Why does Bitcoiner still support the use of centralized exchanges? - page 7.

o_e_l_e_o

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Centralized exchanges gives an extra stratum of security and safety when it comes to affairs and trading.

Centralized exchanges are, by far, the least safe and the most risky place to send your coins.

Quote from: Adbitco on April 22, 2023, 10:36:27 AM

Does it mean you are not in support of those using it for trading in other to remain anonymous?

You cannot be anonymous when using a centralized exchange. Even if you don't complete KYC, they log absolutely everything you do, everything about your computer, device, IP, location, etc., and use blockchain analysis to look in to the history of your deposits and withdrawals.

Quote from: Adbitco on April 22, 2023, 10:36:27 AM

In essence, they can move any amount of btc to a centralized exchange for trading and after which they make profits they pull it out and store in secure place.

There exist non-custodial exchanges which allow day trading via smart contracts and atomic swaps.

vv181

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The financial freedom that Bitcoin could give can be utilized or not. Some people maximise the utility of Bitcoin's key principles, some choose not to. Does it a matter of preference or condition? I think so, people have the freedom to choose how they use Bitcoin. In an ideal way, they should have run their own node to maintain decentralization and participate in the community to advocate some changes within the developmental process, and many things that directly support the tenets you have mentioned.

Some people just don't care about what made Bitcoin stand strong, they just it as a gateway, say, for a mere investment purpose.

Hyphen(-)

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Centralized exchanges gives an extra stratum of security and safety when it comes to affairs and trading. By facilitating the transaction through developed centralized platform, centralized exchanges offer higher levels of comfort.

I don't believe a centralized exchange provides additional security, as you claim, because I always feel unsafe when using one.

Remember that you will be providing your personal information during KYC before the exchange will allow you to trade with them, so why should I feel safe with my information and Bitcoin in their hands?

I hope you are aware of what happened with FTX; this should serve as a warning to avoid dealing with centralized exchanges because they cannot be trusted.

Adbitco

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Quote from: o_e_l_e_o on April 22, 2023, 06:02:34 AM

So many people simping for centralized exchanges. On a bitcoin forum as well. Unbelievable.

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

However, despite knowing that Bitcoiners adhere to these tenets, why do some Bitcoiners act contrary to them?

Here's the real answer OP: Laziness and greed.

Sorry sir to ask this, what about those who uses it for trade in some broker or in those centralized exchange. Does it mean you are not in support of those using it for trading in other to remain anonymous?
I think there will be no profits using peer-to-peer for trading, it is only better when using p2p for a swap of other coin than btc, in as much as trading exist there is no way people do away centralized exchange for trading. In essence, they can move any amount of btc to a centralized exchange for trading and after which they make profits they pull it out and store in secure place.

Sorry if my question gets you angry or annoys you.

light_warrior

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Centralized exchanges gives an extra stratum of security and safety when it comes to affairs and trading. By facilitating the transaction through developed centralized platform, centralized exchanges offer higher levels of comfort.

Only for comfort you have to pay. And sometimes you have to pay by unpopular methods, like KYC, for example. Yes, CEXs can provide enhanced security measures (such as two-factor authentication). However, it's important to note that CEXs can also be vulnerable to hacks and security breaches because they store large amounts of user funds in one place. So you need to be careful when choosing CEX for your use.

Darker45

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There may be several reasons and factors. There's convenience. There's lack of Bitcoin education. There's also the fact that many purchased their Bitcoin from centralized exchanges and rather than move them right after, they just kept it there. There's also trading. But on top of this all, there's the fact that many Bitcoin supporters are not really supporters of the very essence of Bitcoin. They're with Bitcoin because of its fiat price equivalent. Had Bitcoin not been assigned with a USD price value, they wouldn't have cared about it.

But the more surprising thing really is not that majority, which are mostly ignorant Bitcoin laymen, fell victim to centralized platforms; it is that even those who came early, went all in, and were thoroughly convinced of Bitcoin's technology like CZ ended up creating the very problem Bitcoin tries to solve.

