The reason why people are giving wayyy too much importance to exchanges is because people are lazy and do not want to claim responsibility for their own actions and especially, their own money. Not everyone is comfortable with the idea of "being their own bank" until something bad happens to convince them otherwise. And eventually it will happen, whether in the form of a bank unjustly freezing their accounts or the government plainly confiscating their money on whatever ground they deem fit.
Its frustrating because we have all the decentralized and unregulatable ways to buy Bitcoin or other cryptocurrency. But people cannot shake off the feeling that they need a third party to hold their money for them.
Topic: People are giving too much importance to exchanges - page 2. (Read 1282 times)
If you are not interested in the exchange, you should not create this topic you should continue to hold your bitcoins. Everyone has the right to choose, you can't force everyone to follow your opinion. i'm not a fan of centralized exchanges, but I don't hate them either, but to be fair, they're not as bad as you say. they really have many utilities and benefits for us, I think without them, the crypto industry wouldn't be as strong as it is today.
We don’t need to hate centralized exchanges as without them, decentralized exchanges will never come to its existence. So let just people decide whether they’ll use the centralized or decentralized ones. After all it’s their coins they are going to spend. However, I only use centralized exchanges when trading but never when it comes to long term storage of my coins. That is to protect my coins from its sudden loss especially if they’re place on centralized exchanges. 
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.
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.
Your savings, if expressed in bitcoins, remained the same. And if you choose to look at the fiat value of your holdings, then you understand that this is only possible when there are ways to exchange btc to fiat, i.e. exchanges.
So I don't get why would you act surprised if events like the collapse of one of the major exchanges have an effect on Bitcoin's price.
And I wouldn't compare Binance to FTX. Unlike FTX, who were a bunch of scammers with no trace of any moral spine, Binance has a very good track record and so far they acted very professionally, and despite being hacked a few times, no customer has lost any money.
The value of your coins goes up not because millions of people adopt Bitcoin to pay with it for their morning coffee, it's because companies like Binance allow millions of people to quickly and conveniently invest in Bitcoin and trade it. Binance is responsible for a large share of total Bitcoin trading volume, so like it or not, exchanges will be a major factor for Bitcoin's price, until most of the trading volume will move to DEX, which might not even happen ever.
Let’s just face the reality that bitcoin price is easily affected by big factors around which includes the future of the big exchanges that have gained so much demand from bitcoin traders. Since exchanges like Binance have stored large number of bitcoin, so if Binance suddenly becomes insolvent, those large amount of bitcoin owners will be greatly affected seeing their bitcoin vanish like thin air. And worst, bitcoin price instantly drop that made its owners unable to sell for profits. 
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.
Exactly. People only see cryptocurrency as more on speculations so expect that they will not stick to the principle of decentralization but still prefer to use centralized exchanges because for them that is the trend and the right move for them. Hopefully in the future, things may change and decentralization may become a real thing so that people won’t never see it as speculations only.on what are the things you would really be dealing is really depending on your preference and risks management since not all would really be that mindful that much in this regard and this is why they dont really care if
they would really be deciding on putting up their funds on an exchange platform on which its true that it isnt really ideal on doing so considering that the risks on losing those funds is high compared when its been holded up on your own non-custodial wallet.
Centralized exchanges wouldnt cease to exist considering that it would be having that kind of function which it do connects out the conversion of crypto into fiat on which this is something that cant really be seen on DEX and this is the main feature on why CEX is really having that demand.
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.
Exactly. People only see cryptocurrency as more on speculations so expect that they will not stick to the principle of decentralization but still prefer to use centralized exchanges because for them that is the trend and the right move for them. Hopefully in the future, things may change and decentralization may become a real thing so that people won’t never see it as speculations only. 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.
Unless bitcoin will become a global currency, the speculations will certainly end there. And people will prefer more self-custody and self-sovereignty rather than completely centralized and continue to miss opportunities offered by decentralized coins. However, it could be a long process before realization takes place and there will be consistent cases of study on decentralized cryptocurrency before the centralized government will side them. Yes, exchanges and bitcoin are two completely separate things. But it affects investor psychology, anyone is bewildered when an exchange has Fud, speculators will immediately take profits or cut losses to minimize risks.
Although they are a different thing, as long as fiat remains the main method of payment, then people will need exchanges to obtain Bitcoin.
There's no way around it. The moment Bitcoin is used for most goods and services will be the time when exchanges are not needed any more.
You don't need an exchange to buy Bitcoin. At least centralized ones like Binance. There are a lot of P2P exchanges.
Yes, exchanges and bitcoin are two completely separate things. But it affects investor psychology, anyone is bewildered when an exchange has Fud, speculators will immediately take profits or cut losses to minimize risks.
