposit, and withdrawal, etc but we must understand that leaving all your crypto assets in the exchange wallet comes with that risk of losing them should anything happens.

What's the difference exactly between both? If something is being criticised then it must have bad consequences so we should also not have any reasons to love it right? The centralised exchanges are bad for storing your funds as we have seen lot of examples but only good if you are into trading line.So for me it's not good at all to use any exchange for safety of your funds.

If you ask me, I don't personally hate any CEX and that's the same for most the people if you know how to use these exchanges you won't have any problem and you won't hate these exchanges at all. If you use the exchanges only for exchanging assets and then withdraw the funds without of holding anything here you won't have any problem if you choose a legit change, otherwise holding assets and bitcoin on the CEX will harm you and you may face the same cases as FTX.

We have to understand why people store their coins in centralized exchanges, before we judge them. We know that before Bitcoin came onto the scene, many people only had one option to store their money, namely Banks. Then Satoshi Nakamoto gave us an alternative option to store our wealth.... away from any centralized financial intermediary services, but the private sector profit hunters..quickly saw an opportunity to make some more profits and they created Exchanges.

People being human... looked for easy methods to buy and sell and store coins.... so they opted for using these centralized exchanges ... so it was their choice to use centralized services again. If anything goes wrong with Crypto Exchanges... people must blame themselves for storing their coins there.  

I am not doubting that centralized exchanges have contributed to a large extent to the bitcoin environment because it has made bitcoin popular. Most popular sporting clubs have endorsed exchanges like Binance and Ftx which have led to public awareness. They have also assisted to make the buying and selling of cryptocurrencies easy. But they have made people lose their funds and they have also made the government see bitcoin and others as a scam. Nobody is disrespecting them, they are just getting the criticism they deserve.

whether we like it or not, we need CEX in order for the crypto users to conduct their transaction purposes. exchanging to other coins or their fiat. just secure your funds in your own wallet. but the existence of CEX is needed in this market.
there are so many financial services that CEX are offering, and many crypto users are enjoying such services. if you will remove such services, people will find it hard to look for the use case of crypto.

CEX are great and no one can say otherwise. There have been a few bad eggs but we know how hard the most popular and trusted ones have worked have to keep their integrity and transparency. CEX are an important part of bitcoin's journey. They made it super easy for newbies and non-techies to get into crypto. It would have been such a hassle trading, investing, selling one's crypto without them. My stance on taking out most of your coins off CEX still stands. Even CZ would advise this too because he knows the truth. No hate but it is just people wanting to be fully in charge of their coins.

Today, bitcoin wouldn't be able to attract and manage current number of users, traders and investors without the help of CEX, but simultaneously, CEX is the damaging the core basis and idea of bitcoin. Bitcoin and CEX look like a symbiote where one makes another stronger and capable to do more while slowly kills and abandons it during the process.

Since it's inevitable to expect the expand of bitcoin and crypto usage and since it's foolish to ban it, they have found a solution and it's called regulation. Some may found it good when the government is involved and may feel extra secure while some may feel alert because prefers to stay anonymous and don't wanna become the part of their collective statistics.

Every company wants to look safe when you are spending money on their platform. It becomes the problem when your money is stored in their wallets.

The main advice is don't trust anyone to manage your funds other than yourself, many cases of hacking happen to exchanges although some exchanges have reserve funds to recover losses due to hacks, but there is no guarantee that the exchange will be responsible for your assets in the long term, so there is no reasons to trust exchanges and preferably keep assets in your wallet or cold wallet. The worst case of FTX has hurt the trust and security factor of the exchange and it will not be the last case, so increase the safety of your assets to transfer them to your personal wallet immediately.

This is true CEX are great if you want to quickly exchange any of your assets for less fees and swiftly especially when the volumes are high because DEX can take a long time as it doesn't have a lot of AMM. But obviously you cannot store your coins on it because it is risky as hell. It's like giving your coins to someone else for holding them for a while.

