Topic: Newbies: Don't use centralized exchanges! - page 4. (Read 1206 times)

• Why KYC is extremely dangerous – and useless
• PSA: Most Stablecoins Can Be Frozen, Even in Your Own Wallets
• USDT banned addresses
• KYCnot.me is a website on which you can find non-KYC exchanges. Make sure you check their trading volume and take it into consideration whether you will use it or not

What a perfect time!  Centralized exchanges are thieves, you will think they are cool until you get caught by their nonsense policy.
I woke up this morning with a notification about a trending post on Bitcoin subreddit^[1] on How Changelly exchange has refused to release a bitcoin onto user balance, they asked him to undergo a KYC before the bitcoin will be released but after doing the verification, they still never released the bitcoin and I was just asking my self why would the user use such an exchange? I Learned that he was misled by this Twitter Bio.



https://mobile.twitter.com/changelly_team

The user was misled by the headline, convinced and registered an account and has deposited a bitcoin all because he saw non-custodial and by that, I think he wasn't knowledgeable enough to know that he should have access to private keys or seed phrase and nothing like KYC will be required by such exchange.

Changelly is not a Non-custodial exchange, You can see from the Image that bitcoin is not his because he cannot spend it or authorised a transaction as he didn't hold the private key to the exchange. He didn't lose just his bitcoin, he lost documents about his information and money to them. They can do anything with those documents without his knowledge.
This is one way of losing your documents and bitcoin that are meant to be private to a group of people that run centralized exchanges, stay away from them.

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[1] https://www.reddit.com/r/Bitcoin/comments/u04zex/changelly_kyc_scam_they_are_holding_my_19800_btc/

Exactly there are so many reasons to avoid these centralised exchange as your funds are not at all safe over these exchanges due to the reasons you have mentioned.Like recently we have seen coinbase imposing restrictions to it's customer that will have to complete the KYC and even provide the full details of the recipient of money that also above $1000 CAD only and ends to privacy of the users.So.stop using these exchanges as there is no security at all of your funds.

The thing about these exchanges is first of all they are in possession of your keys so you at the first end have the full probability of losing the funds and talking about safety is another aspect in our mind.At this time Major exchange are having huge volumes but there are many chances of scams,hacks and they own becoming scam at one point.

At this time also they implement partial KYC like you don't need to undergo any KYC for withdrawal but if they suspect something suspicious they may force it on you so you don't know when they will be under radar.They are obligated by the government agencies to provide full disclosure whenever they require so they will implement on the customer.

The other problem is they are using third party software services to store the data who then can be hacked and the full maillist of users is compromised who gets scam mail from exchanges.In recent times we have seen lot of such cases that are subject to such hacks and the users looses funds in the end.The best way is to store them offline with proper backup of your seeds and funds will be safe.

I changed the link to a list of P2P/no-KYC exchanges.

Bisq is the most decentralized exchange that is yet existing, other reputed ones like Hodlhodl and Localcryptos are also far better than using a centralized exchange. Localcryptos is recently having high trading volume among P2P exchanges.

According to the link you pasted above, https://kycnot.me/, there are centralized exchanges among, example is Kucoin, Kucoin do not require for KYC, but can force any of their customers to provide KYC at any time or they will freeze the customer's account. Some others that are listed like ChangeNow are instant exchange that can sometimes also force someone that is making use of their service to provide KYC once the person has already sent bitcoin or altcoin to an address provided by the instant exchange, they will not exchange the coin for him unless he do KYC as instructed by them.

It's indeed a good reminder to newbies.

This was the same scenario in a short documentary film on Netflix that was newly released, titled "Trust no One" and here's someone making a thread (a mysterious exit scam of a centralized exchange).  It reminds us that centralized exchange is not good to entrust our funds or let the third party hold our crypto asset, we don't know when they have a plan to exit and run away together with our money, they can also make a plan not suspecting by the public that they steal money from their users and it could be an inside job acting like they are a victim of a scam.

Don't use a centralized exchange or store your crypto in the long term.  It's a great thread to motivate others not to use CEXs.

Whether you're here to learn more about Bitcoin, or just to trade and make a few bucks, please read the text below.

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Besides an innovative payment system which works without borders, more efficiently and practically, Bitcoin is here to make you sound. It's giving you what corrupted governments try constantly to take away from you: Financial sovereignty and self-control.

But, do not expect it to make you gain these alone. Bitcoin is just a currency, which means it's apolitical. All these ideals come from the fact that you've taken the time to understand the drawbacks of the traditional banking system and how disastrous a central point of failure can be.

Don't use a centralized exchange, for a number of reasons.

• You're about to be dictated of where your money is allowed to go. [1][2]
• You're about to be charged unbearably high fees. [3]
• You're about to be "blackmailed" to deliver private information to have your coins unfreezed. [4]
• You're about to be censored. [5]
• You have no privacy. [6]
• The exchange can go bankrupt and you lose everything. [7]
• You're making the Bitcoin economy susceptible to manipulation. [8]

[1] Coinbase says it’s blocking 25,000 Russia-linked crypto addresses
[2] Binance To Ban Singapore Users From Crypto Trading And Buying On Its Global Platform
[3] Binance Earns More Than $20,000 per Day Overcharging on Transaction Fees
[4] popular exchange extortion and blackmail
[5] Re: Centralised Exchanges are the Biggest Enemies of Bitcoin
[6] Goodbye, privacy, goodbye, it was nice while it lasted.
[7] When Crypto-Exchanges Go Broke, You’ll Lose It All
[8] Re: Newbies: Don't use centralized exchanges!

Instead, exchange decentrally.

We encourage the use of decentralized exchanges such as Bisq (or others) that operate transparently. There's no KYC, no danger from centralized exchanges' hacks, no oppression by a third party; it's as private, secure and censorship-resistant as it could be. Escape the arbitrary ruling enforcement of the corrupted Binance, Coinbase, KuCoin etc., today!

You defend your rights the moment you start using it. Educate yourself: Why Bisq exists.