Recent event: Stay away from centralized exchanges (FTX, Binance, etc), use DEX

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Quote from: Thomas Kralow on November 10, 2022, 02:33:12 AM

Quote from: mk4 on November 09, 2022, 05:12:30 AM

What's funny is that this event was a repeat of history — sort of like MtGox v2; whereas FTX, an exchange that people trusted a lot(just like people had heavy trust on MtGox back then), ended up having insolvency problems(presumably, things still aren't 100% clear) in the end.

This problem has been around for many years. I have never trusted centralized exchanges. The centralized exchange is just a channel for me to realize my cash. Most of the time, my coins will be stored in the wallets of decentralized exchanges, such as METAMSAK. FTT just told us once again, hurry up and leave, stop playing contracts, leverage. The result is only bankruptcy, and I'm talking about our own assets.

Same here. Usually I just transfer funds from my non-custodial wallet to Binance for the purpose of converting token to stablecoin via spot trading and to fiat through P2P. Yes, it’s just a channel for me to cash out my cryptos.

There’s no way I could trust these CEXs in storing my assets, not even the juggernaut named Binance. DEXs however have some flaws like delay of transactions and higher trading/swapping fees.

dansus021

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Quote from: Crypt0Gore on November 10, 2022, 05:52:34 AM

I doubt that, no one saw this FTX crash coming and thanks to CZ for letting the whole thing out if not it would be much worse later. I believe that such incident will keep happening, it's not the first time and it won't be the last.

Also this is a perfect time for such a crash since we are already in a bear market, tell me, is there any bear market in the past with good news? It's always full of bad news.

Dex exchanges are not 100% safe as well but they are better than Centralised exchanges, now even Binance exchange is not safe because it's also a centralised exchange, I believe that's why CZ planned the whole SAFU Fund, he knew something could go wrong.

Well you kinda true but if this keep happening we as "customer" will be not feel safe right to do transaction in centralized exchange

and second is not true I actually find a bunch of good news this, was the recent one MiCa Legislation Good news for crypto player in Europe Good News project to accept bitcoin Goldman Sachs and MSCI Are Working on A Crypto Classification System

but CZ is far that i know is really fight with their SAFU Fund to keep centralized exchange look good especially binance

Kingkongs

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This should be a welcome development to crypto newbies and existing customers, Centralized exchanges ain't really the best way to do things and store your coin, as a matter of fact, I always tell people, buy and sell Within some days, if you must hold, then let it be on your wallet and not on centralized exchanges. Honestly I'm not a fan of Centralization , There's just so much toxicity I'm them

mk4

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Quote from: Thomas Kralow on November 10, 2022, 02:33:12 AM

Most of the time, my coins will be stored in the wallets of decentralized exchanges, such as METAMSAK.

1. MetaMask isn't an exchange, nor is it decentralized. It's just open-source(which is totally fine)
2. You can't really store funds on a decentralized exchange like how you'd store funds on a centralized exchange

TommieSang

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There are different situations here, I guess. First, if you're not buying bitcoins for trading, but for storage, then you'll want to put them in a hardware wallet. Second, if you're trading, put it on an exchange. I trust Biance at the moment. I believe it's still safe.

Franctoshi

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This is indeed another big lesson to be learnt by people that don't want to learn from the former event, big exchange like FTX equally went bankruptcy so bad. I think if they had backed their funds in 1:1 ratio ,they wouldn't have haulted customers withdrawals. Recently wanted my friend to create an account with so FTX to do some trading, I really thank God my friend would have fall victim trading with the platform.
Though this is a bad experience , I do believe this will help in the order hands flush out those bad exchanges out of business.

aysg76

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The fund mismanagement led to this fall as they were keeping up the reserve balance as FTT token and with CZ selling off the stake the news in the market spread out taking the value down for FTT disturbing the whole market and we are again in the red signs and once again this happened with another CEX which has huge volume.

There are many who has lost their networth because of this wipe out as SBF lost 95% of his share and some who has their funds over exchange got stuck as liquidity meltdown they were unable to process the payments and now their funds don't have much value so this is why it's said keep your coins safe with you in hardware wallets or non custodial wallets but as we always see this is happening around with many and people still don't learn from their mistakes and loose funds.

