Bitcoin Forum

Crypto enthusiasts buy crypto with centralized cards from centralized platforms. Transfer that crypto in centralized exchanges and trade with centralization. And whenever get caught in a problem with the exchange, accuse the centralized exchange. So how with all this you can talk about centralization????? You prove your words wrong with your acts.

Not all people do this, there are people who use LocalBitcoins or similar sites to find people, trade cash with that person and buy Bitcoin in exchange, which is, in fact, a Peer-to-Peer exchange with no centralization whatsoever. It's just the overall accessibility that makes people utilize "centralized" exchanges.

I also use Local Bitcoins for buy and sell. But how about the trade happening on Binance, Bitfinex etc....
I am talking about general terms.

Bitcoin is first decentralized asset in finance history, everything else is centralized so how people can avoid centralizaton? They cant yet.
There would need to be more decentralized services around bitcoin (there are projects already) and people willing to use them.
We will see how it will go, centralization isn't always bad.

Do you mean many people talking about decentralization but still using lots of centralized product? Honestly, I feel it is a bit shameful but nothing could be perfect and completed in short-time. Centralized product like exchange is doing its role to help common people know and use crypto (even though they will only use it for trading) and I am very sure there will be a transition time, that will replace centralized products with the decentralized one, slightly.

Because everyone in the world (more or less) uses fiat, which is a centralized system. To transition to a new decentralized system, there needs to be an on ramp from the existing system. That on ramp comes in the form of centralized bank accounts and exchanges.

It had always been possible to trade peer to peer, and now that bitcoin is becoming more established, it is entirely possible to avoid all centralized entities when buying, trading, or selling. Many people still favor centralized exchanges, despite their plethora of risks and drawbacks, mainly because of ease, speed, and volume. DEXs are improving and also becoming more numerous, but centralized exchanges have had a several year head start.

I for one used to use LBCs before their new KYC requirements, and am now mostly using BISQ, and trading for cash. I've done some trades using PayPal or bank transfers, but only with friends I already knew in real life. I refuse to give my KYC documents to an exchange.

There ar exchanges like ddex, idex and bancor etc. Why crypto enthusiast do not go to those places and leave binance etc.
This is a genuine thing.

I work as a freelancer for my clients and get my payment in BTC, no middleman to eat part of my earnings. Not all people trade there BTC via central exchanges.

1. Most not-decentralized but non-custodian exchanges also known as"DEXs" mostly only supports ERC20 tokens.
2. "DEXs" have really really bad liquidity and really bad trading volume.

You have to understand that right now, we mostly need to go through centralized platforms to buy/sell coins in an easier manner. "DEXs" are simply not polished and ready for mass usage just yet.

1. Why decentralized exchanges do not go for coin?
2. Liquidity comes with more users and there was a time when these centralized exchanges did not had that much users as they have today.

There are decentralized exchanges, forkdelta, etherdelta. And since people won't leave the centralized exchange it is because they work easier here, buy and sell and convert crypto to cash. Therefore, decentralized exchanges are no longer viable because volumes are low so trade is difficult.

Localbitcoin is one of the best and most secure site for converting fiat to crypto and vice versa I have been using it for over 4 years but yet to face any hassle but there are some traders who requests for a copy of government ID cards when we question them they say they have been instructed by government to collect these details. Not sure if they are recording our transactions or it's just the traders who are doing data theft because not everyone asks for it except few.

Decentralized market is independent way of operating payment resources without any interuption so please look for decentralized cryptocurrencies for investment and always avoid the centralized cryptos.
Because it is completely useful for the banks only not useful for the public people.

The network is decentralized, exchangers aren't that's the simple fact you need to understand.

You can have your bitcoins moved from 1 address to another whenever you have, feel and want to.
In any place, country, continent you can do such stuff because there is no individual control over your coins.

Unless you want to use a specific exchanger company in which you need to trade your virtual money for fiat.
Sure if there are errors with your exchangers you will face the consequences which btw you have agreed with at first place ;)

fiat / crypto transactions are still valid in a formal and centralized measure, we cannot deny that they provide convenience and form of communication accountability when problems occur. if this topic encourages the use of dex as a purely decentralized force, this is also not very appropriate due to the low level of comfort provided, many people still entrust large money to trade in the central market due to the influence of volume that will never move to dex.

A very wise opinion. I strongly agree, even though this is not something that can happen perfectly in a short time, it needs adjustments until everything is completely fulfilled. Doesn't evolution also take a long time?
This is the choice of each, DCE does not require intermediaries so we have full rights and privacy is maintained, and often we need CCE to exchange it fiat. Or use another compatible platform. The most important thing is that we can enjoy this facility to the maximum.

