Binance is a private and centralized exchange and no matter how efficient and trustworthy they could be, they are not to be trusted with putting money or leaving money not meant for trading or exchange in there as the unimaginable can still happen just as it was the case of FTX months back.
Let me say that the P2P services of binance only allows buyer to connect directly with seller with binance serving as an escrow to entire safety of funds to boast their brand too.
Topic: My gut is telling me that I am missing a part here (Read 327 times)
Binance is straight up centralized, no way around it. Also, no KYC doesn't mean an exchange is not centralized, for example, KuCoin is a centralized exchange but doesn't do KYC.
Endow me with knowledge this morning, tell me what I don't know.
First of all, what is a Decentralized & Centralized exchange?
A decentralized exchange (or DEX) is a peer-to-peer marketplace where cryptocurrency traders make transactions directly without having to involve the need of a third party or doing a KYC, and the user has total controll over his/her fund
While,
Centralized exchange is a third party platform which helps to facilitate the buying of cryptocurrencies through the use of fiat currencies, whereby KYC is essential, the platform has total control over the users fund once deposited
Paxful is a good example of real decentralsed P2P platform but it isn't secured, I have lost money engaging in P2P trade on the platform and I follow their rules but later the team failed to help, this was a long time ago, maybe things have change I don't know .
Paxful is similar to Binance as they are both centralized platforms. They are third-parties that provide their Peer-to-Peer trading services to cryptocurrency users.On Binance P2P and Paxful P2P, you will have to complete KYC to start trading. It is mandatory on Binance P2P but on Paxful P2P, you can start trading without KYC but there are limits for each KYC level. In some countries, Paxful force users to do mandatory KYC (many scammers from those countries ?)
Paxful: Limits and Verification
All Binance users must complete Identity Verification to access Binance products and service offerings, including P2P trading
Because they are centralized, they can freeze your account and your fund.
Best Peer-to-Peer trading is when seller and buyer does not know real identity of their trade partner like a peer-to-peer transaction from Satoshi Nakamoto to Hal Finney. Many years later we still don't know who is Satoshi Nakamoto and Hal Finney did not know about that too.
By the way, do you have any P2P platform that's not centralised in mind? I am still looking for one.
Someone recommend localbitcoin but there are bad reviews about that platform.
Binance exchange is a centralised exchange right? But they provide P2P, is it ok to say P2P is decentralized? If yes, doesn't that makes Binance 2 in 1, CEX and Dex? Because I use the P2P part more than the CEX part..
Simply, Binance is a centralized exchange.- They require a KYC process for all users, both in their exchange platform and also P2P, moreover in some features, they need more verification based on real identity. They need our ID ad to upload it to the platform. It is a clear, centralized exchange.
- In P2P Binance, users need a third party as escrow to run the transaction, here is Binance.
So far as I know, in DEX, we don't need any identity verification. We only need to access the platform without any verification based on our identity, whatever it is to fulfill. DEX and CEX always have their positive and negative sides, so, this will depend on our own choice.
Btw, you can read the following articles to probably be able to help you more:
https://www.binance.com/ph/blog/all/what-is-p2p-trading-421499824684901877
https://www.binance.com/en/blog/from-cz/cz-on-centralization-vs-decentralization-2022-4766586322749082372
I am trying to understand something about binance exchange and the other likes of it.
Binance exchange is a centralised exchange right? But they provide P2P, is it ok to say P2P is decentralized? If yes, doesn't that makes Binance 2 in 1, CEX and Dex? Because I use the P2P part more than the CEX part..
Endow me with knowledge this morning, tell me what I don't know.
Binance is purely a centralized exchanges because it requires KYC for you to have full access to the account you create on there website. P2p does not make a exchange a decentralized one because you don't have access to the full you have with them. They don't give you your seed phrase, anything that looks suspicious might lead to ban etc. Binance exchange is a centralised exchange right? But they provide P2P, is it ok to say P2P is decentralized? If yes, doesn't that makes Binance 2 in 1, CEX and Dex? Because I use the P2P part more than the CEX part..
Endow me with knowledge this morning, tell me what I don't know.
When we talk about decentralized exchanges then we can mention Pancakeswap, Uniswap etc that does not require any KYC and your transactions on these platforms are quite anonymous in some ways not like Binance and other centralized exchanges.
Since P2P on binance require KYC then its not decentralized approach already. Yes peer to peer is something we could say decentralized. However once a third party or any form of identity has been pass then its already violate the real definition of it.
If you used non custodial to transact with other users or directly trading against other people then thats decentralized.
