Why does Bitcoiner still support the use of centralized exchanges? - page 2.

GxSTxV

hero member

Activity: 980

Merit: 741

Quote from: Abu-Naim on April 22, 2023, 01:09:24 AM

Why do they continue to support centralized exchanges, use them, and retain their Bitcoin there?

First of all welcome to Bitcointalk and the world of Bitcoin. As a Bitcoin user and holder who deals with it and other cryptocurrencies on a daily basis I can answer your question from my experience. The main use of Bitcoin for me is investing and getting paid since it is fast, secure and I dn’t have to pay taxes unlike when dealing with fiat currency and banks. This is a significant advantage for me and many users but unfortunately the absence of Bitcoin in my region brings me to centralized exchanges as a solution because I can only use Bitcoin online since it’s not possible to use for everyday use such as shopping, paying scholar fees, food, and expenses in my region none of these establishments are accepting or dealing with crypto yet.

Therefore I have to exchange my Bitcoin to our currency using Binance or any other exchanger so i can spend my earnings of bitcoin even that it is not a good idea to retain and hold your assets in a centralized exchange and it is better to save them in a cold wallet which is way safer. Personally I cannot purchase a hardware wallet but I keep my assets in a safe desktop wallet that I only connect to the internet when I need to exchange it.

BlackHatCoiner

legendary

Activity: 1512

Merit: 7340

Farewell, Leo

Quote from: Ale88 on April 28, 2023, 11:17:36 AM

I'm saying that in general, when you're "out into the wild", it takes just one little mistake and potentially you can lose everything.

Not if you take the time to learn from the experts. Sure, if you have no idea what you're doing, and you're following random articles / tutorials without further research, and you put serious amounts of money in that, at some point you might lose everything. But that would be obtuse and irresponsible. Buy things you understand.

Quote from: Ale88 on April 28, 2023, 11:17:36 AM

And some people simply don't want to take this kind of risks

What kind of risks? Downloading a free software and reading a little about how it works? And against what? Centralized exchanges with exponentially greater risks?

Quote from: Ale88 on April 28, 2023, 11:17:36 AM

And I have a question: let's say that every single CEX disappears overnight, I'm not talking about scam, they just vanish and people get their money back, no one loses everything, do you think that BTC and the crypto world will grow quicker or slower at that point? In my opinion we'll stop for a good while

It will obviously slow down things, as everyone has used to centralized exchanging. But judging by the fact that most have either got hacked or bankrupt, and Bitcoin is still valuated at about 30 grand, I doubt it will take long until people switch to decentralized alternatives.

cydrix

full member

Activity: 602

Merit: 129

Although we are discussing the technology and business philosophy in this conversation, our primary goal is to generate revenue. Bitcoin serves a variety of purposes. Other than anonymity, transparency in transactions encourages us to use it.
Your money is safer in decentralized exchanges than it is in centralized exchanges, however those who are unaware about cold wallets or decentralized exchanges could prefer to utilize centralized exchanges as their wallet. The firm also has a trade and liquidity component.

Ale88

legendary

Activity: 2576

Merit: 2880

Catalog Websites

Quote from: BlackHatCoiner on April 28, 2023, 10:31:05 AM

Quote from: Ale88 on April 28, 2023, 10:27:55 AM

Then why so many people lose everything?

Because they don't use real DEXs, if you're referring to DEXs' incidents. I haven't ever heard of one individual losing everything with Bisq, the most well known and tested decentralized exchange, with most liquidity. Every other "decentralized" exchange I've noticed being shilled is either some shitcoin-based platform or a centralized exchange that makes abuse of the term, like Binance with peer-to-peer trading, that is actually peer-to-Binance-to-peer.

I'm not talking about DEXs incidents, I'm saying that in general, when you're "out into the wild", it takes just one little mistake and potentially you can lose everything. And some people simply don't want to take this kind of risks. Are they renouncing to privacy/freedom/choice whatever you want to call it? Sure, but it's their decision so I don't see why someone else should feel entitled to criticize it.

And I have a question: let's say that every single CEX disappears overnight, I'm not talking about scam, they just vanish and people get their money back, no one loses everything, do you think that BTC and the crypto world will grow quicker or slower at that point? In my opinion we'll stop for a good while.

Anyway I don't think CEXs will last many more years, I think CZ itself said something similar time ago, but we need more time for people to get used to this "new system".

BlackHatCoiner

legendary

Activity: 1512

Merit: 7340

Farewell, Leo

Quote from: Ale88 on April 28, 2023, 10:27:55 AM

Then why so many people lose everything?

