Bitcoin Forum

Bitcoins can exist without exchanges, but would you support the argument that the existence of exchanges are among the factors facilitating the popularity and accessibility that people have to bitcoins?

Both centralised exchanges and decentralised ones have helped with access in some ways but I think their scope is quite limited (especially for cexes).

I don't actually think it's down to exchanges that means crypto adoption has happened that much. If everything was peer to peer it'd still function much the same way and probably a similar safety.

There's likely been a lot of scam exchanges that have done worse for the space and the lack of adoption by larger and more traditional companies - as well as some banks banning companies like coinbase which have done well to hinder adoption.

I'd say faucets in the time when I joined provided a much better onramp to cryptocurrency than exchanges did (especially for learning how things work).

I think it depends. Sometimes exchanges are not important , like here in this forum p2p is ok. But sometimes they are important.

A few years ago, in 2017 when I joined the crypto space, it was very hard to buy bitcoin in Brazil, even in exchanges.

Peer to peer was nearly impossible: price was much higher, not the same security, lots of scammers...

I believe exchanges were important and they still are. Many implementations such as ATM exists due to partnerships with exchanges because they provide the necessary volume for those services to operate.

clearly bitcoin needs an exchange, especially the CEX exchange is very important to create trading volume as well as facilitating investors or traders to buy and sell bitcoin of course, also delivering miners who sell their bitcoins to investors so that bitcoin circulation continues to circulate to the public and with the exchange that is the beginning of popularity bitcoin started until today

Since bitcoin is still far from achieving its goal of being a widely and freely accepted means of payment, then yes (personally speaking) exchanges are important for the time being. We've been screaming for years about decentralization, privacy, not your keys not your coins and so on. But the fact is that people prefer bitcoin volatility and pursue it even at the expense of more vitality.

To me, exchanges are very important and they are among what makes crypto as popular as it is today. The first time I hear and come across crypto was through Binance ads I registered from there and gain more knowledge from different places.
When it comes to newbies like me in this crypto space, exchanges are very important and essential because they are the only means by which I find it safe and trustworthy to buy any crypto with my fiat. There are also a lot of people out there who their way into crypto from exchanges starting from when someone tells them about a particular coin that they believe will change their financial status overnight, which doesn't happen that way, from there they get access to any exchange have small knowledge and then introduce others into it.  
Crypto exchanges both cex and dex are playing a vital role in the promotion and mass adaption of crypto, which I know they are doing for the sake of profit-making but at the same time, they are bringing more people into the crypto world.

The existence of Bitcoin depends mainly on its network, its hashrates, full nodes. They are core factors for the survival and existence of Bitcoin. Exchanges are only one of ways people use their Bitcoin, for trading, for profit taking, for gambling with leverage and future trading.

Fortunately, you should know Bitcoin has so many use cases and we can use it at merchants, stores that accept Bitcoin. We don't must bind to use exchanges that are not unique places to use our bitcoins.

Bitcoin is a peer-to-peer electronic cash and we can trade it peer-to-peer, not have to rely on exchanges. You can use Bitcoin to buy pizza, cake, honey pot, etc. and you can use it to bet on casinos too. A lot more use cases for Bitcoin like donation, charity and more. It its network is running, you can use your Bitcoin.

I agree that exchanges give trading volume and the higher trading volume is, the more comfortable people feel and be ready to join the party.

Am curious to know the ways Bitcoin can exist firmly without exchange in both the centralized and decentralized exchanges even p2p is also a means of exchange, so in general, the exchange is an integral part of Bitcoin.
So the exchange is as important as miners who work to confirm the transaction in the blockchain likewise exchange is the crypto marketplace where buying and selling of various cryptocurrencies take place.

Exchanges are not a barrier to people knowing bitcoin but they serve as a causative agent against people investing with bitcoin for altcoins, they fight inbthe interest to bring many into investing on other currencies after using bitcoin as a cover for attraction, except for those who has the intention of investing in bitcoin right from start will not be canvas to altcoins dince exchanges are not theirajor harvest through which they got to know about bitcoin, we need to be careful because this exchanges have a kind of way they package other cryptocurrencies so they can sell and make their own profits.

It is not at all questionable that we need crypto exchanges, but the problem is that some users consider them to be some kind of crypto banks, and that the security model is the same as in ordinary banks. Exchanges are for trading, not for long-term storage, which has been proven many times so far, especially in the case of Mt.Gox or Quadriga. The former are still waiting for partial compensation, and in the case of Mr. Cotten's story says that he literally spent a good part of the funds on bad investments, and part of it allegedly went to the grave with him.

The whole idea around Bitcoin is decentralization, and the fact that the largest CEXs have millions of Bitcoins in their possession is not something we should look forward to.

The majority of Bitcoin transactions currently are executed through centralized exchange platforms. They make Bitcoin transactions so organized and attractive that people prefer to use them. They sometimes make trade or exchange transactions very easy and they can easily be used for business transactions. Regardless of the disadvantages of these exchanges, there are some persons that would always prefer their services to decentralized platforms.

These platforms spend millions of dollars on advertisement and promotion of cryptocurrencies. Most P2P providers don't have the kind of money these exchange firms have, hence they are not able to promote Bitcoin extensively. Some of these exchanges also lobby governments of nations to pave way for Bitcoin acceptance and operations.

Therefore, it would not be wrong to state that these exchanges are really key players in facilitating the popularity of Bitcoin. Although exchanges might not be the ideal means of engaging in Bitcoin operations they are also spreading the good news about Bitcoin    

@OP majority of crypto lovers can't have access to any of their favorite coins without the existence of exchange. I remember back in 2016 when there were basically very few exchange how i struggle to buy btc back then, it was not easy and also the risk of falling into the hands of scammers was high, but with the emergence of lots of centralize and decentralized exchanges, buying any crypto has been made easy. so i say exchanges are very important.

Exchanges are generally very important in a market. But since the Bitcoin market is more complicated than others, let's draw a line between centralized exchanges (CEX) and decentralized exchanges (DEX). Whether CEX or DEX, exchanges are needed to trade national currencies and cryptocurrencies.

CEX are important, given that the user doesn't value himself, and trusts some CEO more than he trusts himself. In that case, he should choose a CEX.

DEX are important, because they're exchanges with no intermediaries, via the internet. People who might hate each other can exchange cryptocurrencies for cryptocurrencies with zero trust, and their national currencies for cryptocurrencies with minimum trust.

Sometimes, the former might attract more users due to lower fees as well.

Exchanges, companies that provide online wallets, payment systems like BitPay all facilitate the popularity and accessibility of Bitcoins, IMO. Some services are centralized, some aren't. Some are companies that actually store your coins, others just make the wallets or build a platform, but you are the real holder of the funds. I am not a decentralization maximalist. If a service is good, it has high reputation, and it is very useful, I don't mind that it's centralized. Even if there's a way to stay fully anonymous and use a decentralized service, but it's much easier to just use a centralized one and give some of the privacy away, I'd go for the centralized one. In the end, I think that a variety of services should exist, so that people can choose and decide for themselves.

Yes, exchanges are a very important factor for adopters to have access to bitcoin and cryptocurrencies in general. Without them, most people couldn't invest in bitcoin, because they don't have other adopters around them to trade person to person. Exchanges also guarantee a protection for investors when dealing with crypto, as by operating at a legit platform you won't be scammed when selling or buying crypto. The history of your negotiations is stored there and you have access to real time market prices. On the other hand, when you trade person to person with strangers you are under risk of not receiving your money or being exploited by them, that is, when they don't pay the fair price for your coins or don't respect the real time quotation of bitcoin price. Exchanges are a great didactic introduction to crypto universe, without any doubts.

Exvhat are among one of the key sources that provides access to Bitcoin in the space. Exchanges provide the security and reduce the level of scams coins in the market. There are coins that served the purpose of glitch in the market and are mostly use by scammers, inother to collect and liquidate traders account. Some coins are actually listed on coin market cap but they are scam tokens which needs to be get ridoff. Exchanges provide Bitcoin for users to buy with ease without fear or doubt of been scammed, like the offline buying and selling which is very insecure and highly place risky is not considerable for traders.

I completely agree.

Simply put, I believe that exchanges are very important for the role of adoption. One way or another everyone has an option of how securely they want to buy their Bitcoin. We have the people who want an easy user experience so they go for exchanges. That makes sense and is one of the cheapest alternatives (unless you plan on withdrawing to a different wallet in which case you will pay a small fee). But you still trusted a third party to hold your money for you.

People who distrust those third parties (as they should) can buy Bitcoin without having to go to an exchange. P2P and cash are always options.

But like 99% of people don't seem to care about that, even though they support a decentralized concept like Bitcoin.

It's not that you give up custody for a while. I might not trust Binance for keeping their business operating forever, or I might not trust their competence when it comes to security over the long run, but I'm confident trusting them for a few minutes to keep my money. That should be the least of your worries. The worst part is that you'll be asked to provide a ton of KYC. Phone number, home address, first and last name, email, bank statements, selfies. Of that kind of personal stuff, no; I don't trust them the slightest. Then, you have the "taint analysis", which is against the fundamentals of bitcoin.

