Pages:
Author

Topic: No choice but to use the unavoidable middle man, the exchange companies. (Read 857 times)

hero member
Activity: 2688
Merit: 588
Not necessarily have to stay away and stop using them because for several months I was using P2P services and have not encountered any problem (maybe now) so I don't have a reason to decline their services. For at least that we are sure that was the right person that we are transacting with, it was safe. But we are doubtful, of course, why we should continue the transactions. It is in our hands to decide if this is safe or not.
Yeah, paying some fees for the middleman is not a big deal especially if we assure that the transaction is safe, much more if involves huge amounts.
P2P services can't be used for all the operations. Yes, you can use a P2P service if you are about to sell your cryptocurrencies for fiat or buy cryptocurrencies using fiat, but when you want to trade, you will need to use an exchange, especially if you are a day trader who buys and sells different cryptocurrencies on a daily basis. One could use decentralized platforms but there is an issue of liquidity and DEXs also don't offer a lot of features.

So, a day trader will eventually need to use the services of a centralized exchange, and they will need to verify their identity for that. I know that some people don't like the concept of doing KYC verification and want to stay away from it, but there comes a time when you don't really have a choice.
hero member
Activity: 2324
Merit: 513
Catalog Websites
Using P2P cryptocurrency platforms users can buy sell and exchange cryptocurrencies directly with other users without the need for a broker or other intermediary. Transactions are performed directly between two parties and the P2P platform acts only as a facilitator. But it is important to note that P2P transactions can be risky as there are no intermediaries to ensure the security of transactions. Therefore it is important to take security precautions when using P2P cryptocurrency platforms, such as checking the reputation of the seller or buyer before making a transaction so as not to fall into the trap of fraud. Cryptocurrency P2P can be more difficult to use as it requires a bit more technical knowledge to trade safely.
But they exchange inside the exchange itself which serve as the platform. Well, the transaction happens between both users and there is always the need to make it done through the platform. That's why there's a need for an intermediary. However, you're right with that, the platform itself plays like the facilitator only and the ones transacting there are free to do the transactions on their own and have themselves agree with the transcations they do.
hero member
Activity: 1470
Merit: 555
dont be greedy
Individuals who are overly naive can indeed jeopardize themselves, including those who staunchly oppose centralized systems. It is worth reiterating that I am not aligned with either side of the spectrum (centralization or decentralization). However, as of today, transactions conducted within decentralized systems have not yet matured. Bitcoin, for instance, emerged 14 years ago, while banks have been in existence for six centuries.

Banks have reached a level of professionalism where every transaction process can be automated, prioritizing a high level of security. As a trade-off, our data is entirely held by the bank, which increasingly assumes the role of our financial custodian.

On the other hand, in a decentralized system, when engaging in peer-to-peer transactions, one must exercise great caution to ensure that the counterparty will not abscond after receiving our funds upfront. Instances of such nature are prevalent, and it is not exceedingly difficult to trace them, as occasionally events unfold contrary to our wishes. It is quite common for fraudsters to exploit vulnerabilities within this decentralized system.

In essence, regardless of your preferred system, ensure that you can maximize its benefits to safeguard your financial well-being from fraud. Always have both Plan A and Plan B ready in case of deviations from agreements with your business counterparts.
sr. member
Activity: 1204
Merit: 270
Hire Bitcointalk Camp. Manager @ r7promotions.com
Using P2P cryptocurrency platforms users can buy sell and exchange cryptocurrencies directly with other users without the need for a broker or other intermediary. Transactions are performed directly between two parties and the P2P platform acts only as a facilitator. But it is important to note that P2P transactions can be risky as there are no intermediaries to ensure the security of transactions. Therefore it is important to take security precautions when using P2P cryptocurrency platforms, such as checking the reputation of the seller or buyer before making a transaction so as not to fall into the trap of fraud. Cryptocurrency P2P can be more difficult to use as it requires a bit more technical knowledge to trade safely.
legendary
Activity: 2716
Merit: 1102
Leading Crypto Sports Betting & Casino Platform
To be honest, I also prefer using intermediary services rather than p2p exchanges without intermediaries, I don't feel safe with p2p trading, especially with internet exchanges. Even when dealing with large amounts of money outside, I even ask for an intermediary when trading because any risk can happen to us. Because when it comes to money, everyone's greed arises and they are willing to do anything to get it. So the middleman is really indispensable, IMO.