Although they are a different thing, as long as fiat remains the main method of payment, then people will need exchanges to obtain Bitcoin.
There's no way around it. The moment Bitcoin is used for most goods and services will be the time when exchanges are not needed any more.
Yes, exchanges and bitcoin are two completely separate things. But it affects investor psychology, anyone is bewildered when an exchange has Fud, speculators will immediately take profits or cut losses to minimize risks.
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.
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.
A lot of what causes the change in the price is market speculation, and so naturally a decrease in the price due to SEC throwing down sanctions on Binance would definitely affect consumer sentiment on their investments that are on Binance, for example, and if I still had money on there I would have been rushing to get it out and off of the exchange. In this scenario you can see how a lot of people probably got all their coins off and sold right away. Just an example, I mean I definitely see where you're coming from but your personal feelings on current events wont change this haha
~snip~
The best way to defeat the fear and panic that comes from Exchanges (Centralized or SDecentralized) being attacked in the news is to keep your funds in your wallet. I believe this is why it gets repeated time and time again that if you keep funds in an exchange platform; it is not yours!>
Also, one exchange especially a reputable one going down is enough to cause fuds and force weak hands off their hodlings; it is only natural. Bitcoin is here to stay, bitcoin is going to be around for a very long time too.
Finally, i care about binance and other reputable cex haha; they are the safest source of p2p for me.
The best way to defeat the fear and panic that comes from Exchanges (Centralized or SDecentralized) being attacked in the news is to keep your funds in your wallet. I believe this is why it gets repeated time and time again that if you keep funds in an exchange platform; it is not yours!>
Also, one exchange especially a reputable one going down is enough to cause fuds and force weak hands off their hodlings; it is only natural. Bitcoin is here to stay, bitcoin is going to be around for a very long time too.
Finally, i care about binance and other reputable cex haha; they are the safest source of p2p for me.
Companies, like exchanges, come and go over time.
Bitcoin, on the other hand, is here to stay for the long term.
If you keep your bitcoin in your own cold wallet, it will be there tomorrow, and in the next few years.
If you trust your bitcoin with a third party, well, anything can happen, and you are not guaranteed to see it tomorrow, or in the next few years. The reason why the company doesn't have your bitcoins will be irrelevant, it can be many things.
Crypto-world is indeed flooded with centralized altcoins, isnt it? These newbies, clamoring for exchange stardom, ironically stray from crypto's original intent. Bitcoin, our founding father, aimed to bypass financial middlemen. But it seems that fresh coins care more about market monopoly and profits than preserving Satoshi's dream.
Even Ethereum's switch to Proof of Stake (PoS) has drawn flak, with fears that raising the staking minimum from 32 to 2048 ETH will concentrate power. The ascent of Centralized Exchanges (CEXs) over Decentralized Exchanges (DEXs) stirs debate. Yet, I contest its a sign of cryptos demise. Remember, Bitcoin, the decentralization lighthouse, still rules. Its soaring value could usher in more decentralized offshoots.
Even Ethereum's switch to Proof of Stake (PoS) has drawn flak, with fears that raising the staking minimum from 32 to 2048 ETH will concentrate power. The ascent of Centralized Exchanges (CEXs) over Decentralized Exchanges (DEXs) stirs debate. Yet, I contest its a sign of cryptos demise. Remember, Bitcoin, the decentralization lighthouse, still rules. Its soaring value could usher in more decentralized offshoots.
Exactly. Everything is heading off course. Crypto is slowly being taken to the hands of "Wall Street" players. Expect CEXs to become bigger and stronger than ever before. With centralization at stake, governments can do anything they want to control crypto use around the world. They can simply target CEXs and manipulate them for their own benefit. DEXs, and the other hand, are much difficult (or almost impossible) to control, rendering governments' efforts useless. However, these exchanges represent a small market share compared to their centralized counterparts.
You can still use crypto with a DEX even with government restrictions in place, but you won't get the same convenience as a CEX. I'm afraid the industry will move away from Satoshi's original vision in the long run. At least, not all hope is lost. As long as there's one decentralized cryptocurrency (mainly BTC), we should have nothing to worry about. Just my thoughts
This is why when it comes to risk management then it would really be that depending or according into your own approach on how you would really be handling your assets despite of this gradual dominance of government
on trying out to control on everything. Its inevitable i would say but its true that we could still get a hold of our Bitcoins without being known which this is the only thing we could really be that confident on.
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.
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.