It is the Exchanges that made buying and selling easier. It is the place that also contribute to the growth of bitcoin. If there is no exchange, it'll be used for transactions and the growth could've never been this high.

It is the pathway through which people were able to learn about trading. During those days, exchanges were prone to hacks. Those incidents serve to be a way of market manipulation. These days exchanges are highly secure. Initially exchanges came into existence for bitcoin. Now every exchange itself have its own blockchain and cryptocurrency. The importance keeps counting.

Even though I am one of the person who beleive exchanges is one of the reason why bitcoin is failing from its primary reason of existence which is to be used as exchange.

But we can't entirely eliminate the role of crypto exchanges because they made the market bigger so which increased the demand and popularity as well so they pmayerd important role for the growth of bitcoin but not in the way the Satoshi wanted.

Yes, without exchanges Bitcoin would have a fraction of today's adoption and price - exchanges make buying and selling Bitcoin easier and cheaper. Few people want to buy Bitcoin through p2p trading, because of the risks of getting scammed and sometimes higher fees compared to centralized exchanges. And without centralized exchanges there wouldn't be traders and big investors, so the price would be much lower than it is now.

I read cases of MT Gox and another I read was Hot Mail. The later, early miner's of Bitcoin lost huge Bitcoins in those exchange and they have been one of the first exchange around those first few years Bitcoin started buzzing. Some 15BTC 20BTC and some others I can't recall all got lost.
A pal from what I read had to write bto Hotmail if they can get his mail revamped but all fell on deaf ears as they couldn't provide any solution for him.

I have also seen ledger wallet's are not too costly ($50) cheap, but cheaping from the state's according to the site might get everything too long.

You could also avoid that by creating an account with a non-us based crypto exchange with lax regulation laws. For example, Kucoin or Poloniex will not touch you with KYC demands if you are not a big fish trading hundreds of thousands everyday. Although they could freeze your funds and demand KYC. Not sure how they could manage to do it legally but I am guessing probably something to do with accusing you of being a money launderer or possible terrorist.

Still, as you said its not safe either way and not only is your money in the hands of someone else, who you must trust not to randomly freeze, lose or steal your funds but those same untrustworthy people store your private information and government issued documents?


Thats a no-go for me.

Exchanges allow for tickers to function, which show us spot price. One could argue that you don't need to know spot price to trade as all trades can be negotiated, but think about the problems it could cause. You'd go to buy some bitcoins with your fiat, not knowing what the price is. You'd offer 20k for a bitcoin and the guy would say that he won't sell below 30, what do you do? Buy blindly or sit down and make a forum thread asking if its worth paying 30k today?

Exchanges make buying easy and give new people access to bitcoin. They have their flaws but it's better to have them than not.

let's admit the reality that exchanges are needed by users to easily convert their crypto to another crypto or to fiat aside from what you mentioned about getting the price of the market easily. when several exchanges offered the p2p services, a lot are grateful that they can already convert their crypto to their own fiat currency. and with trusted trading platforms, they are not worried anymore about getting screwed by other third party services.
hence, the presence of exchanges is indeed vital in the adoption of cryptocurrency. just take note the number of those users who are using binance, or kucoin or coinbase.

There is no doubt that exchanges play a big role that's why bitcoin becomes accessible and easy to reach by most.

These platforms created a feature where buying and selling bitcoin is not a hassle thing to do. Exchange is also the reason for my first encounter with the word bitcoin. I saw an advertisement about an exchange (not sure if it is Coinbase or Xapo) on a Paid-To-Click website before and the rest is history.

Bitcoin is also treated mostly as an investment and not as a currency.

I doubt if there are no exchanges or trading platforms around, a moon price hype will be created.

Yes, Bitcoin can exists even without an exchange, but an exchange Is needed for many several reasons,
1. To enable easy swapping of Bitcoin to other crypto currency or fiat.
2. To enable easy buy and selling of bitcoin
3. To provide medium for Bitcoin investment, e.t.c

And speakingg on a general scale, exchanges has really help a lot to enable many persons have access to Bitcoin and other currencies as easy as possible, and as such it can never be overemphasized. Because taking myself for example, the very first Bitcoin I had was through an exchange named "Remitano" far back in 2020,  

Exchanges are necessary and have supported the existence of bitcoin (not the only reason) and are known as investment and trading assets. Without an exchange bitcoin can also be traded, but I believe bitcoin would not be as famous as it is now without an exchange.

Regardless whether the exchange is centralized or decentralized, then this exchange has helped users to trade their bitcoins and make profit from it. This is an important part of the growth and economy of bitcoin itself, even if you disagree with this opinion. I can't imagine how much bitcoin trading volume is if only traded via P2P, can it reach 10% of the current total daily trading volume?

Yes.
If there are no exchanges, we won't be interested in it because we can't cashout bitcoin into real money and that's why we're here. We're aware of how to withdraw our bitcoins, and sell and exchange them with fiat. If it's not for the exchanges, we for sure won't be here and the actual OGs are the ones remaining and enthusiastic about bitcoin.

Exchanges are still very much important. They are as good as their name implies. Exchange evolved as a result to bridge the gap between buyers and sellers. In my opinion, I think exchanges was majorly opened as a result of the increasing scam activities in the crypto industry.  Not only that, government wants to keep track of holders of cryptocurrencies and know what they are doing with it in terms of transaction and money movement.  As a result of the international money laundry act exchanges had no choice than to comply with the existing laws so as to be on the safer side. Also, it has aided in many ways to run ICO, IDOs, for crypto and blockchain projects which has paved ways for successful projects currently running on the blockchain space.  With exchanges, your fund is guaranteed to be safe  and secured as your assets are saved in the hands of a third party which in the reality they are equivalent to the bank where money and other valuables are   saved and safe.

If bitcoin exist without exchange it will bring much setback in adoption of cryptocurrency, because the necessary things that makes Bitcoin to put anything in place is exchange, because many of the who invest for Bitcoin are curious to invest in cryptocurrency, their is some people so buying and selling in cryptocurrency and they survive with the profit they make in cryptocurrency, so therefore cryptocurrency should of good position say without exchange it will remain in the hands of who invest on it

If Exchanges weren't available the growth could've been delayed and the user participation could've been found low than what we have right now. The trading practice would've happened out of P2P. We could've never got such a big number of trading pairs. Market would've never been this centralised and very few altcoins might've got used in the market. This confirms that exchanges have got major usage in cryptomarket.

And it's going to be harder since it's P2P, then the exchanges have been replaced by P2P platforms that would serve as our escrow and the actual trading exchange that we used to have know.
Well, I guess it's really going there and with technology and innovation, exchanges would still be part of it no matter if it's there or not since everyone is looking for faster and easier access to almost everything right these days. But yeah, exchanges have made it one of the biggest contributions as to where bitcoin and the crypto market is now.

Bitcoin needs exchanges as much as exchanges need bitcoin. Both compliments each other. Without bitcoin and other cryptocurrencies, there won't be exchange. Without exchanges, bitcoin adoption would have been very slow. There would have been thousands of people who could not be able to buy bitcoin and the level of scam would have been very high through p2p.
Also all the newbies in bitcoin buy their first bitcoin through exchanges before they will have more know and begin to secure their coins in private wallets.

I'd support that they helped but not entirely. We can still do transactions using p2p although exchanges now are also offering that feature just so it would be more secure than doing it directly. More like the middleman or the escrow of the transactions that will happen.
Before, lots of scams are happening and now we could say it's cleaner thanks to them.
Then, there's the easier buying and selling method of every cryptocurrency with value in it.
If it's about the popularity of Bitcoin, a big part of it is from the supporters who stayed until now.

Money can exist without exchanges but does that make things easier or more difficult?

Same with bitcoin, since it is the newer kid in the basket of currencies available in the world, the only way to acquire it for many people is through exchanges. Hence their role in the market is vital and they do help in providing popularity and accessibility.

The choice of going to an OTC trade carries its own risks and disadvantages which outweigh the advantages. P2P market for bitcoin is not that strong that they can overrun the CEX traffic and DEXs always have a liquidity problem.

Hence bitcoin will exist with its exchanges but people have to know their options well.

exchanges are important, imagine that a person wants to buy bitcoin and has money in the bank, that person wants to day trade to make a profit. so this person creates an account on a safe and honest exchange and makes KYC and then this person adds his bank card to the exchange and buys bitcoin and then transfers it to another exchange and starts day trading and when that person makes a profit this person withdraws to Bank account. but if there were no exchanges how would people day trade? I see some people complaining that exchanges have a lot of bitcoins with them, man let's be realistic: does anyone here really believe that there would never be KYC or centralization in this market? that bitcoin would only be in this forum and in decentralization being ignored by governments? I don't like to do KYC myself, but I do it because I have to comply with the laws, it was inevitable to have many exchanges and many bitcoins were accumulated in them, it was inevitable to go to centralization, no matter how bad it is

Exchanges facilitate users to trade their assets among other users. On the other hand the exchange can be referred to as escrow which ensures the user's funds are safe while trading because the possibility of fraud between users while trading their assets can be avoided. Granted it depends on the reputation of the exchange, but in my opinion an exchange is one that has made bitcoin or crypto in general get a lot of attention.

