Topic: People are giving too much importance to exchanges - page 7. (Read 1282 times)

By creating a relationship between the two, exchanges allow people to trade in bitcoins. Traders always feel panic due to the bankruptcy of some exchanges. It's no surprise that Bitcoin is a separate exchange process. If you are a bitcoin user, sell your coins without keeping them long term. Then there is nothing to worry about for you. It is normal for prices to fluctuate in the Bitcoin market. But a skilled bitcoin holder understands how to be self-sufficient in this process

Yes actually, the centralized platform is actually a thing this day and where actually giving a lot when it comes to investments, information, etc.

Centralized exchanges like Binance, and FTX still has their use since it was an easy way to exchange, buy or sell cryptocurrency, we witness the fall of FTX and it really affects how exchanger is treated and affects the market as well. Bitcoin is different from Binance but still connected since that is the platform where you can buy cryptocurrency.

The centralized platform could easily freeze our funds since they have all the control over our savings, you putting your investments on an exchanger is a bad thing, We don't know but there is always a possibility that Binance could fall I mean it's still a business and investing on cryptocurrency is a risky investment. Most likely this is just another case that is going to ride for a long time but doesnt really make an impact.

Exchanges are the FIAT gates. The truth is, there isn't much you can do with crypto other than trading. If people can't do that, what are they gonna do? Yes they can buy certain stuff with crypto but the adoption is nowhere near the use of the credit cards. Most people use crypto to make more FIAT and because of that they hold most of their crypto on the exchanges. Once a big exchange starts giving bad signs, people naturally panic and dump their positions so they can get back to FIAT quickly...

Exchanges play an important role in the price dynamics of Bitcoin and other cryptocurrencies. The easy accessibility, user-friendly interface, and interactive nature of exchanges have really contributed to increasing trading activity and acceptance in the cryptocurrency market. This increased activity can impact the dynamics of supply and demand, which, in turn, can affect the price of Bitcoin. So as recent concerns and regulatory actions surrounding exchanges like Binance or Coinbase affect market sentiment, it is likely to lead to short-term price volatility. It emphasizes the importance of prudence and caution when choosing and using exchanges to trade or store cryptocurrencies.

Although Exchange and Bitcoin are two different things, they are closely related to each other. When negative events occur in the crypto space, the price of all other coins, including Bitcoin, will continue to fall down. Even though Binance US exchange attacked by SEC Lawsuit but Binance is still fine. If any company wants to conduct business in USA, they have to do business according to some rules. In this concern Binance US may get temporary restricted for investigation. it is not unusual to have some effect on Bitcoin. As we have seen when FTX falls, Bitcoin prices continue to decline massively.

I want to think like you, but sometimes the truth isn't like that. When there is negative news about Binance, bitcoin drops because many of the users do not know how to store bitcoin. They don't use cold wallets or anything like that. Therefore, when they receive negative news, they exchange bitcoin and withdraw their money from the exchange. In this case, we cannot blame them. At the same time, this situation will never be what we expect. Because the number of knowledgeable bitcoin users is really small.

If there were things we wanted, bitcoin would be the currency in the world right now. Unfortunately, some things don't happen right away.

I think we need to get past the time when people hold their coins on centralized exchanges until everyone understands how dangerous it is. I use centralized exchanges because it's convenient, but I wouldn't keep significant amounts there for a long time. The current situation with regulator lawsuits is a separate issue, but that doesn't change the fact that exchanges are a bad place to store your coins.

We're in it with you, op. I've never user FTX and perhaps used Binance many years ago a couple of times, and yet here we are. The problem is that crypto exchanges are a big part of the infrastructure, considering that one can rarely pay for things directly in Bitcoin, and that many people do trading which requires exchanges. So it makes sense that the panic spreads when a big exchange is facing troubles. But it's temporary, and Bitcoin is already bouncing back. There isn't much we can do about it, and the price could go down for a different reason if exchanges didn't matter.

In a word, bitcoin is like currency but decentralized, and exchanges are like banks. Bank failure does not mean the monetary system will collapse, and neither does bitcoin. But exchanges are also an important part of the market, without them, we would have quite a bit of difficulty in accessing investment and liquidity. Because this market is not only bitcoin, and in the future, everything will develop even more.

Bitcoin is entirely different from an exchange in many ways that they both were supposed bot to be compatible together because bitcoin is a decentralized digital currency while the exchanges are centralized platforms for cryptocurrency exchanges which means the exchanges perform both bitcoin transactions and other cryptocurrencies as well, you could also discover that there are many support coins from these exchanges that are nothing but shitcoins, scam memecoins promotions and so on.

Well you don't, a lot of others who don't give a damn about hardware wallets do, or exchanges in general. As much as you've not used centralized exchanges, a lot of people have or are still using them. It also doesn't help that Binance is generally a big player in the scene, though I guess with how the FTX fiasco went on, I'm hoping the effects are relatively lesser, compared to back then since I do hope people wouldn't be dumb enough to repeat the same thing. Again. After just a few months ago of basically the same thing.

Well, hopefully the current trend continues. Price only dropped for what seems to be a day? Maybe even half a day only? Hope it proceeds even if Binance ever actually goes under.

Of course exchanges and BTC are different things, but I must say that the value of an asset is determined by the investment of the users, and unfortunately the value of BTC is also determined by the investors and most of the investors are using those exchanges for storing and trading Bitcoin. So any of those exchange if faces hard times then the price of Bitcoin will get dumped because of panic created by the new media.

