Bitcoin Forum

6 months ago, my savings went down because of the FTX debacle. I've never used FTX, I've never been a customer of this company, but my savings are in BTC, and because of that failure, BTC's value went down, and so went my savings.

Today, bis repetita. I've never used Binance. I've never been a customer of this company, but because the SEC sues Binance, BTC is down, and so are my savings, so I have a message to all bitcoiners out there.

Exchanges and BTC are 2 different things. One exchange going down doesn't mean BTC must follow.
Binance will disappear? I don't give a damn.

You're right — but what we think and want doesn't always reflect reality. The fact is, most of the cryptocurrency space at least for now is still largely speculation and not much people (at least yet) care about self-custody and self-sovereignty.

The market is determined by sentiments, bearish and bullish sentiments of traders affect how the price changes. Binance are one of the biggest holders of Bitcoin, FTX had a large amount deposited with them, so it's only natural that the many holders of Bitcoin there would cause of a negative news on those platforms panic and that in turn that sentiment will affect the price.

In the long run as a BTC holder you should not be too worried. The effect of those news last for just a couple of days at best and the market corrects.

I would hope it would teach many not to deposit their bitcoins on centralized exchanges but that's not the case.

Well, sure, the currency and the exchanges are separate. But the price of the currency is determined by a market, and that market is greatly influenced by a few such entities, like Binance and the like.

There shouldn't be exchanges used as wallet software in the first place, as you're not supposed to have an intermediary when using or buying bitcoin, but unfortunately many people (who partly define the price) don't get that.

Everything has its place. There are people who believe so much in exchanges to take care of their assets security more than they think they can do for themselves, and as such, most people save their coins on centralized exchanges with hope and believe that they are the best option. Which is the worst idea anyone can have. A true Bitcoiner knows the value and benefits of self-custodial.

The price of Bitcoin always goes down based on the level of fudz, which is a cause against Bitcoin. The Bitcoin price is not controlled by anyone, but most times it can be manipulated, since the case of the SEC coming after Binance CEO is enough reason for non-believers to start panic selling, which can cause a drastic price dump, but this can only be temporary and not a permanent price.

But you shouldn't be considering your savings gone until you have sold them out entirely. So long as you still hold your coin, there is a higher chance and possibility of regaining everything that you have calculated to have lost when the bull market comes. That's why we are always advised to hodl strong in a bearish market and never to sell under panic.

you have been around long enough to know this stuff

firstly never measure your "SAVINGS" based on the volatility of the market price because the market price is indeed controlled by exchanges..

instead if your a long term holder stop caring about the market price. and just remember its volatile..
instead remember this simple fact
there is always a periodic BOTTOM that the markets refuse to sell below. set that as your "savings value" per coin per 6 month period

the bottomline value is almost like the guarantee minimum return.
yes the speculative market can swing up above this and you can get temporary opportunities to sell higher then the periodic bottom. but if you are not in a selling mood dont care about the temporary prices

for instance late 2022 saw the bottom at $15k
early 2023 saw it at $17k (even when temporary market prices were over $20k)
now the bottomline value is over $20k (even when the market prices are over $25k)

knowing you would get a minimum of $15k late 2022 and now $20k in 2023 is much more relaxing though then daily worrying about the daily speculation and volatility of the markets that sit above the bottomline value

if you want to calculate the bottomline value.. take about 6 months of average network hashrate.
calculate the cheapest most efficient asic to work out how many asics are needed, how much electric and the cheapest effective electric of prominent mining farms. to then calculate the cost to mine most efficiently on the planet per btc

that there is the effective bottomline cheapest way to acquire bitcoin on the planet(below market rate) meaning no one wants to sell below that amount because no one on the planet can acquire bitcoin via mining, otc trading or CEX trading to get bitcoin any cheaper. so no one on planet will sell below that. which is where the bottomline support steps in to re-inforce that cex markets never correct all the way down to that level

once you know the number. you can then be rest assured that unless bitcoin really breaks you have a minimum value for your "savings" and anything else the speculative market wants to sell for is a bonus above the savings

I am certain this is due to fud. People are selling off due to.fear of the unknown and this in turn is putting pressure of the price of BTC. But they fail to understand that even if Binance falls today, that will not be the end of crypto. I hope they understand this and stop this unnecessary panicking

Well spoken @op, bitcoin and exchanges are two different entities, but unfortunately, they are linked by customers who trade bitcoin on the exchanges, understand that the problem is not with the exchange themselves, but with the customers who panic sells their bitcoin when any major issue arrives, like in the FTX saga last year..

If bitcoin holders, who are also customers of this exchanges can come to their senses, and choose withdrawing their bitcoin to their private wallets rather than panic selling whenever there is a negative news, then the negative impact of the news will not at all, show on the price of bitcoin.

Of course the two are different between exchanges and Bitcoin but the price is determined by the market which is called the exchange that provides this but bitcoin will go with that flow because it depends on how the market reacts with its ups and downs.

Your savings may go down the same thing I also have a savings account now in bitcoin and it has gone down due to the news the SEC attacked Binance to sue it but my bitcoin numbers won't change with the influence of this news only in the declining dollar value I think this is very reasonable if we hold in a situation of being in a lot of FUD news it would be better to stay holding.

Today our investment is down but one day it will recover again with even higher bitcoin prices.

This clearly a case of FUD reaction by mostly traders. If we look at the this exchanges mostly centralized exchanges we would find out that most of the coins stored on them are for traders that utilizes the features like spot trading, future trading, margin trading and its likes. And binance been the largest or biggest exchange it is possible that it will have more traders on it. And we all know traders aren’t investors that would hold on to their coins or withdraw them to a proper wallet. The traders will be predicting a price drop in bitcoin and the rest as CZ is reported to be sued, and then they also would just sell off their funds to either fiat or stablecoins.

The continuous increase of different trading features on exchanges will definitely make it hard for traders mostly daily traders to take off their funds off the exchanges. Also if the many people do not only see the use of bitcoin as payment method or an asset that can be stored but a currency for different trading purposes and without decentralized exchanges matching the number of different trading features on centralized exchanges, sadly many will continue to hold there funds on platforms like binance

Unfortunately, that's jist how market value works in this technology. Being affected by many factors is "double-edge". Indirect positive news will result to increase on cryptos' market value but same thing with negative articles. Reason? as others have mentioned, FUD. As far as I know, Binance would still function during the suitcase but it is just investors who wants to exit early and avoid bigger losses from people who would panic. Quite of a domino and relative events given that there's a belief of a downfall with Bitcoin's price because of CME gap below $23k. It is our reaction which creates a wave or movement with its market value.

The value of your coins goes up not because millions of people adopt Bitcoin to pay with it for their morning coffee, it's because companies like Binance allow millions of people to quickly and conveniently invest in Bitcoin and trade it. Binance is responsible for a large share of total Bitcoin trading volume, so like it or not, exchanges will be a major factor for Bitcoin's price, until most of the trading volume will move to DEX, which might not even happen ever.

Bitcoin and Exchanges are different but they are both connected to each other that is why, as you have experienced when Binance has a problem, it affects the price of Bitcoin as well. And this is because exchanges have a huge role in the crypto space where people are buying and selling there, and if any problems arise with these exchanges, users are really affected. That is why people are giving more attention and importance to them as it was one reason why people are here and make a good profit and trading are alive.

Bitcoin and exchanges are different, but there is a need of a platform through which the market for the bitcoin is built. If exchanges weren't available, what would've happened. Everyone who have got bitcoin will be holding it and there won't be any trading practice which keeps the market stable. If not we could've got moved to the ancient days or to the paper and pen on trading. Exchanges are part of the development. Everything can't be cent percent perfect, so is the service provided through the exchanges. The cryptomarket have got some connectivity with the exchanges, just because of that we were able experience downfall in the market when something good happens.

Somehow, it's about the same thing with stocks, people are always overreacting.
On the other hand, this shows how small, and concentrated BTC still is. There are many banks, and if one bank collapse, the currency doesn't follow. But one exchange is sued (it's not collapsing, yet), and BTC loses 5% within the hour. That's not normal. Maybe there aren't enough exchanges, so that one going down shouldn't have any effect on BTC's value.

Yes, you're right. I've never used either of them too. But still, for the masses, things like that create a bad image of crypto, so it all goes down, you know how that works. We can embrace or at least endure it.

Exchanges can be created and can die with time. Many reasons for their disappearance that can be a scam exit, a governmental seizure or self service closure. We never know what will be ending of one exchange whether it is a decentralized exchange or a centralized exchange.

If we store our bitcoin at a centralized exchange, if they go down, we lose our coins.
Reminder: do not keep your money in online accounts (https://bitcointalk.org/index.php?topic=5421039.0)

If a big exchange go die, it will create big impacts on cryptocurrency market and price will be down a lot, -20 or -30% or more but if Bitcoin won't die, its price will recover after all and will continue to grow in its network hashrate and bitcoin price on market will continue to grow with every halving in future.

You only lose your savings if you sell your bitcoins when you are panic. If you hold your bitcoins, with recovery of bitcoin price, you won't lose anything.

Negative news = negative effect towards the crypto market. Market is heavily driven by emotions, by sentiments of the investors.

Though this wasn't the case for some news, most of the time whenever there's a negative news, the sentiment of the investors is going negative, thus they feel panic, and they will sell their holdings, causing the prices to go down.

I don't know if it's just me, but I've seen Binance being sued for many times already. CZ denied the allegations on his twitter account, and these are just "SPECULATIONS" because of the word "ALLEGED" meaning they aren't 100% sure if it's true. Now to answer your question, I guess the fact that most of the investors are using Centralized Exchanges whenever they buy and sell makes it more important to them. I mean if these exchanges will disappear, what will be our options if we want to buy, or/and sell Bitcoin, and other altcoins.

Well like you, I will not get affected if Binance will suddenly disappear, but I doubt it will happen. Just look at FTX. It has an issue a few months ago like you shared, but it's still operating like nothing happened. :D

Whenever BTC Price goes down, always best to wait 2 - 5 years and ask yourself if you're still upset  ;)

In the past, if we didn't know enough about cryptocurrencies and received terrible news about any project or thing related to bitcoin, we would panic. As a result, many sell their assets right away to minimize the potential losses that unfavorable news could bring about. If you look at the market, it has happened before. And now, people are getting matured and they no longer purchase this type of stuff because they believe it is just manipulation. As a result, even though there are several charges against Binance, the price of Bitcoin will not fall significantly.

with a decrease in the value of savings does not mean that the value of our bitcoins decreases because 1 btc = 1 btc.
As long-term BTC investors, of course we won't care about things like that, and in my opinion if an exchange collapses it certainly won't make long-term BTC investors panic and collapse.
because later btc will also soar high again and if there is a decline in the price of btc it is commonplace in the crypto world so just enjoy our investment
passionately,
and if the btc price goes down we can buy btc again.

Like it or not, centralized exchanges will be part of the cryptocurrency market, and they will play an important role even if many exchanges collapse.
Investing in bitcoin or cryptocurrencies is risky because of their volatility, don't try to blame exchanges when your investment depreciates. If you stay in this market long enough, you will find that there are a lot of things that will mess with investors' minds and not just Fuds around CEX, so we need to adapt and stay calm. News about binance is causing the market to panic, and I see more opportunity than fear.

