Bitcoin Forum

Come to think of it, we said blockchain is bringing decentralized to the world by cryptocurrency and save us from banks , but have we really gotten the decentralized we talking about because I can't imagine exchange taking so much from us through buying the tokens and still not save by keeping our funds in their cares , this makes me think that are we really in decentralized world we talking about or just a mere thinking,

These exchange makes money even more than banks from us, which mean we are enriching someone by doing so,

Do we really need to pay that much for exchanging of token for btc or any other cryptocurrency if some exchange are charging 0.25% and one is charging 0.15% and even offer 50% discount if their token is use to pay for the fees and still record millions as a profit every month and also take more than what miner takes as charge fees when sending out from their wallet like 0.0005 which is equal to 3$ compare with normal fee which is less to 1$ , and if anything happen to your fund they are less concern ,

dont you think we are in centralized crypto market even if we can gain from those token we bought and what do you guys think is the best way to really curb this centralized thing from the world ?

Do we really need DEX to stop this and are we really save in DEX also has some were hacked just of recent .

What do you guys think is the best solution for the fees and how can we really decentralized crypto world ?

exchanges being centralized or .... doesn't change anything about bitcoin and the fact that "it brings us decentralization". it is like saying the restaurant that you ate a meal and paid with bitcoin should also be decentralized and doesn't have a manager just because it uses bitcoin!
bitcoin wasn't created to be traded/used in exchanges. you chose to use it only for trading and to do that you started using these "services" that offer you trading options.

and remember that the decentralized world does not have a owner to do everything for you, you are a part of it and you should be contributing. for example you are unhappy with centralized exchanges, so let me ask you one thing, what have you done for decentralized exchanges? the smallest thing you can do is to use them and report bugs so that the devs can fix it, if you are more knowledgeable then go through the code and try to improve it and make them better if you want their adoption grow and if you want to see everyone using them.

Most of the people think that cryptocurrency is only for online trading it is good to hear that someone actually asking about its other uses.  bank and cryptocurrency exchanges have many similarities like in cryptocurrency you don't have to follow so much proccedialies like bank have,  exchange process is very simple and quicker.

Mainly nowadays there is difference between crypto currency and fiat currency but mainly we use more fiat currency based on this banks are there to for doing transactions for fiat currency which we normally use also Crypto Exchange are here for doing transactions for digital currency based on online.

Of course there are difference between bank and cryptocurrency exchange. The main difference is bank exchange are centralised but cryptocurrency exchange are decentralised.

Why do you think that cryptocurrency exchanges are decentralized? Please take a look at larger exchanges like Bitfinex, Bitstamp or Kraken. None of them is decentralized, they hold your funds, you have no control what happens with your coins, you don't have any access to the private keys of "your" wallet hosted by the exchange.

There are many similarities between bank and crypto exchange. But these are two different things. So far as I know the exchange company only exchange your currency. And the exchange of crypto only online base exchange which only exchange crypto currency. But the bank basically deals with fiat or physical currency. Most of their service take place with the physical presence of the customer. The bank collect deposit from the customer who have surplus amount of money and lend it to them who have deficit amount of money. So, the bank and exchange are to different things.

Yes there is a huge difference between bank and cryptocurrency exchange. In fact cryptocurrency exchange is considered a rival to the banks. Banks fear that they might be replaced by these crypto exchanges. The cryptocurrencies aim to solve so many issues related to the banking industry which can make the financial dealing for the public a lot more easier like there are less procedural formalities, the parties contact with each other directly, which means there is no intermediary and hence no fees, etc.

Cryptocurrency are decentralised in nature so exchange of money through bitcoin is quite easy and uninterrupted process. But banks are under control of government and only centralize currency are exchange by it. And bank doesn't provide an uninterrupted money transaction like cryptocurrency and their is less privacy too. Their is also exchange of cryptocurrency through bank happen but in one condition in which first cryptocurrency convert into fiat currency. Transaction through bank also charge high transaction fee with slow transfer speed. Where as cryptocurrency do exactly opposite of this.

Bank in now a days is something that will gives you a paper money loan and will impose a very high interest rate in return of it and it will go through many difficulties in passing of your loan and on the contrary bitcoin is like a boon in which you can borrow it from anyone and it also provides you the peer to peer transactions that two users can buy and sell bitcoins to each other and there is no need of mediators in between them so the bitcoin investment is better than bank in every aspect.

bitcoin, the fact is not created to be traded / used in exchange. The smallest thing you can do is use them and report bugs so the dev can fix them.

