Will there ever be any safe centralised exchange ? - page 2.

CryptSafe

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Quote from: Tanvi50_ on December 17, 2022, 01:14:10 PM

As long as anything that exists on the internet, that is not safe. And you are giving your funds to someone and also exposing your private information. I don't know how safe are they. They manually verify your identity in order to approve the KYC application. So they do have access to your information. Your info is not encrypted and stored in their system, they are open and available.
there are a lot of things that could be said here. But for now, I will stick to this. And the answer is this, No there will never be any safe centralized exchange.

KYC is not in not safe in any way. KYC is a tool and process set up by the government through the centralised exchange to checkmate Crypto trading activities which before you sign up with any centralised exchange, you will need to agree to their terms and conditions which includes them giving your details to any third party by law when the needs arises. So therefore upon giving them consent, you already agreed to them using your details for any thing and I will not be surprised if they trade people's details for Money because they have it full in their possession and come to talk of it, you as a client don't know what is going on with your details your shared with them all in the name of kyc which makes it very risky. Initially, this was not the plans of Satoshi Nakamoto for bitcoin but the government which we have been avoiding has made their way in by including kyc which they are in for. With kyc on exchanges I do not think there is anything anonymous anymore and this is not safe.

Abiky

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Quote from: Smack That Ace on February 12, 2023, 08:47:28 AM

To be fair, when it comes to a centralized company or project run by one person or organization, there is no such thing as absolute safety. We accept their use means we accept the risk if something goes wrong. But currently for the market, we don't have too many choices, if we don't use them, there is almost no solution for us to choose. So always be ready to take risks and use them wisely to minimize the risk.

Most people don't care about the risks of centralization, as long as they get convenience in the long run. After all, the vast number of crypto users aren't that tech-savvy enough to understand the true benefits of decentralization. CEXs won't be going anywhere, especially when they dominate a large portion of the crypto market. If you really want "safety", just avoid depositing large amounts of coins in a centralized exchange. Only deposit what you're willing to trade in a day.

I hope that DEXs rise in popularity after the downfall of FTX. They might be slow and expensive to use sometimes, but their level of security is beyond compare. Developers are improving scalability for underlying Blockchain networks, so it should only be a matter of time before DEXs become a "force to reckon with". Who knows what would be the next centralized exchange to collapse? Just my thoughts Grin

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Quote from: Aliosky on February 11, 2023, 06:12:10 AM

Exchanges are not at all secure. We must avoid keeping money in exchanges, whether it is centralised or decentralized. These resemble a market where you can only transact. You run a very high danger of having your money or cryptocurrency stolen. So, absolutely, use them only as necessary. Additionally, as is always recommended, keep your money in offline or hardware wallets. If you don't, nobody will be able to stop you from losing your hard-earned money.

saving assets on an exchange, that's a pretty stupid thing, I had a bad experience where in the end my funds couldn't be withdrawn because I kept my crypto assets on FTX, when their exchange collapsed they would automatically freeze all the assets on their exchange. 99% safer to store assets in a personal wallet.

Quote from: Jawhead999 on February 12, 2023, 01:40:51 AM

There's no way to verify centralized exchange! they're not open source, not giving your seed phrase, etc. If you use centralized exchange, it's mean you're trusting your money to them and you need to accept all the risk when the exchange bankrupt, confiscate your funds, terminate your account etc and you don't have any way to recover your coins. So it's mean there's no such safe in centralized exchange!

when we send assets to CEX then they are no longer our assets because they are the ones who already hold the assets, so I usually use exchanges only to exchange my assets to my local fiat currency and vice versa, but to keep crypto assets for the long term, I really avoid storing it in CEX or DEX.

nullama

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Quote from: Jawhead999 on February 12, 2023, 01:40:51 AM

There's no way to verify centralized exchange! they're not open source, not giving your seed phrase, etc. If you use centralized exchange, it's mean you're trusting your money to them and you need to accept all the risk when the exchange bankrupt, confiscate your funds, terminate your account etc and you don't have any way to recover your coins. So it's mean there's no such safe in centralized exchange!

You can't verify what is really going on inside the centralized exchanges, but you can at least peak a bit into what's going on in your own account.

For example, you can import the wallet they provide to you as a watch-only wallet. You'll see that your deposits will show up there, but then there will be withdrawals from your account that you didn't do.

And when you actually withdraw money from the service, you'll notice that it doesn't come from the watch-only wallet. It comes from someone else's wallet.

I'm not comfortable with leaving any money in a third party service like this, and no one should really.

Smack That Ace

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Quote from: Jawhead999 on February 12, 2023, 01:40:51 AM

There's no way to verify centralized exchange! they're not open source, not giving your seed phrase, etc. If you use centralized exchange, it's mean you're trusting your money to them and you need to accept all the risk when the exchange bankrupt, confiscate your funds, terminate your account etc and you don't have any way to recover your coins. So it's mean there's no such safe in centralized exchange!

