Topic: I don't believe you - page 6. (Read 1246 times)

Even after these facts, we should still know and stick with the reality that it is still risky to hold a large sum of funds inside any centralized exchange because as long as we don't have the full power on our own coins, it's safe to say that it's not safe and we do not have 100% control of it. Even if it's the most successful and most trusted CEX in the planet, there are still no guarantees that it will be safe to store it.

How right it is to put all the power in the hands of only one man, even if he is someone we really know. Therefore, in my opinion, decentralization is undoubtedly the most correct option. When necessary, I use the central stock exchange temporarily, these are the only tools that provide successful service and should be there. The main thing is not to store, let's say bitcoins or altcoins that can last as long as desired in cold wallets for storage.

Everyone knew the FTX market and SAM,
what happened, we don't know if it will be the same for another stock market, so it is always best to think highly of the possibility.

To avoid doubt, this is why you should never trust centralized exchange, I can't trust someone I don't know and send them my Bitcoin, never in my life keep btc on third party and it will strictly be on my wallet until I'm ready to spend it for another coin or may be do some gambling. Centralized exchange will be very quickly to report you when they don't like you, they will even seize your bitcoin and use privacy policy terms to shield that as contract that bind you and them, they are corrupt and not trustworthy, if you want peace of mind, please use your own wallet for your own safety.

Seriously, this is a nice question for everyone who decided to leave or store Bitcoin in an exchange.honestly, many of those people who store their coins under the care of an exchange don't even know when those exchanges came into existence, talk of their reputation, but they still go ahead and leave their coins there. In fact, I don't really know why some people prefer leaving their funds in exchanges despite many examples they have witnessed or heard about where many  exchanges have gone down and a lot of people have lost their funds. I believe that should be enough for everyone who is still leaving a huge amount of money in exchanges.

You are reciting advice that is often given here and possibly targeting the wrong community, as most people here should be following it by now. Unfortunately, like the banking system, many people simply don't have the time or interest in learning the intricate details of new technology. They may actually be safer by sticking to exchanges, at least in scenarios where they are only holding small amounts of cash that would not necessarily be missed if it was lost. In reality exchanges fail or turn into scams/hacks are at quite a low rate these days as infrastructure has evolved. Things like two factor authentication really raise the barrier against losing lone accounts as well.

even though a centralized exchange is not a safe place to store Bitcoin assets, it is still the most efficient place to be able to exchange Bitcoins or staking to get rewards. I personally use a centralized exchange to exchange or buy Bitcoins and so far I have never had a problem with the platform I use. so not all exchange platforms are unsafe, there are still those that really maintain their reputation.

but for holding in the long term, it's true what you said that it's much safer to store in a custodial wallet, because we can manage our own assets freely without worrying that our assets will be stolen by other people, but with the note that the private key is stored properly, other than that the custodial wallet is very secure to use.

Well, since we can't trade directly from our wallet we have no option than to make use of the exchange we feel safer for us, and therefore act more safer by making sure not to leave a good amount of our funds in them. If you must then you can leave an amount that is pretty petty for you.

I had to stumble on a comment that commended that we can leave like a $100 in the account since such amount won't hurt in case anything happened to the exchange. And I felt such person is just being subjective, cause a $100 that seems little amount for you in your country may be a good amount to start with in someone's trading journey in another country qhwn converted in their local currency. So it's better just to say, leave an amount you can be ready to lose at any point than calling out a figure.

I don't know how banks are established and operated in your own part of the world, hitherto to creating a bank the bank owner(s) must have a deposited amount of cash in the possession of the CBN of the country  where they operates in the case of uncertainty such money could be used to settle their account holders mitigating a supposed colossal loss on the customers.

So running away with bank customers money by bank owners is  not an easy thing to do in this current dispensation, except such banks operates illegally not to the knowledge of the government and that's why it's important to do thorough research about any financial institution we wish to deposit our funds with.

You got a point here.

You're basically entrusting your savings to a total stranger, and with little to no government support you could literally lose it with not restitution if things go south, such as what happened in the past with people who had money left in their FTX accounts as well as other exchanges in the market that went down. At the very least with bank runs you have the chance to regain a part of your losses thanks to the government stepping in to provide assistance but with these centralized exchanges you can't expect anything at all especially if there's no connection with the government in the first place.

I was once an avid supporter of CEXs cause I mean they really took over the industry for a good amount of time, but now seeing as even Binance, one of the most trusted exchanges out there admitted to operating without a license on US lands and letting unregulated tokens be traded without compromise on their platforms I'm starting to second-guess if there's even any centralized exchange out there that can be trusted.

I totally agree, and the perception of people who still have faith in their Bitcoin on exchanges and not trade at all should really be informed about how risky this is. Centralized exchanges are just buying and selling options nothing more and even though their influence in the crypto world is quite large, still our holding is the main thing that needs to be protected and needs to be secured to a personal wallet if we are indeed a trader. Even traders know when to quickly secure their assets, and don't let assets hang around for long on a centralized exchange.

That's exactly what the significant advantage is, being decentralized, if it is genuinely decentralized it means that it is overall safer and people who use it are not going to trust the exchange but they will have full influence over their funds. They'd also not be concerned about personal data breaches because the decentralized exchange does not hold any of their personal data. These are some of the most cruicial and significant advantages that dex has over cex.

They want us to trust them, but they can't force it, and we have the right not to trust them. Honestly, I don't really hate centralized exchanges, and I don't want to blame them either because what they are doing is doing business and making profits.

