Topic: Why does Bitcoiner still support the use of centralized exchanges? - page 8. (Read 1246 times)

Centralized exchanges do offer liquidity though, that's why we keep on using them. As we all know that bitcoin is one of the most tradeable assets, so we look for platforms like those centralized exchange because they give us the ability to trade safe and provide liquidity.

Although there are DEX, it's kinda slow and their is not enough liquidity.

So there is a trade off for us traders on the used of CEX and DEX, each has it's own pros and cons.

I think convenient is a subjective matter, I don't think it's not convenient to buy Bitcoin from decentralized exchange.

You're need to create your account by submitting your email and password, then confirm the code which send into your email.

In centralized exchange, you need to verify your KYC and they will ask you to wait for maximum 7 days, they can reject it and ask you to submit more clear version, let's say you've successfully verify your account, in the next month or year, they can demand more pictures, if you can't do it, you can't use the exchange.

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!

Time is passing so fast and things are changing and that's the most constant thing in this world. Yes, all of those attributes sums up with bitcoin and we can't help with these changes adoption that happens. Someone who uses a centralized exchange doesn't mean that he's not a bitcoin enthusiast. Yes, there are P2P exchanges and transaction that we can do for us to have those bitcoins that we sell converted into any currency that we want. But I guess these purposes and attributes is being defeated by comfort and availability that we can see in cexs.

Traders and investors require faster and more comprehensive services for their activities. If DEXs are not able to meet those needs, then CEXs will remain the best option. However, not all feature-rich CEXs can serve as a home for crypto traders and investors, but only those CEXs that have official permits and are supervised by relevant security agencies, both at the international and national levels. Additionally, pay attention to the reputation of the cryptocurrency exchange because every exchange has the potential to suddenly confiscate user funds.

Always be mindful of how you store your money because when you keep your funds in a custodial wallet, your money is managed by someone else who could potentially compromise its security. So, be cautious even if you're using the most well-known exchange, as their security is not foolproof.

Part of that convenience is that people have the false belief that CEX is safer because should any issues arrive, they have an entity to seek some sort of remedy. What they don't realize is that most of these exchanges don't operate within their jurisdiction and could disappear the next day without providing them an explanation. CEX gives the illusion of safety because a 3rd party intermediary exists but it's that 3rd party intermediary that should provoke the most distrust.

Can you name a more convenient way of buying and selling Bitcoin aside from buying it from Centralized exchanges?

I doubt you can't say because there's no other way that is consider convenient is more convenient than buying it on Centralized exchanges. I mean yes Bitcoin has been created so that people can transact without any middleman on it, but nowadays, there are many people who are scamming these innocent holders of Bitcoin, thus they find a way to buy more Bitcoin in a safer way, and the way that they see is to buy thru these centralized exchanges.

Why do investors retain their Bitcoin there? It isn't advisable to retain, and store any coins in exchanges especially in the centralized ones, but for some investors, it's a way for them to sell their coins way faster if they needed it. I mean if they store it in a hardware wallet, then suddenly the price of Bitcoin spiked up and they choose to sell it, they need to wait a few minutes because of the transaction, and in that span, price of Bitcoin might go low already, so I guess that's the reason why they are storing it there.

Another reason is that they're traders. It's pretty obvious that traders will really store their Bitcoins on Centralized exchanges. Why do people use CEX? Because it's convenient, easy to buy, easy to sell, and trusted (only a few).

Convenience is one of the major reasons why most Bitcoiners use centralized exchanges.  Aside from that, many incoming Bitcoin users are informed by the advertisement of these centralized exchanges.  In short, centralized exchanges are the reason why these people get involved in Bitcoin so it is logical that these people who are informed by centralized exchange to use their services.  That is what I think why most of us uses centralized exchanges the same way I also use centralized exchange because it is the one that introduce Bitcoin and other cryptocurrency to me.

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.

This might look strange to you, it's the centralized exchange that has made Bitcoin more colourful, adaptable and appreciated thus far, not the decentralized ones. Everyone needs speed, easiness, flexibility and dynamism in what they do, that's what the centralized exchange is giving. They've given us a reason to own a coin without fear of how to sell it and how fast it could be achieved since there is easy access to using it the way we want.

Is it for investment, skating, trading, exchange, you name it? The centralized exchange makes these so easy. And their P2P system is the best. Personally, I might have been discouraged without them.

Because they view the bitcoin as an investment, regardless of the way the Bitcoin is designed, but the abuse of use (using something other than what was made for it) is famous in almost everything and therefore the profits are what these people move.

Also, we cannot launch a specific template for the reason for using bitcoin, even if Satoshi returns and said: Do not use bitcoin except for a specific purpose, people will not listen to him/them.

A centralized exchange is a platform where you can easily buy Bitcoin using your Fiat money, you could easily use something like your Debit or credit card to buy on the platform, and an easy way to trade your cryptocurrency to the different blockchain networks. Yes, most of us hate centralized exchange but it just has advantages and disadvantages, one of the disadvantages of it is it is centralized and we don't have complete control of our own funds.

But it's still a legitimate exchange platform, it's easy, and convenient to use the platform, and most of the traders use the platform even though they hated centralized exchange because it's convenient, just don't put funds or invest in the long term on this platform. You could just buy on it, or exchange your crypto on an exchange then take the funds out to a more secure wallet.

Traders uses CEX for easy exchange and to trade,because cex makes it more convenient,easy and cheaper for them. So many people uses CEX because they are lazy and can't take the responsibility of keeping their bitcoin safe in a noncustodial wallet. Lack of knowledge on how bitcoin is designed and how to store it is also another reason. Bitcoin is decentralized in nature and should be used in that way. You can buy any kind of cryptocurrency in Cex because they have all type of cryptocurrency.

Well, centralized exchanges are the primary way to buy and sell Bitcoin. Decentralized exchanges are much newer and much less well known and usually have large price differentials from the current price of Bitcoin - like on a decentralized exchange the price might be a thousand dollars higher, so that makes people not want to buy it through there.

Centralized exchanges are also just more efficient and easier to use, which is what most people want when they are buying and selling, along with the best price.

You know it much more convenient to have transactions to examples you've mentioned above OP. But still people could track your addresses which could cause to many criminal activities suich as fraud and scams. People still prefer to have centralized system as some legitimate exchanges could guarantee the safety of your funds and can ensure you to transact with legit people. Imagine putting your funds in not centralized manner and it's up to your decisions if your fudns would be safe.

Funds on cex are held only by those who cannot safely store them themselves (lack of knowledge) and those who need funds for active trading (thanks to them, bitcoin has liquidity and, as such, price stability). Traders can't let go of CEXs, because dexes do not trade real bitcoin, but wrapped in a centralized way BTC on BSC or ETH (not to mention the performance differences). So trading on CEX is no different than trading on dex in terms of bitcoin and safety of funds.

Anonymity isn't one of key principles of Bitcoin, if you not use Bitcoin mixer or Coinjoin, you're still can get traced because Bitcoin use a public blockchain where anyone can see your address, transaction, how much you hold, where your coins come from etc.

Many people are still supporting centralized exchanges because they find it's more convenient to use and they feel safe to trust a top centralized exchanges. They're not entirely understand and use Bitcoin like the purpose, but they only focus about making money.

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?