Why does Bitcoiner still support the use of centralized exchanges? - page 6.

o_e_l_e_o

legendary

Activity: 2268

Merit: 18711

Quote from: Obari on April 24, 2023, 12:32:12 AM

I think it is much more easier, convenient and even safer to use centralized exchanges for trades because we no longer have to pay for an external escrow and most times don't have to panic over the safety of our coins while indulging in trades.

What are you talking about? Centralized exchanges lock accounts, freeze coins, or just straight up scam/go bankrupt all the time. You are handing complete control of your coins over to a third party, who can (and often do) do anything they like with them. With a good decentralized exchange like Bisq, the coins stay under your control until the trade is complete. There is no possibility for them to steal your coins since they never have them in the first place. A good DEX is exponentially safer than a CEX.

Quote from: karabiber on April 24, 2023, 12:52:12 AM

By using a centralized exchange, you will not be doing anything against Bitcoin principles.

I mean, literally the first page of the Whitepaper:

Quote

What is needed is an electronic payment system based on cryptographic proof instead of trust, allowing any two willing parties to transact directly with each other without the need for a trusted third party.

A centralized exchange is a "trusted" third party. I use quotation marks here because I wouldn't trust any centralized exchange with a single satoshi of my money.

karabiber

hero member

Activity: 1554

Merit: 762

Although we are talking about the technology and philosophy of this business here, we are also trying to make money. Bitcoin does not have a single purpose. Transparency of transactions other than anonymity encourages us to use it.
Decentralized exchanges are a place where your money is safer than centralized exchanges but people who do not know about a cold wallet or decentralized exchanges may prefer to use centralized exchanges as a wallet. There is also the trade and liquidity part of the business.

Dex's do not promise liquidity. Cex, on the other hand, can respond to your requests thanks to its high volume and liquidity. By using a centralized exchange, you will not be doing anything against Bitcoin principles.

witcher_sense

legendary

Activity: 2450

Merit: 4415

🔐BitcoinMessage.Tools🔑

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?

Being a bitcoiner, adhering to principles of decentralization, anonymity, self-sovereignty, the absence of middleman in peer-to-peer transactions, and other ones mentioned by you, means being a consistent person who respects the rights of others to free speech, expression, freedom to choose with whom to do business and, above all that, private property rights that command how all other rights should relate to each other. I am not against centralized exchanges for a simple reason: if we want Bitcoin to remain a decentralized and permissionless system, we should not prevent others to utilize this system as they see fit, even for those use cases that we personally don't like. A centralized exchange is no different from other services built upon Bitcoin: some enterprising person found a way to make money by gathering Bitcoin traders in one place. In my opinion, it perfectly adheres to the principles of non-aggression and mutually agreed on voluntary exchanges among self-sovereign persons who understand their rights and respect the rights of others.

ivankoh

full member

Activity: 1428

Merit: 120

Sugars.zone | DatingFi - Earn for Posting

There are many bitcoiners operating independently according to their ideology, time has changed positions, wills, environmental influences make them ambiguous and seem to have distanced themselves from the general meaning of bitcoin's deep roots and Satoshi. Their desire to make money is unsustainable and their mentality is that they expect the SEC to create wealth for them, which inadvertently is a game of their own.
The dream of financial freedom and independence seems to have changed. we no longer see consolidation in some bitcoiners and that is reality.

wxa7115

hero member

Activity: 2814

Merit: 734

Bitcoin is GOD

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?

For the same reason the fiat system is still in place even if it is clearly a defective system, and that is because of convenience, the number of people which hold some bitcoin and which adhere to its most basic principles is limited, the majority of those holding bitcoin are looking more than anything to make money with it.

And centralized exchanges are a very good tool for those which have this objective, as centralized exchanges hold a massive volume, a small spread and many different trading pairs, making them a better option than decentralized exchanges for those people.

Obari

sr. member

Activity: 602

Merit: 442

I buy all valid country Gift cards swiftly.

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?

Apart from the risk of folding up, I think it is much more easier, convenient and even safer to use centralized exchanges for trades because we no longer have to pay for an external escrow and most times don't have to panic over the safety of our coins while indulging in trades.

I Personally understand the danger the danger of using centralized exchanges but the trust be told that I also enjoy it's convenience and also safety associated with the use of these exchanges.

Most times we just follow the Norms and begin fighting or preaching against every little argument but the truth be told that we don't make some deep research and we are scared of merely an exchange when we're in cryptocurrency forgetting that cryptocurrency is risky entirely and nothing is certain in the industry and people should do whatever profits them without being scared.

Kakmakr

legendary

Activity: 3542

Merit: 1965

Leading Crypto Sports Betting & Casino Platform

The answer is simple : Not all "Bitcoiners" support the technology because they want decentralization. A large group of people are just speculators and they use Bitcoin as an investment option, so they need a fast and convenient way to buy and sell bitcoins... and centralized exchanges offer that to them.

