Topic: Why I am pulling all my coins from Centralized Exchanges - page 2. (Read 240 times)

The message that you have shared is absolutely valuable and this will help many people to think about using the decentralized exchanges. We have seen that many people use centralized exchange as they do not understand its bad effect. This post will really help them to understand.

I don't think that shorting is really responsible from the drop from $1.4k to <$200, let's be realistic here. The market sentiment is horrible all across the board, even cryptos that don't have margin trading available are dropping like bricks. Sure, shorting probably isn't helping, but when you combine that with ICO sell-offs and general FUD, it's quite obvious why we're seeing this river of red.

This is really valuable news that you shared with the community. This will help people to think about using the centralized exchange as many people are not aware of the disadvantages of this exchange and they are also not aware of the advantages of the decentralized exchange.

It’s a great message for the investors and i totally agree with you but peoples are using centralize exchange. They do not understand the decentralized exchanges benefit. I hope in near future their perception will change.

This is a good message that you send. I also don't like to keep my funds on centalised exchanges, but mainly because of the risk of getting hacked. I just make the trades that i want to do, and withdrawal my coins right after that.

Here is a chart that shows you how much short interest has increased at Bitfinex.

Point well made. And personally, I never keep my coins on exchanges. Let it be security reasons or simply not allowing exchanges utilizing your coins for shorting or long.
Plus a lot of tokens have been moving to POS so keeping them in your wallet instead of exchanges gives you stake rewards as well.

You wrote a good message. I liked the way you think and I agree with you. Oddly, now there are decentralized exchanges, but people still want to use centralized exchanges, perhaps this is due to the fact that they do not want to understand the advantages of decentralization. I hope in the future people in crypto will become more literate!

Besides the risk that you run from hacks that steal your coins there is another even better reason for not keeping your coins on centralized exchanges.

Enlightened Self Interest.

A large volume of the selling that is currently happening in cryptocurrencies and particularly in Ethereum is coming from people short selling. Short selling is when you put up some collateral with an exchange and then borrow coins against that collateral that you sell into the market and then hope to buy back at a lower price and return to the exchange to cover your negative position. The difference between the price you sold and then bought back would be your profit. Short positions in Ethereum are at record levels.

Now if you are a long term investor in cryptocurrency and are holding coins on a centralized exchange then you are inadvertantly increasing the supply of coins available to short sellers. If however they were in your wallet or on a decentralised exchange they would not be available to short sellers. If enough people did this the short selling would dry up and the shorts would have to scramble to cover their short positions which would drive prices up. This is called a short squeeze. Now I have no reason to believe that me moving my coins will bring this to pass. But I am going to do it simply because I don't like the idea of other people using my money to work against my interests.