Topic: Privacy enhancing strategy on centralized exchanges possible? - page 2. (Read 429 times)

You are right, but bitmover is also right. You are right if exchanging low amount of Bitcoin, but bitmover mentioned buying $200000 worth of bitcoin, this is what can be bought easily on binance with high trading volume and liquidity, but it might be difficult on Bisq. Currently, Bisq has a trading volume of $249,471.28 daily, and yet support not only Bitcoin. Getting $200000 worth of bitcoin on Bsiq can be difficult, although it is a means to achieve privacy while buying Bitcoin. What if someone want to buy $500000 worth if bitcoin. But, it will be good if people are supporting decentralized exchanges to also increase their trading volumes (I am not talking about those swap exchanges like ethereum or BNB based exchanges, but the ones that support Bitcoin like Bsiq and hodlhodl).

Trusting a third party to mediate between Bitcoin transactions goes against the idea of a trust less system which Bitcoin was created to be. Binance has a good reputation like some other centralized exchanges, but functions almost like a bank;
• Requires user data,
• Answers to the government and can submit your details to them,
• Can restrict users from transacting at any point in time, etc.

Platforms like bisq which are decentralized does not need any form of trust, you simply need to understand how Bitcoin works and what a multi sig wallet is.

Clean bitcoin are newly mined bitcoins, almost all circulating bitcoins are tainted already, but I get your point, it is Bitcoin that can not be rejected by other platforms. You can check this topic out to know more about tainted Bitcoin.

Well, being paranoid of our privacy will always have a way how to solve it.
That is a good idea that you have stated above, it should be buying from P2P exchange and then send to your hot wallet, and then to the bitcoin mixer service and next out to your hardware wallet which is the cold storage that you will use if you wanted to sell back to the centralized exchange that a clean bitcoin. However, if your country banned bitcoin, this is the best advice to them, and then you are giving them an idea of how to sell or convert their bitcoin to fiat.

Even though you can you can  from people in bitcointalk or some other  p2p , I think it is safer  for large values  to buy directly from an exchange. It is also better for swing trading, and certainly the only way to day trade.

I know that anyone can safely send 200,000 usd to binance and buy many bitcoins there. But would you trust any forum member such a high amount? Many trusted members may just get Val and exit scam. Binance won't,  because that isn't much for them.

I think there is space for both centralized and decentralized exchanges to exist.

Privacy is really the worse part when working in a centralized exchange. But at any time you can send your coins to a mixer and you can mitigate that problem.

Although, centralized exchanges are privacy invaders, just want to know what experienced members will comment about this.
Centralized exchanges are not for holding Bitcoin.

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Normally, the best to do is to buy Bitcoin on decentralized exchanges, or directly from someone on platforms like Bitcointalk while all means to protect oneself against scam is necessary for not to be scammed. I have seen this method as the most perfect way to buy Bitcoin. But, one thing comes to my mind which I do not totally know if privacy depriving or not.

Most people even the whales like to make use of centralized exchanges to buy and sell Bitcoin, I think it is as a result of centralized exchanges having high trading volume and liquidity if compared to decentralized exchanges that support buy and sell of Bitcoin. So, I will be making use of centralized exchanges and noncustododial wallet (Binance, Electrum and Trezor specifically) for this.

I have been using Binance for a while now, I know a lot about the exchange, I do not know if other exchanges can be like binance in what I want to explain. On binance, I can decide to open and account, use it to buy Bitcoin after verification, after I buy the Bitcoin, I can send it to a wallet like electrum, I can decide to delete my Binance account (in which all my data would be deleted along, although, it is what Binance indicated, but I do not know how true it is).

While my Bitcoin is on Electrum, I can make use of mixer/tumbler to mix the Bitcoin and have it finally sent to Trezor wallet. Assuming I am using Tor or VPN to access my noncustodial wallets which makes the connection throught it to be more private. There are ways I can decide to send back to the exchange if I want to sell back in a way my Bitcoin would not be freezed after opening an account again with the same data I used in the past (it will work).

With this, even if the exchange is hacked, my Bitcoin are not there
Also, if the data were hacked, if truly Binance deleted my data, hackers will not get hold to my data after I deleted it
If I decided to make use of p2p on Binance (no direct Bitcoin transactions into bank account), I think I am still safe if my transactions not involved in illegal deal, and yet deleted my account while my data got deleted along until I opened another Binance account anytime I want.

Or, is binance lying, no data deleted, it is centralized platform and nothing open to customers to believe.
Is the privacy increased this way after using centralized exchange to buy Bitcoin using p2p which is later moved to Trezor after mixing.

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Although, decentralized exchanges like Bisq will give total privacy while buying Bitcoin.