The bottomline is this: CEX is great for buying/selling your coins but they are not to be trusted with holding your funds for a long time. That's where things go south fast. We trust these entities too much to not pull some shit that can potentially be a reason to lose our funds just because they are registered and we can legally go after them. They are named 'exchange' for a reason; they primarily facilitate exchanges between currencies, and they're not supposed to keep your funds for an extended period of time. If anything happens, you are partly liable because you left your funds there in the first place.

Indeed, all exchanges have advantages and disadvantages, both centralized and decentralized exchanges. Centralized exchanges are not only frequently hacked, but also often face legal authorities. Another thing that makes someone worry about centralized exchanges is when the platform developers commit fraud, so we don't have the opportunity to transfer assets from the exchange.
Last year, the problems that occurred with the FTX exchange made crypto users experience losses, I didn't even have time to move some coins from the FTX exchange. Even though it's not a large amount, it's painful when the results of our efforts just disappear.
But decentralized exchanges have had issues too, maybe you can check out the Dex related topics. But another problem is that exchange fees are also high, or slippage fees. In addition, if we want to buy Bitcoin, of course it is not available on the Dex exchange, only duplicates of the main coin are available. If we buy Bitcoin, we can only buy WBTC, and that's not using the Bitcoin network. To me, such a coin is not interesting to hold.
This means that we are very dependent on centralized exchanges, even though there are many problems that occur. It's just that we don't store large amounts of assets on one exchange.

Let's give credit where credit is due. And we cannot deny the fact that centralized exchanges have also contributed to the adoption of Bitcoin. Centralized exchanges has made Bitcoin more accessible to everybody. But are they the only way? I don't think so. Are they necessary? I don't think so either.

However, the issues with centralized exchanges are not just locking of accounts, censorship, freezing of funds, branding of dirty coins, compulsory KYC, hacks, leaking of personal information, among many others; it also involves fundamental principles. For example, one of the reasons why Bitcoin was created was to remove third parties. Centralized exchanges betrayed this. Another is the removal of trust which is often abused. When you use centralized exchanges, you need to trust a lot of things.

I think the people who hate CEX are people who only invest in bitcoin, and they think that using CEX has taken away the decentralization and anonymity of bitcoin. In general, we can't blame those people, they have their reasons, and they're not wrong. But the truth is that most people enter the market for profit, not for technology. So they will invest in bitcoin and altcoin, and for the convenience of making money, centralized exchanges are indispensable. As long as we use it wisely, we will always be safe.

You rest assured, those who always say give up CEX, against CEX still silently use CEX because the truth is we don't have a better choice. Those guys are just trying to present themselves as decentralization loyalists, but then they still use CEX daily. Forums are anonymous, so we shouldn't just believe what they say because we don't know what they're doing. How would they trade without CEX?

For CEX to reduce the reoccurrence of scams and mismanagement of user funds, a lot of regulations and policing are needed. This will apply to all countries, including the United States. As a result of the bear market and CEX trend, the direction of the coming market is likely to take a different direction. Hence, startup/IEO might have had their day, manipulation in the market will be on the rise. It is essential that team and exchange stay away from active politicking and public relations with politicians

Same here, I am uncomfortable using DEXes, maybe because I am used in the interface of a CEX.  Besides CEX makes it easy to trade different cryptocurrencies without the trouble of opening different kinds of wallets due to different networks.  No matter how we see it, CEX makes trading different cryptocurrencies more comfortable and easier.  Even though it is easier to trade in CEX, it is not advisable to use it as a safe to keep our funds in it since it is not designed that way.

There are a lot of issues with CEX, this is why you need to choose the best option and never hold any crypto with CEX, you have to learn from what happen to many exchanges. I still not suggest to hold on DEX, better if you are planning for long term holding do it on your hard wallet, it is more safe and you have the control over your crypto. CEX is good for liquidity and trading, maximize that option and be wise.