The opinion you are giving is not bad, but you also need to make sure that the intermediary has a truly honest nature because the intermediary can also have a greedy nature when he sees that there is more money that he has to handle for the other party. This means that these intermediaries must also be considered very carefully so as not to trap the owner of the money, the same goes for P2P exchanges, which not all of them have to be trusted.

But there are one or two of the several P2P exchanges currently available that can be trusted so using a P2P exchange is also not wrong for this option as long as the exchange is very well known and really safe. The point is that the option of choosing an intermediary and also the option of choosing a P2P exchange must be researched together so that you don't get trapped when making large transactions.
hero member
Activity: 1960
Merit: 537
Leading Crypto Sports Betting & Casino Platform
Not necessarily have to stay away and stop using them because for several months I was using P2P services and have not encountered any problem (maybe now) so I don't have a reason to decline their services. For at least that we are sure that was the right person that we are transacting with, it was safe. But we are doubtful, of course, why we should continue the transactions. It is in our hands to decide if this is safe or not.
Yeah, paying some fees for the middleman is not a big deal especially if we assure that the transaction is safe, much more if involves huge amounts.

To be honest, I also prefer using intermediary services rather than p2p exchanges without intermediaries, I don't feel safe with p2p trading, especially with internet exchanges. Even when dealing with large amounts of money outside, I even ask for an intermediary when trading because any risk can happen to us. Because when it comes to money, everyone's greed arises and they are willing to do anything to get it. So the middleman is really indispensable, IMO.
hero member
Activity: 2212
Merit: 670
Signature designer - start @$10 - PM me!
Even P2P transactions require some sort of middleman; how are you going to pay for the bitcoin you're purchasing?

If you mean banks, that is a specific need because only they can digitize cash. In this case, @op specifies the definition of the term "middleman" as not being the bank itself (unless they also provide recommended bitcoin traders directly).

And like I said before that "trust" is the concern. When it comes to making transactions on the internet, at least it is easier for users to trust centralized exchanges because they are regulated, or p2p exchanges where they have a list of verified traders and are considered capable of resolving disputes.
hero member
Activity: 3010
Merit: 666
Not necessarily have to stay away and stop using them because for several months I was using P2P services and have not encountered any problem (maybe now) so I don't have a reason to decline their services. For at least that we are sure that was the right person that we are transacting with, it was safe. But we are doubtful, of course, why we should continue the transactions. It is in our hands to decide if this is safe or not.
Yeah, paying some fees for the middleman is not a big deal especially if we assure that the transaction is safe, much more if involves huge amounts.
hero member
Activity: 462
Merit: 767
Instant cryptocurrency exchange with own reserves!
Indeed, you cannot deny the middleman's importance when dealing with an anonymous person on the internet. Reputation is a key factor there. If you can build a solid online reputation, you will likely get the payment or product first. This applies only to public forums like BitcoinTalk and hack forums. Still, this forum has middleman services to eliminate the possibility of scams.

The fact is, forum middlemen do not ask for your private information like your Real name, Identity or your electricity bills. But when you deal with some specific platforms like Binance and other centralized platforms, you compromise your private information.
I agree with you. Moreover, though, it is best to remember that there are different system that different middlemen use. I remember when I hired a middleman for a quick transaction and they never asked me to provide any personal information, everything was strictly about the transaction and anonymity that both the seller and I wants to maintain. On the other hand, I have heard some stories wherein their middleman asked for some private information that made me reluctant to proceed with the transaction but it turns out it was not a scam and the middleman was only following a system they've been practicing for long.