Exchanges are really making the price of bitcoin go up, not only because of the bad news for those exchanges, but also because people are going into it and buying or selling on that platform because it is easy, like they can just install it, and it is very interactive. It is easier than the traditional one, and people also prefer to transact there. You can't really remove exchanges, but people are having caution on it, like those who are holding their crypto; they should have the private key and not only the username and password. With this current problem in Binance, the price of Bitcoin will be affected.

In this case there are always people who panic and like it or not, in my opinion the exchange is part of cryptocurrency and of course the exchange also provides many advantages and conveniences for those who buy and sell bitcoin and crypto.

but indeed if there is bad news there is always a decline in the price of btc and the cause is because many people are affected by the mentality eventually people panic selling their crypto but in my opinion in this case we must
can take advantage of the situation because with the decline in btc it is a good opportunity to take advantage of by buying using the dca system.
and today also I have bought btc little by little because in my opinion the falling price of btc means that there are opportunities that we must take advantage of.

Centralized exchange getting attack by the SEC will always affect the price of Bitcoin because they're seen as a intermediate in the industry. Individual anticipate the market crashing as they get sued or collapse therefore they want to safeguard their investment by selling to stablecoin to avoid losing and this affect the the market as it give the signals of the market dipping which triggers other to sell thereby crashing the market.

This is a temporary crises and tou don't have to be worried as a long term Bitcoin holder, the market will recover again in the future. FTX, Binance exchange are just companies in the industry and they won't last forever so we have to stop associating them with Bitcoin growth.

This became a trend since many think about that if something bad happen to exchange the price if BTC will follow that's why panic selling is happening since no one wants to sold last or experience huge decline on value of their holdings. If those investors could just relax their balls  provably this decline will never happen and the one we can see is competitive price of bitcoin or other crypto.

If your savings are in bitcoin, why should you worry? As you had NBTC, you still have NBTC left.

The current rate of bitcoin (how much $ is given for btc) will always change and depend on the news background, because depending on this, people will buy and sell it. Which, in turn, will change the current rate. That's how the cryptomarket works.

The problem lies not in the exchangers and it's not in FTX or Binance, against the background of the events associated with which btc fell in price. That fluctuations in the price of bitcoin are very sensitive to the news background. Until btc is strong enough as a currency, most likely it will continue to do so.

What upsets you and devalues your virtual money (until you sell btc, your losses are fictitious, and the exchange rate numbers mean nothing until the moment of sale) provides opportunities for traders and speculators who make money on these fluctuations. So whether this is good or bad depends on how you evaluate and use it.

BTC has been going up and down ever since. People who already know this are not panicking but are happy because they can buy Bitcoin cheaply. And if your savings go down because the price of Bitcoin goes down, that's okay because the price of Bitcoin goes up again.

If the government issues a large exchange, that's normal because, as usual, the government wants to implement regulations that benefit the government. So once again, don't worry because everything will be fine.

And with the decline in Bitcoin this time, we are given another opportunity to buy Bitcoin at low prices. And if Binance does eventually go away, there will surely be other exchanges that will take its place. It will continue like that.

People believe that all the BTC in that exchange wallet will be used for a dump by hackers, causing the price to drop. So, in order not to miss out on the opportunity and to minimize potential losses, many individuals will sell first. It's almost like experiencing FOMO.

Public concerns about unsafe cryptocurrencies will escalate, leading to panic. Since this significantly affects the cryptocurrency's fundamentals, the exchange's position can also influence the price.

Even, I am very happy with this news because I just bought some bitcoins for quite cheap compared to the previous days. Before that, I was worried the market won't fall back because if the market recovers quickly, bitcoin goes up too fast, and I'll buy bitcoin at a higher price, I don't like that. We're investing in bitcoin, not Binance or FTX, so I think there's no reason for us to bother with them. We can take advantage of bitcoin's drop to fill our pocket with bitcoin instead.

As much as I don't want to see the fall of Binance because of how vast the users of it, there will be a lot of users that will be affected definitely. But you're right that these exchange debacles shouldn't be affecting the market but that's it. We can't do anything about it when the community and market reacts and that's why for every news that comes out negatively then there it goes, the market reacts negatively. And as opposite, when there are some good news that's happening to these exchanges then the market will react opposely, positively. I guess that this is the permanent thing on this market and space, we get to see debacles after debacles and market movers and influences that touches and moves the price of Bitcoin.

I remember, After the FTX dilemma, some have asked What is next for Binance? maybe when it sounds funny and impossible. Yes, in the crypto world nothing is certain. Indeed, these two entities exist as separate entities within the cryptocurrency world. While the exchange serves as a platform for trading various digital assets, Bitcoin (BTC) stands as a distinct and well-known cryptocurrency within this vast ecosystem.

I personally agree, especially for BTC, I don't think there is any potential concern that it will disappear, even though currently Binance as one of the leading cryptocurrency exchanges is having problems with the SEC.

The first failure to the bitcoin came when exchangers or more specifically centralized platforms were introduced as medium to transact the Bitcoin. We already know, Bitcoin was successful transferred from wallet to wallet without any efforts back in pizza days, but people failed to recognize the importance of the same.

Someone took the opportunity to turn this into a business and now we see hundreds and thousands of exchangers whether small to giant platforms disrupting millions to billions of dollars in revenue every year. That business model led the authorities towards extensive check on the enterprises running crypto exchanger business and here we are, saving ourselves from the failure of others. 

Wish exchangers would not have evolved so far and we had only one P2P option to work with Bitcoin.

This two are major exchanges with high trading volumes and majority of their customers are BTC holders so once volume any thing happens to this exchange negatively it will reduce trading volume which intern reduce price. Remember supply and demand is what moves the market of any asset. It is not as if Bitcoin has any affiliation with exchanges but the volume traded and market capitalisation play big role in price and value of an asset.

There is nothing to be surprised here, the cryptocurrency market has always reacted to big news, and this is a normal phenomenon. If you are a BTC holder and do not hold your coins on exchanges, then you have nothing to worry about. Today the price has fallen, tomorrow it will rise - this is a normal process that has been repeated many times, this is the manipulation of those who know how to benefit from it.

Well, it seems like the only consistency here is that whenever something goes wrong with an exchange, BTC takes a hit. Maybe BTC should consider therapy to break free from its co-dependency with exchanges.

This is because you don't know the economics around Bitcoin itself, the coin can't stand in isolation, particularly when it has been inculcated into the mainstream of the financial market.

Also, have you thought of the impact of exchanges on crypto and how it makes it relevant today? One thing with people is that they always think that decentralization could do it alone, but they are wrong. I don't care if anyone agrees, Bitcoin got the prominence it has today due to exchanges, and that was why the first holders strived to get it listed because they know the importance.

Bitcoin can't flourish and be relevant this much without demand and supply and this couldn't be known except it is listed, thankfully, it was listed by the exchanges. Also, exchanges make the payment, trading and investment of bitcoin to be easy and even built and help build a business around it.

So, I wonder why it is strange to you that Binance which is the largest exchange in the world will ever have effects on all cryptocurrencies, not only Bitcoin.

It's just because you are "giving too much importance" to USD and its rate to BTC. 1BTC is always 1BTC. So it doesn't matter which are the rates to any fiat currency at the moment. And if you worried about the rates then you are definitely giving enough importance to exchanges because they form these rates in fact.

Do I care if a totally KYC demanding CEX will lose this game? Not so much. But I'm aware that it will definitely impact on rates if that CEX is big enough. And Binance is really big.

It's quite clear that there's a big difference between bitcoin and exchanges but there's an interdependency that between these two different highlights and that interdependence can not be overlooked based on sentiment or emotions. Having a self custodial wallets rather than an exchange is wisdom in cryptocurrency but you can't do trades on self custodial wallets except through exchanges and that's where their quintessential comes into play. All we can do is avoid keeping your asset on exchanges except when you needed to trade afterwards you push back your coins into your self custodial wallet.

The diminishing of BTC will not cause an end to an exchange like binance neither will that of binance cause an extinction to BTC despite their interdependency for usage. It's all a matter of choice about which platform you want to use for your crypto business as their are numerous means of transactions and trades out their.

In the world of cryptocurrencies, there seems to be an excessive emphasis on exchanges. While exchanges play a crucial role in facilitating the buying, selling, and trading of digital assets, it is essential to remember that they are just one component of the broader ecosystem. The true essence of cryptocurrencies lies in their decentralized nature and the empowerment they provide to individuals to manage their own funds. By solely relying on exchanges, we risk compromising the core principles of blockchain technology, such as decentralization and financial sovereignty. It is crucial for users to educate themselves about the importance of personal wallets, private keys, and secure storage practices, as they hold the key to maintaining control and security over their digital assets. By reducing our dependency on exchanges and embracing the fundamentals of self-custody, we can better align with the ethos of cryptocurrencies and foster a more resilient and independent financial system.

you're right. But there is a huge problem that not everyone understands this. Today, many who come to cryptocurrency register 1-2 accounts on exchanges and no longer study exactly how Bitcoin and other cryptocurrencies work. Today, large exchanges have a major impact and this should be recognized as any intervention in their work one way or another affects the price of Bitcoin.

Sorry that your savings went down, we all experienced it but then those who held eventually had their savings back up. Binance and Coinbase issues with the SEC is just like a political witch-hunting. Since they can't directly pull down bitcoin, have to do so through another means. We are not just here for the good times; we are also here for the not so good times too. Binance and Coinbase may go down which is very unlikely, but bitcoin will not. Never.

Just a friendly reminder to take out your coins from exchanges. 

Fundamentals does always have that high chance on affecting Bitcoins price specially when overall market or people engage would be sharing up on the same emotion or feeling. We do know that exchange platforms are mediums about trading or simply that buying and selling which it is something that couldnt really be avoided for people to make use. Whatever things that do happen then it would really bring down the market price
specially if we do talk about Binance or whatever exchange issues that we might be able to see on the news today. The main key or thing to remember on here is that never ever store up your coins on an exchange on which it would really bring out that peace of mind on which you do know that you are the ones who had been holding your coins and not to those platforms on which they do possess the keys of that wallet.
As a user then there's no way that we could be able to do so, this is why its always been that recommendable on storing assets on non custodial wallets rather than on storing them into these centralized platforms.
If people would be bothered about fees then so be it, its up for the risks to take for them to deal on with their investment.Thing here is that we are fully aware on what are the things that we should really be doing.

There's no chance of Binance shutting down; FTX was a whole different story. Whether we like it or not, exchanges are convenient and will continue to be used by millions of users. Binance currently has the largest trading volume; it's impossible for it to go down similarly to FTX.

I understand the OP's frustration regarding the two latest incidents that disrupted the market, but that's something we should also take into account. The market is susceptible to such volatility due to a variety of reasons, apart from exchanges' troubles, that we cannot control and may not even be cryptocurrency-related. On top of that, the FTX only caused a temporary crash for a month or so, which isn't that significant if you ask me.

Are people listening to me?

I'm quite thrilled to see that BTC is back to what it was before the SEC/Binance news. The down period lasted only 24 hours. That is impressive. It shows that BTC traders and holders are getting smarter. They know that one exchange having trouble is not the end of the world, and that we shall go back to business as usual. Good.

How can you so sure about binance not shutting down? I agree that exchanges are more convenient to use but they can shut down anytime. FTX was promising and had a lot of customers in their exchange but they shut down. I will be not surprised if Binance close their activity and make all the users balance worth 0$.