Centralized exchanges are here to offer various services to crypto users, which for me, I can appreciate their existence.
But certainly, we should not store our coins to these platforms but to your own wallet to ensure that you always have full control of your funds.
Even if the trading platform is reputable and top in this industry, we can never be sure what will happen next.
So better safeguard your funds rather than rely on third party wallets. You can't get out your funds fast if the platform encounter any problem.

In as much as we have trusted centralized exchanges we should not get carried away with the trust slogans since cex is in the hands of the CEO and no matter what the level of regulations are centralized exchange is still not the best choice for storing your coins.
But exchanges have been a helpful connection point for various crypto traders and help in the area of adoption.

I agree taht CEX plays a major part in cryptocurrency adoption.  Without them to have a market for Bitcoin and other cryptocurrencies, only a few will take an interest in Bitcoin since there is no place for profit and people are highly motivated by profit.  With the presence of exchanges, people are able to put a flow of supply and demand.

CEX is just taking advantage of the business on top of the Bitcoin and cryptocurrency ecosystem.  Although there are exchanges that are cheating their client, there are still several CEX that gives a good and honest service to its client, so I agree that CEX may probably deserve the criticism but not hate because of their help in spreading Bitcoin adoption.

Trading platforms provide important services to crypto communities.  And since the whole field is newly formed, it is obvious that you will find loopholes for each system.  This is what stimulates critical thinking that helps users choose among many service providers, and helps platforms to further develop and update.

When you are forced to use a certain thing despite all its defects because there are no alternatives to compensate for some of its bad characteristics, you will surely hate it.

I don't have any problem with CEX exchange, but I always advice people not to ever leave their coin on exchange, immediately you purchase your coin on CEX exchange, make sure you transfer all your coin to your non custodial wallet. You are advicing people not to leave all their funds on CEX exchange, you are encouraging people to leave some of their money on CEX exchange which I think is wrong, make sure you move all your funds from CEX exchange.
If we are to be honest, we all know both CEX and DEX exchange contribute to pile up of altcoins in Cryptocurrency space, we shouldn't blame only CEX for that. Am sure anyone that's really dedicated won't be distracted by altcoins, their are lot's of altcoins currently but people are still investing in bitcoin, anybody investing in altcoins those not have any excuse to give. I notice most people investing in altcoins are the once looking for fast money.

I don't see how anyone is going to have issues with exchanges if they all finally decide to treat exchanges as exchange and not wallet then they'll all be fine.
Choosing to neglect exchange because we had issue with one of them is not logical is same thing as one saying he/she will never use a train/bus because they was an accident that lead to some people losing their lives. At one time I also thought of never using an exchange but it turned out that I will only end up just causing harm to myself.

If people would choose to be mad towards Exchangers for what happened in FTX, then that would be their loss and not  towards exchangers' end. It will be wrong to generalize just because an individual or team of a project mismanaged handling of money or being responsible with their funds. Think of how good the reputations are of other exchangers especially with Binance which won't be popular for no reason. Also, if you'd stay with what happened your actions will be affected as well so atleast tey to jist forget what happened as a professional consent. Sometimes letting go of it would be a better idea to be able to focus on oneself.

Correction, CEX is always been the reason for crypto problems since the day CEX introduced to crypto space. Starting from Mt. Gox, Cryptopia and other popular exchange that got hack every year that result to there bankruptcy. CEX itself is really helpful because it helps people to trade easily anytime. The only problem was the security on their technology is very and some of them do an inside job to stole users money since exchange that operating outside US and UK is not fully regulated by the law.

CEX will be reliable if this exchange is audited frequently for user safety.

When we actually use those platform only for the intended purpose then no one will be hating it when it turns out to be scam or hacked, because we used their service to get our cryptos and we are supposed to move it to where it should be stored so called wallet.

I do agree that centralized exchanges helped the bitcoin adoption to great extend but in a wrong way cause if there is not such convenient then probably we will have less people speculating about crypto currencies so it can be used for actual creation so called transaction instead of trading.