Actually, it's your choice to choose a middleman. If you know a middleman will ask for private information, I suggest everyone avoid such a service. Centralized exchanges, for example. You already know that if you want to do any transaction through their platform, you must verify your account with your personal information, which you may not want to share. You can ignore them and look for an alternative. The alternatives are narrow, but there are always some alternatives. If you see there are no alternatives, here is the business opportunity as well. You can create an alternative for people who like to remain anonymous.
legendary
Activity: 2576
Merit: 1252
Leading Crypto Sports Betting & Casino Platform
You can not eliminate the middle man in businesses, especially in this digital age, be it fiat or cryptocurrencies, because they have come to stay. Big exchanges like Binance, are cashing in on being the middle man in businesses, an unavoidable indirect business associates, in your face, waiting for you to go through them.
Certain cryptocurrencies such as bitcoin are able to eliminate middleman technically, whereas in this case it is a user's need to adjust to business preferences, especially because cryptocurrencies must really pay attention to the level of trust of the second party.
As innovation develops in the crypto industry, the role of third parties can also be built into code which is usually called a smartcontract, although some of these sometimes have serious vulnerabilities that cause greater losses.
Theoretically, you can eliminate the middleman; however, in practice, it's not as easy as it sounds. Even P2P transactions require some sort of middleman; how are you going to pay for the bitcoin you're purchasing? Unless we're talking about a physical transaction with cash in hand, which isn't something that can be deemed particularly safe, I don't know about others, but this whole decentralized movement sounds too inconvenient to me, especially if you're new to cryptocurrencies and trying to make your first purchase. For us, who already hold some coins, the transition is a lot easier.

Unfortunately, whether we like it or not, exchanges are convenient and are used by a large percentage of the cryprocurrency community.
It serves its purposes. You may also choose decentralized exchanges but issues arise sometimes. On my end I am fine using eitherway but I do see the advantage of this ‘middleman’. It somehow gives me the assurance that I will get back with my funds even if someone would try to run with it ‘coz of procedures. Also, we have no other choice; cryptocurrencies are still not yet accepted to most of the countries therefore we would still be needing to convert our holdings to fiat everytime we would be buying something in local markets and to merchants. There are reputable ones we can trust if you’re that worries but since we are talking about centralized ones in this industry, expect higher transaction rates and delays in some instances due to block confirmations. Using it is like paying extra for convenience I guess but it will still never be advisable to store wealth on this platform ‘coz if anything would happen, your fund will be for sure at risk. Take FTX as an example for this one. This is not to generalize but it would be better if we would all be taking extra cautions of it to avoid worse situations. As long as adoption of this industry is still on roll, then we indeed have no other choice but to interact with third party platforms.
hero member
Activity: 1680
Merit: 845
You can not eliminate the middle man in businesses, especially in this digital age, be it fiat or cryptocurrencies, because they have come to stay. Big exchanges like Binance, are cashing in on being the middle man in businesses, an unavoidable indirect business associates, in your face, waiting for you to go through them.
Certain cryptocurrencies such as bitcoin are able to eliminate middleman technically, whereas in this case it is a user's need to adjust to business preferences, especially because cryptocurrencies must really pay attention to the level of trust of the second party.
As innovation develops in the crypto industry, the role of third parties can also be built into code which is usually called a smartcontract, although some of these sometimes have serious vulnerabilities that cause greater losses.
Theoretically, you can eliminate the middleman; however, in practice, it's not as easy as it sounds. Even P2P transactions require some sort of middleman; how are you going to pay for the bitcoin you're purchasing? Unless we're talking about a physical transaction with cash in hand, which isn't something that can be deemed particularly safe, I don't know about others, but this whole decentralized movement sounds too inconvenient to me, especially if you're new to cryptocurrencies and trying to make your first purchase. For us, who already hold some coins, the transition is a lot easier.

Unfortunately, whether we like it or not, exchanges are convenient and are used by a large percentage of the cryprocurrency community.
legendary
Activity: 3542
Merit: 1352
Cashback 15%
I believe that most business owners will prefer to transact money transfers with their customers directly without using an exchange, that will be a third party, and you'll have to pay this third party or middle man money for his services, whether you like it or not. I also believe that nothing beats transacting money directly with your clients or customers, no third party whatsoever. One of the reasons why I like bitcoin is that it's decentralized, and you can do a P2P transaction with another bitcoin holder without any exchange being involved. But for convenience, transparency and scams that are associated with P2P, you don't have much choice but to patronize the services of these exchanges.

