Topic: People are giving too much importance to exchanges - page 10. (Read 1282 times)

This clearly a case of FUD reaction by mostly traders. If we look at the this exchanges mostly centralized exchanges we would find out that most of the coins stored on them are for traders that utilizes the features like spot trading, future trading, margin trading and its likes. And binance been the largest or biggest exchange it is possible that it will have more traders on it. And we all know traders aren’t investors that would hold on to their coins or withdraw them to a proper wallet. The traders will be predicting a price drop in bitcoin and the rest as CZ is reported to be sued, and then they also would just sell off their funds to either fiat or stablecoins.

The continuous increase of different trading features on exchanges will definitely make it hard for traders mostly daily traders to take off their funds off the exchanges. Also if the many people do not only see the use of bitcoin as payment method or an asset that can be stored but a currency for different trading purposes and without decentralized exchanges matching the number of different trading features on centralized exchanges, sadly many will continue to hold there funds on platforms like binance

Of course the two are different between exchanges and Bitcoin but the price is determined by the market which is called the exchange that provides this but bitcoin will go with that flow because it depends on how the market reacts with its ups and downs.

Your savings may go down the same thing I also have a savings account now in bitcoin and it has gone down due to the news the SEC attacked Binance to sue it but my bitcoin numbers won't change with the influence of this news only in the declining dollar value I think this is very reasonable if we hold in a situation of being in a lot of FUD news it would be better to stay holding.

Today our investment is down but one day it will recover again with even higher bitcoin prices.

Well spoken @op, bitcoin and exchanges are two different entities, but unfortunately, they are linked by customers who trade bitcoin on the exchanges, understand that the problem is not with the exchange themselves, but with the customers who panic sells their bitcoin when any major issue arrives, like in the FTX saga last year..

If bitcoin holders, who are also customers of this exchanges can come to their senses, and choose withdrawing their bitcoin to their private wallets rather than panic selling whenever there is a negative news, then the negative impact of the news will not at all, show on the price of bitcoin.

I am certain this is due to fud. People are selling off due to.fear of the unknown and this in turn is putting pressure of the price of BTC. But they fail to understand that even if Binance falls today, that will not be the end of crypto. I hope they understand this and stop this unnecessary panicking

you have been around long enough to know this stuff

firstly never measure your "SAVINGS" based on the volatility of the market price because the market price is indeed controlled by exchanges..

instead if your a long term holder stop caring about the market price. and just remember its volatile..
instead remember this simple fact
there is always a periodic BOTTOM that the markets refuse to sell below. set that as your "savings value" per coin per 6 month period

the bottomline value is almost like the guarantee minimum return.
yes the speculative market can swing up above this and you can get temporary opportunities to sell higher then the periodic bottom. but if you are not in a selling mood dont care about the temporary prices

for instance late 2022 saw the bottom at $15k
early 2023 saw it at $17k (even when temporary market prices were over $20k)
now the bottomline value is over $20k (even when the market prices are over $25k)

knowing you would get a minimum of $15k late 2022 and now $20k in 2023 is much more relaxing though then daily worrying about the daily speculation and volatility of the markets that sit above the bottomline value

if you want to calculate the bottomline value.. take about 6 months of average network hashrate.
calculate the cheapest most efficient asic to work out how many asics are needed, how much electric and the cheapest effective electric of prominent mining farms. to then calculate the cost to mine most efficiently on the planet per btc

that there is the effective bottomline cheapest way to acquire bitcoin on the planet(below market rate) meaning no one wants to sell below that amount because no one on the planet can acquire bitcoin via mining, otc trading or CEX trading to get bitcoin any cheaper. so no one on planet will sell below that. which is where the bottomline support steps in to re-inforce that cex markets never correct all the way down to that level

once you know the number. you can then be rest assured that unless bitcoin really breaks you have a minimum value for your "savings" and anything else the speculative market wants to sell for is a bonus above the savings

Everything has its place. There are people who believe so much in exchanges to take care of their assets security more than they think they can do for themselves, and as such, most people save their coins on centralized exchanges with hope and believe that they are the best option. Which is the worst idea anyone can have. A true Bitcoiner knows the value and benefits of self-custodial.

The price of Bitcoin always goes down based on the level of fudz, which is a cause against Bitcoin. The Bitcoin price is not controlled by anyone, but most times it can be manipulated, since the case of the SEC coming after Binance CEO is enough reason for non-believers to start panic selling, which can cause a drastic price dump, but this can only be temporary and not a permanent price.

But you shouldn't be considering your savings gone until you have sold them out entirely. So long as you still hold your coin, there is a higher chance and possibility of regaining everything that you have calculated to have lost when the bull market comes. That's why we are always advised to hodl strong in a bearish market and never to sell under panic.

Well, sure, the currency and the exchanges are separate. But the price of the currency is determined by a market, and that market is greatly influenced by a few such entities, like Binance and the like.

There shouldn't be exchanges used as wallet software in the first place, as you're not supposed to have an intermediary when using or buying bitcoin, but unfortunately many people (who partly define the price) don't get that.

The market is determined by sentiments, bearish and bullish sentiments of traders affect how the price changes. Binance are one of the biggest holders of Bitcoin, FTX had a large amount deposited with them, so it's only natural that the many holders of Bitcoin there would cause of a negative news on those platforms panic and that in turn that sentiment will affect the price.

In the long run as a BTC holder you should not be too worried. The effect of those news last for just a couple of days at best and the market corrects.

I would hope it would teach many not to deposit their bitcoins on centralized exchanges but that's not the case.

You're right — but what we think and want doesn't always reflect reality. The fact is, most of the cryptocurrency space at least for now is still largely speculation and not much people (at least yet) care about self-custody and self-sovereignty.

6 months ago, my savings went down because of the FTX debacle. I've never used FTX, I've never been a customer of this company, but my savings are in BTC, and because of that failure, BTC's value went down, and so went my savings.

Today, bis repetita. I've never used Binance. I've never been a customer of this company, but because the SEC sues Binance, BTC is down, and so are my savings, so I have a message to all bitcoiners out there.

Exchanges and BTC are 2 different things. One exchange going down doesn't mean BTC must follow.
Binance will disappear? I don't give a damn.