Crypt0Gore

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Quote from: dansus021 on November 09, 2022, 09:19:52 PM

well after ftx case happened this will become a major warning for you guys I am pretty much using CEx for futures trading spot trading and withdrawal and not save bunch money in there although i have not bunch of money at the moment Grin

but using dex is actually the best way but you have to know that Dex is for token not coin like litecoin dogecoin that have its own chain. and dex also have its own risk like hack its become common too in dex space

I doubt that, no one saw this FTX crash coming and thanks to CZ for letting the whole thing out if not it would be much worse later. I believe that such incident will keep happening, it's not the first time and it won't be the last.

Also this is a perfect time for such a crash since we are already in a bear market, tell me, is there any bear market in the past with good news? It's always full of bad news.

Dex exchanges are not 100% safe as well but they are better than Centralised exchanges, now even Binance exchange is not safe because it's also a centralised exchange, I believe that's why CZ planned the whole SAFU Fund, he knew something could go wrong.

Thomas Kralow

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Quote from: mk4 on November 09, 2022, 05:12:30 AM

What's funny is that this event was a repeat of history — sort of like MtGox v2; whereas FTX, an exchange that people trusted a lot(just like people had heavy trust on MtGox back then), ended up having insolvency problems(presumably, things still aren't 100% clear) in the end.

This problem has been around for many years. I have never trusted centralized exchanges. The centralized exchange is just a channel for me to realize my cash. Most of the time, my coins will be stored in the wallets of decentralized exchanges, such as METAMSAK. FTT just told us once again, hurry up and leave, stop playing contracts, leverage. The result is only bankruptcy, and I'm talking about our own assets.

SquirrelJulietGarden

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Quote from: GreatArkansas on November 09, 2022, 10:25:33 PM

There are also a lot of people saying that if Binance acquires FTX exchange the hole must not be really huge that can Binance afford it, because if FTX exchange will fall and for sure the entire market will also get affected and that also guarantees that there will be some losses from Binance too but I believe they already calculated for different scenarios.

Binance announced that they withdrawn from the acquisition and it is understandable. FTX is too big and it has to obey US regulations. We know that since the trade war between the USA. and China, US. regulators are more careful and stricter with Chinese companies and companies that have Chinese board members. Binance have problems with it definitely and perhaps their withdrawal from the non-binding deal is partially because of US. regulations.

Quote

Overall, the downfall of FTX exchange is not a win for Binance or other exchanges.

Binance will have less strong competitors but you are right that in short and medium terms, it is not good for all people, all entities that are engaging in cryptocurrency industry. Lot of fear will appear and won't disappear soon. In addition, more regulations will be launched after all.

GreatArkansas

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Quote from: Apocollapse on November 09, 2022, 02:08:10 AM

There's also a news if Binance want to acquire FTX [3] even though Binance is the top 1 centralized exchange, don't forget Binance has an accusation where they block user withdrawal [4] and force anyone to submit KYC [5]
(....)

There are also a lot of people saying that if Binance acquires FTX exchange the hole must not be really huge that can Binance afford it, because if FTX exchange will fall and for sure the entire market will also get affected and that also guarantees that there will be some losses from Binance too but I believe they already calculated for different scenarios.
Overall, the downfall of FTX exchange is not a win for Binance or other exchanges.

Darker45

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The list is getting longer and longer. Not only centralized exchanges but also all kinds of centralized platforms. They are all drowning and they're taking with them their users' money. And not only centralized exchanges and centralized platforms for lending, investing, financial management and whatnot but also centralized tokens and coins.

But it seems that while there is always a call to stay away from centralized products and services, they are actually proliferating. Their users increasing. Their volumes reaching huge amounts. And they often carry with them the term decentralized or decentralization itself. So we all should be wary of what's being promoted as decentralized. Platforms providing swaps, staking, opportunities to earn from contributing liquidity, and so on claiming to be decentralized are all but decentralized. Let's all be cautious, everyone!

dansus021

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well after ftx case happened this will become a major warning for you guys I am pretty much using CEx for futures trading spot trading and withdrawal and not save bunch money in there although i have not bunch of money at the moment Grin

but using dex is actually the best way but you have to know that Dex is for token not coin like litecoin dogecoin that have its own chain. and dex also have its own risk like hack its become common too in dex space

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Quote from: mk4 on November 09, 2022, 08:45:44 PM

Quote from: stompix on November 09, 2022, 05:44:13 AM

Way too many differences
- FTX had not that huge market share
- FTX hasn't been hacked and didn't get assets stolen
- Mt Gox wasn't attacked and stabbed in the back by Bitstamp

That's true, but my point still stands — people gave too much trust on a single centralized exchange thinking that it's pretty much invulnerable. But then here we are.