I am sure that although there is no problem with any exchange, the FUD willl always come and make Bitcoin price goes down and drops significantly. We have many time experienicng this, and only few times because of exchanges.
But it is true that everytime the FUD, alhtogh related to exchange, many people will panic and then make market much worse again and again.
Well, fortunately the market has been better agai  after big drop previously.
but actually I am using Binance, but we must be reality that we need exchange to trade, at least..

The fact that you don't own any of the coins you storedmon exchanges are enough to make anyone more their coins to a hardware wallet. Why keep your savings where you can lose it at anytime.

Take a look at the issue of FTX and Atomic Wallet, that's what people experience for keeping their savings on exchanges.

You're mostly right, but Atomic Wallet was... a non-custodial wallet, not an exchange. And it seemed pretty good, this hack is really devastating. Thank God I didn't use it.

No, they aren't. ;D Major players use everything to play with the market and smaller players react to what the first ones do. Major exchanges are major players also so their games also impact the market, so it is impossible that any serious situation with Binance won't impact. Even if you'll reach some people on the forum (hardly) there are much more in the outer world who will not hear nor you, nor me. To impact the market the one should became the whale.


True, but it has a closed code which in this case played against users.

Exactly. Me too, I personally assume One exchange will not be a benchmark and considered a sign of the downfall of the entire crypto ecosystem. Yes. It is all the more savvy and exhilarating to witness the resilience and maturity of BTC traders and holders in responding to the latest news involving the SEC and Binance means Resilience and cool head that has been testament to and bodes well for the future, demonstrating a growing understanding and belief in the market's ability to recover and continue business as usual.

I have not used FTX myself and have no experience with it.  Bitcoin and exchange are two different entities, Binance exchange is very popular from other exchanges.  Binance Exchange portfolio is very good and I have been using it for many years.But unfortunately it seems to me that these are connected by customers who trade bitcoins on the exchange, many may realize that the problem is not with the exchange.  Follows BTC only for its usefulness.As many people know about the incident involving SEC and Binance, we have also noticed a downward trend in BTC due to this.But I think it all depends on the investors.

I understand where you coming from, we are the one that gave exchanges like Binance and Coinbase the power they have today, we the investors are the ones that failed to learn what Bitcoin is about and how to use Bitcoin the proper way, Bitcoin as a decentralized digital currency is not meant to be on any centralized exchanges in the first place.

I do think that the right place to trade Bitcoin is not Centralized exchanges but the Dexes in the crypto space, we gave all those exchanges like Binance the success and power they possessed today.

We, the investors are using Bitcoin wrongfully, with the ongoing sue on these exchanges, some people still don't give a fk about the assets they left on these exchanges, that's crazily how much crypto investors trust those exchanges, and it's why I will never feel pity for any one that lost fund to any centralized exchange, because they don't deserve my pity.

These top exchanges are the ones that significantly affect bitcoin's price because these are trading places, they unite day traders, investors, whales, etc, all in one place. So, when something bad happens, especially around as popular and influential exchange like Binance, things can't go well. Logically, in cases like this, people should buy more and more bitcoin and withdraw them but the opposite happens, maybe people sell it to withdraw fiat as soon as possible.

By the way, that's the thing you have to keep living with. Bitcoin is very volatile, if you want to keep in securely, you have to keep in mind that it will go up and down and for example, it may stay down for months. You shouldn't rely on your bitcoins unless you own a lot where monthly 2-3K USD worth of bitcoin withdraw will not harm your budget. But if you want to save all of your savings in bitcoin and you are dependent on those savings, then, you better start work to take care of monthly bills.

They are all part of the market, so there is no denying the influence on the price of BTC or other cryptos after the information. For me in general, each time is different, we will have a better view of the issues that have been and are happening in the market, the crypto environment is still too small in front of news like this, sometimes I think everything It's really not serious, but the way many people are overdoing the problem makes the mentality of the crowd follow, which leads to a negative situation at that time. However, if I look long-term into the future, I am completely convinced that BTC will achieve good expectations.

It will always happen like that as long as the exchange is still there and we will never know tomorrow or the day after tomorrow which exchange will suffer the same fate as FTX. Regarding bitcoin, of course not only because of the collapse of FTX which made the price go down, but it was also influenced by several other reasons and luckily you don't keep assets in FTX.

That's why keeping bitcoin assets on exchanges is not safe at all and we will be faced with problems when those exchanges go bankrupt or something else affects us losing assets in bitcoins, this reminder has been conveyed for so long by people in forums and even though many people ignore it.

The two are clearly very different and the relationship between the two is only tied when people trade bitcoins on an exchange. So when one of the exchanges goes bankrupt it doesn't mean that bitcoin will follow completely, but because exchange users are too panicked and sell their bitcoins resulting in market chaos and making bitcoin corrected, but if they calm down and try to move bitcoins to the wallet it will return to normal, this answer is especially when attributed to bitcoin's decline as a result of exchanges going bankrupt.

Exactly, if people are hold their coins in non custodial wallets, any exchanges bankrupt will not give any impact for them. There's might be a short term dump because the exchanges' hot wallet are stolen, which is the money Binance have make it. But this case it's just a sue, so no one is lose their money.

Even Bitcoin is got banned in many countries, it doesn't even stop people to use it.

Folks, here's a wise soul giving us a reality check. It's true, our crypto community often conflates exchanges with Bitcoin itself. A blip in an exchange doesn't equate to a disaster in Bitcoin.

FTX, Binance, or whatever exchange - they're just platforms for trading. Their drama shouldn't cause us sleepless nights. The BTC network remains untouched by their misadventures.

You know what they say, "Don't hate the player, hate the game." But in this case, it's more like, "Don't hate the game, hate the drama." Binance in hot water? That's as impactful on Bitcoin as a sneeze is on global weather patterns.

Of course exchanges and BTC are different things, but I must say that the value of an asset is determined by the investment of the users, and unfortunately the value of BTC is also determined by the investors and most of the investors are using those exchanges for storing and trading Bitcoin. So any of those exchange if faces hard times then the price of Bitcoin will get dumped because of panic created by the new media.

The social media and news is now a days accessible to everyone and in the world of crypto-currencies most of the investors mainly rely on the news. The whales know that with any bad news market could crash and that's why they start bulk selling the crypto-currency which results in huge dumps. The ones who are hodling their coins for long time will surely get affected because of that dump, but such dumps aren't permanent and the market recovers as soon as the fear is gone.

Binance is a huge name in the world of crypto-currencies and any bad news regarding it could disrupt the whole market. The influence of Binance is way higher than FTX used to had, because it's the number one crypto-currency exchange by volume as well by number of users. If Sec goes against it and it somehow quits its operations in U.S then for short time panic could take place and the market might get another dump with that fear. No body can control such dumps because the ones who hold the asset are agreed to sell it for cheaper rate.

Well you don't, a lot of others who don't give a damn about hardware wallets do, or exchanges in general. As much as you've not used centralized exchanges, a lot of people have or are still using them. It also doesn't help that Binance is generally a big player in the scene, though I guess with how the FTX fiasco went on, I'm hoping the effects are relatively lesser, compared to back then since I do hope people wouldn't be dumb enough to repeat the same thing. Again. After just a few months ago of basically the same thing.

Well, hopefully the current trend continues. Price only dropped for what seems to be a day? Maybe even half a day only? Hope it proceeds even if Binance ever actually goes under.

Bitcoin is entirely different from an exchange in many ways that they both were supposed bot to be compatible together because bitcoin is a decentralized digital currency while the exchanges are centralized platforms for cryptocurrency exchanges which means the exchanges perform both bitcoin transactions and other cryptocurrencies as well, you could also discover that there are many support coins from these exchanges that are nothing but shitcoins, scam memecoins promotions and so on.

In a word, bitcoin is like currency but decentralized, and exchanges are like banks. Bank failure does not mean the monetary system will collapse, and neither does bitcoin. But exchanges are also an important part of the market, without them, we would have quite a bit of difficulty in accessing investment and liquidity. Because this market is not only bitcoin, and in the future, everything will develop even more.

We're in it with you, op. I've never user FTX and perhaps used Binance many years ago a couple of times, and yet here we are. The problem is that crypto exchanges are a big part of the infrastructure, considering that one can rarely pay for things directly in Bitcoin, and that many people do trading which requires exchanges. So it makes sense that the panic spreads when a big exchange is facing troubles. But it's temporary, and Bitcoin is already bouncing back. There isn't much we can do about it, and the price could go down for a different reason if exchanges didn't matter.

I think we need to get past the time when people hold their coins on centralized exchanges until everyone understands how dangerous it is. I use centralized exchanges because it's convenient, but I wouldn't keep significant amounts there for a long time. The current situation with regulator lawsuits is a separate issue, but that doesn't change the fact that exchanges are a bad place to store your coins.

I want to think like you, but sometimes the truth isn't like that. When there is negative news about Binance, bitcoin drops because many of the users do not know how to store bitcoin. They don't use cold wallets or anything like that. Therefore, when they receive negative news, they exchange bitcoin and withdraw their money from the exchange. In this case, we cannot blame them. At the same time, this situation will never be what we expect. Because the number of knowledgeable bitcoin users is really small.

If there were things we wanted, bitcoin would be the currency in the world right now. Unfortunately, some things don't happen right away.

Although Exchange and Bitcoin are two different things, they are closely related to each other. When negative events occur in the crypto space, the price of all other coins, including Bitcoin, will continue to fall down. Even though Binance US exchange attacked by SEC Lawsuit but Binance is still fine. If any company wants to conduct business in USA, they have to do business according to some rules. In this concern Binance US may get temporary restricted for investigation. it is not unusual to have some effect on Bitcoin. As we have seen when FTX falls, Bitcoin prices continue to decline massively.

Exchanges play an important role in the price dynamics of Bitcoin and other cryptocurrencies. The easy accessibility, user-friendly interface, and interactive nature of exchanges have really contributed to increasing trading activity and acceptance in the cryptocurrency market. This increased activity can impact the dynamics of supply and demand, which, in turn, can affect the price of Bitcoin. So as recent concerns and regulatory actions surrounding exchanges like Binance or Coinbase affect market sentiment, it is likely to lead to short-term price volatility. It emphasizes the importance of prudence and caution when choosing and using exchanges to trade or store cryptocurrencies.

Exchanges are the FIAT gates. The truth is, there isn't much you can do with crypto other than trading. If people can't do that, what are they gonna do? Yes they can buy certain stuff with crypto but the adoption is nowhere near the use of the credit cards. Most people use crypto to make more FIAT and because of that they hold most of their crypto on the exchanges. Once a big exchange starts giving bad signs, people naturally panic and dump their positions so they can get back to FIAT quickly...

Yes actually, the centralized platform is actually a thing this day and where actually giving a lot when it comes to investments, information, etc.

Centralized exchanges like Binance, and FTX still has their use since it was an easy way to exchange, buy or sell cryptocurrency, we witness the fall of FTX and it really affects how exchanger is treated and affects the market as well. Bitcoin is different from Binance but still connected since that is the platform where you can buy cryptocurrency.

