Topic: Your thoughts on crypto exhcnages. (Read 139 times)

It is but conveniently it is with those typical exchanges that are centralized that we know of. And then, there's the surprising news about the known P2P markets that have announced their closure. Like LBC and paxful, they're the known centralized p2p but then once upon a time, they were one of the best without having the need of kyc. There are still some handful p2p markets that's operating that don't ask for kyc but the known centralized exchanges like Binance are also trying to dominate this market that has been once for decentralization but then with them joining the competition, it's inevitable that most traders that do like p2p will come to them.

Nothing lasts forever. It's the same way nothing can be adjudged perfect in all ramifications without one or two slips of bad doing. Sometimes these things happen but they aren't preplanned. If we continue to use the FTX case to adjudge the entire crypto space and Cexs then we're biased because there are cases where certain cryptos over performed but they don't get mentioned.

Except for long term hodlers, otherwise it doesn't make sense to regular traders to keep moving their funds out of exchanges to their wallets for safety measure each time they buy.

You're not wrong here, it doesn't matter if the exchange is a decentralized or centralized one, the fact is, exchanges are the intermediate between the government and the people and also to new investors coming into the industry and how they treat them betters alot and that's one thing Binance is good at doing which is why they're at the top of the food chain. Exchanges should do more of enlightenment than they're doing, they should constantly make their users aware of the risk of holding their coins on their platforms instead of telling their customers that their coins are safe on their platforms when they're not and that's my major problem with centralized exchanges.

Sure they have a role to play in cryptocurrency adoption but they shoudn't be misinforming this new gullible investors as they're the ones getting fooled by all this lies told by the exchanges of their coins been safe. It would had been great if they collectively enlightened their customers but they won't because of the fear of losing liquidity on their exchange platforms which goes to show how they care more about their profits than the wellbeing of their customers which is why centralized exchanges aren't to be trusted.

First there is something you should understand about bitcoin. Bitcoin focuses on privacy and also people trading it in centralized exchange which most of us here are willing to give them their details for KYC. So now what is the reason for the privacy when Exchanges are asking for personal details in other to trade and buy bitcoin which is actually defeating the decentralization of bitcoin.
DEX is more preferable irrespective that CEX is increasing the level of adoption to cryptocurrency but is not a secure means.

Hello!

I mean a lot of people use P2P on exchanges like Binance to withdraw money or buy usdt and then buy crypto/bitcoin later. That's why I like to distinguish these two.

But thanks for the criticism!

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Hello!
I'm talking about this trend:
https://bitcointalksearch.org/topic/binance-sees-a-large-uptick-in-the-amount-of-btc-held-on-their-exchange-5450536

it's about a large uptick in the amount of BTC held on Binance.

[moderator's note: consecutive posts merged]

Exchanges are necessary — cex, dex both. When you don't have much portfolio you don't want to pay gas fees for each trade you make, this is where dexes lose while cexes win. Just recently, I wanted to trade ethereum token, I couldn't trade on dex because I didn't have enough funds for 2 transactions (approval and trade itself), but had enough for single, so I sent my funds to CEX and withdrew.

On-ramps require kyc so didn't bother with that.

I think if you are thinking about the crypto exchange you might consider using a peer-to-peer marketplace like binance P2P. Using a centralized exchange like binance.com and buying or selling crypto at fixed price points against other cryptocurrencies or local currencies supported on the platform. You can trade with holders for crypto exchanges and exchange your currency without the need to chart and order. Binance P2P growth and it is very popular in the world. This will increase trading volume and add more trading opportunities for P2P traders.

This goes against decentralization as you go back to having a representative that can negotiate things on behalf of people he doesn't know and who hasn't their vote or trust, and in some cases, not just one it ends far worse. This whole thing of having someone represent Bitcoin ended badly years ago with the Bitcoin Foundations' failures and scandals, so why stick to something like this?
Exchanges should represent only their business and their company, nothing else.


BATMS does a way better job than exchanges or an entry point with no extra steps.
First, you don't go through the risks of KYC for small sums, it forces you to already have your wallet, so to respect the "not your keys, not your coins"  law and it also gives you far more anonymity, which is a thing for sure you're going to regret losing and you won't feel tempted by the huge numbers of shitcoins exchange advertise since BATMS barely support a few coins.

And despite what others have said, for somebody who just wants to see how Bitcoin works, I would still recommend a BATM over some P2P exchange, P2P still involves a 3rd party, a bank transfer, or any other 3rd party payment solution to pay for those coins, too many headaches for a newbie who is interested in how the coin's tech, not in trading, buying and selling for $.

Role is pretty vital, it's where people buy and sell after all. Our world revolves around fiat. Most people don't get paid in crypto and merchants for the most part don't support it as a payment method so exchanges are kind of like a bridge where we could get crypto or convert them to fiat so we can buy things.

I'd say most people will at least dabble into it couple/several times.


Yes, that is the general advice.


In our forum, yes, many people are at least hostile about it but this is only with CEXs that are custodial - they hold your funds in their wallet you have no access to.

In general tho, I'd say most people don't care.

I don't hate centralized exchanges and I still use Binance to trade. The exchange is a place to trade, not store your coins. If you decide to buy and store, it's best if, after you buy the coins, you send them straight away to another wallet that you have full control over.

That would take the worry out of the exchange going bankrupt as FTX did. And you are still safe keeping your coins in your personal wallet and you can also sell them if the price increases.