The best way to defeat the fear and panic that comes from Exchanges (Centralized or SDecentralized) being attacked in the news is to keep your funds in your wallet. I believe this is why it gets repeated time and time again that if you keep funds in an exchange platform; it is not yours!>
Also, one exchange especially a reputable one going down is enough to cause fuds and force weak hands off their hodlings; it is only natural. Bitcoin is here to stay, bitcoin is going to be around for a very long time too.
Finally, i care about binance and other reputable cex haha; they are the safest source of p2p for me.
I use binance for a long time now, but with what is happening around between SEC and BINANCE I won't even recommended anyone leaving funds in exchange. but I noticed many are very comfortable with binance the interface is user friendly, so it will be kind of hard for many to master other exchanges in my opinion. Am just using them for P2P purposes nothing more and nothing less.
Binance will be the next FTX sooner or later it will be inevitable and will leave all the chickens who have funds inside speechless. Unfortunately the human being never even learns from the mistakes already made because he is greedy and then complains that he has been screwed ... fuck
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.
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.
I use binance for a long time now, but with what is happening around between SEC and BINANCE I won't even recommended anyone leaving funds in exchange. but I noticed many are very comfortable with binance the interface is user friendly, so it will be kind of hard for many to master other exchanges in my opinion. Am just using them for P2P purposes nothing more and nothing less.
Crypto-world is indeed flooded with centralized altcoins, isnt it? These newbies, clamoring for exchange stardom, ironically stray from crypto's original intent. Bitcoin, our founding father, aimed to bypass financial middlemen. But it seems that fresh coins care more about market monopoly and profits than preserving Satoshi's dream.
Even Ethereum's switch to Proof of Stake (PoS) has drawn flak, with fears that raising the staking minimum from 32 to 2048 ETH will concentrate power. The ascent of Centralized Exchanges (CEXs) over Decentralized Exchanges (DEXs) stirs debate. Yet, I contest its a sign of cryptos demise. Remember, Bitcoin, the decentralization lighthouse, still rules. Its soaring value could usher in more decentralized offshoots.
Even Ethereum's switch to Proof of Stake (PoS) has drawn flak, with fears that raising the staking minimum from 32 to 2048 ETH will concentrate power. The ascent of Centralized Exchanges (CEXs) over Decentralized Exchanges (DEXs) stirs debate. Yet, I contest its a sign of cryptos demise. Remember, Bitcoin, the decentralization lighthouse, still rules. Its soaring value could usher in more decentralized offshoots.
Exactly. Everything is heading off course. Crypto is slowly being taken to the hands of "Wall Street" players. Expect CEXs to become bigger and stronger than ever before. With centralization at stake, governments can do anything they want to control crypto use around the world. They can simply target CEXs and manipulate them for their own benefit. DEXs, and the other hand, are much difficult (or almost impossible) to control, rendering governments' efforts useless. However, these exchanges represent a small market share compared to their centralized counterparts.
You can still use crypto with a DEX even with government restrictions in place, but you won't get the same convenience as a CEX. I'm afraid the industry will move away from Satoshi's original vision in the long run. At least, not all hope is lost. As long as there's one decentralized cryptocurrency (mainly BTC), we should have nothing to worry about. Just my thoughts
~snip~
One thing about the Bitcoin market is that it always goes with the trend, which is why the price is always affected whenever there is bad news, just like you said about FTX. When you tell people that exchanges are not safe to keep your money on, people don't believe you. What happened with FTX should be a lesson to many.
People who do not learn will continue to deposit their money in exchanges because they believe it is safe and easy to transact with, which is why they constantly keep their money there.
One thing about the Bitcoin market is that it always goes with the trend, which is why the price is always affected whenever there is bad news, just like you said about FTX. When you tell people that exchanges are not safe to keep your money on, people don't believe you. What happened with FTX should be a lesson to many.
People who do not learn will continue to deposit their money in exchanges because they believe it is safe and easy to transact with, which is why they constantly keep their money there.
History repeats itself.
Mt.Gox should have been the only time when this happened, and people should have learned and realized the dangers of leaving your bitcoin in exchanges.
Instead, people continued leaving their bitcoin in exchanges and they kept collapsing.
This will continue to happen in the future as well.
Well , the only solution to what you just said is until people start holding their bitcoins on non custodial wallet so that the effect of any exchange will not matter too much to them. Secondly, users should use different exchanges to avoid any shock from exchanges
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.
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.
One thing about the Bitcoin market is that it always goes with the trend, which is why the price is always affected whenever there is bad news, just like you said about FTX. When you tell people that exchanges are not safe to keep your money on, people don't believe you. What happened with FTX should be a lesson to many.
People who do not learn will continue to deposit their money in exchanges because they believe it is safe and easy to transact with, which is why they constantly keep their money there.
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