The centralized platform could easily freeze our funds since they have all the control over our savings, you putting your investments on an exchanger is a bad thing, We don't know but there is always a possibility that Binance could fall I mean it's still a business and investing on cryptocurrency is a risky investment. Most likely this is just another case that is going to ride for a long time but doesnt really make an impact.

By creating a relationship between the two, exchanges allow people to trade in bitcoins. Traders always feel panic due to the bankruptcy of some exchanges. It's no surprise that Bitcoin is a separate exchange process. If you are a bitcoin user, sell your coins without keeping them long term. Then there is nothing to worry about for you. It is normal for prices to fluctuate in the Bitcoin market. But a skilled bitcoin holder understands how to be self-sufficient in this process

The negative news surrounding Bitcoin-focused exchanges lately is really affecting the market. But these price movements are often temporary in nature and do not necessarily reflect Bitcoin's long-term potential or value. While centralized exchanges can have an impact on short-term market dynamics, the fundamental factors driving Bitcoin growth and adoption extend beyond any single exchange or individual company. Bitcoin's value stems from its decentralized nature, scarcity, utility, and trust in its underlying technology. These factors, along with broader market trends, investor sentiment, and institutional acceptance, play an important role in shaping Bitcoin's long-term trajectory.

I'm not 100% sure, but I can identify that it's unlikely to happen, as Binance is currently the exchange with the largest trading volume. FTX's story is much different from Binance's; their shutdown was a series of management mistakes, without excepting the possibility of it being intentional in an attempt to run away with the investors money.
Hmm, you might have to rethink your statement. Ultimately, the SEC incident has caused a significant market crash, and Bitcoin itself hasn't really recovered yet, and doesn't look like it's going to anytime soon. Unfortunately, it's very possible that this crash will have a lasting duration, at least till the SEC issue is resolved.

Like it or not there's no way cryptocurrency investors won't give so much importance to tier 1 centralized exchange because they are the most used and high Bitcoin volume holder in the market. Therefore, it is normal that the exchange issue will cause some downtrend in the BTC market due to some of the exchange users panic sell, and instead of being bothered by the issue or how your investment loose value it is better to seize the moment and accumulate more using DCA.

Binance won't disappear but if the situation gets out of hand only Binance.us will disappear since the issue only has to do with the US SEC.

But these are the factors affect the prices of cryptocurrency assets since people who invested in crypto will start panicking and sell their assets so the price will decline however its only a short term effect so long term investors no need to worry about that. Exchanges may come and vanish but bitcoin won't so that is also another reason why don't keep your bitcoins in exchange wallets cause if exchange disappear then your assets will vanish too.

Crypto exchanges are the platform where we trade our cryptocurrency, it is an obvious thing that whenever a huge platform experiences difficulty, there is a chance that the price of cryptocurrency is affected.  In trading, trader sentiment is important in moving the market.  So when the sentiment is negative, we might see price dive depending on the severity of the market sentiment.

So for me, it is normal to give too much importance to a platform that processes trades and conversion of cryptocurrency.  How can you claim profit if your holdings can't be converted?  This is the reason why holders are giving importance to exchanges.

That's pretty damn risky to have your savings in bitcoin like that.  What I think you need to understand is that bitcoin is still a new thing.  It's a new asset, and a new investment to a lot of people (even though technically it's not an investment, it's a revolutionary payment system).  So it still being pretty new, any event like this involving a major exchange is going to effect the minds of many, even  if it shouldn't , like you point out here.

Even if we are really that too skeptical when it comes to centralized platforms or something that it is regulated but we cant really ignore the fact and see their importance or relevance on this space on which we could really say that they are really indeed useful. Without having these platforms then how we would be able to make conversions out of those crypto you do have into fiat? There's no way on doing that
but rather with p2p with other people which we know that it cant really be that something comfortable and that having the accessibility.

Thing here that you should mind about when dealing up with these platforms is that you shouldnt really be making it as your main wallet of your coins or assets. Despite on being useful and relevance, we do know
that exchange hacks and other exploits could really happen along the way on which it might be causing up that kind of huge loss of our money which is something that we dont really like to happen.
Use it according into your needs and if you dont bother up on spending up fees then it would be better on pulling off those funds actively out of exchanges.

Yeah, not much doubt about that. still, I hadn't expected the market to recover so fast.
It's good to see that trouble at an exchange is seen as minor.

but there is a causal relationship between the two. it's not even just Bitcoin that's getting impacted. This happens because the bad news that hits the exchange makes most of the traders and holders panic and move their Bitcoins or convert Bitcoins to stable assets.
Such situations kept repeating when the market was crushed by disasters involving exchanges, most of which held large amounts of Bitcoin and assets.

It really was something momentary, but it is a reality that will surely hit bitcoin, but that does not mean the end, there is no drama, in fact that effect if we qualify it that way, it only lasted less than 24 hours, it reached +/- 25K for then be at +27k.

But that does not imply that it does not harm, times change and although the solution is to use dex, it is an effective formula that is diluted in the widespread use of CEX exchanges. It is a reality in the adoption of bitcoin.

How should he measure his savings then? You can say what you want how the price can be volatile and we should invest what we can afford to lose and all that, but it won't change the fact that if someone spends 1000 dollars buying bitcoin and uses 10% of his savings, that person expect to see a similar number to be there after some time, especially when he reads articles where bitcoin is referred to as inflation hedge.

I agree with OP here. Bitcoin is caught up in all the altcoin drama.
The silver lining is that while price is affected the protocol is not. Price is and will be affected because many people who have bitcoin on binance see an easier way our in selling than moving to self-custody. Many of these people don't even know how to do it so all they can do is sell and withdraw fiat .

I'd suppose that it's not because Binance situation doesn't impact the market much. Look at the BNB rate, it looks like people are still optimistic about Binance and its chances with SEC confrontation. They are now trying to withdraw (https://www.cnbc.com/2023/06/07/binance-lawyers-say-sec-chair-gensler-offered-to-be-advisor-in-2019.html) Gary Gensler from the game. So who knows, it can be so that Binance will not be harmed too much in this situation. The market reacts on this not so negative expectations and stay "calm".

I also think that binance will still fight with the SEC and this may have a positive impact not only on the BNB rate, but also on the market as a whole. Moreover, such a precedent will not go unnoticed. This situation has the potential to draw more attention to cryptocurrencies, especially those doubters who do not trust the cryptosphere due to its obscure status and blurred relationship with the state.

Although we have always disliked centralized exchanges like Binance after what FTX did. But I think we should support Binance in this situation, what if the SEC's goal is not only Binance but they want more and keep looking to control our entire market? If the SEC wins with XRP and then Binance or Coinbase, it will be an outcome not in our favor, it will set a terrible precedent, and our freedom will be gone. I hope this time, Binance and Coinbase can join forces against the SEC.

This is all a squabble of centralized structures, that's the point. Whichever of them wins, it is unlikely that this will lead to an increase in the position of bitcoin. Bitcoin is a decentralized system, and it is best when it will be used not through centralized intermediaries, but directly, as it was originally intended. So in this and every other centralized project confrontation, I am on the side of bitcoin!

Yup exchange and BTC are different things and exchange (Binance and other exchange would disappear) most of us wouldn't care much, but we aren't the only investor.
There are some who got into crypto because of trading, and they might be doing it only on those exchange because they only trust those exchange.
And besides some of us are using centralized to liquidate our crypto that's way some of us really care so much about those centralized exchanges.

I know what you mean as I have suffered the same consequences when I have never used any of those exchanges, however just because we are not part of their customer base, this does not mean that a great deal of the community did not suffer directly by those events, and as such it makes sense the price of bitcoin was affected because of it, even if bitcoin itself had nothing to do with this as well, is it unfair? I would think so, but that is the way the economy at large works.

Yes, people give significant importance to exchanges because they serve as the primary platforms for buying, selling, and trading cryptos like Bitcoin. Exchanges play a main role to facilitate, liquidate and accessibility of cryptos, enabling users to convert their fiat currencies into digital assets instead of traditional system towards digital wallets to save the cryptos. They also provide a marketplace where buyers and sellers can deal in, examine the prices, and make transactions securely. These exchanges also offer different features by allowing users to take solid based decisions. Moreover, exchanges often provide additional services like wallet storage, security measures, and customer support, which enhance the overall user experience and trust in the crypto system.

let's admit that a lot of us are still using these exchanges for so many services basically to exchange our crypto to other crypto or fiat. so we can't discard their presence in this market. at some point we need to get our cash from crypto as most merchants do not accept crypto as payment.
they are 2 different things but the failure has some sort of impact as people are losing their confidence. but only for a short period of time. hence, we always bounce back to where we were.

People give significant importance to exchanges for some reason. Without these exchange it is really hard to have good liquidity. It is really hard for buying and selling. Maybe if these exchanges weren't available, people would've got adopted to the P2P form of buying and selling, but the trading practice could've been more conservative.

With everything there'll be pros and cons, failure of the exchanges used to have impact over the market. However this is part of the market, same as what we experience as bullish and bearish movement. In each and every activity, there is a need for systematic process to be followed and the exchanges does it for profit and mistakes happen which is common.

I don't think it's about these people believing in the fact that Binance will secure their assets better than they could, I mean this is a CEX that gets hacked and robbed from almost every year by the millions, I don't think it's going to scream "security" anywhere, although you're right, there's a good amount of people in this industry who thinks that Binance will take care of their assets. Although going back, that is not what I think is the reason why.

Bitcoin as it stands today's accessible through multiple channels, but it would be stupid and dishonest to say that Binance and Centralized Exchanges aren't a way for these people to get into crypto and start their cryptocurrency journey. It's been like that for years, and the recent barring of Binance and the legal implications it carries with it just spells "we can't use bitcoin anymore" to people who were introduced to cryptocurrency by Binance. And it being a major player in the industry too, makes a lot of people lose confidence in the industry, hence the drop in valuation.

You could say that OP is right, people are giving too much importance over exchanges, but that attention is warranted and deserved, as they played a great part in introducing regular people into this industry too, especially in the 2019-2023 mark.

The stock market is a place for trading cryptocurrencies, not a valuation place. The relationship of exchanges with the valuation of cryptocurrencies is indirect and they interact with each other. The majority of people prefer to keep their Bitcoins on exchanges rather than in cold wallets, and they want to quickly dispose of BTC in case of a possible negative situation. I think these people have nothing to do with investing and aim to profit from price changes in the stock market.

Many of us do this by the way. It would be interesting if the dangers to be experienced in the Exchanges do not affect the prices, as the exchanges are intertwined with the crypto markets. The stock market and cryptocurrencies will always be intertwined, and it is difficult to think of one without the other for this reason. If you have Bitcoin you are lucky and keep it in the cold wallet.

Your viewpoint does carry weight; it's true that trusting centralized exchanges entirely could potentially be risky. However, let's not neglect that these platforms have catalyzed the crypto revolution for the common man. For many, exchanges like Binance have been the gateway to the world of crypto, simplifying the process of buying, selling, and holding digital assets.

Yet, I agree that complete reliance on such platforms for asset security could be a bit naive. The mantra in crypto circles, "Not your keys, not your coins," still rings true. An ideal approach might involve using hardware wallets or other self-custodial solutions, along with exchanges.

As for the FUD impacting Bitcoin prices, I concur that emotional trading often leads to volatility. In such scenarios, the classic advice of HODLing (Hold On for Dear Life) seems most apt, don't you think?

