What's the point of registering on a CEX if you don't trade?

Solosanz

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I'm not the one who like that, but I know the reasons:

1. Bounties, many projects ask to register on their sites.
2. Trading competition, some projects offer to trade with their free money, if you win you will get the prize.
3. Help someone else referral, your friends or other people might ask you to download the site and using their refs to register.

Quote from: Beparanf on March 09, 2024, 11:02:59 AM

If you are talking about those CEX account that registered before the existence of DeFi then there’s nothing wrong with it since your exchange doesn’t charge you any fee for a dormant account.

Not all exchange charge fees for a dormant account.

Beparanf

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Quote from: Becassine on March 08, 2024, 08:11:21 PM

Hello,

Now that there are quite a few solutions for buying or staking cryptos, I was wondering what's the point of going through a CEX when you're not trading. I'm sure there are things I don't know, but I'd love to know all the things that are, perhaps, super interesting.

Who’s doing this? Why do you come up to this question? It’s absurd to create a CEX account if you will not use it.

If you are talking about those CEX account that registered before the existence of DeFi then there’s nothing wrong with it since your exchange doesn’t charge you any fee for a dormant account.

Also some crypto holders use CEX to hold their assets so that they can sell or buy immediately once there’s a price action on crypto so tha5 they will not be late for profit.

Stepstowealth

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Quote from: Becassine on March 08, 2024, 08:11:21 PM

Now that there are quite a few solutions for buying or staking cryptos, I was wondering what's the point of going through a CEX when you're not trading. I'm sure there are things I don't know, but I'd love to know all the things that are, perhaps, super interesting.

I had a talk with some gym Buddies of mine, and discovered during out discussion that some of them who had bitcoins stored in CEX felt they were doing the normal thing that every holder does, making a big mistake that they never know that they are making. People who do not trade but still register on CEX just to store their bitcoins are ignorant of the dangers, while some others do not know the difference between a wallet and an exchange, and the purpose plus function of the two. They do not know that since they do not trade, there is not so much need being on a CEX.

348Judah

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Quote from: Becassine on March 08, 2024, 08:11:21 PM

Now that there are quite a few solutions for buying or staking cryptos, I was wondering what's the point of going through a CEX when you're not trading. I'm sure there are things I don't know, but I'd love to know all the things that are, perhaps, super interesting.

Most user of centralized exchanges created such account in other for them to be able to make trades, but it will be dumb of us if we believed that everyone on the centralized exchange is a trader, some were actually using that to exchange their fiat using the p2p network to their local currency, one can go there to make promotional offers, adverts and other tasks with opportunities they may found with working with an exchange, the least i don't expect from people is when they fail to realize the difference between decentralized and centralized exchange.

Richbased

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Quote from: lovesmayfamilis on March 09, 2024, 04:18:44 AM

I recently asked my friends, and they think that wherever they are asked to undergo identity verification, there will be a guarantee that their funds will be safe. People know little about decentralized exchanges because the search first tells them to use what is fastest to find. Learning something deeper is usually very lazy for beginners. For some, Bitcoin is still associated with banks and the government being held accountable if they are hacked or funds are lost.

Yeah that's mostly the reason why some people prefer storing their assets in centralized exchanges, just as you said because they feel that with the need for verification and KYC that one is unlikely to get scammed and in a case of scam that the scammer can easily be identified or tracked since his personal information are in the exchange's database. Though this is not true as one's assets can still be vulnerable to hacks and may not be able to be traced.

Quote from: Becassine on March 08, 2024, 08:11:21 PM

Now that there are quite a few solutions for buying or staking cryptos, I was wondering what's the point of going through a CEX when you're not trading. I'm sure there are things I don't know, but I'd love to know all the things that are, perhaps, super interesting.

Not everyone uses exchanges as for airdrops or trading, some just find it convenient enough for them to use and as it doesn't employ the use of seed phrases, they feel they can recover their accounts whenever they forgets their password, and this is also one of the major reason why people use centralized exchanges because in decentralized exchanges, not your key not your coin so in a case where you have forgotten your seed phrases, your crypto may be gone forever.

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Quote from: Becassine on March 08, 2024, 08:11:21 PM

Now that there are quite a few solutions for buying or staking cryptos, I was wondering what's the point of going through a CEX when you're not trading. I'm sure there are things I don't know, but I'd love to know all the things that are, perhaps, super interesting.