It is very difficult to trust someone on a P2P basis regardless of their reputation with large sums of money, even if it is escrow then I really believe one would avoid trades involving hundreds of thousands of dollars without a face to face. Scam occurs not only because you are careless and the scammer has an intention, but sometimes it happens because of opportunity. So for me exchange is important in the civilization and growth of crypto.

In Indonesia (my country), exchange is very important, because we cannot make transactions using cryptocurrencies at will. There are government regulations that have been set. In our place, cryptocurrencies are just assets that should only be traded on exchanges.
In Indonesia, you cannot buy a cup of coffee and then pay using Bitcoin or altcoins, if you do you can be jailed for at least 1 year or pay a fine of 200 million Rupiah ($12,872.33 today's rate).
That's why a crypto exchange/marketplace is important, at least in my country.

CEX has come to provide an opportunity for those out there who want to own Bitcoin but with some trepidation towards p2p where reputation is at stake. But regardless of the advantages and disadvantages, any risk will always exist. Some people trust CEX to trade because they leave the guarantee to the exchange. In other words an exchange that may be trusted in the eyes of today's public. Only make transactions when needed. Bitcoin certainly will not be fast if there is no CEX contribution, but again CEX is still CEX with all binding regulations. For this reason, always use the portion you need when trading on the exchange.

BTC, This is the fact that BTC is a P2P asset. The answer to your question as per my own perspective is that actually, crypto needs exchanges, not BTC, Alts do need exchanges and open markets for trading and to survive. The case is not for the BTC as Bitcoiners are not interested in the exchanges but traders do as they need other options as to trade there exchanges play important role.

Definitely yes, I want you to see Exchanges as Banks.
What banks are to fiat currency is what exchanges are to Bitcoin. The usage of Fiat currency wouldn't have been easy, friendly and adoptable if the banks we are not available.
With the availability of the banks, Fiat currency has a very nice domination of every economy. That is the same with exchanges. Exchanges are the banks of Bitcoin and altcoins. As long as crypto industry lasts, exchanges will exist.

Thanks to exchanges, bitcoin has turned from a tool for enthusiasts into a super liquid asset for millions of people and has become an attractive financial instrument both from the point of view of technology and from the point of view of trading and long-term investment.

Of cause, if the exchange were not important whether it is Centralised or Decentralised they wouldn't have survived the system. It has become much easier for bitcoin traders to interact among themselves through these exchanges. Even though the original idea for Bitcoins was peer-to-peer, without the exchanges that I can say now saves as escrows, how easy would transactions be? 

I understand your sentiment buddy, but Bitcoin too needs exchange even though I agree that P2P was the original idea for Satoshi. I bet your first purchase of Bitcoin was through an exchange and so are most of us. The importance of exchanges in the cryptocurrency ecosystem now can no longer be underestimated. I bet if I tell you I want to buy Bitcoin from you and send you my wallet to send the BTC before I send you your cash you wouldn't agree, but the exchange has made that easy.

The exchange is very important for Cryptocurrency/Bitcoin and all other Coins, imagine if the exchange didn't exist, surely everyone wouldn't want to sell Bitcoin using individuals, what's more, there are scams and have to use third parties, of course it will take quite a while , and again there is no price retrieval in deciding the price per coin, stocks only need an exchange to find out how much their shares are worth on world exchanges, gold also has its exchanges in their respective fields, so basically whatever it is, it will certainly require an exchange in terms of selling or buy something we want to invest..

Yes, the existence of exchanges affects the interest of many people in Bitcoin.  Bitcoin without exchange will not exist until now, people are interested in Bitcoin because it can be traded in addition to being an investment asset or making it easier for transactions

Regarding Bitcoin and Altcoin still not legal currency transaction, exchange is most important thing how to cash out Bitcoin or cryptocurrency fund to be cash or fiat money, I think not only with country have legalize with Bitcoin need an exchange but also all trader have to cash out their money trough exchange market and not enough to spent as payment currency only. But several countries have changed with regulation about exchange market, beside still not legal as payment currency in my country, need to pay taxes every transaction made or trade in exchange market.

Irony with my country happening one side Bitcoin is not legal transaction but government have been adopt with taxes have to pay each time I make trade.

When Bitcoin was discovered there weren't any exchanges, so it's pretty sure Bitcoin will exist even if there is no exchange. Now you may ask how can survive without exchange, it's true it will be hard but can survive. The price will be too low. We can't ignore exchanges that help Bitcoin to become more popular. It's free marketing for Bitcoin where all the exchange accepts Bitcoin as a mother coin for trading. In case if all the exchange stop accepting Bitcoin there will be huge dump. People only can use p2p exchange then.

Exchanges have an important role in the development of Bitcoin popularity. With exchanges, people are easy in buying or selling Bitcoin. I can't imagine if we have no exchanges, people may get difficulty in trading Bitcoin. Bitcoin is also difficult to be popular since people may not trust Bitcoin if it is not traded easily. Some people may also think Bitcoin will disappear soon once the demand is getting less and less.

Both CEX and DEX have the same function. Investors, traders, and miners need both CEX and DEX to trade Bitcoin. Some of them may prefer to use CEX, while others may choose DEX. Having 2 options should be better than having 1 type of exchange only.

^Exchanges have a big impact on the BTC whether it is a decentralized or centralized exchange. When people do trading or buy on an exchange for altcoins, they bought first BTC. So exchnage is very important when purchasing crypto, they are a third party of the buyer and the seller which makes the transaction safe. It means the exchange acted as an escrow for transactions to anyone who want to buy and sell. I think that is why crypto exchnage is very important to us, you cannot directly make a transaction with anyone, it could be hacked and scams are everywhere if without this exchange.

Exchanges are for trading and i can't imagine how the altcoin will be valued with the exchanges. If we do not have any exchange, we cannot buy sell altcoins, making them worthless. The crypto currencies eco system resolves around exchanges and hence it is difficult to eliminate this major part.

Secondly, there are other features lke P2P, buying selling crypo and staking of coins at the exchanges, making them a must for crypto investors. I don't think anyone would be holding bitcoin and do not have an account on any crypto exchange. Some people even do the mistake of using exchange for storing their long terms assets on the centralized exchange.

Not only in your country but I think the exchange is very necessary for all places. Assuming bitcoin becomes legal and becomes a method of payment but fiat remains the main currency of the world and the need to use fiat doesn't go away, then an exchange is always necessary. Nowadays there are so many unusable bitcoin cases where we are forced to use fiat.

The CEX exchange is also important in making it easier for newbies to access the market, CEX is much simpler to use than DEX so it is not too difficult for beginners.

The launching of centralized exchanges speeds up Bitcoin adoption, IMO.  These services make cryptocurrency nearer or more accessible to people.  They are among the first ones that promotes and advertise cryptocurrency since they made cryptocurrency a business, they have to market their service and it somehow promulgates information about the cryptocurrency industry.

This might be debatable but I believe the existence of centralized services contributes more in the popularity of Bitcoin.

Hmmm. Interesting regulation. Is this regulation is only for physical stores? Or you are not allowed to use bitcoin buying any kind of digital goods on your country too? Is there any way your government knows that people or you are using bitcoin particularly an app only for indonesian people? To track whether you use it buying anything else other than trading it? Or it is illegal ^{(buying things with bitcoin)} just if they caught you on hand?

I think it's not always as what is happening in the other countries because it looks like that not every replies are having the same experience with your country since they were on a different country than yours. So, it depends on what country you are in or what regulation your country has with Bitcoin/exchanges unlike the other countries they can easily trade or use Bitcoin the way they want it too without using a third party.

And with the rampant scamming of the cryptocurrency plus a vast report of incident of scamming and losing their investment to a specific coin it's just normal that your government would release a regulation to protect their citizens from being scammed.

Yes, one of the thing that has really facilitates the growth of bitcoin is that individuals can be able to withdraw money from their wallets by converting dear bitcoin to USDT  and withdraw directly to your bank account so it’s just amazing with that alone so many people usually keep money on using USDT.
And we must tell our self the truth about bitcoin so many patients usually stock money in USDT it’s maybe money laundry it’s maybe any kind of money that he or she doesn’t want someone to know like the government knew about it, so the person decided to keep it in any of the bitcoin wallets so bitcoin has really affected us a lot in a positive way.

I may be an example of what I mean because I don’t usually keep money in my bank account. I usually draw every week what I want to use for the week for groceries for gas and other bills.
I know bitcoin is just like a choice for now, but a few years to come so many people that is running away from bitcoin we run no more That is the truth. You got a new way from it

I'd probably consider CEXs for cases where a user is pretty new at it? They're pretty friendly imo in terms of letting users know how to transfer/convert their crypto to other currencies as well as transfer. It basically made stuff easier for your average joe. DEXs can also function the same albeit a bit more towards people with more knowhows (since they'd be a lot more confident compared to someone new). In most cases as well if someone has found a pretty comfortable service to use, they'd often stick with it and CEXs do this more often imo than DEXs especially on new users.