I mean - how are you going to expect people to buy BTC with, a lot of them will use cards and wire transfers, and centralized payment methods, but not everyone is going to be smart or bother using services like localbitcoins, or meeting up and buying bitcoins for cash.

It doesn't matter how they got to their point (which is decentralization here), it matters that they ended up with bitcoin here.

No one in the world is going to be able to live a fruitful life if they don't accept some sort of centralization, nothing can be truly decentralized.

Unfortunately it’s difficult to buy Bitcoins without using a centralized exchange at the moment. Miners get Bitcoin without buying but there aren’t many other ways to obtain them until decentralized exchanges go live.

Apart from this if you want to buy you need to purchase gift cards and further you can buy bitcoin in exchange for gift cards. For this you need to find the person who prefer to do it. This is difficult as you can't buy when you want. As stated miners were the only people who receive it without buying.

Until we use fiat we're not going to get into pure state of decentralization. This means the dependence over centralized exchanges and centralized platform will continue for longer time. Maybe in future we can experience better way of decentralized usage of bitcoin buying.

1. Ask them. I personally don't run a "DEX". 🤷
2. Yes. I'm definitely not saying that "DEXs" will not have usage in the future. My point is, it has very low liquidity right now hence only a very small minority of traders are using them.

What exactly are you telling to share with this post? Personally, I don't really understand what exactly you want to put across with this your post. Are you trying to say that Crypto enthusiasts describe cryptocurrency as a decentralized entity which operates on a decentralized platform and blockchain network but yet they obtain it from centralized platforms and also trade them on centralized exchange platforms ? Please help me understand this post of yours...

Many people buy bitcoin on their local exchange market have good quality for deposit and withdraw, many countries have own local exchange market where support deposit cash money to buy bitcoin and sell bitcoin there for withdraw to local bank, many people very easy when start investing with bitcoin or altcoin because with service by local exchange market giving way to withdraw and deposit.

I am wondering of the same question. There is a great disconnect in here or a great barrier that should have been surmounted years ago. Unfortunately, that is not what happened as centralized platforms with good marketing campaigns and much better offers in terms of incentives are reigning over the cryptocurrency market. So let's maybe analyze why this has happened, what are the reasons why people still prefer by the droves to use centralized platforms and what the reasons why decentralized counterparts are not getting attractive to these people. Once we have those answers then maybe we can see and plan how to change the balance towards the adoption of centralized platforms.

He's basically saying a lot of Bitcoiners are hypocrites for celebrating decentralization all the while opting for centralized services when there are decentralized alternatives.


Yeah, it's a chicken and egg problem. Low liquidity is a result of a lack of users, which probably has a lot to do with low liquidity. I wish it was as simple as dropping centralized exchanges, but they're so much better in terms of user experience that switching really isn't a viable option for most people -- it's not like centralized vs. decentralized is the only factor people take into consideration when using an exchange. But hey, maybe a good DEX that people actually want to use will pop up in the future.

Personally, I see it that people find it much easier to obtain cryptocurrencies from centralized platforms since they are always assured that they will definitely obtain their crypto coins with less or no complications. Buying cryptocurrencies with a physical fiat on decentralized platform might look a bit risky to some people since no one is in charge of how the transactions are done. A lot believe that you can easily get scammed on decentralized platforms rather than centralized crypto platforms.

Exactly. People need to understand that some(or probably most?) people aren't really willing to do a recovery seed backup with their "DEX" wallets, heck, I'm going to bet that most don't even use non-custodial wallets! I don't think there's any other way to get people to these so called "DEXs" unless their ease-of-use gets better significantly.

In the first place, the party that has a problem is the centralized exchange, then there's no reason why people who uses it blames them. If they don't want to be under the regulation of a particular centralized exchange, then they should try to find dex, but in this case, if problem persists, you cannot blame the dex but blame yourself how your funds got hacked or stolen. In comparison to Centralized exchange, they have support so you can ask and seek help from them.

This is all complete nonsense. It is perfectly possible, and indeed quite easy, to buy bitcoin using cash, an anonymous money order, Western Union anonymous cash deposits, or similar. This is only becoming easier with DEXs such as BISQ, which accepts all these methods, will find you a seller, escrow the bitcoin, and resolve any disputes.

I have never completed KYC on any cryptocurrency related service, and I have never used any traceable form of fiat (credit card, bank transfer, paypal, etc.) to buy bitcoin.