I think we can still use them, but as long as we don't give all our assets to them and use them for the right purposes, we should be safe. It is entirely our fault that we use them to store our assets, instead of blaming them, we should blame ourselves for trusting and giving our money to strangers.

Yes because the review comments on the exchange is 99% good and vendors in the exchange are prompt to their terms and conditions and payment is delivered immediately you placed order of within 45 minutes interval. And in most times it is those who have used the exchange recommend it to their friends to use. Like me, it was a friend told me to download Binance.

I am not the first person to use the exchange. Others have been using it and there is no negative feedback on the exchange. If there were negative feedbacks then users before have making a complain here and even create threads on top of the company or the exchange.

Since in my existence in this world, I have not heard or seen a bank went for for bankrupt and run away. The only thing I have seen and also heard is, any bank that could not meet up the demands of the customers would sell the bank to another person and the name of the bank would be changed to the new owner desire name. And I can refer this to Intercontinental Bank to access Bank in Nigeria and also Diamond Bank to Access Bank in Nigeria.

Everything has a risk, but the risk in cold wallet is come from the holder, there's no intervention from outside who's control your coins. Can you trust your money with someone you don't know who's him? if I promise your coins will be safe if you send it to me, would you trust me with all of your hard earned money?

Centralized exchange do force every users to trust them, they promise they have a very good security, their exchange is safe, their exchange is better than other etc.

Historical situation provides a context here. I mean if you are putting your money into an exchange, and that exchange has a great history, that means it is going to do well enough, whereas if you are unsure about what's going to happen, then you shouldn't put your money in there. After all, we are not forced to do this, if we want to then we can do it some other way as well, but not a lot of people do that for some reason.

I think it is important to just do what you know you are doing and if you are unsure then don't do it at all. Some people do not use exchanges for example, they use p2p to get in and out, I respect them and you can do that if you are so unsure about exchanges, I am not so I keep using binance however I want.

Ive been translating some of the works of GazetaBitcoin and one of the related on it its the  12 years later and people still don't know to use Bitcoin nor what it's good for which is truly the use and purpose of the bitcoin but still people using the bitcoin in the different way, why? because the convenience, for me the use of the bitcoin is to lessen the centralized platforms get manipulated even the bitcoin and people keep doing this because the convenience they don't need to transfer again and again their coins they can convert easily to the exchange itself, but its not your coin already because you don't have the private keys, reason why we have the Not your keys, Not your Bitcoin. Not ideal to use an exchange as your wallets.

Indeed, exchanges do not force us to trust and deposit money in them, it is all about supply and demand. If the OP is just a holder, then he doesn't need to use centralized exchanges, no one forces him to do it, and he doesn't need to constantly talk bad about them either.


Everything is at risk, whether centralized or decentralized, so we need to worry and always have a backup plan. Even if our assets are kept in cold wallets, nothing is 100% guaranteed, so always be on the lookout for anything.

We can't be too meticulous that we can't have an iota of trust in someone or a system. It's a state of paranoia not to. No one is an island on their own. We need others (whether we want to admit it or not) to forge ahead in life. What makes you believe that even not keeping it in banks for a long time won't expose you to greater risk at home or wherever you choose to keep it?

I hope you read about the $3.3 million SushiSwap hack that happened in April or so, too. Sushiswap is a Dex, yet it also was hacked.

No one tells you to use an exchange and you don't need to deposit your Bitcoins, especially if you don't know who owns it. But that is not the goal of the people who trade as they deposit their Bitcoins or altcoins to exchanges in search of profit.

And as long as you use a reputable exchange, you have nothing to worry about. Or you can trade your coins on the exchange and after making a profit, you should immediately withdraw them so you don't keep your coins in the exchange.

You can avoid problems that can occur on the exchange in many ways. The important thing is that you should be careful before using any centralised or decentralised exchange.

Exactly, i totally agree with you but to some extent only, because you are being too skeptical about Exchanges despite the difference between CEXs and DEXs. Because the two have their own features in terms of security, privacy, and support. Let me tell you how i feel about it. When i was new to the crypto industry, i always wants to learn about how transactions are happening and how money is being transferred from one wallet to another even when i do my first ever transaction from Metamask wallet i was also being too skeptical, when it will receive the destination address, who are these people validating my tokens.

Well, we all know that it is just smart contracts that hold value, and when we make any transaction from a noncustodial wallet to exchange, then the transaction is recorded on the blockchain and can never be altered and then what other factor remains there to confuse one because in here total record of every transaction is being made, while when you do the transaction on banks, there is no record even sometimes you did not get any recipient from the bank and sms alerts system are so late that they are alerting you of transaction 2 to 3 days later. 

The point is, Banks are way unsafer than Exchanges and exchanges are way unsafer than noncustodial wallets, but why we are trusting these wallets and hardware wallets, we do not build them even though many of them are open source we never audited them from our end, we blindly trust on third party audit.

That is where the risk factors comes in, we are solely responsible for what we are doing because even bitcoin we are holding doesn't give you a total assurance or have you come to think what if your bitcoin disappear a day without you knowing what happened to it.
The way we trust bitcoin to hold, same way we partially trust our funds to bank and exchange because we believe all trading activity would be carried out successfully with or without any misplacement of funds. We only come to consciousness when we realized the trust has been bridged but that doesn't limits us from not involving ourselves with bank or any cryptocurrency exchange.