If you used non custodial to transact with other users or directly trading against other people then thats decentralized.
Paxful is a good example of real decentralsed P2P platform but it isn't secured, I have lost money engaging in P2P trade on the platform and I follow their rules but later the team failed to help, this was a long time ago, maybe things have change I don't know .
Paxful is similar to Binance as they are both centralized platforms. They are third-parties that provide their Peer-to-Peer trading services to cryptocurrency users.On Binance P2P and Paxful P2P, you will have to complete KYC to start trading. It is mandatory on Binance P2P but on Paxful P2P, you can start trading without KYC but there are limits for each KYC level. In some countries, Paxful force users to do mandatory KYC (many scammers from those countries ?)
Paxful: Limits and Verification
All Binance users must complete Identity Verification to access Binance products and service offerings, including P2P trading
Because they are centralized, they can freeze your account and your fund.
Best Peer-to-Peer trading is when seller and buyer does not know real identity of their trade partner like a peer-to-peer transaction from Satoshi Nakamoto to Hal Finney. Many years later we still don't know who is Satoshi Nakamoto and Hal Finney did not know about that too.
P2p=/dex & Binance P2P is Binance way of manipulating terms as an attempt to control all crypto sectors. is it binace version to compete with the Localbitcoin/Paxful. Instead of losing the database represented by the users of that platform, they provide AIO solutions, but everything is centralized and under their management.
Binance P2P shortcomings:
- Centralized however the platform does not bear all the losses.
- You are required to perform KYC.
- You may be scammed.
- You still do not own your funds and more data may be requested before you can withdraw.
Try Bisq.
This is exactly what I needed to hear, so the term P2P from binance exchange is nothing but confusion, P2P with KYC is disdecentralised to the core. Binance P2P shortcomings:
- Centralized however the platform does not bear all the losses.
- You are required to perform KYC.
- You may be scammed.
- You still do not own your funds and more data may be requested before you can withdraw.
Try Bisq.
Paxful is a good example of real decentralsed P2P platform but it isn't secured, I have lost money engaging in P2P trade on the platform and I follow their rules but later the team failed to help, this was a long time ago, maybe things have change I don't know .
Do you use Paxful recently?
P2p=/dex & Binance P2P is Binance way of manipulating terms as an attempt to control all crypto sectors. is it binace version to compete with the Localbitcoin/Paxful. Instead of losing the database represented by the users of that platform, they provide AIO solutions, but everything is centralized and under their management.
Binance P2P shortcomings:
- Centralized however the platform does not bear all the losses.
- You are required to perform KYC.
- You may be scammed.
- You still do not own your funds and more data may be requested before you can withdraw.
Try Bisq.
Binance P2P shortcomings:
- Centralized however the platform does not bear all the losses.
- You are required to perform KYC.
- You may be scammed.
- You still do not own your funds and more data may be requested before you can withdraw.
Try Bisq.
Binance's role in P2P is the middleman, that's why it's not a DEX or anything because it's not within your control still. Other members here who have posted are already right with it as well.
What do you guys think about this? https://www.bnbchain.org/en/trade/
It shows that it's Binance DEX. What do you guys think of it in that regard?
What do you guys think about this? https://www.bnbchain.org/en/trade/
It shows that it's Binance DEX. What do you guys think of it in that regard?
Take a quick look at the actual definition of "decentralized". People frequently mix up the words "decentralization" and "non-custodial". A lot of people here call non-custodial wallets such as MetaMask and Electrum "decentralized" even though they're not actually decentralized but only non-custodial(which is totally fine).
But regardless, Binance P2P is neither decentralized nor non-custodial. Definitely not everything P2P is decentralized.
But regardless, Binance P2P is neither decentralized nor non-custodial. Definitely not everything P2P is decentralized.
legendary
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eXch.cx - Automatic crypto Swap Exchange.
Endow me with knowledge this morning, tell me what I don't know.
In addition to all the above users has said, centralized exchange in trying to keep their customers on their platforms had to introduce some decentralized feature that made people fall in love with decentralized exchange. This was around when there was hype for decentralized finance. Them introducing this feature like instant swapping, P2P etc doesn't make them decentralized in any way since they're still been ran on centralized serve and still needs the permission of the centralized exchange to function. Centralized service providers will always want to say in control so they'll do anything possible in achieving that even though it result to deceiving their customers so bewared.
One way to distinguish between a centralized and decentralized platforms is when you're not in control of your private key which means you don't own those coins that you think you do and who ever owns the private key decide when you can carryout transactions with your coins.
I am trying to understand something about binance exchange and the other likes of it.