Most bitcoins are speculative. They are located mostly on exchanges, bad news will always affect bitcoin, Speculators will take profits when possible

There are many people who believe in Bitcoin and exchange it using centralized exchanges to keep their assets safe as they think it is best. If a person thinks like this then it is not at all beneficial to protect his wealth. But I think a bitcoiner will never do such a stupid thing to keep his exchange assets safe, rather he will have different security wallets.
Bitcoin price is not always at the same level it is always based on ups and downs. The price of Bitcoin is not controlled by anyone but follows the various directions of the market. But we saw a lot of people lose their wealth when FTX went bankrupt. At that time the Bitcoin market also became quite a bear market and most people suffered a lot from it. But the fact that the Binance CEO has been sued may have caused the price of Bitcoin to drop again. Because then many people heard about this incident and sold bitcoins due to which the market went down a lot. But the market never stays the same it goes back to its previous position again and again because bitcoin market is never permanent it is always temporary. But one should never lose faith in investing in Bitcoin but be patient. So I would suggest you if you have invested in Bitcoin then definitely try to hold it. And invest from bear market and later you wait till bull market then there will be high profit potential.

I understand why some people are preferred to keep their Bitcoins in an exchange wallet and that is for trading, not for holding. But these people know what will happen when an exchange got scammed or whatever, yet they still do it despite the risk because of their trust. It could be a manipulating power that most exchanges injected into the mind of the holders. We know it was wrong but can't change their stances as well as it was their choice. They will change their minds when experiencing losses of their funds from exchanges.

Ftx was big, so is binance, of course market gonna give some damn when they go down.

And what kind of way out do you offer for those who are engaged in everyday trading and who need to have constant access to the exchange? Cold wallets are, of course, more reliable and safe, but you can’t really trade with them. With the cold wallets the exchange rate update is late, and the commission is higher, and transactions are not completed so quickly. The exchange is more convenient for trading, no doubt.

The thing is people use exchanges only for the short trades they make and some people on the forums I'm sure don't store bitcoins on binance or other centralized exchanges but because binance provides a trading service some people still use them today in trading. I've used Binance several times for short trades but it's not for long term use and for day traders maybe some people use a centralized exchange only for trading.

Because it's impossible every day they have to transfer assets to their wallet every time they finish trading, Bitcoin has never followed that centralized exchange which you have to understand and bitcoin has never had anything in common with exchanges as the two are quite different. Who cares if binance is lost or not?

I agree, Binance deserved all the power they got and that's why it should be considered as a great thing, there is nothing that shows they have done anything bad for the crypto world. Yes they are as powerful as an exchange could get but that doesn't mean that they did anything wrong, they are quite alright with what they have done so far.

I know that people are worried about what they are going to do when it is not that easy to handle, but that doesn't mean that it is not going to be simple neither, it is going to be quite tough for Binance as well. When you consider them as the biggest exchange ever to exist, do you think that's an easy thing to do? They deserve it because they managed to handle being that big without hurting anyone or doing anything wrong.

Oh, believe me, many, many people store their assets on exchanges, even many on this forum do so. If you remember how exchanges scammed and got hacked, there were so many sufferers and lost funds!

If we'll look at how many bitcoins of clients Binance stores on its wallets, it will be a significant amount. So any problems with Binance will definitely impact the entire crypto market. This is a situation when the quantity is turned into quality.

Not to be worried a lot we should remember that 1BTC is always 1BTC. All temporary problems with centralized projects will pass and what we have will stay with us.

These are just small incidents which stuns the Bitcoin community, hence many people sell their Bitcoins in panic and fear. As there are more sell orders then buy ones, therefore the price also falls down. It’s normal and doesn’t affect for long term goals. Once everything settles, more people buy the coins and hence the price goes up again.
So yes exchanges and Bitcoins are two completely different entities, but they affect little to each other parallely. So yes people need to stop giving huge importance to these news.

Exchange issues can affect the price of bitcoin, even for a sustained period but the OP is right, people do give too much importance to exchanges. Bitcoin will be here for a longer time than all currently existing exchanges. They can all go down & whilst the BTC/USD exchange rate may go down, 1BTC = 1BTC, nothing can change that.

I’m well aware of the current problems Binance & Coinbase are having with US regulators but let’s look at the bigger picture. Bitcoin is fine & will get through whatever they throw at us.

I like when you say this, I also believe the people who always say that leaving money on centralized exchanges is risky and stay away from them or those who always say they never use them. Many of them are trying to lie to please the crowd, and behind the scenes, they still use and store their bitcoins on CEX. Looking at the trading volume and the number of bitcoins that centralized exchanges are holding for customers, it can be seen that up to 80-90% of investors are putting money into exchanges.

I think that this is almost the same as stocks, I think people always overreact. On the other hand, it shows how small and concentrated bitcoin is. Whereas in all countries there are many banks, and if one bank collapses, the currency will not follow.

But one exchange sued (has yet to collapse), and currently bitcoin lost 5% in a fairly short amount of time. It's not normal. There may not be enough exchanges, so going down shouldn't have any effect on the value of the bitcoin.

If it were just a minor incident, it would not cause a stir in the community or create panic sell. Although exchange and bitcoin are two completely different entities, it is not true to say that they are unrelated or do not affect each other much. If they had nothing to do with each other, there would be no panic in the market.

On the contrary, for me, they are closely related. As we know, investing in bitcoin and participating in the market will mainly go through exchanges. Exchanges need bitcoin to survive because people invest in bitcoin, not in exchanges. Bitcoin can exist without an exchange, but to grow bigger and more popular, an exchange is indispensable. They are really related.

The reminder created by theymos should be an important warning to anyone, that storing BTC on a centralized exchange is not a smart solution for securing our assets. Regardless of whether people keep assets on a centralized exchange like Binance or not, it will be the responsibility of each individual and they will be the ones who will suffer the consequences when something happens. But for me the move to secure the asset is important, moreover bitcoin is quite valuable in the long term and even if a centralized exchange is used it is only a short term trade.

For the problems caused by the situation that happened on binance to the entire crypto market and indeed it will be significantly affected and today we have seen how crypto or bitcoin is corrected. We often encounter market sentiment and it is not only influenced by exchanges, but there are also several other things that make bitcoin continue to have an impact on the market and when everything is normal it will return to be better.

Yes it's true and 1 BTC will remain 1 BTC definitely won't change, we hope this incident will pass and will not affect anything, especially the confidence in BTC because we have seen a long term store of value. When it comes to exchange there is a lot of coming and going in this industry and it is a normal occurrence and there is no need to overreact.

Indeed, it can be seen in behavior and can be observed in the stock market, where people tend to overreact. However, it also highlights the relatively small and concentrated nature of the bitcoin market. Even though some countries have multiple banks, this abnormality suggests that there may be an insufficient number of exchanges, causing a downward move to impact the overall value of bitcoin.

There are very few people that keep their coin on exchange for trading, most of the newbie keep their coins on exchange for holding and some old users also do this. We have many people staking their coins on exchanges which is why exchange have so many coins in their wallets. For traders, using exchange to store their trading capital, they already know that they're risking their coins.

But for individuals thinking exchange are the best place to hold their coins, they're the individual this post is focused on because they would regret choosing exchange over personal wallets when the exchange disappears with their coins or collapse due to hacks.

These are temporary effects of market sentiments. If you really want to make your savings usable anytime, you should consider choosing something other than Bitcoin. The market is volatile and we all know that. So this kind of scenario happens now and then. No big surprise there. Bitcoin is the best asset for investing and not only that, it has to be a long-term investment plan. After every bear market, there will be a bull market as well. So waiting for that is going to be a long time.
Exchanges are not the main reason here. It is all part of big market sentiment. Many negative news or events creates this kind of situation and they will fade away eventually. All we need to do is hodl. But if you mix your savings with it, you won't be able to get the best results. It has to be an investment asset, not a saving. CEXs are bad, and we should not keep our assets there. We should only use what it's created for. I like to do my work in CEX and then move all my assets to a private wallet. I also don't give a damn if they are gone.

That's because people consider crypto as an investment. Not as a tool/technology/currency you can use to achieve financial freedom and sovereignity. It's all about making the most money within the shortest time possible. Wall Street got its hands into crypto/Blockchain tech, and totally ruined its true value proposition. This makes crypto no different than ordinary stocks. That's why you see how CEXs can either positively or negatively affect crypto market prices in an instant. Imagine if all CEXs are banned from the face of the Earth. It would be game over for the crypto/Blockchain industry as a whole. There's nothing we can do about this, other than "go on with the flow".

What really matters is that crypto stays decentralized so it could stand the test of time. Governments will continue to battle against crypto, but they won't be able to succeed if decentralization is in the way. If everything goes accordingly as planned, crypto (especially Bitcoin) will be able to live alongside Fiat currencies for generations. Who knows if acting now will make you filthy rich in the future? Just my thoughts ;D

Negative news creates panick and weak hands tend to easily give in and sell off their crypto assets The FTX debacle created FUD and some investors sold their Bitcoin as a result of fear and it crashed the market. SEC suing of Coinbase and Binance might be responsible for the downward movement of Bitcoin to the 25k price mark and sadly that's how the market works. But for some of us that have been around for some time and have seen this happened over again and again, we can say that it's nothing to lose your sleep over, and keep hodling your bitcoin.

Man, that's rough! It sucks when external events impact your savings like that. Just remember, exchanges and BTC are separate things. Just because one exchange goes down doesn't mean BTC has to follow. So what if Binance is facing issues? I couldn't care less! Keep hodling and don't let these setbacks get you down. Stay positive, my fellow Bitcoiner!

You're a forum legend, which means you've been through a lot of ups and downs with bitcoin. It's hard to understand why until now, you still blame exchanges or anyone every time bitcoin drops in price. News, whether positive or negative, is part of the market, and it will always affect the market. Wise people will take advantage of it to make a profit or accumulate more bitcoins, no one complains and blames like you.

You are 100% correct, buddy. Saving or storing coins in exchanges is acceptable particularly in highly regarded and safe exchanges like Binance and Coinbase. I maintain my money in exchanges for a number of reasons.

• I have to engage in active trading across various coin pairs.
• On occasion I must purchase a coin quickly and send it from my savings wallet to the exchange which could take some time.
• Recently, there have been problems with withdrawal fees especially with Bitcoin.

I believe that comparable problems are experienced by other traders which is why they retain their money on exchanges and reserve their savings accounts for long term investments. Additionally, I transferred all of my cash from the exchange owing to the recent FUD (Fear, Uncertainty, and Doubt) surrounding Coinbase and Binance.

They don't know the importance of a open source wallet compare to binance wallet, I just recently found out that some people are into Bitcoin investment for a long time now, and they don't even understand that Bitcoin was never created to be put in care of any centralized companies.

I know a family friend in the U.S, he held all his XRP, NEO, and some top projects on Coinbase and this has been ongoing since 2019, I tried to tell him the different but he said it's easier for him to pu these assets in care of Coinbase, all he had on him was he trust Coinbase CEO, Brian Armstrong.

It's a big shame to witness how people are into Bitcoin for the money only and they failed to learn anything g about why Bitcoin even existed, anyone that understands why Bitcoin existed they will know what's wrong and what's right.