I think that many beginners use CEX as a wallet, as they are not yet familiar with the basics of cryptocurrency storage security. Nevertheless, for those who have free funds, CEX provides various staking programs, the use of which brings additional profit.

sokani

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Quote from: Becassine on March 08, 2024, 08:11:21 PM

Now that there are quite a few solutions for buying or staking cryptos, I was wondering what's the point of going through a CEX when you're not trading. I'm sure there are things I don't know, but I'd love to know all the things that are, perhaps, super interesting.

One may create an account on a CEX for the purpose of buying a particular token that's listed only on the exchange and after that he may abandon the exchange, until there's need to use it again in the future. Other good examples of things that can be done on CEXs aside trading are staking, tokensale, and storing of funds (though I don't encourage this).

Quote from: Becassine on March 09, 2024, 12:03:25 AM

Do you need KYC for P2P on CEX?

Yes, you need to undergo KYC to be able to carryout P2P trade on a CEX.

FatFork

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Quote from: Becassine on March 09, 2024, 12:03:25 AM

Do you need KYC for P2P on CEX?

Generally speaking, yes! Some CEXs might let you do small P2P trades without KYC, but don't count on doing any serious trading anonymously. They will require some form of identity verification for most trades, especially larger ones.

Check the specific CEX you're considering. Their ToS should lay out what kind of personal info or documentation you gotta provide before they'll let you move funds in and out.

KiaKia

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Quote from: Becassine on March 08, 2024, 08:11:21 PM

Hello,

Now that there are quite a few solutions for buying or staking cryptos, I was wondering what's the point of going through a CEX when you're not trading. I'm sure there are things I don't know, but I'd love to know all the things that are, perhaps, super interesting.

There are a few reasons why people do this and most of the reasons make sense, every fund that moves into a centralized exchange doesn't belong to crypto traders.

1. I deposit on cex to buy some coins, I don't need to do trading, and some coins are only available for purchase on centralized exchanges.

2. Some people see interest in participating in new crypto launches and some centralized exchanges offer slots for people who hold their assets on the CEX for some time to qualify for free slots to be able to buy the new tokens for IDO prices.

3. Airdrops are still a big thing in the crypto space today, it's just that the approach is different from the old ways, you need to engage in some points gathering or tasks, and few CEX are now giving users free airdrops in return for staking on their platforms or just holding some tokens on the platform.

If the CEX has its token, one of these features may be implemented, for example, HTX ( Former Huobi ) and MEXC are still offering airdrops till today through holding of assets on the exchange.

Findingnemo

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Quote from: Amphenomenon on March 09, 2024, 03:16:52 AM

Yes it's very much necessary in fact it's Kyc requirements maybe more advanced than that of trading. Few people are aware of decentralise p2p while others still used it since they already have done Kyc on the exchanges long before knowing about DEX p2p and they're familiar with it.

The reason why people trade on Binance p2p instead of BISQ varies, for example in my case I knew bisq is completely decentralized but there is not enough volume on decentralized p2p whereas in Binance p2p or paxful the trading volume is quite high and I can even go as much as any amount I want but that's not possible in decentralized p2p.

Another reason why I avoid dex p2p is that the chances of receiving funds from a hacked bank account are quite high which leads to the termination of your bank account in the future.

Taskford

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Quote from: Becassine on March 08, 2024, 08:11:21 PM

Hello,

Now that there are quite a few solutions for buying or staking cryptos, I was wondering what's the point of going through a CEX when you're not trading. I'm sure there are things I don't know, but I'd love to know all the things that are, perhaps, super interesting.

If we deal with crypto we make sure to have an exchange which we can use anytime if we like to sell some coins that we earn on our daily activities. Also it doesn't mean that we don't trade having a account on those exchange is not really needed since on our future transactions for sure we need those platform so that we can buy some coin or dump some stuffs so we can convert it to fiat.

Some maybe make those exchange as their wallet so that they can easily dump their holdings once there's good pump happened on the crypto they bought and there's a lot of people doing it although this is not really advisable to do knowing that exchange is not safe to store our asset but to many people want to make their life easy that's they choose those easy path and ignore the risk since they think they will not experience any hacking.

Charles-Tim

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Quote from: Becassine on March 08, 2024, 08:11:21 PM

Now that there are quite a few solutions for buying or staking cryptos, I was wondering what's the point of going through a CEX when you're not trading. I'm sure there are things I don't know, but I'd love to know all the things that are, perhaps, super interesting.