Cryptocurrency uses a distribution network to allow peer-to-peer trading systems, peer-to-peer transactions without the need for third parties. For security, the code uses mathematical algorithms and a public ledger.
To ensure every transaction is legitimate, each account and the virtual amount that the account holder wants to spend are linked together by complex mathematical equations. Users, often referred to as "miners", use their computer resources to solve equations and often receive a small amount of money.

Cryptocurrency  is supported by mathematical technology, not by governments or financial institutions. The rare degree of e-money is based on mathematics and can not be adjusted by any group of people or individuals. They are not associated with material goods, such as gold, which can not be issued by governments or financial institutions like the dollar. This is the difference between bank and cryptocurrency exchange .

There’s really nothing much that you can do to get rid of the fees from exchanges. If you’re so against the fees of an exchnage, then simply don’t use one. Keep in mind that they’re providing a service and every service needs compensation. An exchange is very much different from a bank. You can’t an exchange to simply eradicate all fees and continue providing service just for the sake of decentralization? crypto is still decentalized as it is.  In many ways, you still have more decentralization in an exchange.

not all exchanges take expensive fees on a transaction, it depends on the exchange itself

I never think so, exchange is a means for us to buy token tokens, so I think it's mutually beneficial

Am not against the exchange rather am not using one but my questions still remain about high fee and withdraw charge that it's too much and need to be moderate , assuming a fee of 0.25% of 1billion trx which is 2.5million a day and also the 0.0005 permanent fee for transferring btc out of the exchange is what am pointing at that is there something to do with it and am sure we are going to have more exchange to use this as their strategy to gain customer just like binance did with 0.15 and 50% if use bnb , soon others will less to that and what am pointing out here will be clear to you because I believe for that fees alone made binance what it is today .

I agree bro.

In regards to hacked DEXs,  we need to understand why the hackers were able to hack the  exchanges. Are the exchanges really Decentralized or semi Decentralized?  Are they Peer to Peer?

By the way, the most important reason we need Decentralized exchange is to avoid censorship.

Banks do a hundred other activity than mere currency conversion.

Some things can make difference but both have similar procedures exchange is doing transaction in cryptocurrency and bank is doing in fiat currency but exchange all transactions is digitally and bank's transaction is digitally and paper based. in banks all procedure is very lengthy but exchanges transaction is very simple and easy.

An exchange is where you buy/sell cryptocurrencies. A wallet is where you keep cryptocurrencies you’ve bought or have received.

No, an exchange cannot be a wallet. However exchanges usually come with a wallet.

Coinbase, for instance, is an exchange and the account you create with them already comes with a wallet from them. This wallet is controlled by you but “owned” by them. I say owned because if they’re website crashes you have no access to “your wallet”. That’s why most people suggest you create a wallet using example MyEtherWallet where you are in complete control.

No. You need an exchange or interface to send or purchase cryptocurrencies. However you don’t need any of these to receive cryptocurrencies from someone who is sending to your wallet address. You don’t even need to be online. It’s rather that person who needs the interface to send to you.

Wow, you have a point here, I think crypto Exchanges truely makes more money from us than Banks, you can imagine how much most exchanges charge for transaction.

The banking System works with the Fiat money whereas cryptocurrency exchanges deals with cryptocurrencies such as Bitcoins and other Altcoins.The former one is completely centralized with nobody having any idea of what is being done with their money by the Bank and the Government.But when it comes to cryptocurrency exchanges,it is an Online Platform where a cryptocurrency can be exchanged for other cryptocurrency or Fiat currency.Cryptocurrency exchanges work with a pre-programmed software with no human intermediaries.They charge some processing fee and make the exchange easier.

Cryptocurrency exchanges are much faster, cheaper. With banks there are alot of processes before transaction will be finished. Also there is more privacy in cryptos as it is decentralized.

of course it's a really big difference, bank can make loans for someone that need it meanwhile cryptocurrency exchange can't. on the crypto exchange we can set the price for sell or buy, on the other hand bank doesn't have it

bank is for transactions where cryptocurrency exchange is for asset exchange and storage of digital asset banks are crypto are completely different model in financial world

That is obvious and just imagine how much investments does the owner of that crypto currency exchange has. Having an exchange is not that easy to have since there are a lot exchanges in the internet. Banks hold tangible currency while Exchange has intangible currencies. Banks are places where people saves their money while exchange is a site where people usually sold and buy crypto currencies.