Bitcoin is for everyone..... the traders and speculators and also for the hardcore supporters of decentralized technologies. We do not force people to use Bitcoin in one specific manner... Tongue

crypticj

sr. member

Activity: 873

Merit: 268

Well, you can use decentralized ways to buy and hold Bitcoin. The fact that you have some options is great and gives you freedom.
And besides, exchanges are great for people who have no knowledge about crypto and they want to try buying bitcoin without spending a lot of time figuring out how the whole system works.

So I think centralized platforms are great in terms of new people coming in crypto and adopting it. And the fact that some exchanges even work with governments like bitfinex and Lugano shows that they play a role in crypto adoption and promotion.

avp2306

sr. member

Activity: 1022

Merit: 363

Quote from: Taskford on April 22, 2023, 07:36:19 AM

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 its more convenient to use and more famous due to well known or groups of people promoting it. Cex are very well market that's why we can see majority going unto it than going to Dex. Also maybe many has less concern about anonymity now since what the matter the most is reputation and how they can use those platform since all want more accessible exchange to use.

All true. We can see those decentralize exchange everywhere because their owners are willing to spend a lot of money to spread out the information about their businesses. Then also we can also see them up partnering with more famous people to hype up their brand that's why its really easy to navigate those dex since this is more use than thousand number of people online.

Rikafip

legendary

Activity: 1722

Merit: 5937

Quote from: Jawhead999 on April 23, 2023, 02:56:45 AM

Liquidity matter in P2P or DEX is inevitable, but I don't understand why people need their Bitcoin in hurry except if they're traders.

True, getting BTC asap shoulnd't be a problem, but it can be a problem when you are on the other side and have to sell some bitcoin ASAP and then you have to wait for a couple of days (talking about Bisq here) for your order to go through or sell way below market price in order to speed it up.

Luckily, here in Croatia we have plenty of places where you can sell bitcoin in physical exchanges that don't ask for KYC under certain amount, or even better do a direct P2P via one of popular Telegram groups.

Ale88

legendary

Activity: 2576

Merit: 2880

Catalog Websites

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?

You are mixing too many things all together. Personally I have nothing against centralized exchanges because at the end they are the easiest, quickest and safest way to buy bitcoin for a newbie. If they didn't exist not everyone would understand how to buy them on some decentralized exchange or even on the street meeting someone, which is also dangerous by the way.

They should be seen just as the very first step, after you understand how they work you're supposed to move your coins/tokens in a private wallet, not leaving them there.

puloweh555

sr. member

Activity: 616

Merit: 317

Vave.com - Crypto Casino

I think it all depends on the user's need for convenience, speed, ease of use, and low cost are often factors that influence the use of CEX compared to DEX. as well as some Bitcoiners who do use centralized exchanges for speculative trading or short-term investment purposes, and they may feel that centralized exchanges are better suited for this purpose than DEXs.

Today's use of Bitcoin is not only for day-to-day transactions but also for investment and trading purposes. CEX is often a more popular place to trade because it offers more features and support such as market analysis, automated trading tools and better customer support.

However, DEXs offer important advantages in the form of decentralization and direct control over assets. DEX is also capable of addressing some of the security issues and risks associated with CEX, such as the risk of platform failure and hacker attacks. However, because DEXs are still relatively new and growing, they may have limitations in terms of liquidity and limited feature support.

dansus021

copper member

Activity: 2156

Merit: 983

Part of AOBT - English Translator to Indonesia

Like it or not Centralized Exchange is here to support the bitcoin

an early adopter is using Peer 2 Peer transactions but centralized exchange comes to help for the past 10 Year there is always a problem with Cex but not all the CeX is bad in my opinion. Some of it made bitcoin even grow more.

Decentralized Come to exist to made a balance between Centralized Exchange but not all the Dex is pure gold there is always some shit too. Just keep educate ourself and do our own research first

Etranger

hero member

Activity: 504

Merit: 816

Top Crypto Casino

Quote from: Helena Yu on April 23, 2023, 04:04:26 AM

Centralized exchange have a customer support because they will always receive a complaint due to their dirty activities e.g. freeze or terminate your account. While decentralized exchange they will not freeze or terminate your account, so they don't have any reason to have a customer support.

If you think it's difficult, they have a tutorial to use it [1]. Anything this world is difficult, but it will not be difficult if you have learn it.

[1] https://bisq.network/getting-started/

I don't think the only reason for CEX to have a customer support is due to complaints from the customers. I didn't have any problems with my account being blocked or my funds frozen, but I did get help from customer support on how to use the features, tools that the exchange offers, how to make certain types of trades, etc. And these answers were provided very quickly and qualitatively.

And I definitely did not mean that someone needs to use centralized exchanges, because it is easier. I am not advocating that one should avoid difficulties and not learn to understand them. I just meant that in many centralized exchanges the interface is more intuitive, which is a big advantage in modern life, because it saves time and allows you to focus not on the functional side of the issue, but on its substantive component.

Mpamaegbu

legendary

Activity: 2716

Merit: 1225

Once a man, twice a child!

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?

The only reason, I should think, to the best of my perspicacity for patronising centralized exchanges won't be far from the fact that they afford users an ease of trading and the availability of several cryptos to choose from on the site. Dexs don't have the type of options of cryptos centralized exchanges have. They have limited trading pairs. As for those who don't trade but keep their coins on Cexs, that's bad and should be discouraged because Cexs aren't safe and secured.