You can not eliminate the middle man in businesses, especially in this digital age, be it fiat or cryptocurrencies, because they have come to stay. Big exchanges like Binance, are cashing in on being the middle man in businesses, an unavoidable indirect business associates, in your face, waiting for you to go through them.

Indeed, you cannot deny the middleman's importance when dealing with an anonymous person on the internet. Reputation is a key factor there. If you can build a solid online reputation, you will likely get the payment or product first. This applies only to public forums like BitcoinTalk and hack forums. Still, this forum has middleman services to eliminate the possibility of scams.

The fact is, forum middlemen do not ask for your private information like your Real name, Identity or your electricity bills. But when you deal with some specific platforms like Binance and other centralized platforms, you compromise your private information.
I agree with you. Moreover, though, it is best to remember that there are different system that different middlemen use. I remember when I hired a middleman for a quick transaction and they never asked me to provide any personal information, everything was strictly about the transaction and anonymity that both the seller and I wants to maintain. On the other hand, I have heard some stories wherein their middleman asked for some private information that made me reluctant to proceed with the transaction but it turns out it was not a scam and the middleman was only following a system they've been practicing for long.
sr. member
Activity: 588
Merit: 338


I used a centralized exchange and was KYC'ed there without knowing these risks. This article explains why you should avoid centralized exchanges and banks. I understand that we have very limited options out there. But if you care about your privacy, you have to be careful.

Indeed your post has captured the whole essence of starting this topic, because though I'm still new in bitcoin, I'd always wondered if exchanges were in the original plan of bitcoin. I know that bitcoin was created as a decentralized digital currency that guarantees privacy between two participants, so the emergence of exchanges in bitcoin transactions brings interference in the privacy. I've gone through the link that you shared and it concurs with your post which I totally agree with everything said, that besides making money off transactions, that they can also compromise their customers personal information, as you have mentioned.

Although the exchanges provide essential services in transactions because of the convenience they bring as being middleman, but we also need to have it in mind that our supposed privacy in bitcoin is not private with exchange involvements.
hero member
Activity: 462
Merit: 767
Instant cryptocurrency exchange with own reserves!
Indeed, you cannot deny the middleman's importance when dealing with an anonymous person on the internet. Reputation is a key factor there. If you can build a solid online reputation, you will likely get the payment or product first. This applies only to public forums like BitcoinTalk and hack forums. Still, this forum has middleman services to eliminate the possibility of scams.

The fact is, forum middlemen do not ask for your private information like your Real name, Identity or your electricity bills. But when you deal with some specific platforms like Binance and other centralized platforms, you compromise your private information.
Correct, on this forum the middleman only cares about being a middleman and as such their existence is not only tolerated but encouraged if you are making a transaction with an user you have never dealt before, however the middlemen that we find on the fiat system wants to know every single thing they can about you, and not only this robs you from your privacy, it also puts you at risk as those middlemen keep that information forever and they only need to be hacked once in order for your information to end up on the black markets.

Not only do they keep the data of the users. They sell them on the dark net at a cheap price. I have translated a thread of GazetaBitcoin, which is 12 years later and people still don't know to use Bitcoin nor what it's good for . I encourage everyone to read the original version, which was written by GazetaBitcoin. In this article, GazetaBitcoin provided the information and the sources as well that those centralized exchanges are involved in selling customers' private information. I would love to quote the part from that topic:

Second of all, as I was saying above, people lose their personal information by going willingly through a very dangerous process, named KYC. The exchanges don't care about their clients nor about their personal information. They only want to earn more money. They can be hacked by hackers which, besides stealing money, also steal the users' personal information, this being a very precious resource, which can be turned into even more money, especially when it is sold on Dark Net. A CNBC article describes how the hackers sell personal information for 1$ a piece (this information consisting, among others, in physical addresses of the users, their credit / debit cards, copies of their IDs etc.): Hackers are selling your data on the ‘dark web’... for only $1. A notorious similar case from the forum is the case of the Romanian bekli23, which, while pretending he is decrypting old BTC wallets, he was also asking users to send him photos with them while holding their IDs and other bills in hand. Obviously, he was not decrypting any wallet. But he was trying to collect personal information, most likely, for selling it on Dark Net, for the ridiculous price of 1$ per piece!