While we cannot deny that there are similarities in the operations and activities of both exchanges, it is certain that there are differences in the exchange platforms. Primarily bitcoin, deals in assets based on electricity and hash power of the coin available for use on the exchange. Thus the more the patronising index the coin sees, the higher the valuer and vice versa. this clearly indicates that the prices of the assets on the crypto exchange varies significantly from that of banks. There are still other major differences such as trading time and (24/7) and transfer scalability.

Banks are different from exchanger because banks use our money by lending our money to others while exchanger simply get profit by exchanging our cryptocurrency to other altcoins and fiat. Don't get confused with this two because crypto exchange is not different from a traditional fiat local exchanger that gets more % profit if you exchange $ to other local currency.

Bank is a company or office controlled by the government, while cryptocurrency Exchange not. in addition Bank need a personal data to store or withdraw money but if cryptocurrency does not require any personal data (that is why cryptocurrency have advantages protection privacy) and much difference other.

its totally different between bank and cryptocurrencies exchange or network, because as we can see that bank is centralized system and the bitcoin or blockchain is a decentralized system, its mean that bitcoin don't have any central and work by 100% system

There is no correlation between cryptocurrencies and trading/exchange platforms where you can buy cryptos without having to resort to those platforms or pay a fee.
I bought most of my coins without resorting to those platforms.
When we use the current financial system or banks, we are forced to show identification and verification before any transaction which is entirely different from cryptocurrencies "decentralized one."
The best thing is free exchange away from those platforms? Forums like this forum may form decentralized markets cannot be restricted.

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Is there a difference between bank and cryptocurrency exchange?
You can keep your money safely in banks, which is different in the case of cryptocurrency exchange

I think you're thinking about investment accounts and not banks. Banks are where people store their money, keep it in there and let it grow for a while. Investment accounts are where you can actually trade with your account balance. In those regards, I'd say that overall, investment accounts and services for stock markets are a lot more secure as of now. They're on a much larger scale, and so many more people use them over crypto exchange sites. We still see hacks and security vulnerabilities in some of these exchange sites, and a few might not be as legitimate as people think. I doubt the same thing can be said about brokerage accounts and banks in general.

The centralized exchanges are the same as banks in crypto industry of you ask me and that's so wrong of the exchanges to charge such high fees from the people but the people have no where to go as the dex are having low volume and it takes time to fill an order there and also there is a pretty high difference between buy and sell price on the decentralized exchanges sometimes, so these are the main reason why the exchanges dominate the decentralized ones.

Unfortunately governments wants a regulated entity to manage the conversion from Fiat to BTC and back, so these centralized exchanges are the solution for the people who needs that. Believe it or not, some businesses wants to follow the legal route, so they have to follow the guidelines provided by the government.

There are many other methods to do this, but a lot of these methods are not ideally suited for a business that needs a paper trail and detailed documents and reports for tax purposes.  ;)

well centralized exchanges were also small once with their orderbooks thin and a big spread between their bids and ask orders. but people started using them and little by little the number of users grow so did the orderbook size.
and I feel like that is the same problem with decentralized exchanges these days. everyone is afraid of using them because of this reason and that reason and since they have the alternative (meaning centralized exchanges) they are not forced to go there either. but at the same time they expect these exchanges to grow on their own!!!
we need to start from ourselves. these are DECENTRALIZED projects, if  we don't contribute, nobody else will.

There is, Difference about value
The exchange of cryptocurrency is not regulated at all by the bank or Government but is governed by supply and demand, while the Bank is governed by the government ...

there are bunch of difference between banks and cryptpcurrency. we wouldn't be able to elaborate one by one all of them here and it is already been talked here over and over again, so if you want to find answers about your questions just try to look around in this forum there are plenty of answers that might answer your questions and clarifications.

Exchanges usually come with a purse. This wallet is controlled by you but "owned" by them. That's why most people recommend you create wallets with the example MyEtherWallet where you have total control. You need to exchange or interface to send or buy electronic money. You do not even need to be online. The more people who need the interface to send you. In the past, this system was completely centralized, and nobody knew what was being done by the Bank and the Government. Electronic money exchanges operate with a pre-programmed software that does not have human intermediates.

Bank exchanges are easy to track, they can be identified, the transactor can be identified, the bank takes the responsibility of being a platform of exchange and capturing the identity of people making exchanges and are more reliable. Bitcoin is totally anonymous though they are more faster and easy to use. Bitcoin has no owner and you really never know who all could be involved in your exchange.

Banks work under the government while the cryptocurrency exchange is owned by the company. Banks work on physical currency while cryptocurrency exchange operates on digital currency.