I have used DEX, but to be honest, I still prefer CEX, CEX provides more services and utilities than DEX. And I like you, never had a problem with CEX, I think we shouldn't hate all CEX just because FTX crashes. Cryptocurrency is a market that is always risky all around us, so whether CEX or DEX, never put too much trust in them, don't leave assets on CEX or DEX, they are all unreliable. We can continue to use CEX as long as we never leave money on it we will have no problem.

Before you talk about government regulation making exchanges more transparent,Let's look at what centralized government is and then reference it to a centralized exchange. When you say something is centralized, it simply means there are a few authorities who have power over everything (minority), they make decisions without minding what the people will think, they always view and teach their decisions as the best, bringing this to centralized exchanges, they take control over users' assets and privacy, and they make decisions when ever they want to with their hidden terms and conditions (T&C) that almost 80% of users don't have time to read, which gives them the right to do what they want, when they want, with their hidden terms and With or without the intervention of government over centralized exchanges, centralized exchanges will always be what they are. All that we need them for is to trade our assets, and when we are done buying or exchanging any crypto that we intend to hold, it should be moved to a non-custodial wallet, either a hardware wallet or anyone at the users' reach. 

Truth be told, I don't even have any problem with any of the exchanges be it CEXs or DEXs because the main issue as you rightly mentioned is not to hold your crypto assets in the exchanges but again this has limits as well cus people have to trade and this means you need to have it in the change for trading and anything can happen while people have those coins/token in the exchange. Crypto investment is Risky and you must agree to that if you want to get involved, people can even lose access to their own private wallets.

People losing their assets and funds to centralized platforms due to selfish reasons or lack of good security isn't helping crypto space in any way, do not store your funds on centralised exchanges either big or small, it's as simple as this, centralised exchanges are good for crypto trading but when it comes to security of funds they are weak and unreliable, centralized exchanges have caused too much problem in this space already, I only keep using Binance exchange because they have emergency funds for reimbursement if anything goes wrong but, still I don't recommend trust them because of this.

If you really think that government regulation will result in more transparency, think about Bernie Madoff, Jordan Belfort, people buying houses in 2006-2008 with no way to pay for them etc.  There are 1000s of examples in highly regulated markets where crooks operated with impunity for a long time.  They will talk a good game but it is more about their power and control.

As far as the rest:  storing coins in a centralized exchange has always been bad for all the obvious reasons: seizure, fraud, bankruptcy etc.   It seems every year or two it becomes crystal clear that people think that this time it is different, they think "this time I can earn a riskless reward".  It is a hard lesson, but last year Celsius and FTX show that.  Genesis dragged it into 2023.   Sure, use whatever exchange you want to buy or sell, but do not leave coins or fiat on there.  And don't do it all at once so that if you are unlucky enough to deposit 10 minutes before another FTX shuts down, you don't have a total loss.

Crypto isn't difficult:  buy or mine coins, put them in cold storage and then just wait OR buy or mine coins and spend and use them using a non centralized wallet.

Centralized exchanges that operate fully legally make it simpler to comply with laws, compared to buying/selling BTC in decentralized way. Most banks in the world, especially in the West, are evaluating the risks of serving their customers. If a customer makes a lot of operations with cash or p2p transfers, it's often a sign of some shady economic activity. Banks often close accounts of such customers and/or report them to authorities. But if you use a registered centralized exchange, your bank sees that you are dealing with a company and will be less likely to cause problems, if they don't have a "no crypto" policy.

I don't know why CEX is safer. Coins can be blocked after entering the exchange and not allowed to be withdrawn after trading on the exchange. In any case, it is better to use possible decentralized exchanges first, and if this is not possible, then CEX.