DanWalker

hero member

Activity: 1960

Merit: 547

Vave.com - Crypto Casino

Quote from: Helena Yu on April 23, 2023, 04:04:26 AM

Quote from: Etranger on April 23, 2023, 03:51:10 AM

In addition to high liquidity, centralized exchanges also usually have a simple and clear interface that allows traders to easily understand and execute buying and selling operations, while decentralized exchanges can be difficult for beginners to use. From my experience, I can say that one of the advantages of using centralized exchanges is the customer support service, which provides fast and efficient support in case of problems.

I don't think decentralized exchange don't have a simple and clear interface, there are many features offered by a centralized exchange like spot trading, leverage trading, trading account, personal account, etc. While decentralized exchange they only focus about the buy and sell offers, as there's no other thing you can use due to their limited feature.

Centralized exchange have a customer support because they will always receive a complaint due to their dirty activities e.g. freeze or terminate your account. While decentralized exchange they will not freeze or terminate your account, so they don't have any reason to have a customer support.

If you think it's difficult, they have a tutorial to use it [1]. Anything this world is difficult, but it will not be difficult if you have learn it.

[1] https://bisq.network/getting-started/

Yes, the only difference between centralized and decentralized exchanges is the services and utilities that investors need. This is an investment, money-making market, so people will always find a way to make a profit, not just buy and hold, and centralized exchanges offer many different solutions for investors to choose from. One of the most used services is trade, and this is a limitation of most decentralized exchanges. I am a trader, making money mainly by day trading, and I can only find it on CEX, so using CEX is a must, no second choice.

yhiaali3

legendary

Activity: 1848

Merit: 1982

Fully Regulated Crypto Casino

The first reason to use CEXs is to trade for profit, some people want to increase their profits so they deposit bitcoins in CEXs and then take advantage of the price fluctuations.

Others find CEXs more than safer than P2P because CEXs secures users' money as they think it is, but they realize their mistake when accidents happen.

In every new invention, there is a category of people riding the wave and trying to turn the invention in favor. This is what happened with Bitcoin in a way that made it deviate from the goals for which it was created.

Helena Yu

hero member

Activity: 742

Merit: 633

Quote from: Etranger on April 23, 2023, 03:51:10 AM

In addition to high liquidity, centralized exchanges also usually have a simple and clear interface that allows traders to easily understand and execute buying and selling operations, while decentralized exchanges can be difficult for beginners to use. From my experience, I can say that one of the advantages of using centralized exchanges is the customer support service, which provides fast and efficient support in case of problems.

I don't think decentralized exchange don't have a simple and clear interface, there are many features offered by a centralized exchange like spot trading, leverage trading, trading account, personal account, etc. While decentralized exchange they only focus about the buy and sell offers, as there's no other thing you can use due to their limited feature.

Centralized exchange have a customer support because they will always receive a complaint due to their dirty activities e.g. freeze or terminate your account. While decentralized exchange they will not freeze or terminate your account, so they don't have any reason to have a customer support.

If you think it's difficult, they have a tutorial to use it [1]. Anything this world is difficult, but it will not be difficult if you have learn it.

[1] https://bisq.network/getting-started/

Etranger

hero member

Activity: 504

Merit: 816

Top Crypto Casino

Quote from: ?? on ??

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?

Using centralized exchange doesn't mean they advocate or support centralization when using Bitcoin. Unless you use USD or EUR, it's hard to find decentralized exchange which has liquidity/volume on your local fiat currency. For example, on Bisq there are only 4 fiat which has 7d volume higher than $50K[1] and 5 more which has 7d volume between $1K to $5K[1].

[1] https://bisq.markets/markets

In addition to high liquidity, centralized exchanges also usually have a simple and clear interface that allows traders to easily understand and execute buying and selling operations, while decentralized exchanges can be difficult for beginners to use. From my experience, I can say that one of the advantages of using centralized exchanges is the customer support service, which provides fast and efficient support in case of problems.

Jawhead999

legendary

Activity: 1834

Merit: 1208

Quote from: Rikafip on April 22, 2023, 05:23:54 AM

I wish it was that easy. Have you tried buying bitcoin via Bisq, which is generally considered to be the best decentralized exchange?

First, you have to already have some bitcoin in order buy/sell, which means its not convenient for first time buyers. 2nd, volume is so low that you will wait for a couple of days for your order to go through and if you want to deal with bigger amounts you will lose a lot.

That's why I not mentioned Bisq because many people find it's hard to fund your account before you can start to trade, there are still many choices of No KYC P2P where you don't need to submit KYC and you don't need to fund your account.

Liquidity matter in P2P or DEX is inevitable, but I don't understand why people need their Bitcoin in hurry except if they're traders. When I buy Bitcoin through P2P, I don't really care when someone will interested with my offer as I don't have a plan to sell it in the next few week or month.

Topic: Why does Bitcoiner still support the use of centralized exchanges? - page 6. (Read 1246 times)