To be fair, when it comes to a centralized company or project run by one person or organization, there is no such thing as absolute safety. We accept their use means we accept the risk if something goes wrong. But currently for the market, we don't have too many choices, if we don't use them, there is almost no solution for us to choose. So always be ready to take risks and use them wisely to minimize the risk.

Jawhead999

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There's no way to verify centralized exchange! they're not open source, not giving your seed phrase, etc. If you use centralized exchange, it's mean you're trusting your money to them and you need to accept all the risk when the exchange bankrupt, confiscate your funds, terminate your account etc and you don't have any way to recover your coins. So it's mean there's no such safe in centralized exchange!

nullama

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Quote from: Mr.right85 on February 11, 2023, 01:49:31 PM

~snip~
Obviously. For most, it's more about popularity and what is common in an individual's locality. Not necessarily learning how to use it but, you must first discover it before hoping to understand.
For others, it becomes a question of, not being able to manage there security. Not having hope of any password or private key once misplaced or forgotten sounds scary and so, they hope on centralised exchanges to give them a backdoor through to password recoveries.
Unfortunately, there would always be vulnerability when you operate this way.

If the idea of cryptocurrency revolves around escaping centralisation or having an individual or organisation at the apex of your financial activities, why run to another one in the form of centralised exchanges! It doesn't make much sense to do that.

Yeah, I think Bitcoin will simply continue to exist in parallel to centralized currencies.

I don't really see the world changing into something in which everyone is responsible of their own keys. There needs to be some level of centralization at some point, because not everyone will be able to have such responsibility.

And I think that's OK. We don't need everyone to do it, just a big enough number of the population.

Mr.right85

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Quote from: nullama on January 20, 2023, 11:06:47 PM

Absolutely.

One of the main key points of Bitcoin is the decentralization of it.

Anything that is centralized should not be seen as beneficial for Bitcoin or the people using it.

I think it's just the fact that most people just want the convenience that comes with centralization, but that's a bad trade off.

Obviously. For most, it's more about popularity and what is common in an individual's locality. Not necessarily learning how to use it but, you must first discover it before hoping to understand.
For others, it becomes a question of, not being able to manage there security. Not having hope of any password or private key once misplaced or forgotten sounds scary and so, they hope on centralised exchanges to give them a backdoor through to password recoveries.
Unfortunately, there would always be vulnerability when you operate this way.

If the idea of cryptocurrency revolves around escaping centralisation or having an individual or organisation at the apex of your financial activities, why run to another one in the form of centralised exchanges! It doesn't make much sense to do that.

Aliosky

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Exchanges are not at all secure. We must avoid keeping money in exchanges, whether it is centralised or decentralized. These resemble a market where you can only transact. You run a very high danger of having your money or cryptocurrency stolen. So, absolutely, use them only as necessary. Additionally, as is always recommended, keep your money in offline or hardware wallets. If you don't, nobody will be able to stop you from losing your hard-earned money.

Abiky

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Quote from: CryptSafe on February 06, 2023, 04:22:04 PM

I have no doubt centralised exchanges are the government arm of Crypto currency regulatory body. They are good at nothing than taking and trading customers identity and funds without their consent. You would be made to sign up for what you have no knowledge about when it happens, they would tell you that you gave consent to them for that just like the issue of one of the exchange that won a case whereby members could not access their funds as a result of the documents they signed and agreed to. I do not for once trust centralised exchange so therefore I do not leave my funds there. I stick to this phrase " not your keys, not your funds" because I do not want to hear the story that touches the heart any day.

As I've said before, centralized exchanges don't care about the customer. They only care about filling their pockets with money. These entities usually work hand-in-hand with the government, especially to track down crypto users. It's the only way governments will be able to get a certain level of control over Fiat on/off ramps in crypto land. The more people use centralized exchanges, the better for them. Not only that, but centralized exchanges can collapse at anytime due to a major hack or a poor decision made by the company.

If you really want to avoid all the hassles of a CEX, a decentralized exchange (DEX) would be the only way to go. But be aware that DEXs are not perfect, especially when they have low liquidity and high fees. I guess that's the cost of having self-custody of your crypto funds. Which type of exchange to choose (either centralized or decentralized) is up to you. As long as you act responsibly, there should be nothing to worry about. Just my thoughts Grin

CryptSafe

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Quote from: Abiky on February 01, 2023, 10:55:03 AM

Quote from: juniperion on January 30, 2023, 05:34:27 PM

Centralized Exchanges will not be trustworthy %100 ever. Human factor will be there every time. However, they must change mindset. This is not traditional finance. It is cryptocurrencies which are based on blockchain. Blockchain brought us trustless exchanging of assets. I believe that them of being loyal to blockchain mentality will survive. They have to provide conditions which have minimum necessity of Trust.