The cons overweigh the pros, but the centralized exchange is essential in this market, without an exchange, I believe the market would never have developed as it is today. Nothing in this world is perfect, so the whole of CEX should not be blamed just for the demise of FTX, just as crypto cannot be said to be a scam when a project like Luna collapses. I know that when it comes to CEX, there will be many people who don't like it, but I still believe that those people are still using CEX silently because it provides a lot of convenience for us.

I've used a few of the exchanges you mentioned above and so far, I do not encounter any issues and everything is still working fine. I still use CEX over DEX due to the convenience factor of trading and I haven't tried using DEX yet.

But it's true what you suggest that we don't keep all our funds in CEX because we don't know what will happen later. We should anticipate all the things that might happen than regret it later.

tl;dr Centralized exchanges are good for traders, and for buying and selling if you're fine with AML/KYC; and that's pretty much it. Total utter crap for storing coins for the long-term.

https://cryptosec.info/exchange-hacks

True. Most people in crypto can't handle the responsibility for their funds let's be honest. CEX's and banks are there for this purpose mostly. To fix the stupid stuff you do. In an ideal world, banks and cex's shouldn't exist but we don't live in an ideal world. It is not even a matter of stupidity sometimes. Sometimes clever people make mistakes too.

People hate the CEX and banks so much but they can't imagine what would happen without them. It would be catastrophic.

Since it is common knowledge that if you are not holding your private keys then you are not really holding any bitcoin, and despite this knowledge we have many investors and traders which are still leaving their coins for long periods of time at exchanges, we must conclude they are doing this willingly.

Traders do not want to pay the fees to send their coins out and into the exchange each and every day, and they seem to believe they are saving a few cents each day by keep their coins there, but when a case like FTX emerges they realize that whatever money they thought they were saving now belongs to the exchange, this is the moment when they realize they would have saved way more money by taking full custody of their coins, but it is too late to do anything when the collapse of the exchange they were using has already happened.

Always use CEX with a reasonable portion only means that you should not trust any CEX to be a place for you to trust large funds there especially to store them because all online platforms are as trustworthy as they are today will be able to harm their users in the future it's only a matter of time until it happens including all the CEXs you mentioned.

I generally agree with the subject you bring up that at the end of the day CEX is still useful and people should learn to use it with more caution (at least until better solutions are found and DEXes are improved more) but I don't see the following happening:
There are two problems with this.
1. Even if the exchange has revenues (which they all have) it still doesn't guarantee they won't get hacked or scam their users and run away. So the said proof doesn't solve any thing.
2. Governments don't regulate exchanges to save users. They do it to save themselves! They want full control and surveillance and more importantly taxes, all of which is possible if the CEX enforces KYC and reports all their user activities to the authorities. Majority of the exchanges that have been hacked over the past couple of years were regulated and that didn't change a thing!

To be fair we don't want bitcoin investors we want more bitcoin users to help the ecosystem as the only decentralized payment system. The altcoin investors are also simple gamblers who do more harm than good.

CEX will always be there and will help us buy and sell not only Bitcoin but all of the cryptocurrency the particular exchange has been listed.

What happened to FTX did have a contagion effect not only to CEX but all of the companies and projects that has a connection with FTX. CEX being criticized is pretty normal already especially with the exchange this huge will turn out to be a fraud exchange. Investors can hate the CEX as well but that is temporary only and in the end, most who are hating those CEX are the ones who will use them as well. Where they will buy crypto if they wanted to? DEX probably but you can't buy Bitcoin on DEX'es right?

It's the same as "Don't store your coins in a CEX" that's all.

Even though we are saying this all the time, there are still investors who still prefer storing their coins in an exchanges. Maybe they have a personal reason why they are doing it, but it's riskier than just storing it on your own wallet that you have the private keys.

Wrong, centralized exchange has been got hacked since 2011 until now Hacked Exchanges since 2011 actually Mt.Gox insolvency is more have bigger effect than FTX because Mt.Gox is like Binance at that time.