The social media and news is now a days accessible to everyone and in the world of crypto-currencies most of the investors mainly rely on the news. The whales know that with any bad news market could crash and that's why they start bulk selling the crypto-currency which results in huge dumps. The ones who are hodling their coins for long time will surely get affected because of that dump, but such dumps aren't permanent and the market recovers as soon as the fear is gone.

Binance is a huge name in the world of crypto-currencies and any bad news regarding it could disrupt the whole market. The influence of Binance is way higher than FTX used to had, because it's the number one crypto-currency exchange by volume as well by number of users. If Sec goes against it and it somehow quits its operations in U.S then for short time panic could take place and the market might get another dump with that fear. No body can control such dumps because the ones who hold the asset are agreed to sell it for cheaper rate.

Folks, here's a wise soul giving us a reality check. It's true, our crypto community often conflates exchanges with Bitcoin itself. A blip in an exchange doesn't equate to a disaster in Bitcoin.

FTX, Binance, or whatever exchange - they're just platforms for trading. Their drama shouldn't cause us sleepless nights. The BTC network remains untouched by their misadventures.

You know what they say, "Don't hate the player, hate the game." But in this case, it's more like, "Don't hate the game, hate the drama." Binance in hot water? That's as impactful on Bitcoin as a sneeze is on global weather patterns.

Exactly, if people are hold their coins in non custodial wallets, any exchanges bankrupt will not give any impact for them. There's might be a short term dump because the exchanges' hot wallet are stolen, which is the money Binance have make it. But this case it's just a sue, so no one is lose their money.

Even Bitcoin is got banned in many countries, it doesn't even stop people to use it.

It will always happen like that as long as the exchange is still there and we will never know tomorrow or the day after tomorrow which exchange will suffer the same fate as FTX. Regarding bitcoin, of course not only because of the collapse of FTX which made the price go down, but it was also influenced by several other reasons and luckily you don't keep assets in FTX.

That's why keeping bitcoin assets on exchanges is not safe at all and we will be faced with problems when those exchanges go bankrupt or something else affects us losing assets in bitcoins, this reminder has been conveyed for so long by people in forums and even though many people ignore it.

The two are clearly very different and the relationship between the two is only tied when people trade bitcoins on an exchange. So when one of the exchanges goes bankrupt it doesn't mean that bitcoin will follow completely, but because exchange users are too panicked and sell their bitcoins resulting in market chaos and making bitcoin corrected, but if they calm down and try to move bitcoins to the wallet it will return to normal, this answer is especially when attributed to bitcoin's decline as a result of exchanges going bankrupt.

They are all part of the market, so there is no denying the influence on the price of BTC or other cryptos after the information. For me in general, each time is different, we will have a better view of the issues that have been and are happening in the market, the crypto environment is still too small in front of news like this, sometimes I think everything It's really not serious, but the way many people are overdoing the problem makes the mentality of the crowd follow, which leads to a negative situation at that time. However, if I look long-term into the future, I am completely convinced that BTC will achieve good expectations.

These top exchanges are the ones that significantly affect bitcoin's price because these are trading places, they unite day traders, investors, whales, etc, all in one place. So, when something bad happens, especially around as popular and influential exchange like Binance, things can't go well. Logically, in cases like this, people should buy more and more bitcoin and withdraw them but the opposite happens, maybe people sell it to withdraw fiat as soon as possible.

By the way, that's the thing you have to keep living with. Bitcoin is very volatile, if you want to keep in securely, you have to keep in mind that it will go up and down and for example, it may stay down for months. You shouldn't rely on your bitcoins unless you own a lot where monthly 2-3K USD worth of bitcoin withdraw will not harm your budget. But if you want to save all of your savings in bitcoin and you are dependent on those savings, then, you better start work to take care of monthly bills.

I understand where you coming from, we are the one that gave exchanges like Binance and Coinbase the power they have today, we the investors are the ones that failed to learn what Bitcoin is about and how to use Bitcoin the proper way, Bitcoin as a decentralized digital currency is not meant to be on any centralized exchanges in the first place.

I do think that the right place to trade Bitcoin is not Centralized exchanges but the Dexes in the crypto space, we gave all those exchanges like Binance the success and power they possessed today.

We, the investors are using Bitcoin wrongfully, with the ongoing sue on these exchanges, some people still don't give a fk about the assets they left on these exchanges, that's crazily how much crypto investors trust those exchanges, and it's why I will never feel pity for any one that lost fund to any centralized exchange, because they don't deserve my pity.

I have not used FTX myself and have no experience with it.  Bitcoin and exchange are two different entities, Binance exchange is very popular from other exchanges.  Binance Exchange portfolio is very good and I have been using it for many years.But unfortunately it seems to me that these are connected by customers who trade bitcoins on the exchange, many may realize that the problem is not with the exchange.  Follows BTC only for its usefulness.As many people know about the incident involving SEC and Binance, we have also noticed a downward trend in BTC due to this.But I think it all depends on the investors.

Exactly. Me too, I personally assume One exchange will not be a benchmark and considered a sign of the downfall of the entire crypto ecosystem. Yes. It is all the more savvy and exhilarating to witness the resilience and maturity of BTC traders and holders in responding to the latest news involving the SEC and Binance means Resilience and cool head that has been testament to and bodes well for the future, demonstrating a growing understanding and belief in the market's ability to recover and continue business as usual.