Because they don't use real DEXs, if you're referring to DEXs' incidents. I haven't ever heard of one individual losing everything with Bisq, the most well known and tested decentralized exchange, with most liquidity. Every other "decentralized" exchange I've noticed being shilled is either some shitcoin-based platform or a centralized exchange that makes abuse of the term, like Binance with peer-to-peer trading, that is actually peer-to-Binance-to-peer.

Ale88

legendary

Activity: 2576

Merit: 2880

Catalog Websites

Quote from: jokers10 on April 28, 2023, 03:52:04 AM

with DEX you know exactly what do you risk with

Then why so many people lose everything? Probably YOU know exactly the risks but many others don't. It's like people who wire money to perfect strangers: would you ever do it? I guess not. Everyone should know that, right? And yet, it keeps happening. Never take for granted that people always know what they're doing, you just need a second of distraction and even an expert can make a mistake, shit just happens.

firesurfer

sr. member

Activity: 745

Merit: 252

Larger trading volumes and seamless borderless operations help centralized exchanges win hearts. If there are a lot of Bitcoins I choose a centralized exchange because of the large liquidity and also I can trade with altcoins or exchange them for FIAT coins easily.
If Bitcoin has a better and more popular smart contract, it is certain that more people will choose a decentralized Bitcoin exchange.

ItsCrafty

full member

Activity: 826

Merit: 135

Tontogether | Save Smart & Win Big

I don't know real reason behind this but as far as i think the most possible reason Cex support many Payment method like Visa, Credit card, Master card and other which make it easy for everyone to buy Btc easier. Cex also provide many payment method for withdraw. for this purpose Users prefer to trade in cex rather than Dex because this is easy for users to quickly buy and sell with Fiat.

dunfida

legendary

Activity: 3122

Merit: 1140

Quote from: Abu-Naim on April 22, 2023, 01:09:24 AM

I did some research on Bitcoin because I was interested in it, and I discovered that the key principles of Bitcoin are peer-to-peer, anonymity, pseudonymity, decentralization, and operating without a middleman to ensure that Bitcoiners can have financial freedom. However, despite knowing that Bitcoiners adhere to these tenets, why do some Bitcoiners act contrary to them? Why do they continue to support centralized exchanges, use them, and retain their Bitcoin there?

Whether we do hate up that centralization and been opposing on whats Bitcoins is all about, then we cant really still able to avoid on what CEX do able to offer which is something that
we cant be able to do on a DEX. If you are really that doesnt like centralization then you could always make use of DEX but somehow you cant really make out those withdrawals or deposits via fiat which is something
that we could say that it is really that convenient honestly. It does really remove out that anonymity of yours once you do pass up your documents or your identity because most likely you would
be doing this if ever you would be touching P2P trades in between exchange users. Also there are perks when it comes to limits when your account is verified. No matter how much we do hate up
centralization then it cant be that avoided to see up its good side which it does bring up that convenience.

The only thing that you should remember that never ever make an exchange wallet to be your main wallet or putting up all of your assets on one place specially if you dont posssess the keys.
We do have that bad history of exchange hacks and faked out bankruptcy calls which it isnt something that we do like on getting up on begging to get those coins back.

Who is John Galt?

sr. member

Activity: 350

Merit: 287

Quote from: Distinctin on April 28, 2023, 05:04:21 AM

Exactly. If only we had an easy choice to make then we might've or surely already immersed ourselves in using Decentralized Exchange (DEX) rather than using Centralized Exchange (CEX) where anonymity is not on the table. I know that DEX also have their own share of advantages but for me, that's still an unknown water compared to CEX where we mostly do our transactions because of the advantage it can give like high liquidity, faster transactions, etc.

Under the brightest and most colorful candy wrapper created by a marketer, not the content that is advertised is often hidden. High liquidity and fast transactions are good as long as everything is running smoothly. But when CEX scams, it turns out that all the funds entrusted to it disappear, even if they were earned through fast transactions and wide trading opportunities. And we know that even the biggest exchanges scam from time to time. Losing control over your money even for a short time in the case of bitcoin can be critical: I remember there was a case when the owner of the exchange died, and allegedly took all private keys with him to the grave. Accordingly, there was simply nothing to compensate for the losses of those who trusted this exchange.

And I have not yet touched on the topic of personal data security raised above. But this topic may be even more important. The transfer of such sensitive information to a third party greatly increases the risks of running into big trouble.