It would be shortsighted to not recognize that exchanges have accelerated the rate at which bitcoin was adopted and they have increased its popularity as an asset to hold and to trade all over the world.

But we cannot deny that centralized exchanges have also brought their fair share of issues, one of the most obvious ones is that now many people prefer to keep their coins at exchanges so they can trade and invest as soon as there is a big news, but this compromises significantly their privacy and the true ownership of their coins, two aspects which are incredibly important and which are disregarded by a great deal of traders now. 

In my opinion, Before we start thinking that exchanges are not that important, keep one thing in mind: people want to convert their fiat money into bitcoins quickly and safely. And this is where the role of exchange comes into play.

The exchange ensures a low-risk environment for investors looking to grow their bitcoins by taking advantage of arbitrage opportunities, or by speculating on bitcoin prices. They also allow users to sell their bitcoins securely, without worrying about its security, daily and monthly maximum limits, identity verification procedures, and many other restrictions associated with transactions with cryptocurrencies.

Not so important for BTC TBH. But for other crypto as Altcoins, i think exchanges have done a good job. As for sending a different network tokens to exchange for some other blockchain, would be kind of hard without exchanges.
But BTC is a single chain operator. If you are not in BTC blockchain network, do you really own BTC? That's the question for some other time.
But to value the exchanges, it has helped a lot to build a combined network with different assets.
So it has it's benefits.

it's true, most people put their assets on the exchange, they see the exchange as a place to keep their assets so they can quickly use it whenever there is a signal for see them make a profit. here, we often advise each other not to put too much money on the exchange but I have seen many people put millions of dollars into it to trade futures and they even hang orders overnight, weekly. today's investors no longer care about privacy, what they care about is profit, and how to make as much money as possible

Yes, many people learn about Bitcoin through cryptocurrency exchanges because it is easier to trade in the exchanges and they are not concerned with their privacy; however, as you learn more about Bitcoin, you begin to understand the exact meaning of privacy, and you will realize what you have done wrong.
Buying Bitcoin in a crypto exchange is a good idea, but keeping your Bitcoin in an exchange that has full force and power to control your Bitcoin is a bad idea; you can buy in the exchange and send it to your personal wallets where you have full control over your Bitcoin.

I also believe that the existence of cryptocurrency contributes to Bitcoin's popularity.

Well in initial days bitcoin used to be either mined and traded from p2p way out and it still worked. Rather it worked perfectly without any hindrance and there was not much buzz about it but it was working anyways. However , if they were not there then that would have been opposite to what we see bitcoin at.

What I mean is, bitcoin would have been traded at limited rates, the volume could have been lesser and its popularity would have been far more simpler than today.

For me previous days were good, it was more about trading anonymously p2p and borderless than the price today.

That's important for bitcoin or any other asset to have a platform for trading and these platforms are called exchanges in the case of bitcoin, generally using exchanges you can find the exact price of bitcoin and other similar cryptocurrencies, if we had no exchanges at all none could understand how much he should pay for each bitcoin, As far as I know, this happened years ago at begging years of bitcoin and the only exchanges to sell and buy bitcoin was shut down so people could do any bitcoin deal at all.

Exchanges are indeed important factors of popularity and accessibility to bitcoin.
They are needed because of the liquidity as well as the various altcoins and BTC pairs it provides.
P2P exchanges are good but at the same time it involves various risks and less options of payment.
Exchanges provide a variety of options and utilities such as staking, lending etc.. on altcoins.

About privacy it is the decision of each user. about centralized exchanges of course some of them require KYC completion to find out who their customers are, because this is also to tackle criminal acts such as money laundering and other things. If you want to use an exchange that does not include KYC, you can use a DEX exchange because it is a decentralized exchange that is directly linked to your wallet. Exchanges like Binance require KYC to withdraw a certain amount of assets, but security is guaranteed. But remember once again, not suitable for those who are very concerned about privacy more than anything else..

In my opinion, for now the exchange is very important in the development of bitcoin, the reason is because bitcoin has not become a means of payment, if done p2p, it is too dangerous at this time, fraud will always occur in every transaction. even though p2p is the same as an exchange

People knowing they can securely exchange their bitcoin in a centralized and decentralized give them a hope of a quick ready liquid market which builds confidence to hold and pass the good news to family and friends. I started my bitcoin journey in 2017 when I got tired of ponzi schemes. I took my laptop and taught myself how bitcoin works. I only learnt to buy and sell bitcoin via P2P and buyers were more than sellers. I started using CEX in later 2017.

I really don't think that Bitcoin or any other crypto asset is in question here but "How important are exchanges?" Of cause, if it is not on the BTC network, it is really not Bitcoin, like all those wrapped BTCs however, how have the exchanges assisted in the general crypto space, has crypto exchange assisted in easing the exchange i.e Buy and Selling of our crypto assets or it wouldn't have mattered if there were no exchanges it still would have been easy to trade Bitcoin and other cryptocurrencies. I still think the exchange is important in that sense.

The more exchanges there, the more people will engage in investing in bitcoins because when they see they have their own local exchanges in their country, it will settle their hearts and they will gonna try to have some bitcoins to hold or trade in their local exchanges. I think after people are used to using exchanges, they will gonna find another way to trade if ever the government banned it. This time, there will be other options when trading bitcoins and it will be more decentralized and hideous from the government.

Bitcoin can exist and survive without exchanges, no question about it. But I don't think the price of Bitcoin and its adoption will be at this current pace if not for the exchanges. These exchanges further advertised around the world the presence of a decentralized currency that is non-inflationary. Bitcoin and its blockchain is a revolutionary technology but its huge trading volume further convinced more people, companies, and governments that it's not just the technology they could copy but it proves that Bitcoin has value. The existence of local exchanges helped Bitcoin to become more accessible to many parts of the world.

I'm not saying that Bitcoin should be thankful for these exchanges because these exchanges should be the ones thankful for the creation of Bitcoin, as it provides them with opportunities.   

Agree. A lot of times, I saw people put CEX on the absolute shit list cause of the KYC requirement. But in the reality, unless you living off-grid, most of the time people give away their KYC like it was a normal thing without batting an eye. KYC help exchange to reduce bots and farming accounts for whatever purpose they want to do. You definitely don't want to use an exchange full of bots, CEX or not. Cause it'll be full of pump&dump, fake trading accounts. Not even talking about heavy stuff like money laundering, trying to scam in the p2p with exchange wallets,... Anyway, don't want KYC? Go to DEX exchange.

Someone has said on the first page of this thread. I feel at ease when using the p2p trade on the CEX exchanges compared to the p2p in the old days. The ease and security of CEX exchanges are well worth the downside of giving away your KYC. As long it was a trusted CEX exchange like Binance, your KYC data is encrypted.

Any kind of buying stuff using Bitcoin/cryptocurrency is forbidden, because the regulations say the legal currency in Indonesia is only Rupiah. So yes, you can't buy stuff even if they are digital and pay with bitcoin, or you will be punished for it. Maybe this news will help you understand the complicated regulations in my country: Indonesia to Tighten Crypto Regulation With Stricter Rules for Exchanges (https://news.bitcoin.com/indonesia-to-tighten-crypto-regulation-with-stricter-rules-for-exchanges/).

So far no cases have been heard of people being arrested for buying goods using bitcoin. It seems like if we do it secretly then we'll be fine, but it might be easier to get into trouble if we do it online.

No doubt exchanges are the biggest factors that make Bitcoin volume is really high because it's easier and safer that doing peer to peer trading. If exchanges isn't exist, I think Bitcoin price and the volume would significantly decreased since not many people are know Bitcoin and they're not really comfortable to use a new stuff. Personally I never do any peer to peer transaction and only trade Bitcoin in the exchange.

The existence of exchanges helps spread bitcoin among people because they can trade bitcoins with others. And if people can benefit from the exchange, they will invite others to try it too. And from those people, there will be many who spread information about the existence of the exchange, which will trigger more people's curiosity to try it. And that's why the popularity of bitcoin can increase now so that in the future, with a lot of information about bitcoin, it will give more popularity of bitcoin.

Yes crypto could exist but would it still be the same without exchange?
Do you think other's would still use crypto without the access of easily changing their assets into Fiat?
For me exchange played a huge role in crypto adaptation it played a huge part why other people came into crypto.

As long as the demand for fiat money remains and bitcoin is not the world currency, the need for exchange will never go away. Having said that, exchanges play an important role in the market, it is a safe gateway for a newbie to the crypto world. How do we get bitcoins without exchange? Although we always say that a centralized exchange is no different from a centralized bank but I believe we all have at least 1 account on the exchange because we still use fiat as a unit main currency.

Definitely! Exchanges (even local exchanges) provide a platform for people to convert easily one's BTC to their desired currency. In addition, the exchange would provide the utmost convenience to the users who are planning to enter this space. I remember, there are dozens of users who are curious about BTC, but they find it too complicated on how one it would convert it to cash (using the p2p of Binance).

Personally, the presence of our local exchange in the Philippines provided the convenience of converting our BTCs to our local currency. Not only does it provide accessibility 24/7, but it also has the option of paying your bills immediately.