I don't think I understand your point, you just gave instances where the exchange platform went down for some reasons and Bitcoin also went down with it, I know Bitcoin and exchange are 2 different world's but, the growth of 1 is greatly determined by the other......

I'll need clarifications if I'm wrong though.
I'd appreciate if clarification is made

Also just to note, remember the factors that affect the price of BTC in the market.

Generally, the price of cryptocurrencies can be affected by two (2) factors, namely: extrinsic and intrinsic factors. The FTX conflict is what we call an extrinsic factor where people would panic sell their cryptocurrencies, thereby increasing supply and ultimately lowering its price on the market.

These are nothing but normal occurrences that happen in this kind of investment. Since lots of factors decide the price of it, exchanges and other types of problems may affect the price of BTC and other cryptocurrencies in the market.

It is acceptable until you find the exchange got hacked and you are unable to recover your fund due to the severity of the exchange losses.  It is still wise to keep our funds away from third-party control.  We never know when the things gets rough so better to have a full control of our funds.


This is a good reason to keep our funds in exchange since we have our funds on them due to trading.  At least there is a good reason and that is for trading.


We can always convert our funds temporarily to other established cryptocurrency just to make sure that we have full control of our funds, then we can just convert it again when the fee gets lower.

We should not tender our blames and complaints to exchanges, they have no business with the pump and dump of bitcoin, the earlier we start rooting out our the challenges we face in the market, the more time we create to solved our problems. No relenting efforts, we need to ensure there's always plan B inother to backup our primary objective. Bitcoin dumps are caused by seasonal operations of the market. We are currently in the bear season, a time to accumulate more pieces of bitcoin, and withdrawing our profits when the bull season finally comes.  

There are actually some pros when it comes on using up an exchange on which it would really be just that normal that you should really seeing this to be beneficial or something that would really be comfortable
instead on making up some active withdrawal and deposit specially if you are a trader on which pulling it off on exchangers from time to time would really be that spending up for some fees but if you are some sort of whale then it would really be problem if you are really just that paranoid with safety on which i could say that it is really that a must thing to be done in the place. Some could really be able to deal up with the hassle
but there are some who couldnt and this is why despite of the risks they would simply just park their coins and even if they are wary about the risks, they dont really just care at all. This is why you should really be
that mindful about the risks on storing up your coins on exchangers. There's no such thing about 100% safe when we do deposit our coins into those centralized exchange. We dont possess those wallet
keys on which on the time that there's something happened then thats a huge trouble or problem into our coins.

This are the small value of market sentiment and you have used your savings when you want if u like and your bitcoin you have a mine other choice and market is not stranded that all are know and like happen some times and this are not surprise in that and have should be a long investment scheme and every bear market and have a bull market due to wait for long time is will be continue .

Without a doubt you are correct. Some people do not worry about keeping their money and coins on exchanges either because they are ignorant of the risks or because they are aware of the risks but choose to take them nonetheless. And while it may appear that a centralised exchange like Binance is completely safe this is not the case at all. Professional or expert traders are fully aware of these hazards and they also know how to invest their money wisely and safely especially when trading. There have been instances of exchanges going bankrupt in the past and when FTX exchange went bankrupt it took a substantial chunk of money from several major investors. You may have recently heard of the Atomic Wallet hack in which many customers cash were transferred to unsecured wallets and no one knew where their funds ended up. We must thus take all necessary precautions to keep our money or coins as secure as possible.

That's true, a lot of people I've seen complaining about their exchange accounts getting compromised and their assets being stolen because they have been keeping all their assets in their exchange account which is a big mistake, someone should only keep a specific amount of money in exchange, the money that they use as their trading capital if they are making trades regularly.

If someone doesn't make trades on a daily or a regular basis, they should simply keep their assets in a non-custodial wallet where they will be the only ones to have access to them and no one can access them unless they leak their seed phrase or private keys.

The rhetoric of keeping coins on exchanges despite the risks seems unwise to me. Exchanges have long been the Achilles' heel of the crypto world. Centralization is a vulnerability, and these platforms, like Binance or FTX, are nothing more than juicy targets for hackers.

This isnt fear-mongering but an assertion based on historical evidence. Recollect the catastrophic Mt. Gox incident or the Bitfinex hack. When the dust settled, it was the innocent investors, not the 'whales', who suffered the most.

I cannot endorse such a nonchalant attitude towards security. Yes, dealing with private keys and hardware wallets can be cumbersome, but that's the price one must be willing to pay for true financial sovereignty. Its high time we stopped treating exchanges as banks and took full control of our digital assets.

Given historical occurrences like Mt. Gox and Bitfinex I can see your concerns about the security dangers involved with storing Bitcoin on exchanges. We must prioritise the security of our digital assets and be aware of the weaknesses of centralised platforms. While dealing with hardware wallets and private keys may seem tedious, they provide actual financial independence and autonomy. Keeping our private keys secure reduces the possibility of being a target of exchange attacks on a big scale. However it is crucial to take into account each person risk tolerance and situation because some people may prefer the simplicity and liquidity that exchanges provide for chances in trading or investing. By finding a balance between convenience and security and learning how to secure cryptocurrencies we may have the power to manage our digital assets and adhere to the decentralisation and financial sovereignty tenets.

That's the real problem. Trust. When people start trusting exchanges to secure their crypto assets, they're bringing back the middleman into the system. This is the single point of failure crypto was meant to avoid in the first place. Because of this, governments can do whatever they want with crypto. Exchanges have a lot of power, thanks to people who don't know (or never care about) self-custody. There's nothing we can do about this  especially when the majority is into crypto to make a quick buck.

The clock is ticking for the crypto/Blockchain industry, so time will tell us whenever centralization will prevail or all the other way around. Unless decentralized exchanges grow in liquidity/trading volume and market dominance, the crypto industry won't be going anywhere soon. Who knows if CEXs ultimately destroy crypto's true value proposition? Just my opinion :)

In these days exchange is having traffic because of the calamity that happened recently on the transaction fee. Even in the forum we discovered that most of the campaign participants sent their exchange wallet address to managers to change the bitcoin wallet addresses. So with that many people are still using their exchange addresses for trading and other transaction activities.
Yes I will also agree with that keeping funds I'm exchange is at the owners' risk. Now that Binance is under a law suit and we don't know what will happen, so it is better the operators of the said exchange should not keep funds there for a long period.

Areas that propagate problems receive a great deal of attention from the public; everyone wants to know what problems are hitting the market. Crypto exchanges are struggling to deal with fraudulent operations that harm the general public. Fraudsters target the top exchanges to be able to decrease their functional requirements; some fight back, while others give up and crash to the dump. I don't think it's an efficient time to hold our currencies on exchanges at the moment because it's riskier than storing fiat money in banks. Binance is now suffering significant problems, but all will be resolved in due course.

It is generally considered risky to keep funds on an exchange for an extended period of time. Another layer of uncertainty has been added to the situation by the SEC's recent lawsuit against Binance. Taking appropriate steps to protect your funds is recommended for exchange operators and users alike.

When trading or engaging in transaction activities on an exchange, it's important to stay up-to-date on the latest legal developments, security practices, and regulatory compliance of the exchange. Using a hardware wallet for long-term storage can help you diversify your holdings while maintaining control over your funds.

To start with, I don't believe Binance will disappear. It's a huge global corporation and even having to leave US market completely won't make it go bust. But yeah, people still overreact when some FUD shows up. I dunno why, perhaps Bitcoin is still young as more mature markets are normally less prone to FUD.

Really there are too much fraudsters in the exchange. There was a day I was selling 0.008 worth of BTC in binance and there vendor indicated that has paid the money to my account but I didn't receive any alert of payment but he was disturbing me to release the coins but I refused. I even told him to send me a screenshot of the payment he refused too. With the long argument for about 3 to 5 period he paid the money and I received the alert so I released the coins for him. Scammers full exchange, so I gave him negative feedback note on his profile rate. And I don't think exchange can fish out those guys because they use different method in their crimes.

If you choose a trusted with high reputation and with high past trading volume, you will have less probability to trade with a scammer. Because a trusted vendor will not sacrifice his account reputation that is gained after a long time, to scam in one trade.

In addition, scammers always push their trade partners in hurry to release coins. It is one of alarms for a scammer.

When you trade Peer-to-Peer, only release your coin if you receive payment if you are a seller; always mark the trade as Paid if you are a buyer.

The irony is palpable here! Bitcoin, born out of a vision to bypass central authorities, now finds itself at the mercy of centralized exchanges. Trusting entities like Binance and Coinbase goes against the very grain of what Bitcoin stands for!

Your friend' story is more common than you think. People prefer the ease of use of a centralized exchange and turn a blind eye to the philosophical underpinnings of cryptocurrencies. They place their trust in the CEOs of these companies, but are they not becoming the very middlemen we wanted to avoid?!

Our last hope rests on decentralized exchanges. Without a significant rise in their trading volumes, we risk the survival of the crypto industry itself. Centralization could very well be the cryptonite that destroys the superman of the financial world - cryptocurrencies. Does anyone else find this deeply concerning?

Most people that are into crypto are not taking it seriously as a tech. They're only investing into it to make a quick buck in return. It will take some time before the market matures to a point where external factors will have little-to-no effect over a cryptocurrency's price. Binance may've suffered from SEC's actions, but that doesn't mean it's the end of the world. It will move its operations elsewhere and carry on with business as usual.

The one that will end up losing is the US with its aggresive crypto regulations. Crypto is decentralized, so it should be able to stand the test of time. If all centralized exchanges go down (which is very unlikely), we'll have decentralized exchanges at our side. Who knows how far will the industry go? Just my thoughts ;D

The thing is that while people keep being paid in fiat for their goods and services, then exchanges are very important for Bitcoin.

When people transition to getting paid in Bitcoin directly, then exchanges will fade away because there would be no real need for them.

The reality is that many people are just "betting" on Bitcoin, so they want to maximize their fiat by "buying low and selling high". That's not going to affect Bitcoin in the long term, it just creates noise in the short term.

Exactly. That's the problem. Fiat is still the standard unit of account, while BTC is viewed by many as a means for profit. If people started using Bitcoin as a currency, things would've changed by now. But that will never happen in a world where banks and governments rule the mainstream economy. Considering that most jobs are paid in Fiat, exchanges will continue to be relevant in the crypto/Blockchain space. Anything good or bad related to a crypto exchange will quickly move the crypto market. It'll be up to you to decide whenever you'd want to buy more coins and "hodl", or sell them all for a profit.

What matters is that crypto stays decentralized so it could stand the test of time. We already have decentralized exchanges, atomic swaps  and even P2P trading platforms, as alternatives to existing CEXs. If CEXs fail, we can still trade our crypto in a breeze. Who knows how the future will shape the entire crypto/Blockchain industry? Just my opinion :)

There is some truth in the write up but am thinking other crypto users see the correlation of Bitcoin and Exchanges being that they provide an early indicator of whats to happen to the markets.

Besides you know how everyone says with crypto you can be your own bank, what happens if the only place you are able to sell or access your peer2peer platform to get fiat in exchange of the digital currency is shutdown ...?
It kind of leaves you stranded if you don't have other options,  and the fact that the top exchanges are under attack most will surely what to salvage whatever they can y selling before they lose the access especially that we are solely responsible for our actions.

Exchanges are how new money comes into Bitcoin. It certainly makes sense that something bad going on with exchanges would make people afraid and therefore sell temporarily.