In some cases, the exchanges are the ones selling customers' personal information! And I'm not talking about small, shady exchanges, but about the big ones. Coinbase is one of the biggest exchanges and yet it was caught selling clients' personal data! A 2019 article, Coinbase Admits Its Former Data Provider Sold Client Data, describes how Christine Sandler, one of the exchange's executives, admitted the company sold the users' personal information. Having this example, do you think that other exchanges don't do the same thing? Just they weren't caught yet?

I used a centralized exchange and was KYC'ed there without knowing these risks. This article explains why you should avoid centralized exchanges and banks. I understand that we have very limited options out there. But if you care about your privacy, you have to be careful.
hero member
Activity: 1036
Merit: 674
But for convenience, transparency and scams that are associated with P2P, you don't have much choice but to patronize the services of these exchanges.

You can not eliminate the middle man in businesses, especially in this digital age, be it fiat or cryptocurrencies, because they have come to stay. Big exchanges like Binance, are cashing in on being the middle man in businesses, an unavoidable indirect business associates, in your face, waiting for you to go through them.
Nothing confines you to using a middle man in a p2p transaction.
It’s a matter of instance and convinces.

Remember, the design of cryptocurrency or bitcoin for shorts is to be non refundable and has an anonymous nature to it and it’s usage. Should you chose to forgo your anonymity, you might as well not need an exchange if your client or merchant is known. You meet up and transact physically. That works too.

Where it becomes an issue is with you, wanting the anonymity it provides but still, you don’t want the services of middle men or third party. You’ve got to wake the hell up because, that ain’t possible. You can’t eat your cake and still have it. You e hit yo make a choice on either to use third party services in exchanges and keep your anonymity or you forget the anonymity in the event that you have a means to meet the other party and transact physically.
hero member
Activity: 2170
Merit: 530

Indeed, you cannot deny the middleman's importance when dealing with an anonymous person on the internet. Reputation is a key factor there. If you can build a solid online reputation, you will likely get the payment or product first. This applies only to public forums like BitcoinTalk and hack forums. Still, this forum has middleman services to eliminate the possibility of scams.

The fact is, forum middlemen do not ask for your private information like your Real name, Identity or your electricity bills. But when you deal with some specific platforms like Binance and other centralized platforms, you compromise your private information.
Yes, especially now scammers are also using different strategies to target people. Some put an effort to build a fake exchange with fake volume. It will looks like they are having an actual supply when the reality is they don't have. I've experience that in a well known website because they have many shillers and many listing agents, they dm you if they see you are into trading.
hero member
Activity: 2884
Merit: 794
I am terrible at Fantasy Football!!!
I believe that most business owners will prefer to transact money transfers with their customers directly without using an exchange, that will be a third party, and you'll have to pay this third party or middle man money for his services, whether you like it or not. I also believe that nothing beats transacting money directly with your clients or customers, no third party whatsoever. One of the reasons why I like bitcoin is that it's decentralized, and you can do a P2P transaction with another bitcoin holder without any exchange being involved. But for convenience, transparency and scams that are associated with P2P, you don't have much choice but to patronize the services of these exchanges.

You can not eliminate the middle man in businesses, especially in this digital age, be it fiat or cryptocurrencies, because they have come to stay. Big exchanges like Binance, are cashing in on being the middle man in businesses, an unavoidable indirect business associates, in your face, waiting for you to go through them.

Indeed, you cannot deny the middleman's importance when dealing with an anonymous person on the internet. Reputation is a key factor there. If you can build a solid online reputation, you will likely get the payment or product first. This applies only to public forums like BitcoinTalk and hack forums. Still, this forum has middleman services to eliminate the possibility of scams.