Gallar

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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?

Bitcoin is indeed decentralized, anonymous and those who own it are financially free, but at this time there are still many countries that have not allowed bitcoin to be fully legal, let alone to be used as a means of payment, it seems that it is still far from being able to happen throughout the world. Even though there are countries that use bitcoin as a means of payment, such as El Salvador. But still, that's only one country, there are still very many countries that have not been able to fully accept bitcoin.

And thus, bitcoiners must still follow the rules made by their respective countries, even though it is against the philosophy of bitcoin. But it is still an obligation that must be carried out by its citizens. such as using legal money in the country, and other rules.

maybe that's the factor that makes bitcoiners still use fiat money, a centralized system and other rules.

Taskford

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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.

Ever-young

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Quote from: Bananington on April 22, 2023, 06:25:24 AM

Quote from: o_e_l_e_o on April 22, 2023, 06:02:34 AM

Here's the real answer OP: Laziness and greed.

Misinformation is also a reason, some people think that because bitcoin is decentralised, every thing related to it is also decentralised, for example because exchanges are needed in cryptocurrency and for bitcoins, that they are decentralised. Some set of newbies do not really know what decentralised should be and it's importance, to them decentralised is just another word.

Their is no level of misinformation that can make one not be able to differentiate the difference between a centralized system and that of decentralization.
What exactly makes the person to be a Bitcoiner if they don't care about their privacy.. once you enter a platform which requires you to make some kind of verification that's above email confirmation, to the level that you need your ID and personal information. You should be concerned enough even if you were misinformed from the first place, you have the right to ask for clarification.

Ojima-ojo

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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?

Truth be told, bitcoin is embedded with all the necessary features that could enable its independent existence and usage with third-party involvement, but then for the sake of adoption and security bitcoin still need to interact with other third-party entities such as exchange and other payment platform that exchange bitcoin to fiat before it used for payment of goods and services.

Since Satoshi's idea of Bitcoin exchange is per p2p but for the p2p there is a need for escrow so the exchange is now the third-party escrow due to security challenges and trustees for transactions, if you don't want to use the centralized exchange you can choose to used other decentralized exchange we have around for privacy purpose.

Nwada001

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Anyone using centralized exchanges for storing Bitcoin and not just for buying or selling crypto does not deserve to be called a true Bitcoiner.
Those who save their coins on centralized exchanges are those who I believed to be misformed, or will I say they are people who are not yet ready to take responsibility for their own security?
If not all that's just required is simple step, create wallet backup their wallet and take responsibility of their own security and not hand it over to a third-party which promise's what they can't actually keep.
Centralized exchanges are just meant for trading and not for storing crypto; there is no better use for them than that.

Hypnosis00

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Because the market is flooded with centralized exchanges and they've been thinking that they are safe and anonymous ( which is unfortunately not).
Whatever their reasons are, as long as these centralized exchanges still exist in the crypto space, you can't ask these people not to support and use this platform as they certainly are.

And to be honest, I was one of these people who believe in and trust centralized exchanges because I was been comfortable using this.
They are not safe perhaps that is why I'd never keep my funds in them for a long period of time.

Bananington

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Quote from: o_e_l_e_o on April 22, 2023, 06:02:34 AM

Here's the real answer OP: Laziness and greed.

Misinformation is also a reason, some people think that because bitcoin is decentralised, every thing related to it is also decentralised, for example because exchanges are needed in cryptocurrency and for bitcoins, that they are decentralised. Some set of newbies do not really know what decentralised should be and it's importance, to them decentralised is just another word.