Yes, DEXs may not look as comfortable, but they are much safer in the long run.

Z-tight

hero member

Activity: 994

Merit: 1089

Quote from: Distinctin on April 28, 2023, 05:04:21 AM

I know that DEX also have their own share of advantages but for me, that's still an unknown water compared to CEX where we mostly do our transactions because of the advantage it can give like high liquidity, faster transactions, etc.

The advantages of DEX are surely not unknown, and its advantages are in line with how BTC should be used, which are: privacy, true p2p without a third party, security because trading funds are deposited in an escrow address controlled by the two parties.

I believe these advantages are greater in line with with how BTC is expected to work, like for example BTC's transaction confirmation time is 10 minutes on average, it is not the fastest around, but one of the safest because once confirmed it is immutable and irreversible, but there are many networks and institutions with quicker confirmation time, but yet transactions can be reversed even after days. BTC network is about security and privacy over speed and 'convenience'.

Distinctin

hero member

Activity: 2926

Merit: 657

No dream is too big and no dreamer is too small

Quote from: GideonGono on April 26, 2023, 12:23:23 PM

Quote from: Abu-Naim on April 22, 2023, 01:09:24 AM

I did some research on Bitcoin because I was interested in it, and I discovered that the key principles of Bitcoin are peer-to-peer, anonymity, pseudonymity, decentralization, and operating without a middleman to ensure that Bitcoiners can have financial freedom. However, despite knowing that Bitcoiners adhere to these tenets, why do some Bitcoiners act contrary to them? Why do they continue to support centralized exchanges, use them, and retain their Bitcoin there?

The only reason why I support or still keep on using centralized on Bitcoin or crypto is due to safely withdraw or convert my crypto into Fiat.
But if there would be other way for me to securely withdraw or convert crypto into Fiat without doing it in person then I would stop using centralized platforms.

Exactly. If only we had an easy choice to make then we might've or surely already immersed ourselves in using Decentralized Exchange (DEX) rather than using Centralized Exchange (CEX) where anonymity is not on the table. I know that DEX also have their own share of advantages but for me, that's still an unknown water compared to CEX where we mostly do our transactions because of the advantage it can give like high liquidity, faster transactions, etc.

Doan9269

hero member

Activity: 812

Merit: 560

Quote from: Abu-Naim on April 22, 2023, 01:09:24 AM

why do some Bitcoiners act contrary to them? Why do they continue to support centralized exchanges, use them, and retain their Bitcoin there?

Am not a fan to using a centralized exchange but i have some likely reason i think some newbies or even experienced bitcoiners take for using a centralized exchange.

1. Some make use of a centralized exchange because they perform their daily trade on it and it's very easy for them to use and understand.

2. Some make use of a centralized exchange because there they always convert their fiat to bitcoin or bitcoin to fiat whenever they need to pay bills for their daily living expenses.

3. Some uses a centralized exchange because they don't know the difference between it and a decentralized exchange or how to engage one.

4. Some decided to just make use of a centralized exchange because they feels it makes no difference from any form of wallet or like the exchange and take the risk at their own will.

o_e_l_e_o

legendary

Activity: 2268

Merit: 18711

Quote from: jokers10 on April 28, 2023, 03:52:04 AM

Who knows how exactly can your personal data can be used? So many opportunities for a rogue!

Latest studies I am aware of:
https://javelinstrategy.com/2022-Identity-fraud-scams-report
https://javelinstrategy.com/research/2023-identity-fraud-study-butterfly-effect

In the region of 40 million individuals costing $50 billion, per year, in the US alone.

Identity theft is not a joke Jim!

jokers10

legendary

Activity: 1974

Merit: 3049

Quote from: Ale88 on April 27, 2023, 09:27:47 PM

...
Would I ever suggest to a newbie starting with a DEX? Personally no, I wouldn't, there are too many risks, before that person needs to understand how the crypto world works, and I doubt that someone completely new is in such a hurry he can't wait for their KYC to be completed... CEXs for me are the best starting point, let's not forget that there still are thousands of people who still give away their seed to some fake customer service representative on Telegram, can you image these kind of people on a DEX?