Binance exchange is a centralised exchange right? But they provide P2P, is it ok to say P2P is decentralized? If yes, doesn't that makes Binance 2 in 1, CEX and Dex? Because I use the P2P part more than the CEX part..
Endow me with knowledge this morning, tell me what I don't know.
P2P doesn't mean decentralized because it's a type of trade. You're just trading with other people and then you do the trade inside Binance, so, that means that you're still in the custody of the centralized platform - Binance.Binance exchange is a centralised exchange right? But they provide P2P, is it ok to say P2P is decentralized? If yes, doesn't that makes Binance 2 in 1, CEX and Dex? Because I use the P2P part more than the CEX part..
Endow me with knowledge this morning, tell me what I don't know.
Don't get confused about the feature and the type of trade because whether a platform is centralized or decentralized, they can have this feature for them to offer for their customers.
Binance is centralized as many people have known and the proof of it is when they freeze the asset when they face a problem with their platform. P2P is decentralized but in binance you are doing the same where you are buying or selling with another person but the platform that is used to do p2p is centralized that have control of your account that they can froze it unlike other platform that is decentralized. The person that is most vulnerable to funds getting frozen is the one who buy the crypto since the other party receive fiat currency of that's what they want to receive when selling the crypto.
Binance exchange is a centralised exchange right? But they provide P2P, is it ok to say P2P is decentralized? If yes, doesn't that makes Binance 2 in 1, CEX and Dex? Because I use the P2P part more than the CEX part..
Binance and similar exchanges treat complete control of the assets that are there so completely centralized. if you have assets on a centralized exchange, your assets, are not in your control.P2P is conducted on centralized exchanges and also through assets controlled by the exchange. not from the assets you have. maybe some traders and investors will start to be wary of centralized exchanges. especially when saving assets.
P2p=/dex
Source
Quote
DEX operates on the blockchain network directly. Trading takes place automatically under smart contracts without the engagement of any external or third parties.
Quote
Peer to Peer (P2P) Exchanges utilize the decentralization idea; here, the trading occurs end to end. Escrow places an indispensable role; the escrow wallet being under admin control.
Source
Binance is centralized, fact ascertained. They've got to be interwoven with some part of the DEX cus they trade with Fiat which, is basically the process that anyone would convert 'em cryptos into an acceptable cash.
They're abusing the system as @pooya said though.... Cus I don't really see any essence of having P2P in centralized exchange where users are not in control of their token, cash, whatsoever... Same thing happens in remitano; where they connect a buyer or seller upon already created ads to either buy or sell (that's invariably P2P right?)? So the abuse is where the could freeze any account that hasn't passed the due verification process, matterless of the funds in there ...... AGAIN, THAT'S SLAVERY!!
Sandra 🧑
They're abusing the system as @pooya said though.... Cus I don't really see any essence of having P2P in centralized exchange where users are not in control of their token, cash, whatsoever... Same thing happens in remitano; where they connect a buyer or seller upon already created ads to either buy or sell (that's invariably P2P right?)? So the abuse is where the could freeze any account that hasn't passed the due verification process, matterless of the funds in there ...... AGAIN, THAT'S SLAVERY!!
Sandra 🧑
Binance is simply abusing the DEX and P2P terms so that they can corner another part of the market with a considerable number of users who are looking for real decentralization. By lying about it, they may be able to fool a small portion of such users.
There is nothing we can do about it expect informing others about the lie, otherwise there is unfortunately no laws prohibiting them from doing this.
There is nothing we can do about it expect informing others about the lie, otherwise there is unfortunately no laws prohibiting them from doing this.
As others have already told you that Binance is a centralised exchange so do you think they will allow decentralisation in any manner? They have custody of your funds so in reality the funds are not yours but theirs and all other exchange like coinbase are completely centralised.
When they act as third party you still have to go through their verification process but in reality the P2P trade means you are having direct trade without any documents or say KYC and that we call decentralised way of trading but does Binance allow it? They keep track record of your transactions and can always put restrictions on your funds as you are using their platform in P2P trade as well and your account will be credited/debited based on that but who has keys to that input? So think it the other way and you will see not a single decentralised loopholes you will find in them.
When they act as third party you still have to go through their verification process but in reality the P2P trade means you are having direct trade without any documents or say KYC and that we call decentralised way of trading but does Binance allow it? They keep track record of your transactions and can always put restrictions on your funds as you are using their platform in P2P trade as well and your account will be credited/debited based on that but who has keys to that input? So think it the other way and you will see not a single decentralised loopholes you will find in them.
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