Quite unique regulation, i never heard something like this, i wonder if other countries can do something like this instead of banning bitcoin/crypto which they called as "tool for money laundering".
For this kind of regulation since no bitcoin or money will be used to buy/sell things ^{(assuming since its the aim of the regulation)} money laundering crypto will not happened as it is only considered as an investment tool on regulated exchanges in the country.

Their are huge crypto currency exchanges,but not all are safe to trade the crypto currency.In some exchange,the deal amount is very huge.Some exchange will not allow the traders to withdraw with few dollars.In order to get more attention to the exchanges,some exchanges uses bot.It’s essential to verify kyc of the exchange Launchpad.Without verifying the platform don’t use your money to inverse on certain exchange.

Before the development of cryptocurrency exchanges, consumers could only purchase cryptocurrency by mining or by setting up transactions in different online and offline forums.

For me, exchange is important for bitcoin because it is not necessary for bitcoin users of decentralized exchanges to transfer their funds to a third party. As a result, bitcoin users may be sure to be more secure from hacking, fraud, or theft.

If you want my personal opinion about exchanges, they are so important for a crypto user to at least use an exchanger once up on an time, for example you have an amount of bitcoin then you decided to invest in some project you sill need to exchange  that bitcoin you have to Ethereum for example, you cannot do that without an exchange, there are also many types of exchanges as Dex and Cex. Personally i use binance to do much exchanges and also to deposit on casinos or withdraw to cash. They are very important i would say

Cryptocurrency Exchange is very important market and is very easy to sell and buy, which has been empower many people as a part time and full time jobs empowerment as trader, in other words Bitcoin can also work without any exchange while can be used as a online digital payment.

Crypto exchange market is most necesary by all trader and investor when purchasing Bitcoin or altcoin, almost 90% we need exchange market for selling Bitcoin and Altcoin. Without have exchange market seems difficult to cashout money or investing in bitcoin trough not jave option how to buy bitcoin or altcoin. Exchange market have early launching before several altcoin available to buy on pre sale or listed at market, actually without have exchange market we don't know about many altcoin kinds and earn profit trough trading.

From my perspective it depends, because before the awareness of exchanges to the grassroots people from different perspective or countries have being making use of Bitcoin through peer to peer, but the introduction of exchange is what makes it easier to everyone, i could remember in 2017 i was still exchanging my Bitcoin with p2p. So Bitcoin can stay or stand without exchange.

Not unique actually. There are already some countries that have the same regulations or maybe earlier than Indonesia. As far as I know, countries like Canada and Australia use the same regulations for cryptocurrencies; they are not allowed Bitcoin to be payment tools but allowed to be traded as a commodity asset. You can read the full list on Countries Where Bitcoin Is Banned or Legal In 2022 (https://cryptonews.com/guides/countries-in-which-bitcoin-is-banned-or-legal.htm).

Won't you like it, if everyone doesn't want to sell? It only means that bitcoin will grow continuously but even if without exchanges there are still p2p trades in the forum or at our locals so there will always be people that will sell.

BTC is a currency so they can also be used immediately without needing to sell them but the support for them is limited so people need to use exchanges first to sell or exchange their coin to a more supported coin. I think back in time, we have no exchanges but it's still possible for them to identify if what is the value of BTC. Same thing could happen to stocks and other assets if there are no exchanges about them.

Trading as a job is a bit longshot, agreed that it can make you money, but keeping a close eye on it turning from a hobby to a obsession would save that person from a lot of troubles. The important thing is that we need some working exchanges that accept our local currency and allows us to trade freely.

Without exchanges there would be problems, which the first generation of bitcoin owners faced before the first bitcoin exchange appeared. This is before I started so I cant comment much. Currently we have so many exchanges that seeing the crypto space without one seems like a odd one.

Trading can be done on OTC too, but that carries it own risks and cons. It is better to be the average joe and trade on an exchange.

To know the importance of these exchanges we need to go back in time when exchanges were not in existence, during this era we only relied upon peer to peer ways of exchanging crypto and prices had high markups because fiat was regarded as high risk because of possibilities of charge backs. But now that we have exchanges, price to buy crypto as small markups and now we can get our hands on crypto with ease using  different fiat assets.

Exchanges make our life easier to buy and trade. Perhaps, they exist for a good reason but for now, some exchanges exist to scam us. I would say they are very important in the very first place but too unfortunate that they are also the reason why some traders are even afraid to take risks knowing that many of these platforms have been a reason why many had to lose their money, they'll somehow ruining the trust of many individuals. But if I were going to compare it to P2P, the use of exchanges is even better and safe. We only just need to use check their reputation.

to this day exchanges have become a meeting place between bitcoin buyers and sellers, there are 2 types of exchanges in this world, namely CEX and DEX - the existence of both is important in sustaining the circulation of bitcoin in the market.
the volume of bitcoin circulation on CEX reaches more than $ 10 billion, which means the majority of bitcoin traders or sellers use exchanges as a place to transact.

One of the setbacks of exchanges is the fact that exchange has aided more centralization of the cryptocurrency industry because most of the exchanges are KYC compliant and have taken traders' documents and control of their assets.

Exchanges are just like banks, they are tools in the hand of the government to monitor and tax crypto users.

It can't be helped, most non techy bitcoin users who doesn't know how to use dex will just use centralized exchange for them to trade and or use a custodial wallet that has built-in exchange to convert bitcoin to fiat. Besides these kind of people mostly categorize dex as not safe because it it's not regulated by authorities, that's how others are thinking.

Yes, the importance of centralized exchange can not be undermined, and exchange like the binance of other centralized ones has helped newbies to be able to trade and exchange from one coin to the other without the need to know all the technicalities involved.

But the point I was trying to make is that the exchange has made centralization of the cryptocurrency industry no doubt about that since to carry out such activities one needs to give out personal details for KYC verifications.

It is in a certain way a part of the equation that helps to carry out transactions, but that does not imply that they are fundamental in organic adoption, which is the one that really matters.

Sometimes it is sad to think that many come to own bitcoin because they arrive with the guidance of a link or a commercial offer, that led them to have bitcoin.

So it is possible that in the future the exchanges (they currently have it) will fight commercially speaking for users.

In other words, just as it happens with traditional banking, we will have a niche of companies that will manage the traffic of users who wish to exchange bitcoin.

A fact today, there are millions of people who still do not have access to physical money in easy ways, in fact there are organizations that struggle to have access to an ATM in many poor countries of the world.

It is easy to think that or believe better to say, that we all have access to technology to receive FiAT money, but such a thing is not so and in fact bitcoin should have enough advantage in that relative because the hardware infrastructure in bitcoin is very simple to be able to make or receive a transaction.

We need exchanges in the intermediate phase were Bitcoin is not yet the universal way of paying.

When your salary is given to you in Bitcoin, and you pay your bills in Bitcoin, then there's no reason to have exchanges.

In reality, we will always have exchanges, just like we will always have cash even though you can pay electronically today.

Of course, bitcoin can stay and stand without an exchange because bitcoin was created before all those exchanges and it must be said that exchanges are in dire need of bitcoin today, if the exchange is not listed bitcoin, no one will use them.

But exchange is necessary for the market, exchange also makes bitcoin and cryptocurrencies more popular. Nowadays for a newbie, buying bitcoins on exchanges is much safer and easier than the p2p method. In addition, fiat is still the main currency of the world today so there is still a need for an exchange platform that makes it easy for us to exchange from bitcoin to fiat.

I already said it in another post but the topic got deleted: cryptocurrency exchanges will continue to exist as regulated entities because they are the tool that governments use to control the flow of bitcoin and alternative cryptocurrency assets. When Bitcoin becomes a widely-accepted means of payment, the need for financial control, read censorship, is going to increase even more. There will be two types of Bitcoin: a "clean" permissioned asset and a "tainted" decentralized one. But he thing is that given that bitcoin is as fungible as any other "hard" asset, any division will be highly subjective and based only on the source from which particular chunk of bitcoin has come. If it came from a regulated cryptocurrency exchange, it will be considered good even if it has had connections with criminal activity. However, if it comes from individuals who participate in anonymous peer-to-peer exchanges, it will automatically be deemed criminal money, even if there were no such connections. So, we can assume that in the future, exchanges will play a major role as government's means of control.

I accept all the point you outline on exchange and it role in bitcoin adoption and government attempt to regulate and control digital asset such as Bitcoin, the only point you failed to mention is that.
Government will eventually allow the use of Bitcoin exchange most especially centralized exchange will be use by government to monitor members Bitcoin asset and how tax  the income.

I just like i have said it before, Bitcoin may be impossible to be regulated because of Bitcoin decentralization but then other Bitcoin services such as exchange can easily be regulated

It is possible that we might reach those situations in the future but not anytime soon. As long as it is decentralized and i am able to spend my coins without revealing my identity and the source i will be more than happy to use them as my currency and the moment it stops being a pseudo privacy asset there is no point in using them. Heard some online wallets are having issues with the source of funds, if they are from gambling sites or mixers and i wish those stays on that limits and nothing extreme.