There is no point in holding your coins on exchanges if you are not trading. Hold it on noncustodial wallet. Exchanges are just for trading and nothing more. Just leave only the trading funds on exchanges at your own risk because any exchange can be hacked.

Quote from: Zaguru12 on March 08, 2024, 08:19:08 PM

It is not only trading coin pairs that Makes people to use centralized exchanges but also the P2P trading of coins are one of them and the most important factor. If you look at the decentralized exchanges even though it is advisable to use them for privacy sake, Many lack the P2P feature for some lower currencies and that is why top centralized exchanges are still prioritized by the investors. Although this days the integration of P2P features is growing on Decentralized exchanges but they are still behind Centralized exchanges and that’s why people still use them

P2P is also trading.

Quote from: Yamane_Keto on March 08, 2024, 10:23:20 PM

Trading is not the only reason to use CEX as there are some additional services that are offered.

P2P if you want to withdraw to your local currency and there are no options available.
Converting, To convert to altcoin or stable currencies and withdraw to your wallet.
Investing, investment options such as joining a mining pool, lending, or staking
NFT trading, Some NFTs are traded on centralized markets.
low market cap altcoin, Some altcoins do not have a good wallet that you can withdraw to, or you may be thinking of selling them and do not want to withdraw.

Aside from joining a pool, lending and staking, all that you listed are trading and nothing more. You can stake on noncustodial wallet. Not advisable to hold any coins on exchanges, just trade and move your coins to a noncustodial wallet.

sunsilk

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Quote from: Becassine on March 09, 2024, 12:03:25 AM

Do you need KYC for P2P on CEX?

Whether you use P2P, spot, leverage or any of their feature. Think of it that most of them are actually requiring KYC nowadays. There are still a few of them that don't but eventually those will change their policies and soon will ask for KYC too.

How many are actually there that don't ask for KYC? the centralized exchanges? I think that we can count on them with fingers except those that are newly launched and don't that much volume at all.

But the majority of them, they will not allow you to proceed unless you will comply with their verification policy(KYC).

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I recently asked my friends, and they think that wherever they are asked to undergo identity verification, there will be a guarantee that their funds will be safe. People know little about decentralized exchanges because the search first tells them to use what is fastest to find. Learning something deeper is usually very lazy for beginners. For some, Bitcoin is still associated with banks and the government being held accountable if they are hacked or funds are lost.

Amphenomenon

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Quote from: Becassine on March 09, 2024, 12:03:25 AM

Quote from: Zaguru12 on March 08, 2024, 08:19:08 PM

It is not only trading coin pairs that Makes people to use centralized exchanges but also the P2P trading of coins are one of them and the most important factor. If you look at the decentralized exchanges even though it is advisable to use them for privacy sake, Many lack the P2P feature for some lower currencies and that is why top centralized exchanges are still prioritized by the investors. Although this days the integration of P2P features is growing on Decentralized exchanges but they are still behind Centralized exchanges and that’s why people still use them

Do you need KYC for P2P on CEX?

Yes it's very much necessary in fact it's Kyc requirements maybe more advanced than that of trading. Few people are aware of decentralise p2p while others still used it since they already have done Kyc on the exchanges long before knowing about DEX p2p and they're familiar with it.

2Pizza410000BTC

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Quote from: Becassine on March 08, 2024, 08:11:21 PM

Hello,

Now that there are quite a few solutions for buying or staking cryptos, I was wondering what's the point of going through a CEX when you're not trading. I'm sure there are things I don't know, but I'd love to know all the things that are, perhaps, super interesting.

A person can register CEX even if he is not trading. For example if I'm not trading I must use CEX because my country doesn't have direct bitcoin trading so have to use p2p to sell bitcoin or other currencies. Whenever I use p2p I have to use CEX. Because without CEX I can never do p2p. Also there may be other reasons I am not giving all those reasons here I am just giving one reason to use p2p. Hope you understand something.

cryptoaddictchie

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Quote from: Becassine on March 08, 2024, 08:11:21 PM

Hello,

Now that there are quite a few solutions for buying or staking cryptos, I was wondering what's the point of going through a CEX when you're not trading. I'm sure there are things I don't know, but I'd love to know all the things that are, perhaps, super interesting.