Argoo

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Quote from: Minecache on April 22, 2023, 03:35:01 AM

Yes, bitcoin was initially created as a payment method that could work without a 3rd party. But nowadays, people are considering and using bitcoin as an investment, they are less concerned with the function and utility of bitcoin but only interested in profit and convenience for them. And CEX provides all the services that investors need in the most convenient way.
Moreover, the market is not only bitcoin, but we also have altcoins, and if you want to invest, buy, sell, and trade altcoins, you must go with CEX. It can be said that it plays an important role in the market whether you use it or not because people still need it.

All participants in the cryptocurrency market live on the territory of a state and are forced to live according to its established norms. Also, probably, no one doubts that almost all exchanges sooner or later will fall under the influence and regulation of states. Therefore, a certain part has already come to terms with this and enjoys a certain protection when using centralized exchanges. Centralization and decentralization will exist together for a long time to come.

o_e_l_e_o

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So many people simping for centralized exchanges. On a bitcoin forum as well. Unbelievable.

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

However, despite knowing that Bitcoiners adhere to these tenets, why do some Bitcoiners act contrary to them?

Here's the real answer OP: Laziness and greed.

They are either too lazy to do any research before they start and find out that centralized exchanges are some of the most corrupt and most scammy organizations in existence and the most dangerous and risky place to leave their coins, or they are so lazy that they know all this but decide they can't be bothered to set up a wallet and write down 12 words, so will just risk all their coins instead.

Alternatively, greed. They are willing to risk their coins on these centralized exchanges which promise them interest, staking, or other rewards at obviously unsustainable levels, even though we have seen dozens of such platforms scam or go bankrupt and everyone who was using them lose everything.

YUriy1991

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In my opinion one of the main principles of Bitcoin is decentralization, well, there are several reasons why some Bitcoiners still use a centralized exchange because of Liquidity, User Experience and Security factors also exist and Please remember storing Bitcoins on a centralized exchange means you are essentially trusting a third party with your assets, which is against the principle of decentralization. In addition, centralized exchanges can be subject to regulation and government shutdowns, which can pose a risk to user funds.

In my view, regarding the decision to use a centralized exchange or not is a personal decision and depends on individual preference and risk tolerance and Some Bitcoiners may choose to use a centralized exchange for the reasons stated above, while others may prefer to stick with the decentralized option to maintain full control of their Bitcoins.

Dr.Bitcoin_Strange

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Generally speaking about all Bitcoiners, that's false, but for some Bitcoiners, it's the truth, but centralized exchange plays a vital role in Bitcoin adoption. There are newbie in which when they join the crypto space, it was through some CEX that they were able to easily buy their first coin.

I bought my first Bitcoin on a CEX and that's because, I learned it was from there I could only buy and sell Bitcoin, I am just beginning to discover some non KYC p2 p Bitcoin trading platform recently. but even while using a CEX, always learn to keeps your coin off the exchange.

Rikafip

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Quote from: Jawhead999 on April 22, 2023, 04:09:50 AM

In decentralized exchange, you don't need to verify anything and you can link your bank account or other payment, then you can start to trade!

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.

virasog

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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?

Mainly two reasons: -

1- There are no mature decentralized exchanges where one can do spot and future trading and also decentralized exchanges lacked liquidity.

2- Some people do not want to get into the hassle of seed phrases, decentralized wallets, bridging between the network, configuring meta mask, electrum, and trust wallets and they prefer to use one password and one 2fa to access the exchanges. They are happy with Web 2.0 and may need time to understand web 3.0.

fuguebtc

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In general, people's need is convenient, fast, multi-functional, and cheap fees, and centralized exchanges provide all those features. In addition, people have been used to centralized services from banks for hundreds of years, so it is difficult to change their habits, and it is not uncommon for people to choose CEX over DEX. In addition, bitcoin today is not only used as a currency, it is used for investment purposes, buying and selling is also a way for people to make profits, and CEX is where you can trade. CEX offers many facilities while DEX has too many limitations.

Topic: Why does Bitcoiner still support the use of centralized exchanges? - page 7. (Read 1246 times)