I support the idea that the existence of exchanges is among the factor that makes Bitcoin popular, and accessible with ease.  With exchanges, people who are too lazy or not knowledgeable enough to set up and secure a wallet, are able to do that in a single step.  Besides having an exchange attracts speculators, investors, and traders to get into the Bitcoin market.  Without exchanges, I doubt that people involved in trading will be as many as today.

So basically, exchanges are very important to establish a marketplace where people can easily buy and sell different cryptocurrencies and currencies.  Without a marketplace, I doubt people will take notice of Bitcoin.

The market has impacted the growing bitcoin economy due to the ever-increasing number of traders. I certainly agree on the same assumption that exchanges have contributed to why today bitcoin is growing and becoming more and more popular among the public. Without the swap I would probably have imagined something different, but that's a fairy tale.

So popularity and accessibility strongly supported by the existence of exchanges whether it is centralized or decentralized. I support that argument.

I don’t agree, bitcoin perfectly fulfills the functions of a means of payment, and a lot of businesses are starting to accept cryptocurrencies as payment for their services. As for exchanges, in addition to the advantages described earlier, I can add that exchanges allow new users to simply buy bitcoin and understand what financial situation it is in.

hah, I think you can get your information from the recent activities as FTX and finance this fud proved how important exchanges are so now you can calculate these things haha market is trapped again there. Bro remember exchanges are important and hence it is proved time to time.

Exchange in our opinion is very important in the journey of crypto and bitcoin, although there are other ways to do mining, but for mining issues I think it is quite limited to reach people, considering mining requires tools to operate. While the simplest is to use an exchange to buy/sell crypto and bitcoin. In addition, we also need to identify exchanges that have credibility, are trusted and have a good level of security.

Therefore, we think exchanges are very important for the cryptocurrency journey, although it should be selective in choosing. So far I don't really understand if there are other ways to get crypto or bitcoin, other than using mining methods and making purchases through exchanges, but they are not included in the category of getting for free, such as Faucets, Cloud Mining and others.

The FTX case has proven the importance of exchange to Bitcoin price and future, we saw how the price of Bitcoin dropped significantly after the issue was reported, and even though Bitcoin price will eventually recover in the coming days but the impact of the FTX incident was well felt in the entire cryptocurrency market since the last few hours and not only Bitcoin but all other coins also felt the bad impact and if we must come to a conclusion at this point it is, exchange plays an integral part in cryptocurrency transactions and acceptability.

In some way they might but, I'll try not to view it as that. They definitely play a of defining the price and value of coins. That's actually an important aspect of a currency. Its the reasons we've got the foreign exchange markets for flats too.

In the eyes of rejection and a dream of the global bitcoin adoption as a secondary currency (let's not be too ambitious), exchanges makes it easy for one to spend his or her bitcoins by converting it to its fiat equivalent and one can work with what is accepted at there locality.

Exchanges are that important and they allow other forms of trading too. They are helping for sure.

I think communication is still necessary now, and communication has become more and more popular over time. For example, when I first learned about entering the market, I learned how to operate and understand the market from the exchange, which is very friendly to newcomers.

As long as bitcoins are not generally obtained by providing goods and services, we would need exchanges to switch fiat received for goods and services for a better money, Bitcoin.

But even at places in which that happens, like El Salvador, there would still be people that prefer other types of money, like USD in that case. So exchanges will probably always will be needed.

Perhaps it was a tool connected to crypto. Because in the first place, we can never see exchanges if there is no Bitcoin or crypto. But because it fits the need of the people, exchanges have been playing an important role in a growing cryptocurrency just like fiat exchanges. They both tide up strong and we ca n really appreciate the importance of this because we are using this especially if you are a trader.

What just went wrong is that many scam exchanges popped up and many people lost their money in the hands of scammers. That is why some people will think it is better to no exchanges have been created.

I agree with you, that it is true that it would be risky to use bitcoin as a means of giving goods, because bitcoin is only for exchange.

That's just a few people to avoid shipping costs, because there are many options in sending to exchanges, in contrast to a few years ago the exchanges that were served in the crypto world were only a few, in contrast to the current year, there are so many even have the option to exchange it instead only bitcoin and even other crypto you can use to exchange it to fiat currency..

Of course, Bitcoins can exist without exchanges but there will always be the need of transacting coins and exchanges are a crucial part of that process. The thing is, that we should not rely upon centralized exchanges to do the bidding. We should only support decentralized exchanges because it takes out the equation of having the risk of your coins being stuck with the centralized exchange and therefore be possible of being captive by regulatory imposition.

We should avoid having coins in centralized exchanges and keep supporting the development of decentralized options to transact.

The collapse of large projects affects the entire crypto market, it has always been like this, but I don’t agree with you that in the near future the price of bitcoin will return to its previous values, it is clear that the bankruptcy of the FTX had a significant impact on the market, many lost their money, such negativity does not pass quickly. Perhaps now it is important that the weak leave this market and no longer be a weak link in the future.

He did not say that using Bitcoin as payment for services and daily needs would be risky. He is point out that we cannot use Bitcoin on a daily basis to buy food and avail services because Bitcoin and other cryptos are still not widely accepted as a mode of payment across the globe. This is why exchangers are important. Indeed we can use bitcoin as a mode of payment but only to businesses or individuals who are still into this industry, which serves as a limitation. Let us accept the fact that usage of Bitcoin and other cryptos as a mode of payment at the present, is still handicapped. Things might change in the future once massive adaptation occur but for now, exchangers would serve as a bridge between cryptocurrencies and fiat to one another and also, crypto to crypto relationship (swapping of one token to another token).

As Bitcoin is a decentralized currency and has no options of making anyone of using only it there will always be some other kinds of currencies (until the idea of currency will become outdated in general). So right you are, if we have any different types of payments we will certainly need an exchange to transfer from one into another, and it will last invariably within the foreseeable future. ;D

Well, you are not far from the truth also but where I will have different views and opinion on the recovery state of bitcoin is the fact that there has been a track record of how Bitcoin always recover from the impact of any big event such as when china ban cryptocurrency the price of most coins dropped but with time their all recovered back. It was after then that Bitcoin reached an all-time high of 69k so even the FTX hack will not hold the price down for long.

It will probably end up being a bit similar to how gold was treated in the century in which gold standard was used worldwide (around 1870s-1970s).

Maybe the Bitcoin standard will start in the 2020s.

exchange is the reason for the existence of currencies, digital money, and crypto/bitcoins.

because if there is no trade-off, what is it all for?
that certainly all lead to the needs of each person.

try to think seriously and focus, what is all that for? surely the end will lead to human needs on this earth.

I think the exchange is a very important existence, which is convenient for traders to invest and understand the currency, especially for newcomers. Newcomers who have just entered the market can acquire a lot of knowledge in the exchange.

It is the largest trading volume on the exchange, where you can easily buy and convert the currency you want, and there is a guarantee that the simplicity and convenience will not be unpopular, which promotes transactions between people.

Most of my transactions are on exchanges. I feel that without an exchange, my transactions will become very troublesome. For our crypto users, the experience of the exchange is very good and convenient to trade.

Despite the collapse of exchanges and the damage done to the market and investors, we will always need exchanges. Once we invest, we should accept all risks, if we can't accept the risk, stay away from it, don't complain or blame anyone. Cryptocurrency is a market full of scams and if we are not greedy no one can fool us. I mean take responsibility for your decisions, life is inherently fake. When I invest in cryptocurrencies, I prepare myself for any trouble.

An exchange is a financial instrument that is the bank of cryptocurrencies. It provides a low-risk environment for investors and traders. Exchanges make it easy to buy and sell cryptocurrencies, their existence provides better popularity, and it also helps to Bitcoin’s popularity and popularity.

What you said is true. There is no investment without risk. Especially in crypto, the risk is higher. I cannot imagine a crypto without exchanges. At least for now. I think of it as raising a baby. Stock markets are the most important tools to raise this baby. I don't know what will happen after a while, but right now I can't think of the stock market and crypto separately. Everyone should stand behind their decisions and be aware that they are taking risks.

Yes, I would support the argument that the existence of exchanges are among the factors facilitating the popularity and accessibility that people have to bitcoins. Exchanges make it possible for people to buy and sell bitcoins easily, which helps to increase the popularity of the currency. Additionally, exchanges provide people with a way to use their bitcoins to purchase goods and services, which makes the currency more accessible.

Not everyone has access directly to exchange or some had regulation , while in some countries they are being prevented from using local wallets to withdraw their coins so exchange will takes place .
I think there will be more of this problem in the future but exchange must exist to help others enters crypto.
and the offering of exchange to have other use to profit really helps us in many ways.
like me I use them for other profiting option and succeeding in some ways.
yeah that's it .

I don't trust any unknown exchanges. Don't trust exchanges 100%. There are many examples of exchanges running away. Don't put too much of your money on exchanges either. Now many people have confused the meaning of the exchange and have begun to regard it as their own wallet, which is not safe.