Then its pointless. This question isnt really a question since its obvious to use the cex for trading. Well someone registered for other purposes but this is the sole reason of having one especially if you are gonna undergone some KYC with that. Best one to have an account is Binance.

hd49728

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Quote from: Becassine on March 09, 2024, 12:03:25 AM

Do you need KYC for P2P on CEX?

You will have to do KYC to trade on P2P from CEX.

Some P2P exchanges allow their users to trade without KYC but they have limits for total trading volume of an account lifespan, after it passes the limit, the user will have to do KYC for continue trading.

There are truly P2P exchanges, without KYC.
https://kycnot.me/
Help: A list of LocalBitcoin alternatives (P2P marketplaces)

Becassine

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Quote from: Zaguru12 on March 08, 2024, 08:19:08 PM

It is not only trading coin pairs that Makes people to use centralized exchanges but also the P2P trading of coins are one of them and the most important factor. If you look at the decentralized exchanges even though it is advisable to use them for privacy sake, Many lack the P2P feature for some lower currencies and that is why top centralized exchanges are still prioritized by the investors. Although this days the integration of P2P features is growing on Decentralized exchanges but they are still behind Centralized exchanges and that’s why people still use them

Do you need KYC for P2P on CEX?

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Quote from: Becassine on March 08, 2024, 08:11:21 PM

Hello,

Now that there are quite a few solutions for buying or staking cryptos, I was wondering what's the point of going through a CEX when you're not trading. I'm sure there are things I don't know, but I'd love to know all the things that are, perhaps, super interesting.

People can create their accounts on centralized exchanges and abandon those accounts.

More useful, they create those accounts, to buy some cryptocurrencies, not only Bitcoin, and store those cryptocurrencies in these accounts. They did not know risk of holding coins on centralized exchanges.

Reminder: do not keep your money in online accounts

They can do it without big risk if they use not main email address for account registration.

Yamane_Keto

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Quote from: Becassine on March 08, 2024, 08:11:21 PM

Hello,

Now that there are quite a few solutions for buying or staking cryptos, I was wondering what's the point of going through a CEX when you're not trading. I'm sure there are things I don't know, but I'd love to know all the things that are, perhaps, super interesting.

Trading is not the only reason to use CEX as there are some additional services that are offered.

P2P if you want to withdraw to your local currency and there are no options available.
Converting, To convert to altcoin or stable currencies and withdraw to your wallet.
Investing, investment options such as joining a mining pool, lending, or staking
NFT trading, Some NFTs are traded on centralized markets.
low market cap altcoin, Some altcoins do not have a good wallet that you can withdraw to, or you may be thinking of selling them and do not want to withdraw.

Darker45

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None that's convincing enough, that's worth all the risk and the compulsory KYC and whatnot. I think the main reasons why many people use centralized exchanges despite having no intention to trade is that (1) they still lack knowledge and (2) they just go with what's convenient.

Many don't really understand Bitcoin. What they know is that the fiat value of Bitcoin is rising and that they can make money out of it, and that it can be bought from this site called Binance.

Those who know Bitcoin and other stuff like non-custodial and open-source wallets still stick to centralized exchanges because they wouldn't want to go through additional hassles.

All of these aren't worth the risk.

Zaguru12

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It is not only trading coin pairs that Makes people to use centralized exchanges but also the P2P trading of coins are one of them and the most important factor. If you look at the decentralized exchanges even though it is advisable to use them for privacy sake, Many lack the P2P feature for some lower currencies and that is why top centralized exchanges are still prioritized by the investors. Although this days the integration of P2P features is growing on Decentralized exchanges but they are still behind Centralized exchanges and that’s why people still use them

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Quote from: Becassine on March 08, 2024, 08:11:21 PM

Hello,

Now that there are quite a few solutions for buying or staking cryptos, I was wondering what's the point of going through a CEX when you're not trading. I'm sure there are things I don't know, but I'd love to know all the things that are, perhaps, super interesting.

They just like to park their money there and that's it. Aside from not trading, they want to enjoy the perks of being eligible for some airdrops through staking it or having it with those type of earning features.

But if you're not going to trade to any exchange, don't park your cryptos there. Always remember what we tend to say about keeping your keys and coins. You don't have it once you keep your funds on these cexes.

Becassine

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Hello,

Now that there are quite a few solutions for buying or staking cryptos, I was wondering what's the point of going through a CEX when you're not trading. I'm sure there are things I don't know, but I'd love to know all the things that are, perhaps, super interesting.

Topic: What's the point of registering on a CEX if you don't trade? (Read 182 times)