Exchanges do little to teach the practice of using bitcoin technically, rather they introduce bitcoin as a trading asset, this basic point concluding that exchanges are not making a significant contribution to driving actual adoption. Instead I'm wondering, of all the newbies that came through the exchange, how many of them "adopted" it?
In addition, the adoption of bitcoin is not just a personal choice but adjusts to existing regulations even though there are potential violators.

Nobody is undermining the fact that most newbies that come to the crypto space got there either through this exchanges mostly because of the trading features they offer. Many of the people are just into the crypto space to make profits which is not the sole purpose of bitcoin only. Let’s take license from the government as a study. Been regulated by the government is similar to handing over people’s data to the government when ever it is needed.

Also the custodianship of ones fund exhibit by centralized exchanges is one of the biggest challenges I go against them because they assure investors that their funds are save and gullible people store it on them. Should this funds be lost on it due to the exchange bankruptcy or either been hacked, it will actually have a negative impact on cryptocurrency adoption than its positivity.

Let’s just simply say that this exchanges are just like our banks

Exchanges are meant to buy coins, or exchange the coins. So use it for that purpose only. If you want to hold the coins, then wallets and specifically cold wallets are best for these types of things. If you store or save your coins in any exchange, then the chances of losing your coins will increase, as in any exchange, you don’t have complete access on your coins. There is always someone who can access to your coins if the exchange gets hacked. Yes crypto exchanges no doubt made purchasing and selling Bitcoins or cryptos easier, but holding the coins there for long term is still not safe.

Ofcourse yes and this is the best way to hodl your bitcoin with you and you will always receive same answer from anyone who is experienced in bitcoin, any asset you have with crypto exchanges isn't yours because you have no keys to them but the exchange do, they are in custody of your private keys, if you make use of a personal wallet like anyone in cold storage, then you're free from custody, how you maintain the security and safety to your personal wallet bow lies with you, but you can only use centralized exchanges for buying and selling but not for holding your assets for long.

To better understand more about Exchanges you have to consider breaking it down and we have two divisions to that.
# Centralized exchanges
# decentralized Exchanges


Centralized exchanges: in a more shorter details centralized exchange are those exchanges that takes the freedom away from their users, they have more control than the users, they require KYC details

Decentralized exchange : this are the opposite of centralized exchanges, here the users get more freedom, more privacy protection and they can be anonymous. Here no third party exist and it’s mostly preferred by crypto-currency enthusiast.

To have a broader picture of what exchanges are about decentralized and centralized read through this post.

https://bitcointalksearch.org/topic/m.29885570

In addition there are dangers to exchanges that’s why it’s well recommended to never leave your funds on any exchange at all, some exchange bosses gambles with the funds of users as it was in the FTX case, also  Exchanges has been under continuous attacks by hackers and scammers.

https://www.wired.com/story/hack-binance-cryptocurrency-exchange/

Maybe attached the link of the thread that you mention or quote part of it here so that we can have a better understanding on what info make you inspire for creating this thread


Buying crypto on exchange doesn’t gives you the experience of Bitcoin since you are not holding your keys on your exchange account ergo you really not owned that Bitcoin until you withdraw it to a non custodial wallet which btw the real Bitcoin experience.



Exchange is centralized which is the exact opposite of Bitcoin. It represents the government since it’s a medium to regulate all the Bitcoin holders that will use this service. Other exchange that goes crap is an evidence that they are not the Bitcoin representative since Bitcoin can’t be take down. Maybe we can consider that centralize exchange are the leach on crypto sucking profit on the Bitcoin popularity.

People like me do not hate centralized exchanges, but telling people how dangerous KYC can be and how dangerous to leave your coins on exchanges can be. Also that exchanges are centralized.

There are also decentralized exchanges that you can use to buy and exchange. The most usefulness I see about exchanges is trading.

Bitcoin is traded on exchanges too, but you are right though, just that this is not what the OP is talking about, he posted the topic on the wrong board also. The topic is more about exchanges.

You're mixed many thing here.

First, crypto is more subjected as an altcoins and Bitcoin is Bitcoin.

Second, you're saying centralized exchange is good to make people know how crypto actually works and make them know are then more than wallet, but why you're saying P2P at the end? P2P and centralized exchange are work in a different way.

Third, altcoins are centralized and they don't mind follow the regulations or licenses. But, Bitcoin is used without need to touch government or licenses, those countries aren't asking a permissions to Satoshi for accept, tax, or ban Bitcoin, they just do whatever they want. Bitcoin doesn't need to get licensed or regulated, it's only need the government will not doing anything to Bitcoin adoption.

After I saw tread93's post on this forum about Binance, I started thinking about the role of crypto exchanges in adoption.

In my opinion, exchanges are great for people who want to try buying crypto and don't want to dig into a ditails. I think it helps more people to "experience" Bitcoin and I think most of them are then more to wallets when they realize how crypto actually works.

My second take is that exchanges are representing crypto and bitcoin in some ways. They try to get licenses in countries, deal with the government, and, in general, are the face of crypto for some people. It can be bad considering that exchanges could go bankrupt like FTX, but in general, I think exchanges speed up adoption.

I think the best way is to use the exchange to buy crypto or like a P2P platform, but hold all crypto on the wallet, preferably a cold one.

But what do you think about it?
I know that many people hate centralized platforms so I want to hear your thoughts.