Hardly. Main idea of fiat currencies is their inflationary nature, so any mistakes in financial governing can be solved at the expense of everyone by currency depreciation. So today's money should always be more expensive than tomorrow's money. Modern economics is also based on this system: you can get more money tomorrow and take expensive money on credit today and pay tomorrow with cheaper money. If they wanted to return golden standard they'd already done that, that's why they'll hardly implement Bitcoin standard.

It is now that people values exchange that will make people think that without exchanging bitcoin cannot be successful, let me say earlier this year we have a list of new exchanges, but in 2009 when bitcoin was introduced are there in 2012 my people started adopting Bitcoin no one nose more exchange like this but we we are using pair to pair without using interneting exchange it was moving successful so, so I believe not without a change Bitcoin can continue to stay

Lol, exchanges aren't the bank of cryptocurrency, they are the marketplace of cryptocurrency.  That is the reason why many users of exchanges suffers a lot because they think that exchanges are like bank.  Exchanges are for trading not for keeping our funds.


Exchanges hasten the adoption of cryptocurrency, it also boost the exposure and market presence of any cryptocurrency.  Yes during the earlier year, Bitcoin even without exchanges are being adopted by the process is very slow until crypto exchange is established and made different cryptocurrency accessible to people in just one click.

We already have two countries which have Bitcoin as legal tender.

That means that people in those countries can simply live in a Bitcoin standard today, by receiving bitcoin for their goods and services and paying with bitcoin for goods and services.

Yes it is so, but there's one additional aspect with this situation which is mentioned rarely: as Bitcoin is a legal tender and if fact a national currency in some countries then it became a foreign currency (and not a private currency or money surrogate) in jurisdiction of many other countries. It is important because formally there are much more options for Bitcoin to be used worldwide basing on that, for exchanges also. I'm sure this aspect will play its role in the future.

It's never mentioned because it's not true. Bitcoin is not considered currency. There's a difference between legal tender and currency.

Crypto exchanges are ideal targets for hackers because they can steal huge amounts of cryptocurrency from them, and the odds of their success are higher than we think. Many crypto exchanges have continuously strengthened their protections and added insurance to their platforms.
Hardware wallets are a smart way to securely control your cryptocurrency.

The existence of an exchange is very important, it is an integral part of the crypto industry. Exchanges make it easier and safer to buy and sell cryptocurrencies, promote the popularity and development of Bitcoin, and let more people know about cryptocurrencies. Without exchanges, Bitcoin’s transaction rate might be a fraction of what it is today. So exchanges are crucial to the encrypted economy.

A centralized exchange is a global financial market without centralized institutions and government supervision. In addition, the digital currency market itself is also a high-risk financial activity. Just as Bitcoin developed because of the consensus, algorithmic mechanism based on mathematics. Therefore, the existence of an exchange has both advantages and great risks. For example, FTT time gives us a lot of safety tips. The necessity of the exchange cannot be ignored. So be careful, I currently use decentralized exchanges much more frequently than centralized exchanges.

Yes, there is a difference, and not only currency can be a legal tender, but in this case Bitcoin is used in El Salvador as a currency if we look at most definitions of this word. Because generally currency is money used at some territory what is authorized by law at this territory. So Bitcoin is a currency of El Salvador.

The existence of exchange is to facilitate the transaction process fast, though it is not fast as p2p. Also some of the exchange platforms pay higher than p2p and that is one of the major reason people are using exchange platforms for their transactions. Another reason why people keep their coins in exchange platforms is because of the transaction fees. That instead of keeping the coins in a wallet and send to someone whenever you want to sell it and the charging fee in the transaction process whenever you send makes people to store their coins in the exchange platforms because some exchange platforms don't charge fees.

Here's the definition of legal tender from the Bank of England:


Whereas currency is money:


So you can pay with any form of money, say bitcoin, anywhere in the world in which the other party accepts it, but only in El Salvador and Central African Republic bitcoin has to be accepted for any debt.

actually it is not right to invest in exchange instead use it as medium to buy your coin and put it to your own wallet,
never let your funds stay even overnight in centralized exchange mate , this is not safe for you and your funds.
I never let my funds in exchange even overnight because of many cases of hacking that happened in the past.

As of right now there is no question that bitcoin exchanges are a vital and integral part of bitcoin and it's current ecosystem. They are needed without question.  While I agree with you that bitcoin can technically exist without exchanges, the adoption process would without question go much slower than the pace it's currently on track for if this were to happen.  It's to many what I guess you could potentially call a necessary evil at this moment.

Worrying about commissions and losing everything... Yes, it is how things are, but FTX story of the last days hints again that holding assets in exchanges accounts is a really bad idea. It could be good for making deal but main assets better to hold on non custodial cold wallet. We all know that FTX is not the first and definitely not the last example of bankrupt exchange.

if it happens like that then who is at a disadvantage, I think choosing the best exchange and only for a safer transaction process, we store the rest in our personal wallet, so that we have full authority and are responsible for our own assets. even though we will lose transaction fees but if we percentage with the profit we get, I don't think it's a big nominal, the most important thing is the safety of our money

This will probably not be the last case, especially now when it happens very often with different projects and exchanges. Many exchanges are now trying to audit following the binance example, to show users that these exchanges are safe, but these are just attempts to keep these users. In fact, many, realizing all the danger, are trying to withdraw their funds from centralized exchanges.

"Among the factors" was probably the right word for that because we can assume some people tend to adopt/known this space through these platforms. For me, since this is already the present and the future, exchanges has essential part to be in this space but the future as well is to have it regulated.

Lol  ;D That is the first time I am hearing someone say that people keep money on exchanges just so that they can save transaction fees when they send money to someone.
I mean few people I know do use binance because it allows free transfers between binance users but never have I ever heard them keeping all their money on exchanges.
They keep bare minimum to trade and make essential transactions.

Exchanges are still very important regardless of the shits going on right now, Therefore I don't really think that there's gonna be a time when we will totally do away with this exchanges not until when fiat currency is no longer in existence. Too even if we don't need them to exchange our fiat currency but we need them to trade futures/leverage trading and this is why I think they're very important and also play key role in the adoption of Bitcoin and cryptocurrency.

Exchanges always have its importance unlike the awful incidents happening around the cryptospace. Even after decades we'll encounter similar incidents from the exchanges. Similar incidents have been taking place from the beginning days in some form. People find this to be some form of market disturbance and move on.

Some say decentralised exchanges were the right way to keep things away from such issues. This is a never ending game and at some point people gets used to it rather than making discussion over it.

Oh, when we talk about audits of some companies I always remember Bernard Madoff's story: I'm sure that for years of his Ponzi scheme there were multiple audits of his company! It looked really safe. But now we know that it was never safe and if was fraud for tens of years!

Even if an exchange looks really safe remember that you risk your money, your own money trusting a third party when you can just keep money at a personal non custodial wallet. Everyone weighs their own risks, but IMO they should keep in mind that there is nothing safe for 100%.

It is true to never leave money on exchanges centralized at the end of the day, as your money can disappear at any time but there is no denying that exchanges are extremely important. Like it or not, we will never get rid of it completely, without the exchange, the market will never grow. We would be in a lot of trouble without the exchange, I don't know what I would do to survive in the market if I didn't use the exchange because I am a trader.

In awaiting while DEXes will be developed enough to replace CEXes. Even now some trading can be done on DEX and modern DEXes are faster and easier than first ones. I'm sure we'll see some new generations of decentralized decisions for trading in not too distant future. And as for now we just need to consider risks every time our coins is not in our non custodial wallet.

Unfortunately we don't have enough options to discuss on the topic and centralization has been reigning for a long time in the market and with that DEXs were born to try to break this monopoly. However, there was already a project that could provide liquidity and meet everyone's needs and in this case I'm talking about Cryptobridge but unfortunately the project did not go ahead. On the other hand, we need these current exchanges to do trade, stimulate the market and help attract new people to crypto and especially Bitcoin.

You are very currency with tour statement, but also. Can we refer to Bitcoin as the bitcoin economy  because that s treatment got my attention, I can agree with you that Bitcoin play an important role in the economy as an alternative but an integral part of the economy because Bitcoin is not yet widely accepted?
Exchange indeed plays a very important role in the cryptocurrency industry the exchange is the cryptocurrency bank and exchange plays very important role in cryptocurrency adoption.

DEX is developing day by day, it is true that there has been progress recently but inadequacies are still many. Honestly, to provide services like CEX, I would say never DEX can do. I've never traded P2P on any DEX, but I wonder how they can prevent scams if they don't control the users. If you trade on centralized exchange, once scam happens, exchange will lock your account and force you to verify your identity but that can't happen on DEX. I am curious.

DEX is not the same as p2p as the transaction goes through a smart contract of an exchange. So problems could be mainly in case if a corrupted smart contract. Swap exchanges accumulate trading pairs provided by users so tokens for a trader are held by exchange. But I'm sure we'll see some new decisions for even better service. I don't know which, may be they are not invented yet, but we are still in the very beginning.

At the end of the day a DEX is just a bunch of P2P transaction. It's two people transacting directly between them. In one case the transaction is more automated, but it's very similar as there's no central authority in between them.