I does suck that the bitcoin market is soooooo delicate that it moves a ton on such things, but that's just the way of things right now. Also realize a lot of people are probably selling simply because they expect the price to go down on such news, so its a self-fulfilling thing. Traders hear bad news and they sell simply because they expect the price to drop from others selling, and so the price goes down more.

Anyway, hopefully in a few years we'll get to a point where exchange regulations are put together so exchanges are all on solid legal footing and there's nothing like the SEC attacking exchanges going on, and exchanges being transparent (probably due to regulations and all with proper security and insurance protocols in place) so we don't get stuff like FTX happening or bad results from hacks happening.

I think cryptocurrencies are not decentralized, only a few are decentralized, and the rest are centralized. Decentralized exchanges have existed for a long time, but so far, it has not been able to compete with centralized exchanges for several reasons. And I also don't believe in the future, it can replace CEXs, very unlikely. Although many people will not like this, but CEX will never completely disappear, if Binance collapses, there will be one and many others to replace it. This is an area that makes a lot of money, I don't think people will ignore it.

First of all you are mixing Binance and Binance US, and those are two completely separate entities. If Binance created Binance US is exactly to avoid problem with the main exchange because they know how things (don't) work in the US thanks to the SEC. Now let's talk about exchanges: does bitcoin need exchanges? No. Do ordinary people need exchanges because they're the simplest way to buy crypto? I would say yes. If you care only about bitcoin's existence then you're fine, if you care also about bitcoin's value then you shouldn't be here hoping that exchanges fail.

If you are not interested in the exchange, you should not create this topic you should continue to hold your bitcoins. Everyone has the right to choose, you can't force everyone to follow your opinion.  i'm not a fan of centralized exchanges, but I don't hate them either, but to be fair, they're not as bad as you say.  they really have many utilities and benefits for us, I think without them, the crypto industry wouldn't be as strong as it is today.

Yeah, exchanges are important to help with the transition from fiat to Bitcoin.

As long as people keep getting paid in fiat for their goods and services, there will be a need for having exchanges.

The moment people realize they can skip that middleman by getting paid in Bitcoin directly, then everything would be better and exchanges won't be needed. It's a temporary solution.

To be fair, it's kinda hassle for some people to move in and out their funds between exchange and their wallet and to be honest back then, I was like that when I was day trading in Binance. After I learned the horror stories of people getting their funds frozen, I started to slap myself so bad that I would not do that every again.

It's the worst thing you could possibly encounter aside from being scammed around crypto. Just recently I found out that my local web wallet has been upgrading the wallets and I just found my funds being moved from another app and my heart almost sank finding that out. Good thing that I did not lose the funds though.

Exactly. I'd say 99% of cryptocurrencies are centralized, while only a small few are truly decentralized. It's all about money these days, so exchanges will list coins that will bring the most profits (even if they're utterly-centralized). This is sad because it strips away crypto's original purpose of eliminating the middleman for good. Even ETH became centralized with the PoS upgrade. It's going to get worse if developers successfully increase the minimum ETH for staking from 32 ETH to 2048 ETH. The number of DEXs are also declining, as CEXs are taking over the whole industry.

It's not that people are giving importance to exchanges, but rather VCs and institutional investors alike. Crypto is now in the hands of Wall Street. Centralization will go on top of everything else just to satisfy the government. There's been renewed interest into crypto from institutional investors, so market prices will only go up in the future. Who knows how far BTC will go? Just my thoughts ;D

Nothing surprising on which these institutional investors or even to those government sectors who do quietly making up some accumulation in silent is really that something happening without us noticing.

It wont really be shocking on how they would really be getting some involvement due to the things that sees some opportunity to make money. The only coins which i do consider out to be fully decentralized is Bitcoin, ZCASH, XMR and some which it is true that as we do go farther ahead on which centralization becomes more evident which it is really that totally opposing the general idea of cryptos existence in the first place.
Well, lets just embrace out and as if we do have other choice? of course none but dealing up with exchangers does have that kind of benefit which is something that brings convenience
but in exchange for that exposing ourselves.  ;D

It depends on what you use the exchanges for: if you do daily trading then you have to leave the funds on the exchange, there is no other solution. Is it a risk? Yes, of course. If you buy for the long term and you leave the funds on the exchange because you're lazy it's a totally different story. Personally I just leave on exchanges some shit coins, I would never leave a single satoshi.

This is why we should never plan to keep our coin on exchanges because this might make us lose some good amount of money if the exchange crash. The people that have big funds in FTX cannot still access there funds till today because of the mismanagement of funds if customers by the team. Exchanges are using our money to make themselves richer when we swap our coins and trade on the platform.

If many of these exchanges crash, many investors are going to lose there money because many people are not still ready to remove there funds from exchanges or reduce the amount of money they have there maybe in case they want to swap or trade on the platform. Bitcoin will always fall and rise so we need to be ready for anything the market want to do.

Crypto-world is indeed flooded with centralized altcoins, isnt it? These newbies, clamoring for exchange stardom, ironically stray from crypto's original intent. Bitcoin, our founding father, aimed to bypass financial middlemen. But it seems that fresh coins care more about market monopoly and profits than preserving Satoshi's dream.

Even Ethereum's switch to Proof of Stake (PoS) has drawn flak, with fears that raising the staking minimum from 32 to 2048 ETH will concentrate power. The ascent of Centralized Exchanges (CEXs) over Decentralized Exchanges (DEXs) stirs debate. Yet, I contest its a sign of cryptos demise. Remember, Bitcoin, the decentralization lighthouse, still rules. Its soaring value could usher in more decentralized offshoots.

Yes, you should always keep your bitcoin in your own wallet.

Exchanges should be used only to exchange bitcoin, as the name implies. There's nothing good about storing your bitcoin at their wallets. Ideally you should setup an automatic transfer after a threshold is reached, and always keep your money off exchanges.

One thing about the Bitcoin market is that it always goes with the trend, which is why the price is always affected whenever there is bad news, just like you said about FTX. When you tell people that exchanges are not safe to keep your money on, people don't believe you. What happened with FTX should be a lesson to many.

People who do not learn will continue to deposit their money in exchanges because they believe it is safe and easy to transact with, which is why they constantly keep their money there.

Well , the only solution to what you just said is until people start holding their bitcoins on non custodial wallet so that the effect of any exchange will not matter too much to them. Secondly, users should use different exchanges  to avoid any shock from exchanges

History repeats itself.

Mt.Gox should have been the only time when this happened, and people should have learned and realized the dangers of leaving your bitcoin in exchanges.

Instead, people continued leaving their bitcoin in exchanges and they kept collapsing.

This will continue to happen in the future as well.

Exactly. Everything is heading off course. Crypto is slowly being taken to the hands of "Wall Street" players. Expect CEXs to become bigger and stronger than ever before. With centralization at stake, governments can do anything they want to control crypto use around the world. They can simply target CEXs and manipulate them for their own benefit. DEXs, and the other hand, are much difficult (or almost impossible) to control, rendering governments' efforts useless. However, these exchanges represent a small market share compared to their centralized counterparts.

You can still use crypto with a DEX even with government restrictions in place, but you won't get the same convenience as a CEX. I'm afraid the industry will move away from Satoshi's original vision in the long run. At least, not all hope is lost. As long as there's one decentralized cryptocurrency (mainly BTC), we should have nothing to worry about. Just my thoughts ;D

I use binance  for a long time now, but with what is happening around between SEC and BINANCE I won't even recommended anyone leaving funds in exchange. but I noticed many are very comfortable with binance the interface is user friendly, so it will be kind of hard for many to master other exchanges in my opinion. Am just using them for P2P purposes nothing more and nothing less.

Binance will be the next FTX sooner or later it will be inevitable and will leave all the chickens who have funds inside speechless.  Unfortunately the human being never even learns from the mistakes already made because he is greedy and then complains that he has been screwed ... fuck

The best way to defeat the fear and panic that comes from Exchanges (Centralized or SDecentralized) being attacked in the news is to keep your funds in your wallet. I believe this is why it gets repeated time and time again that if you keep funds in an exchange platform; it is not yours!>

Also, one exchange especially a reputable one going down is enough to cause fuds and force weak hands off their hodlings; it is only natural. Bitcoin is here to stay, bitcoin is going to be around for a very long time too.

Finally, i care about binance and other reputable cex haha; they are the safest source of p2p for me.

Time comes that every platforms that touches up fiat transactions would really be legalized. This is the main difference in between CEX and DEX is that the other side do engage up with fiat transactions on which it would be understandable that government would really be trying out to take advantage into that. Yes, its really that convenient on making use of these centralized platforms on which you could really be able to make out conversions of your coins to fiat and directly sent out into your bank account which undeniably that convenient for any traders or investors out there and this is why we do really touch up this area because of such reason.
This is why when it comes to risk management then it would really be that depending or according into your own approach on how you would really be handling your assets despite of this gradual dominance of government
on trying out to control on everything. Its inevitable i would say but its true that we could still get a hold of our Bitcoins without being known which this is the only thing we could really be that confident on.

Companies, like exchanges, come and go over time.

Bitcoin, on the other hand, is here to stay for the long term.

If you keep your bitcoin in your own cold wallet, it will be there tomorrow, and in the next few years.

If you trust your bitcoin with a third party, well, anything can happen, and you are not guaranteed to see it tomorrow, or in the next few years. The reason why the company doesn't have your bitcoins will be irrelevant, it can be many things.

A lot of what causes the change in the price is market speculation, and so naturally a decrease in the price due to SEC throwing down sanctions on Binance would definitely affect consumer sentiment on their investments that are on Binance, for example, and if I still had money on there I would have been rushing to get it out and off of the exchange. In this scenario you can see how a lot of people probably got all their coins off and sold right away. Just an example, I mean I definitely see where you're coming from but your personal feelings on current events wont change this haha

Yes, exchanges and bitcoin are two completely separate things. But it affects investor psychology, anyone is bewildered when an exchange has Fud, speculators will immediately take profits or cut losses to minimize risks.

Although they are a different thing, as long as fiat remains the main method of payment, then people will need exchanges to obtain Bitcoin.

There's no way around it. The moment Bitcoin is used for most goods and services will be the time when exchanges are not needed any more.

You don't need an exchange to buy Bitcoin. At least centralized ones like Binance. There are a lot of P2P exchanges.

Unless bitcoin will become a global currency, the speculations will certainly end there. And people will prefer more self-custody and self-sovereignty rather than completely centralized and continue to miss opportunities offered by decentralized coins. However, it could be a long process before realization takes place and there will be consistent cases of study on decentralized cryptocurrency before the centralized government will side them.

Exactly. People only see cryptocurrency as more on speculations so expect that they will not stick to the principle of decentralization but still prefer to use centralized exchanges because for them that is the trend and the right move for them. Hopefully in the future, things may change and decentralization may become a real thing so that people won’t never see it as speculations only.

Even if we do solely be sticking with DEX it would really be still seen to be speculative and this is something that cant really be changed because it would really be always been attached to it.When it comes to choices

on what are the things you would really be dealing is really depending on your preference and risks management since not all would really be that mindful that much in this regard and this is why they dont really care if
they would really be deciding on putting up their funds on an exchange platform on which its true that it isnt really ideal on doing so considering that the risks on losing those funds is high compared when its been holded up on your own non-custodial wallet.
Centralized exchanges wouldnt cease to exist considering that it would be having that kind of function which it do connects out the conversion of crypto into fiat on which this is something that cant really be seen on DEX and this is the main feature on why CEX is really having  that demand.