I think that we need decentralized exchanges which support to swap assets on multi blockchains. Future is here. But if centralized exchanges change to be loyal to blockchain revolution, we will still be able to use them.

Centralized exchanges won't change their ways no matter what. All they care about is filling their pockets with money, even if that means screwing over the customer in the long run. Some of them are providing proof of reserves to bring back confidence among investors and traders alike. But most (if not all) will think twice before using decentralized solutions built on Blockchain tech. The more control they have over customer funds, the better.

You'd say using a decentralized exchange would be the solution to all of our problems. However, they're usually buggy, slow, and expensive to use unlike their centralized counterparts. Considering that we're stuck with centralized exchanges, we have no other choice than keep using them with extreme precaution. Only deposit the amount of crypto you're willing to trade to minimize risks of loss as much as possible. As long as you do that, you'll have nothing to worry about. Who knows what other exchange will collapse in the future? Just my thoughts Grin

I have no doubt centralised exchanges are the government arm of Crypto currency regulatory body. They are good at nothing than taking and trading customers identity and funds without their consent. You would be made to sign up for what you have no knowledge about when it happens, they would tell you that you gave consent to them for that just like the issue of one of the exchange that won a case whereby members could not access their funds as a result of the documents they signed and agreed to. I do not for once trust centralised exchange so therefore I do not leave my funds there. I stick to this phrase " not your keys, not your funds" because I do not want to hear the story that touches the heart any day.

Zee27

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The issue of security of crypto trading exchanges is an important topic for discussion and should be taking very serious by all because truth be told, centralized exchanges plays a pivotal role in the crypto industry and as such, safety has to be the number one factor on their mind if they intend to serve their customers better. Throughout the years, we've heard of series of cyber attacks on several exchanges while others are filing for bankruptcy and all of these have resulted to the loss of faith on centralized exchanges which originally should offer an extra layer of security and reliability when it comes to tractions and trading.
You asked if there's ever going to be any safe centralized exchange. and to that I'll say yes using MEXCGlobal as a case study. According to a review by NUWIRE INVESTOR, MEXC has a high-tech security risk control and anti-DDOS systems against hacking and as of October 2022 when the review was made, there have been no recorded security breaches. This sort of boosts my confidence that there are still safe centralised exchanges despite the tons of bad ones out there.

Abiky

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Quote from: juniperion on January 30, 2023, 05:34:27 PM

Centralized Exchanges will not be trustworthy %100 ever. Human factor will be there every time. However, they must change mindset. This is not traditional finance. It is cryptocurrencies which are based on blockchain. Blockchain brought us trustless exchanging of assets. I believe that them of being loyal to blockchain mentality will survive. They have to provide conditions which have minimum necessity of Trust.

I think that we need decentralized exchanges which support to swap assets on multi blockchains. Future is here. But if centralized exchanges change to be loyal to blockchain revolution, we will still be able to use them.

Centralized exchanges won't change their ways no matter what. All they care about is filling their pockets with money, even if that means screwing over the customer in the long run. Some of them are providing proof of reserves to bring back confidence among investors and traders alike. But most (if not all) will think twice before using decentralized solutions built on Blockchain tech. The more control they have over customer funds, the better.

You'd say using a decentralized exchange would be the solution to all of our problems. However, they're usually buggy, slow, and expensive to use unlike their centralized counterparts. Considering that we're stuck with centralized exchanges, we have no other choice than keep using them with extreme precaution. Only deposit the amount of crypto you're willing to trade to minimize risks of loss as much as possible. As long as you do that, you'll have nothing to worry about. Who knows what other exchange will collapse in the future? Just my thoughts Grin

albon

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Quote from: samcoin on January 25, 2023, 05:41:57 AM

The services that exchanges offer are no longer limited to trading Bitcoin or other Crypto assets. Now, some exchanges offer lending, borrowing, stacking, and many other services that make it hard for any Crypto investor to dispense with these exchanges. On the other hand, DEXs haven't developed to the point that makes it easy to use tool for everyone. In addition, the risk of hacking a DEX smart contract also exists.

Yes, you are right, in addition to the most important feature for me, which is P2P, I cannot do without, as this feature prevented fraud in buying and selling cryptocurrencies in local currencies between the buyer and seller in a large way, in addition to that CEX exchanges generally provide much more liquidity than DEX exchanges and the central exchange platforms have a simple and easy-to-understand interface for beginners, and there are many features available to traders, but the disadvantages of CEX are many, the problem lies in the user storing their crypto on the exchange wallet, and in the event of any hacking, their money and personal data will be at the heart of the risks, so no one can trust the centralized exchange platforms blindly because it is not a good place to store money.

juniperion

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Centralized Exchanges will not be trustworthy %100 ever. Human factor will be there every time. However, they must change mindset. This is not traditional finance. It is cryptocurrencies which are based on blockchain. Blockchain brought us trustless exchanging of assets. I believe that them of being loyal to blockchain mentality will survive. They have to provide conditions which have minimum necessity of Trust.