This is what causes past events to repeat themselves in the future. people will become more alert when events have just happened. but after some time, everyone will again ignore it.
It's not impossible, in the future an exchange as big as Binance will also experience difficult times like those experienced by FTX. and when that happens, we will return to the time we were here.

mk4

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Quote from: stompix on November 09, 2022, 05:44:13 AM

Way too many differences
- FTX had not that huge market share
- FTX hasn't been hacked and didn't get assets stolen
- Mt Gox wasn't attacked and stabbed in the back by Bitstamp

That's true, but my point still stands — people gave too much trust on a single centralized exchange thinking that it's pretty much invulnerable. But then here we are.

JeromeTash

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Quote from: Apocollapse on November 09, 2022, 02:08:10 AM

Recent event should make us aware to leave centralized exchange and move to decentralized exchange, FTX aka the top 2 popular centralized exchange right now are halts all crypto withdrawals

Was it a top 2 really?

This is new to me. Maybe top 4 or 5

Quote from: Apocollapse on November 09, 2022, 02:08:10 AM

Don't use centralized exchange anymore, learn to use decentralized exchange e.g. BISQ.

I think most people use centralized exchanges because of their simplicity and high liquidity. For example, one can not use bisq on their mobile phone (they don't have mobile support) or a computer with very low resource or else it will freeze. I have experience with the latter back then.

You also can't use bisq to trade futures

I think the most important message is, never use centralized exchanges as wallets once one is done trading.

Welsh

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Eventually, we'll get to the point where peer to peer (P2P) exchanges are the norm. I imagine that's the future anyway. We probably have to go through multiple of these style events, including the mt gox to get there, but we'll eventually get there.

It's ultimately for the better, it's just going to take time to actually do it. There probably needs to be a little more fine tuning done to the process of P2P exchanges though, since the protection offered is generally a little less, although when it comes to talking about centralised exchanges, the security is only as much as you trust the exchange at that time, which obviously could be zero.

Cookdata

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I have been keeping my personal text ever since I joined this forum, "Not your keys, Not your coins" is one of the most underrated comments beginners take lightly yet the most important of all. The exchanges have blindfolded investors into believing that they are the good custodian and they are best when it comes to assets management so that they can trade anytime but that hasn't always been the case with exchanges, they cannot be trusted because at any slight problems and difficulties, they use peoples fund as bailout as we have experience from SBF, FTX and Alameda, this is bad for the crypto industry and I hope the affected investors learn from this mistake.

Luzin

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Will this be bad in the future?
I didn't experience the Mtgox event but I've read it. Right now we are led to trust Binance, because they have quite a large number of users. I first learned of my exchange using Poloniex. But after some problems I moved to Bittrex. But since there are some conditions that make me not believe in Bittrex I went to Binance until recently. So far it looks like it's still making me comfortable, but I don't know what I'm going to do I didn't expect there to be a Mtgox volume two.
Hopefully that's purely a problem and won't have an impact on the exchange. But if I look at the last CZ statmen on twitter, he looks like he wants to make FTX belongs to him, after he even admitted to selling FTX cheaply. CZ doesn't seem to want to be like the Luna Terra case either.

Doan9269

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You're actually right because this aspect had been repeatedly emphasized o countless times onbthe forum but i also see this as a reminder to some newbies coming in new who might not have known how to engage the search button to see more reasons why they needed to avoid centralized exchanges, but the lapse ibsee here is on how OP was unable to make reference to some topic threads recently discussed on the same subject matter.

Topic: Recent event: Stay away from centralized exchanges (FTX, Binance, etc), use DEX (Read 254 times)