Let’s just face the reality that bitcoin price is easily affected by big factors around which includes the future of the big exchanges that have gained so much demand from bitcoin traders. Since exchanges like Binance have stored large number of bitcoin, so if Binance suddenly becomes insolvent, those large amount of bitcoin owners will be greatly affected seeing their bitcoin vanish like thin air. And worst, bitcoin price instantly drop that made its owners unable to sell for profits.

Your savings, if expressed in bitcoins, remained the same. And if you choose to look at the fiat value of your holdings, then you understand that this is only possible when there are ways to exchange btc to fiat, i.e. exchanges.
So I don't get why would you act surprised if events like the collapse of one of the major exchanges have an effect on Bitcoin's price.

And I wouldn't compare Binance to FTX. Unlike FTX, who were a bunch of scammers with no trace of any moral spine, Binance has a very good track record and so far they acted very professionally, and despite being hacked a few times, no customer has lost any money.

We don’t need to hate centralized exchanges as without them, decentralized exchanges will never come to its existence. So let just people decide whether they’ll use the centralized or decentralized ones. After all it’s their coins they are going to spend. However, I only use centralized exchanges when trading but never when it comes to long term storage of my coins. That is to protect my coins from its sudden loss especially if they’re place on centralized exchanges.

The reason why people are giving wayyy too much importance to exchanges is because people are lazy and do not want to claim responsibility for their own actions and especially, their own money. Not everyone is comfortable with the idea of "being their own bank" until something bad happens to convince them otherwise. And eventually it will happen, whether in the form of a bank unjustly freezing their accounts or the government plainly confiscating their money on whatever ground they deem fit.

Its frustrating because we have all the decentralized and unregulatable ways to buy Bitcoin or other cryptocurrency. But people cannot shake off the feeling that they need a third party to hold their money for them.

Aside from that centralized exchanges are also partly responsible for the cryptocurrency's fast adoption.  Without these centralized exchanges, it will be hard for the cryptocurrency trader to exchange their holding.  Decentralized exchanges sure can also be used to trade our cryptocurrency but it is much more convenient to use centralized exchanges because they have more pairs than decentralized exchanges.  Though I would suggest that we must only use centralized exchanges as trading platforms and not as storing platforms.

Because exchange makes things easy for them to use. It is through exchange the true meaning of crypto is manifesting. Through exchange people buy and sell Cryptocurrencies easily. The p2p in exchange is very good to use. So people patronize them more than any other ways of getting and selling cryptos.

I think that it would not have stagnated, but its progress in the virtual market would have been slower, I consider that thanks to the exchanges everything developed almost perfectly, I wonder more…. How could you invest in bitcoin without the option of being able to buy with fiat currency? ……..I know that there are ways to access this asset, but with this action it could be said that it is easier, since it allows both the use and acquisition of this currency, unfortunately, since it is not legal tender in many parts of the world , people are forced to obtain an asset that they can manage, and with which they can cancel what they want to buy, since despite the fact that there is an establishment where they receive bitcoin, this option is still not global.

So that the exchanges are not so necessary, all the countries of the seven continents would have to accept their use, and therefore allow it to be received as a form of payment in any business, whether large or small, implementing applications where the transaction can be carried out. , like a bank transfer, but it is something that at the moment is difficult to see.

And that's what people don't understand these days. They believe Bitcoin has a "CEO" or someone behind it. The public usually associates mainstream exchanges' success with the success of Bitcoin itself. If an exchange goes all the way down the drain, there will be panic all around the world. Market prices will drop, albeit for a short period of time. That's the way it works.

At least, not everyone thinks the same way. There's a small minority that believes in decentralization and Bitcoin's ability to be used as digital money regardless of what happens with CEXs. What's important is that the main BTC blockchain keeps running as usual no matter the circumstances. As long as there's more than 2 nodes on the network, don't count on Bitcoin going away soon. Maybe it will live alongside CBDCs (digital Fiat) in the future? Just my thoughts ;D

You literally need an exchange to buy Bitcoin with another form of money. That's what an exchange is.

It can be centralized or decentralized, that doesn't matter. We will need exchanges in one way or another as long as most people get paid in fiat for their goods and services.

There has big connection with Bitcoin and Crypto Exchangers. Because most of the crypto traders and holders use Exchanger. You are not using FTX or Binance or any kinds of exchanger but 99% traders and investors doing it through Exchanger. Binance is largest crypto exchanger. Today in Binance Exchanger trading volume is $9471005836. How we avoid impact from it. When Binance will affected then BTC will also affect there has no doubt. So i think it is normal that people will give importance to exchanger.

So what are we going to do about it? Can you control the minds of millions of people that are using crypto exchanges? Even with the crazy crashes happening with centralized exchnages these peole are not ready to take responsibility of their assets themselves.

Imagine people telling you that they still keep their Bitcoin on Coinbase in 2023, some people trust others easily and its the same with entrusting their assets with centralized exchanges.

Sam Bankmanfried or whatever his name is failed many but he is not CZ, or Brain Armstrong, this is the type of excuse you will be hearing from people, some are so lazy that they don't want to hold Bitcoin in a wallet that they control, they want others to control it for them, so that they can blame them easily if something happens to their Bitcoin.

Aside from traders using exchanges for trading, some prefer leaving their assets on exchanges than keeping their assets themselves. 

Banking as we've known it for millennia has taught us to put our money in the hands of others. Many people find it unsettling to consider the idea of "being your own bank," which is central to the cryptocurrency movement.

Time and learning are necessities for this transformation, and we must accept that. As leaders in the crypto community, it is our duty to help neophytes learn the ropes. Thats the only way to bring about the necessary adjustment toward greater individual ownership and less reliance on market forces.

Proponents of Bitcoin and other cryptocurrencies need to keep stressing the advantages of decentralization and being there for people as they make this massive financial change.

After reading this thread "Not your keys, Not your coins" is not enough  (https://bitcointalk.org/index.php?topic=5458416.0), I find myself pondering the intricacies of the world of finance. It's quite challenging to accept the reality that exchanges and governments are intertwined.

Indeed, as long as FIAT remains the dominant currency, we must exchange it either through exchanges or peer-to-peer transactions. And currently, the easiest route is through exchanges. However, many underestimate the significance of peer-to-peer services, despite it being the only way to truly safeguard our privacy.

To this day, exchanges continue to perplex me and occupy my thoughts whenever I power up my computer.

The "P2P" in usual exchanges is a gimmick. There very much exists an intermediary in CEX like Binance, and as usual, it lies about being P2P exchange. If it was actually peer-to-peer, it wouldn't require you to create an account, give KYC etc. For truly peer-to-peer exchange, look on Bisq (https://bisq.network/).

Lol. You can't believe how accurate this feels. I heard like, quite the exact same words from a friend of mine.  :P

I like the word you used; "down", not "gone". As far as you didn't sell your Bitcoin when the price went down, your savings is not gone, the value just dropped and it will get back up again, it might just take time.

Saving coins with exchanges is technically the same thing as saving money in the bank. A centralized system stores your money in the bank, while a centralized system stores your coin in a CEX. I wonder why people don't get this. I am not entirely against centralized exchanges but it is very wrong to save your coins in them. It ends badly most of the time. I don't know how much this needs to be stressed before people get it.
Used the exchanges to trade, if you want, but you shouldn't save in them.

I don't think anyone would consider their investment "gone" whenever its market value drops. It looks like you took and twisted an old saying that "you don't lose until you sell" (which is blatantly false).


Who doesn't get this actually? Are you saying that people don't realise that centralised exchanges are centralised? I think they do and I think many don't mind that, just as they don't mind keeping their fiat money in a bank account rather than stashing cash under the mattress.



Throwing blanket statement like that makes no sense. It's all about assessing risk and reward.
Also, if keeping funds on CEX for saving is too risky, then why would you say it's OK to keep them there for the purpose of trading (which itself bears additional risk of a loss).

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Besides, their participation and existence make help gain more attention and traders. In fact, this is also the reason why cryptocurrency becomes known globally due to ads that flooded the internet. Yes, without them, I couldn't think it will survive and even if we think about P2P transactions, I know they are also reliant on exchanges. These exchanges play an important role in the crypto space whether it was DEX or CEX, they are really making the crypto space alive.

At this point in time, what I have found with the SECs pursuit of Binance is that it's dividing the crypto exchange with the US/western exchange, EDX Markets. When the division is complete, EDX will take the markers that Binance are unable to operate in (US, Canada, Australia, UK and probably Europe) while Binance will take the east.

The reason I say this in response to the OP is because the situation isn't entirely the same as FTX.

On a similar note, I've recently learnt that Binance's reserves are not on par with their exchange balances. This is concerning...

That is a good point, the companies that produce these exchanges have a lot of money, and they pour it to ads all around, making people more Bitcoin aware than ever.

It might be that the first encounter of people with Bitcoin is through buying some at an exchange. But it goes way deeper than that. At least it's a good start for them to not be a no-coiner anymore.

I don't really trust exchanges so I don't hold my crypto these, but you can't deny that exchanges is a great thing for newbies that want to invest in crypto.

I think exchanges play a huge role in the adoption and promotion of crypto. Who is working with the government to legalize crypto trading? Exchanges. Who is working with Lugano and El Salvador to adopt crypto? Exchanges.

So I think they play an important role in the crypto game and every person should decide for himself if he should take the risk and hold money on an exchange.

Yes this is the exact same feeling I have with Binance exchange, it's not real peer-to-peer exchange, it's a centralized exchange that offers a centralized peer-to-peer service because they get hold of all user's KYC, but I have never lost money to scammers using Binance p2p service, they come in between and always solve the problem, I have meet like three scammers trying to rob me on the exchange but none was successful for the scammers, I have past stories with some peer to peer services before and I lost money to scammers.

I love it when we read something this strong message and with that? i believe that this will add toughness to other investors that sometimes afraid of leaving their funds in long term .
but with your strong positioning in yoiur bitcoin holding and caring nothing about exchanger ?
now I can see what comes to you In the next couple of years

Most people are greedy, so they don't mind about CEXs taking control over the industry as long as they get convenience in return. If people are used to trusting a bank with their money, then why wouldn't they do the same with a CEX? Fortunately, not all hope is lost thanks to the inception of decentralized exchanges (DEXs) and trading protocols. CEXs may come and go, but DEXs will always be there no matter what. They will be the ones that will keep the market flowing in the midst of time.

One thing for sure is that CEXs are the gateways between the Fiat and crypto worlds. That's because they're regulatory-compliant, whereas DEXs are not. This explains why crypto goes down the drain when a CEX collapses or faces trouble with the regulators. I wouldn't mind about this, as long as crypto (mainly Bitcoin) stays decentralized. Who knows what the future holds for the industry? Just my thoughts ;D

the exchange is only used as a place to convert our assets, the rest is a safer personal wallet to store it. in this world of uncertainty we must be able to anticipate the worst possibility so that if it does happen we are not harmed. if you look at it now, binance will never disappear until later, but no one can guarantee that, even though previously binance returned losses in consumer assets that were hacked, we won't know in the future whether it will be the same.