If the one gives a seed phrase to someone in a chat imagine what can a rogue do with him if to get enough personal data? When you pass KYC everywhere who controls your data safety? Some unknown company registered in some offshore? They ask to excuse them each time it's revealed that they "lost" another bunch of users personal data. It can look safer at the first stages, but you lose control for much longer. And when you get used to use CEX you start to trust it and you'll hardly start searching an alternative... until you'll face with all the problems CEX can bring. Okay, problems are usually not immediate as like if you uses DEX not wisely, but with DEX you know exactly what do you risk with, and that's not the same for CEX with KYC. Money is just a part of risk. Who knows how exactly can your personal data can be used? So many opportunities for a rogue!

o_e_l_e_o

legendary

Activity: 2268

Merit: 18711

Quote from: Ale88 on April 27, 2023, 09:27:47 PM

I used to buy shitcoins during the bull runs and I knew that had I approved the wrong smart contract everything would be gone.

The problem is that there are dozens of exchanges out there which call themselves a DEX, which are in fact not in the least bit decentralized at all. If you are depositing coins to a smart contract, or linking your wallet to a smart contract, then I don't think that's really decentralized at all. Most likely one or two people have written the smart contract and none of the users of the platform have even bothered to read it before sending their coins to it, meaning your coins are still under centralized control. You can absolutely lose coins from such a centralized, poorly written or deliberately malicious smart contract, and indeed, lots of people have done so in the past.

Compare this to a real DEX such as Bisq, where the only place the coins go other than your own wallet is to an escrow address controlled by you and the party you are trading with.

Kryptowerk

legendary

Activity: 2114

Merit: 1403

Disobey.

Quote from: Abu-Naim on April 22, 2023, 01:09:24 AM

I did some research on Bitcoin because I was interested in it, and I discovered that the key principles of Bitcoin are peer-to-peer, anonymity, pseudonymity, decentralization, and operating without a middleman to ensure that Bitcoiners can have financial freedom. However, despite knowing that Bitcoiners adhere to these tenets, why do some Bitcoiners act contrary to them? Why do they continue to support centralized exchanges, use them, and retain their Bitcoin there?

Because, lets face it, there are way too many people that came from the idea to do some "investment" and even worse from a "get rich quick" mindset. And not from a "oh, what an incredible technology, let me explore this thing that will change the way our financial-world works" point-of-view.
I'd go as far and say 80%+ of people holding Bitcoin have no idea what it really is and what its core values/strengths are.

If you keep that in mind, it won't suprise you that still the majority doesn't care about using a centralized exchange service - to the contrary even: These folks may feel that with a company owning an exchange instead of a peice of software that allows p2p exchange (such as Bisq for example) there is someone that can be held accountable if things go wrong. Ofc that's wishful thinking but that's how things have been for ages and the only thing they know.

FahriZah

member

Activity: 485

Merit: 10

Quote from: Ale88 on April 28, 2023, 12:46:47 AM

Quote from: FahriZah on April 28, 2023, 12:43:21 AM

This Question Very Important And I Hope My Need To Answers Little That I Know As Well Why Does Bitcoiner Still Supporting The Use Of Centralized Exchange Because Bitcoin Is One Of The Best And Biggest Currency And When Compared With Decentralised I Mean DEX And Centralized That Means Shortly CEX It’s Totally Different Way And I Also Using Both Exchange DEX And CEX But Primary I Support And I Suggest CEX Is The Best Way To Starting Anyone.

Please don't use capital letters for every single word Tongue

Thank You So Much For Your Advice I Will Try From Next Time Everything As Well 🙏

Ale88

legendary

Activity: 2576

Merit: 2880

Catalog Websites

Quote from: FahriZah on April 28, 2023, 12:43:21 AM

This Question Very Important And I Hope My Need To Answers Little That I Know As Well Why Does Bitcoiner Still Supporting The Use Of Centralized Exchange Because Bitcoin Is One Of The Best And Biggest Currency And When Compared With Decentralised I Mean DEX And Centralized That Means Shortly CEX It’s Totally Different Way And I Also Using Both Exchange DEX And CEX But Primary I Support And I Suggest CEX Is The Best Way To Starting Anyone.

Please don't use capital letters for every single word Tongue

FahriZah

member

Activity: 485

Merit: 10

This Question Very Important And I Hope My Need To Answers Little That I Know As Well Why Does Bitcoiner Still Supporting The Use Of Centralized Exchange Because Bitcoin Is One Of The Best And Biggest Currency And When Compared With Decentralised I Mean DEX And Centralized That Means Shortly CEX It’s Totally Different Way And I Also Using Both Exchange DEX And CEX But Primary I Support And I Suggest CEX Is The Best Way To Starting Anyone.

Topic: Why does Bitcoiner still support the use of centralized exchanges? - page 2. (Read 1246 times)