When the government strengthen the regulation of the centralized exchange, it will increase the possibility all of exchange will ask to every users to complete the identity verification. Some people might accept it, but since I have an option to use decentralized exchange, why I need to use centralized exchange then? anyone need to read Why KYC is extremely dangerous – and useless

So you think it's good for the exchange to custody of customers assets? exchange is used to buy and sell your coin, it's not used to hold your coin.

When you got scammed, it doesn't mean all of P2P and decentralized exchange are scam. Most likely you're not follow the exchange's instructions, example you're only allowed to complete the trade inside the exchange, but the scammer contact you via telegram and you just trust to trade it via P2P without escrow.

Don't use decentralized exchange to hold your coin, you must use hardware wallet because you will have a seed phrase that can be used to access your coin even you lost your hardware wallet.

I personally don't hate CEX, the way they work I think is quite clear along with some of the risks.
But both the criticism and hatred deserved by certain brands when they have abused custody and authority over user assets, and when they start behaving strangely contrary to the simplicity of all the processes described in the beginning, especially user verification.

I have been using Binance personally for a long time, since they started out first. It started out with trying to get some affiliates and making money, which soon turned into using it myself. They also have a turkish website where we can put our fiat in and out as well, so they basically allow us to not just trade, but get involved from scratch as well. All in all, I really like them and I think they are super awesome, not saying there is zero chance it could ever be bad, but it is definitely something I will use until there is a big problem. Not that there will be one for sure, maybe it will be problem free forever like it has been so far.

For the umpteenth time it’s been said to never store your bitcoins on exchanges. You forget centralized exchanges demand KYC and have reserve the  rights to freeze your bitcoins if there is any suspicious activity on your account, it could be they don’t trust the source of your income e.t.c. The risks of using centralized exchanges are too great, the cons overweigh the pros.

It had been said for thousands or even million times that never ever make yourself that believe storing up your funds on any centralized or custodial wallets or platforms is safe because it is really the opposite.There are people who are just becoming that too much confident when it comes into their approach in towards these centralized platforms until things get messed up.On the positive side which we know that even
we do really have these kind of criticisms and prompts which it cant really be ignore that we do really need up their services because this is where trading and conversion to fiat do takes place.
This is why i cant really blame out totally on why people do really get that much confidence in them or into these places.

Storing all your funds on any CEX is stupid & asking for trouble. Having limit buy or sell orders on exchanges is fine but just do not leave them on there too long term. I don’t have any problem with buying from CEX, there is no  problem if you don’t mind KYC & paying your taxes etc.

Please be sensible though & refrain from getting too comfortable by leaving too much money on these exchanges. Self custody is the way to go.

Trusting them is subjective. You can use them yet not trust them because of the issues that you're aware of. Yeah, you can trust them at the same time have doubts about them as you use them. Getting the hate that they've got is all due to the outcome of what FTX has made and it's not limited to just last year's timeline. We may still see some of it in the future but hopefully, most of the users are aware of it that when they say trusting these exchanges, it's not up to the point that you'll store all that you've got in them.

Don't you think Bitcoin could be more better without centralized exchanges than when we have them since all they could contribute is adding up alot of altcoins to pile up the whole crypto space and get people distracted towards investing on some of these coins at the end of their look for Bitcoin, to the best of my knowledge Bitcoin will be more under best of interest without them which will encourage having personal wallet that could be non custodial.


If you're doing this then know it's all at your own risk because there's nothing that can change from their being centralized, hacked or backrupt and lastly in revealing your private details to anyone to track you down.

Centralized exchanges have played some positive roles in the publicity or advertisement of bitcoin because most of them allocate huge resources to cryptocurrency awareness. Most people in my area became aware of bitcoin and others through the advertisements by CEXs. But it is also clear that it's disadvantages is really higher than it's advantages.

These exchanges cannot be trusted because they are runned or controlled by humans that can make severe mistakes like in the case of FTX. I am not also recommending these CEX for even bitcoin trading because they totally limits the basic reasons why Bitcoin was created. People might claim that it is convenient, but there are many DEX platforms that can also offer the same services centralized exchanges offers.

You are correct that centralized exchanges (CEX) have played a significant role in the growth and development of the bitcoin and crypto space, despite some issues that have affected the industry in recent years. Centralized exchanges have provided a convenient and accessible way for people to buy and sell cryptocurrencies, which has helped to increase the number of investors in the space. However, it's important to be aware of the risks associated with using centralized exchanges, such as the potential for hacking or mismanagement of funds.
The issues that have affected the crypto space in recent years have led to increased government regulation and more transparency from exchanges. This will help to ensure that customers' assets are protected and that exchanges are held accountable for their actions.
As you pointed out, it's important to be cautious when choosing a centralized exchange to use. Some of the most trusted exchanges include Binance, Coinbase, Kucoin, Kraken, and Bybit. However, it's important to do your own research and only use exchanges that you trust.
Another point you made is the importance of not storing all your funds on centralized exchanges, but instead using decentralized exchanges (DEX) for holding your assets. This can reduce the risk of funds being lost or stolen, but it's important to note that DEXs may not have the same level of liquidity or user-friendly experience as CEXs.

In summary, it's important to be aware of the risks associated with using centralized exchanges, but also not to overlook the benefits they have provided to the crypto space. It's crucial to be cautious and selective when choosing an exchange to use and to be aware of the best practices for safeguarding your assets.

Why it should be adviseable after Just because of the FTX incident because it should be avoided all the time that centralized exchangers should not hold large funds. Because this is not the first collapse that has happened to the FTX exchanger, this has also happened to the cryptocurrency world, if we think back to mt.gox in 2014. That happened there too.
Moreover, I think that the original purpose of Bitcoin is not complete by centralized exchanges because its control is not managed in a decentralized way. I would suggest using a centralized exchanger just to exchange currencies, which will only be temporary. Because even before the Collapse, FTX Exchange was in a very good position in terms of ranking and usage So we should learn from FTX exchanger incident and also from the previous incidents before it is too late.

There is no convincing me that CEX centralized exchange hasn’t been bad for Crypto-currency, we has seen how centralized exchanges has affect the ecosystem in ways that are right now not redeemable.

I am not sure of the year but there was a year centralized exchanges were locking up people’s funds without any concrete reasons and government of countries who are against Crypto-currency where using centralized exchange as a pivotal point to get Crypto-currency enthusiast.

Storing your funds in any exchange, either centralized or decentralized exchange isn't safe; exchanges are platforms for trading cryptocurrencies, and funds should be transferred immediately into your self custody wallet afterwards. Long term holders should use hardware wallets or set up Electrum wallet as a cold storage on an air-gapped device, while if you have a small amount of BTC you want to use for spending daily or weekly, you can just hold it on electrum as a hot wallet, and spend when you want to.

CEX deserves all the hates it getting now but doesn't mean it has also not been helpful to bitcoin and crypto space.
I know that most issues that affected bitcoin and crypto space as a whole was mainly from Centralise exchange in 2022 but that can't just make us stop using it  instead we should be more cautious on the centralise exchange we use and since the whole issues happened , Government are going to strengthen the regulation of centralise and there will be more transparency from the exchange to their customers, especially with regards to custody of customers assets and proof of reserves .
Apart from the from this issues CEX has really helped in increasing bitcoin and crypto investors because most investors are not scared of buying coins from them because they are too many crypto scammers online and I myself got scammed last year,After that I come to the conclusion that if not CEX am not buying any coin.
Though I buy from CEX but I am always careful on the one's I use and I also use binance p2p. Some of the trusted one's are :
Binance
Coinbase
Kucoin
Kraken
Bybit
There are definitely others and they may be better than this I listed but this are the ones I have used
After the whole issues of FTX my advice is though buying from CEX is safer but storing all your funds there should be avoided and for holders just stick with DEX.