I have made many trades on BISQ and never once had any issues whatsoever. Conversely, you can search online and find a multitude of users complaining about a multitude of issues regarding centralized exchanges, from accounts being locked to coins disappearing, from withdrawals not being processed to accounts being hacked.

Not each of the crypto enthusiast would but bitcoins with the centralized debit/credit card. There have been introduced a number of platforms where bitcoins can be bought without involving the centralized party. This makes the transactions smoother and occur without any problem. Bitcoins are decentralized but the world is not decentralized yet so even though you take care of these simple things, you might involve the centralized party into your transactions.

Also about which problem are you mentioning here? Does that problem include hacked/lost bitcoins or anything related to the governments taxation?

Centralized means involving a third party into the transaction for example the government. And usually in the centralized transactions the funds are not mostly lost or hacked because the third party has an eye onto your transactions which similarly gets to happen with fiat.

An extremist then are we? 😁 you know most of us don't even think about that anymore. People do what's beneficial for them or what makes money. Right now, few cares about what they're using being decentralized or not. It helps them. It meets their needs. That's all there is to it. Crypto was meant to be decentralized but it also needs to adapt to the current situations.

And because actions speak much louder than words, we could say that these people are not really fully supportive of decentralization. But can we blame them? The easiest and most convenient way to purchase Bitcoin right now is to go through centralized exchanges and other centralized sites selling Bitcoin with their centralized cards. And the easiest and most convenient way to trade their crypto is through centralized exchanges with large volume. I guess convenience and ease are the priority this time.

Yes. Furthermore we live in communities where we need to follow rules, regulations, being impossible to live in a decentralized way according to these laws. In the end you always need to convert bitcoin into fiat to buy things and to report your gains to local authorities.
Maybe just a few excentric people can live in that decentralized way.

+1

if you people expecting to go full straight decentralized in a world that has been exist with centralized system for centuries then you are dreaming , you can not replace something that been established for long time with a new one in a blink of an eye.

we still need those centralized services as the crypto ecosystem itself has not established widely yet.
it takes time , a really long time.

I agree what you are saying, not everyone does. Most investors buy peer to peer crypto in exchange without being centralized.

for now, centralization is still dominating, and we should really have ourself blamed for that and not centralized exchanges because the power to choose between centralization and decentralization lies with us, so if anything goes wrongs with the way that we handle things on cryptocurrency transactions, I think that we should all be blamed for it, I mean those of us who are fully loving on centralization. 

The main intention of the one that created cryptocurrency was to create a decentralized platform which made him to create bitcoin, but we user are the ones not utilizing the full power of the decentralized nature of bitcoin, and we started from the moment we were all embracing all these centralized exchanges rather than making use if decentralized exchanges. 

We don't have 'decentralized' approach to convert fiat to crypto, do we? So we use what we have. However, I do agree people putting their crypto to centralized exchanges, and when they lose it they blame the 'centralization', here it's their mistake in the first place.

I don't buy my crypto. I earn it with referrals and other methods. So i don't use cards as you say. I do not use a centralized exchange either. I hate centralization. I do see your point seeing as bot everyone is kike me and some people go the centralized root. I think these are people that shouldnt use crypto. They not really enthusiasts they just want to increase their $$

See, this is where your thinking is wrong, you think that crypto enthusiasts = crypto traders, but they aren't necessarily the same. Crypto traders are here just for the profits, they might think that they support decentralization and stuff, but in truth they don't care about it much. Crypto enthusiasts, on the other hand, don't care much about trading and price, they care about using crypto in their everyday life or for some new and interesting projects.

You are looking free way to get bitcoin and altcoin? good ideas where is many people invest with bitcoin and altcoin you have free way to get it, I get bitcoin from joining bounty campaign and use for investing with altcoin and ICO, but I lost when investing with scam altcoin or ICO have lower price after listing on exchange market.

yes you are right here. Many people buy BTC local market without any centralized platforms. Maximum time its causes problem and total impact goes to centralized problem as usual as market. Every investor should buy it from actual platform so that all will be gainer.

I agree, however the OP perceived that when someone got in trouble in such centralized exchange then they are going to blame the platform.

Anyway, going back to the problem. As we see popular platforms such as Binance seems formidable, and totally away from any troublesome events, which in fact newbies or more like people who are dependent on some things would easily fall to, and will rather rely in it. Though those people (not sure) prior to using the platform they have to agree with terms and conditions (wherein nobody reads). Such cycle has to be corrected which the OP was trying to address, but the problem is, it is seems impossible because even though we let our advice go around, few people are going to pay some time attention, and in addition few are going to imbibe the essence of it.