There is a who;e lot of difference between bank and cryptocurrency exchange the bank is meant to save money with very little interest while cryptocurrency exchange is for transactions and also to store coins if you do not want to have them in your wallet

I think, right now there is not much different between banks and crypto exchanger. The different thing is banks can loan you a money. I am believe in the future, banks will accept cryptocurrency deposit and make transaction like on exchanger

maybe you are right the striking difference is that the bank must have a management structure and of course the bureaucracy is in it if the crypto currency does not have a binding bureaucracy that binds

There are three major difference that I am aware of.

1. Bank charge a hefty fee for transfer of funds. Cryptocurrency exchange do not.
2. Bank are controlled by Govermant and Cryptocurrency exchanges are not.
3. Bank have an opening and closing hours , plus they do not work on weekends. Cryptocurrency Exchange are open 24/7 365 days.

There are many more but these are the one where you can see a major difference between both of them ;D

well the second opinion is mostly the reason why people wants to use crypto exchange rather than banking. i agree with you, and aside from thosw stated above some people also feels lore secured in using crypto rather than banking and that is on their reason and choice as well.

The traditional banking system works on regular Fait money. The U.S Dollar is the reserve currency, and can be printed at will as/when needed, the supply is not ‘capped’. They work by banks keeping units of account between them of how much has been transferred. Before, it was quite a local system and in times gone by, it was bartering with coins made of precious metals

Yes there's big difference between cryptocurrency exchange and banks and similarities as well. Cryptocurrency exchange is like a market where investors/traders meet to transact business either to buy or sell cryptocurrencies. Your ETH/BTC WALLET or LEDGER 📒serves as your bank account which you save your coins and been in total control of it. In banks we only send, receive and save fiat currencies. Both cryptocurrency exchange and Banks do collect transaction fees. Crypto exchange is mostly decentralized while bank is total centralized.

We can see that the bank is centralized and bitcoin or blockchain is hierarchical, meaning that bitcoin does not have a 100% central system and works. I bought most of my coins without going to those platforms. The best thing is to exchange freedom from those platforms? Is there a difference between bank transfer and electronic money? Unfortunately, governments want a managed entity to manage the conversion from Fiat to BTC and vice versa, so centralized exchanges are the solution for those who need it. There are many other methods to do this, but many of these methods are not suitable for businesses that need a paper path and detailed documents and reports for tax purposes.

If you really want know the difference, give a read to policy you accepted when you sign up to your exchange...
After Mt Gox hacking event, all exchanges don't guarantee any deposit... think about it!

There is a vast difference between the banks and the exchanges. Cryptocurrency exchanges are integral part of  the world of cryptocurrency,  exchange sites play a crucial role in  the successful functioning of the various assets or tokens used. Most people who are into the world of Crypto rely on the effectiveness of exchanges to trade their income which  is usually known as token or asset from one form to the other.

yes, exchange fees are always a problem, and each exchange has a different cost, and you are right that payment transactions are more expensive than banks. but, I think that we don't need DEX, because the quality of the exchange determines costs.

So, decentralized systems have better security than banks, besides, centralized systems have many bad values, such as monthly administration fees, easy to steal, and others.

Both are similar, but the technical aspects of cryptocurrencies make the process simpler and easier. For a crypto such as Virie for example, it has a very user-friendly interface which can make exchanges very seamless. And with additional features such as a multi-signature-based escrow, it becomes more secure as well.

of course there are many differences that exist, like the registration process, you don't need ID verification to be able to open an account in exchange site, different from a bank that requires a lot of processes. but in some parts of the bank it also has similarities with exchange sites such as the limit for withdrawal..

Aside the fact that bank is physical while exchanges is digital, I will tender the following:

1. Bank transaction charges are high compared to exchanges
2. Bank got lots of bureaucracy while exchanges don't.
3. Transaction of large she needs approval via the bank while exchanges is automated

Well, there is this new cryptocurrency called Virie which has just been launched recently as a part of the project called "Virternity". Contrary to DEX, They have DEN (Distributed Exchange Network) which apparently will enable direct purchase and sale of the Virie coins without a need for any brokerage hence removing the cost. Users will be no longer forced to send money to an exchange and wait. It has the potential to be the easiest to use cryptocurrency so it's probably worth giving it a try.

That is the major differences between bank and cryptocurrency but i think there is still one more difference is the anonymity. crypto exchange is completely anonymous while bank is not.

If you are authorized, there's no difference. If you remain anonymous on an exchange, then it's different, but in this case, you have limited withdrawal limit, which is different in size for every exchange (for example, Binance allows the withdrawal limit of 2 btc daily).