The fact is, forum middlemen do not ask for your private information like your Real name, Identity or your electricity bills. But when you deal with some specific platforms like Binance and other centralized platforms, you compromise your private information.
Correct, on this forum the middleman only cares about being a middleman and as such their existence is not only tolerated but encouraged if you are making a transaction with an user you have never dealt before, however the middlemen that we find on the fiat system wants to know every single thing they can about you, and not only this robs you from your privacy, it also puts you at risk as those middlemen keep that information forever and they only need to be hacked once in order for your information to end up on the black markets.
hero member
Activity: 462
Merit: 767
Instant cryptocurrency exchange with own reserves!
I believe that most business owners will prefer to transact money transfers with their customers directly without using an exchange, that will be a third party, and you'll have to pay this third party or middle man money for his services, whether you like it or not. I also believe that nothing beats transacting money directly with your clients or customers, no third party whatsoever. One of the reasons why I like bitcoin is that it's decentralized, and you can do a P2P transaction with another bitcoin holder without any exchange being involved. But for convenience, transparency and scams that are associated with P2P, you don't have much choice but to patronize the services of these exchanges.

You can not eliminate the middle man in businesses, especially in this digital age, be it fiat or cryptocurrencies, because they have come to stay. Big exchanges like Binance, are cashing in on being the middle man in businesses, an unavoidable indirect business associates, in your face, waiting for you to go through them.

Indeed, you cannot deny the middleman's importance when dealing with an anonymous person on the internet. Reputation is a key factor there. If you can build a solid online reputation, you will likely get the payment or product first. This applies only to public forums like BitcoinTalk and hack forums. Still, this forum has middleman services to eliminate the possibility of scams.

The fact is, forum middlemen do not ask for your private information like your Real name, Identity or your electricity bills. But when you deal with some specific platforms like Binance and other centralized platforms, you compromise your private information.
legendary
Activity: 1708
Merit: 1280
Top Crypto Casino

You can not eliminate the middle man in businesses, especially in this digital age, be it fiat or cryptocurrencies, because they have come to stay. Big exchanges like Binance, are cashing in on being the middle man in businesses, an unavoidable indirect business associates, in your face, waiting for you to go through them.



Unfortunately being a third-party company in a decentralized technology has become a very lucrative business, Satoshi envisioned an environment without the middleman man but the lack of trust between the two parties gives power to the middleman, the third-party system has been with us since time immemorial and unfortunately, it integrates in a decentralized exchange because of the lack of trust.

Honestly, I have more numbers of trades using a middleman than using a peer-to-peer I'm sure all of us here third parties will always be with us, we are so used to it, It applies in many industries it applies in Cryptocurrency.



Reason why we are using the third party application or platform because of it's convenience you can now easily sell or buy the coin you want through using other coin or using your fiat currency unlike going into different site with different service they are now adopting the use of third party applications to make sure their users easily use their platform. Also new comers surely will embrace this too because of recommendations of experienced people and being known with their service.  Or else you want to use the old school.transaction where you really meet people to exchange your coins which is more.hassle and risky because you don't know the person you are dealing with at all.
hero member
Activity: 1666
Merit: 453
I believe that most business owners will prefer to transact money transfers with their customers directly without using an exchange, that will be a third party, and you'll have to pay this third party or middle man money for his services, whether you like it or not. I also believe that nothing beats transacting money directly with your clients or customers, no third party whatsoever. One of the reasons why I like bitcoin is that it's decentralized, and you can do a P2P transaction with another bitcoin holder without any exchange being involved. But for convenience, transparency and scams that are associated with P2P, you don't have much choice but to patronize the services of these exchanges.

You can not eliminate the middle man in businesses, especially in this digital age, be it fiat or cryptocurrencies, because they have come to stay. Big exchanges like Binance, are cashing in on being the middle man in businesses, an unavoidable indirect business associates, in your face, waiting for you to go through them.



You know what you're saying is a matter of choice; no one is forcing you if you don't like something; it's up to you if you want to use a third party or not. It's that simple to understand. Of course, if we use our common sense, when we use fiat, it automatically has a tax, but with Bitcoin or cryptocurrency, there is none because you will go through its P2P features.

So it's more convenient to use, and many people have proven it in the field of cryptography, and you know that. Just as an example of what I'm experiencing here, when I do a transaction, I always only use p2p through Binance, and I don't have any problems with this setup of converting the profit I get to cryptocurrency, to be honest.
Pages:
Jump to: