Topic: Decentralized currencies but Centralized trading (Read 974 times)

I do not get all this need for a decentralized exchange, do you really need it? What will be the purpose of it?

I understand that money is decentralized in bitcoin world but even that is not decentralized anymore, look at all the ICO's and IEO's and all that

Decentralized currencies but centralized trading, that's the reality.

And a study that shows that once again, according to this report, 4 exchange platforms share 90% of the Bitcoin's trading volume (Coinbase, Bitstamp, Bitfinex et Kraken). (It also reminded me of an old article showing that 2/3 of the transactions were related only to trading activities by the way.)

What's the point of using a decentralized currency if next to it people use a centralized platform for trading? Oh I know, follow the money...
This shows that people are not really interested in decentralization and that the P2P trade/trading/payment methods cannot develop properly. If there is no demand there will be no supply and the ecosystem cannot evolve correctly.
(I'm not even talking about the fact that the majority is only interested to speculate)

The question also arises as to the future of these platforms which are acquiring more and more influence over the years, such as Binance or Coinbase for example, which are buying up companies or introducing much broader products than a simple trading platform.

Doesn't that remind you GAFA? (to compare)

We are no longer in 2013 where users had little choice. We have everything we need, more or less, to do without them.
Keep using centralized exchanges and complete the KYC, in less than 10 years they all will be hated.

If you don't mind me asking, what are the spreads and fees like on the DEX's that you're working with? I've found that to be a common problem on these platforms.

The mere fact that you have to "opt out" of them doing whatever they like with your data is bad enough as it is. They also have a clause which permits them to continue to hold and use your data subject to "regulatory retention or record keeping requirements", which is essentially carte blanche to do what they like. gentlemand also pointed out to me in another thread yesterday that even the EU's GDPR contains a similar clause to allow "financial institutions" to continue to hold your data.

You should assume that any data you give to a centralized exchange such as Coinbase will never be deleted from their servers, because in all likelihood, it won't be.

I've never used either, and have no problems exchanging bitcoin to fiat and vice versa using peer to peer trades or DEXs.

Totally not a fan of the data selling to third parties, though I see you can opt out of that stuff here - https://help.coinbase.com/en/coinbase/privacy-and-security/data-privacy/gdpr-data-request-faq.html - though I mean, if it's already been sold what good is that, lol.

Either way, Coinbase / Gemini are it for a good amount of people in the US

Well, that's pretty much the reason, and I don't think we should expect things to change anytime soon. The cryptocurrency markets as a whole is pretty much a casino in the first place, and just like gambling on a casino, it can be quite addictive. People really wouldn't care about hard money and self sovereignty because most are currently not being threatened by the consequences.

That's exactly what happened 2 years ago. Coinbase sent the details of over 13,000 of their customers directly to the IRS, and told the customers affected to "seek legal advice" - https://help.coinbase.com/en/coinbase/taxes-reports-and-financial-services/taxes/irs-notification.html

And a year ago, one of Coinbase's executives Christine Sandler admitted user data was being sold to third parties: https://news.yahoo.com/coinbase-former-provider-sold-user-084900709.html. This was at the same time they partnered up with the surveillance company Neutrino/Hacking Team. There's a good write up here of just how immoral these people are: https://breakermag.com/coinbases-newest-team-members-helped-authoritarians-worldwide-monitor-journalists-and-dissidents/.

The most recent news (which I actually hadn't read yet when I made that last post), is just as concerning as the above. These same people inside Coinbase who made monitoring software for dictators are now working with the US government. Given their previous atrocious history, it's not exactly a huge leap to suspect that some user data is going to change hands here.

They're not just going ahead and sending your tax data to the IRS -- that wouldn't be legal unless you're under some sort of audit and the government got a subpoena for that, or if you hit the threshold to be issued a 1099.

What? Which centralized exchanges are trustworthy? Even the biggest and most well known exchanges have been hacked and had coins stolen, been hacked and had private information and KYC documents stolen, been caught insider trading, sold customers' data to third parties, handed over customers' data to various governments, listed various scams and shitcoins to dump on their customers, locked and frozen accounts without warning, stolen funds, the list goes on, and on, and on. Centralized exchanges are anything buy trustworthy.

The vast majority of "small" exchanges which are hacked are centralized exchanges. This is not an argument against DEXs. Most of the time, when trading with DEXs, your funds are still under your control and so can't be hacked in the same way that a centralized exchange can be.

There are plenty of reasons to change exchanges. When Coinbase revealed that they sell your data to a variety of unknown third parties without your consent, and they formed a partnership with a company who develop and sell surveillance software to human rights abusing dictators, everyone with a shred of sense should have stopped using them immediately.

Well, because we do not trust the dex exchanges? I mean they are really not looking all that well whereas the centralized trading looks very trustworthy.

All those billions of dollars worth of bitcoin lost because of small exchanges being "hacked" made everyone go enough!

There is really not even a single reason to move to another exchange if you can find your pairs here and trade here.

Is TOR needed for Bisq?

You can provide parameters for your TOR to work whenever its ban in your country.  The Socks, Proxy IP address, port, and authentication information are always in the manual and you can always find help, the internet is for all. Deeponion forum has great helpful users of TOR.

One thing that you should think of is that if you figured how to use Bitcoin exchanges and its wallets, it's never difficult for you to use any DEX GUI since they all work the same way. Its like learning the old 2010 phone and suddenly you have a new 2020 phone.

Personally, I trust DEX more than the CEX (Centralized Exchange).

Well, because we do not trust the dex exchanges? I mean they are really not looking all that well whereas the centralized trading looks very trustworthy. All those billions of dollars worth of bitcoin lost because of small exchanges being "hacked" made everyone go enough! and they said they will move their money to places they trust as well. Hence we have very little amount of exchanges that we trade with, who cares about some small exchange when I know that my money will be safe with these websites?

There is really not even a single reason to move to another exchange if you can find your pairs here and trade here. The only reason you should go to another website is if they have the coin you want to trade and the big ones do not have that coin since it probably sucks.

Is TOR needed for Bisq?