I think that we need decentralized exchanges which support to swap assets on multi blockchains. Future is here. But if centralized exchanges change to be loyal to blockchain revolution, we will still be able to use them.

Abiky

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Quote from: Synchronice on January 24, 2023, 03:00:37 PM

Centralized exchange can be pretty safe, the problem is that they are still small companies compare to traditional banks. I mean, if Deutsche Bank would offer me crypto exchange, I would feel safe with them, not completely of course but wouldn't feel anxious all the time.
Right now, I think that Binance is the safest option among centralized exchanges. Binance is the top player in this industry, one mistake and it has so much to fall, it's like, they don't have a right for a mistake and should prioritize safety at the highest unseen level Cheesy

Not your keys - not your coins are gold standard of course, I would say the same on cash, not in your pocket, not your money. Recently I even feel like not your print, nor your money Cheesy

You can't even trust banks no matter how reputable they are in the mainstream world. Not even an exchange backed by a renowned bank would do any help. Governments will tighten regulations. But that doesn't mean they will prevent bankruptcies from happening. The best thing you can do is deposit the least amount of coins in a centralized exchange, to help mitigate the risks of loss. Not your keys, not your coins.

I think with the collapse of another major crypto exchange, people will turn themselves to self-custody of their coins. This won't make CEXs go away, but it would certainly force them to change their business model in the long run. Who knows what the future holds for the entire crypto/Blockchain industry? Just my thoughts Grin

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Quote from: samcoin on January 25, 2023, 05:41:57 AM

The services that exchanges offer are no longer limited to trading Bitcoin or other Crypto assets. Now, some exchanges offer lending, borrowing, stacking, and many other services that make it hard for any Crypto investor to dispense with these exchanges. On the other hand, DEXs haven't developed to the point that makes it easy to use tool for everyone. In addition, the risk of hacking a DEX smart contract also exists.

Risks were everywhere, As in centralized exchange you don't have control over your own funds and can be easily scammed, decentralized system has now faced hacking problem which has instilled fear in people's minds in dex trading as well.
But I still think the real implementation of cryptocurrency is the dex system. It is best if you invest in the proper way in the proper place by being well alert. Cause there was a saying that "your keys , your fund"

Getmon

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Quote from: Synchronice on January 24, 2023, 03:00:37 PM

Centralized exchange can be pretty safe, the problem is that they are still small companies compare to traditional banks. I mean, if Deutsche Bank would offer me crypto exchange, I would feel safe with them, not completely of course but wouldn't feel anxious all the time.
Right now, I think that Binance is the safest option among centralized exchanges. Binance is the top player in this industry, one mistake and it has so much to fall, it's like, they don't have a right for a mistake and should prioritize safety at the highest unseen level Cheesy

Not your keys - not your coins are gold standard of course, I would say the same on cash, not in your pocket, not your money. Recently I even feel like not your print, nor your money Cheesy

In comparison to the largest banks in the globe, Binance is not a small business, in my opinion. Binance exchange may currently be worth 100 billion dollars, which is comparable to the largest banks. There may be fewer than twenty banks bigger than Binance. Gemini, on the other hand, is for you if you prefer to trade on an exchange that is wholly or partially owned by a bank. A CB Insights article claims that the Commonwealth Bank of Australia has ownership of the exchange because it has invested in Gemini. You are correct. A single error and mistake can dramatically alter everything including bankruptcy and the loss of all depositor funds. And simply holding the keys to our investments is safer.

https://www.cbinsights.com/research/top-banks-crypto-blockchain-investments/

samcoin

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The services that exchanges offer are no longer limited to trading Bitcoin or other Crypto assets. Now, some exchanges offer lending, borrowing, stacking, and many other services that make it hard for any Crypto investor to dispense with these exchanges. On the other hand, DEXs haven't developed to the point that makes it easy to use tool for everyone. In addition, the risk of hacking a DEX smart contract also exists.

Synchronice

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Centralized exchange can be pretty safe, the problem is that they are still small companies compare to traditional banks. I mean, if Deutsche Bank would offer me crypto exchange, I would feel safe with them, not completely of course but wouldn't feel anxious all the time.
Right now, I think that Binance is the safest option among centralized exchanges. Binance is the top player in this industry, one mistake and it has so much to fall, it's like, they don't have a right for a mistake and should prioritize safety at the highest unseen level Cheesy

Not your keys - not your coins are gold standard of course, I would say the same on cash, not in your pocket, not your money. Recently I even feel like not your print, nor your money Cheesy

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