After the FTX exchange incident, many people are wanting to boycott the exchange but in my opinion it is useless, exchanges are making the market centralized but there is no denying its importance to the market. It can be said that it is an integral part of the market, like it or not, we don't have much choice in this situation.

I also agree with you that the exchange is the bridge for people to connect bitcoin as well as the market, if the exchange disappears the market will be very difficult to develop. Exchanges will continue to grow and as long as we know how to use them properly there should be no problems, use it for trading but never use it as a store of assets.

Absolutely true, each person must bear responsibility for their money on their own. I spoke with several people to understand why it is so important for them to save coins on the exchange, the answers were amazing. Someone really believes that it is safe and in case of theft believes that the exchange will reimburse them for everything, and someone thinks that this is important, otherwise he will not have time to buy or sell coins at the best price if he keeps it in his wallet, very strange decisions.

If we talk about an idea than yes. But if we talk about how can we trust a third party, a stranger in a p2p, than there is a difference: in one case we need to trust a stranger in another — to trust a code of DEX. But in the case of CEX you'll need to trust a third party anyway...


If they understand how risky it is, than it is just a question of which risks are suitable for them. For instance traders always have some assets in their exchange account but there is a difference between having some assets there and understanding risks — and having everything there and being under a delusion that exchange account could be a safe place for that.

Most of these are local exchanges. I mean the exchanges catering to people from certain country. On the contrary, a global exchange like Binance is operating at big level and there is less chance of fraud there.

Let me give you an example of my country India. Here , the most popular exchange is WazirX. But there have been reports that it had also been used for some type of frauds and many times the government has seized its funds. But it is still operating and it is the most common exchange in my country. Now one day if they just run away with the funds and holdings of investors, it will be chaos and people will start blaming crypto. It is thus important not to trust exchanges blindly and keep the coins in hardware wallets.

They better verify if their assumptions are true that the exchange that they use will be responsible for their coins because I know that most of the exchanges don't work like that. The other reason that they said seems legit but again it will still depend on the exchange that they are using if they are insured or not.

It can also depend on the coins that they hold or want to buy. If it was a pump and dump kind of coin, then expect that its movements are fast but if it's a top crypto, then they shouldn't worry because they don't dump in an instant right after they pumped up, so even if they kept their coins in their external wallet they can always catch up.

those times you are in for sizing in Bitcoin I believe that we still have some exchanges who who do Transit bitcoin and saw something platform but the problem is that all the exchanges are not popular as it is right now so knowing Bitcoin in 2017 is a newly something which almost all the exchanges has been introduced and if you functioning

Problems with local exchanges (there were multiple examples with hundreds of millions dollars losses which hardly remember anyone outside the country) rarely attract much attention unlike some like FTX or Mt. Gox. Binance is not guaranteed from bankruptcy as any other top global crypto exchange.

So even if an exchange is big and global it is better not to trust it with all assets you have and maximum hold what you need for everyday trading and not more than you are ready to lose.

That's not the point of this thread though. No one states that you should store your money into crypto exchanges.

If you throw your money into somebody else hands then you have a risk your money to lost or stolen. If we are talking about exchanges then if any amount of money you have in that exchange solely for trading within affordable amount then you should be fine as long as you keep track with the update of your exchanges of choice.

As I said, if you are ready to lose all amount held in an exchange account than everything will be fine: in worst you'll lose what is not catastrophic for you, in other cases you'll have all or nearly all your assets and even have an option of earning more. But to keep in mind that every exchange can be bankrupt in theory is important anyway.

It is absolutely impossible to transact anything without an exchanger because if you have money but no place to store the money and no system to transact the money then you must get help from a third party or something to figure out how to transact it because you have  You can turn dollars into money and turn your money into tokens or dollars from the exchange because it is both the main sender and receiver of your economy.  Politics depends on your exchange, share market on stock market, and stock market depends on your money and your product, so you must have an exchange, it is very expensive and usable.  So this exchanger has no comparison.

I believe you're referring to the centralized exchange with this topic because you just saying exchange could mean both decentralized or centralized exchange. If you were not referring to any specific exchange but speaking on the fact that exchange in general has brought about a major contribution to the popularity of Bitcoin then that's accurate because without the exchanges there won't have been a means to exchange our assets to fiats or other cryptocurency.
The availability of exchange convince many investors to invest in Bitcoin because now they don't have to trust some unknown individual to send them there coins or money when they want to sell or buy Bitcoin. They can just trust the system which they're using to execute the trade successfully.

Main word you used is trust. And one of the main ideas of bitcoin is to make trustless financial system. So may be investors would better use a system where they see some exchange to trust, but they can use a classical financial system for investing as well. But trustless alternative is what returns a control over our money to us, what is important by itself. So there is a choice: to have entire control over own money in a trustless system or to trust a third party.

Definitely, exchanges have something to do with the popularity of bitcoin. Therefore, it cannot be said that exchanges do not affect the popularity of bitcoin in any way. There are many different advertisements of the exchange platforms themselves. And those who learn about the exchange through this advertisement will then learn about such a concept as cryptocurrency, and, accordingly, learn about bitcoin itself. Exchanges definitely affect the popularity of bitcoin!!

The exchange is a cryptocurrency bank, which plays a very important role in the cryptocurrency industry. Of course, it is very easy and convenient for investors to use the exchange to buy and sell Bitcoin, and it also attracts more investors, making cryptocurrency more and more popular. The existence of exchanges brings more people into the cryptocurrency world and plays a vital role in the promotion and mass application of cryptocurrencies.

I think exchanges help bitcoin newbies get bitcoin easier and are easier for newbies to operate. But newbies should avoid frequent trading, and I know this is hard to do.

That's precisely what's going on, although bitcoin can also exist without an exchange but the popularity of bitcoin and the development of bitcoin today has a huge contribution from exchanges. It is a bridge between investors and the market, without an exchange, we would have a lot of trouble accessing bitcoin by fiat. The crash of the FTX exchange makes us feel unsafe using it, but it will be difficult for us to stop using it completely.

I try to say my opinion, which obviously can be shared or not. Bitcoin is a technology! which is likely or not to change the fortunes of future finances. Do you need exchanges? most likely not! if it is seen as a speculative object then it needs a counter value in fiat, but if we look at it as a means of mass adoption then it absolutely does not need the existence of Exchanges

I would agree. Bitcoin in itself no matter how popular it may be wouldn't come this far in utilization if exchanges did not exist. They are the ones who made bitcoin and other cryptocurrencies completely accessible and transactable. I would argue however on the matter that exchanges are the ones that made bitcoin popular. Even in its early days bitcoin is already being talked about by many, and it grew popularity on its own, without any outside help from a third-party entity or whatever. Bitcoin made its name for itself, while exchanges made sure its popularity is reached through multiple facets by many people. It's a mutual symbiosis between the two really.

If you're one of those who think that exchanges are not that important, I assume that you only buy Bitcoin or any altcoin via P2P and just holding it and not trading. Exchanges are not perfect. They have their pros and cons for both CEX and DEX.

In my opinion, most are preferring CEX because of quick transactions and low trading fees at the expense of "not your keys not your coins". It's important if you are so active into either day trading, futures, etc. That's just my opinion of course.

I will argue and agree to the fact that centralised exchange somehow aided the easy access to Bitcoin spread globally. Actually, it also aided in the quick purchase because in most locality you barely see people who will want to exchange via p2p so the only way they can do that is via centralised or decentralized exchange which is easier to access through the internet. In my own research, I found out people prefer trading and buying Bitcoin through exchange than doing p2p. When I inquired about their reasons for doing so,  they told me that they preferred it that way for security and safety reasons as to the large volume or amount of purchase, they said centralised exchange somehow is safe and secured for trading as they do conduct kyc so therefore they are ready assured of their funds and assets. There were lots of reasons mentioned by them but just these few I could list do to cut the long story short, I think OP topic is a good idea and calls for a wide range research.

It is true that exchanges are extremely important and without them the market would not be as vibrant and developed as it is today. I am a trader, and my profits come mainly from trading, and without exchanges, I cannot make profits. I have no reason to stay in this market. Most of the market's trading volume comes from trading, without trading the market would be extremely bleak.

To come to a decentralized project invented to become anonymous and trustless to choose a centralized intermediary which will totally destroy anonymity with KYC... Ingeniously! (Sarcasm.) Looks like most people who do so just don't understand what Bitcoin is and that there are classical financial assets which have included all that things with a trust to a third party and KYC and it is much easier to use those assets and not Bitcoin if they are interested in that.

Of course! Therefore, I believe that exchanges also contribute. But I think that many exchanges also create anti-advertising and reduce the popularity of bitcoin. Therefore, there are both pros and cons here.

Exchanges play an important role in the encryption field. Its existence makes it easier to buy and sell cryptocurrencies, promotes more investors or traders to buy and sell bitcoins, increases people's demand and popularity for bitcoins, and expands market.
It can also help certain currencies gain popularity. Many investors will choose potential currency investments based on transaction volume.

The popularity of Bitcoin has a lot to do with centralized exchanges. Centralized exchanges do not need to understand the operating principles of Bitcoin, white papers, smart contracts and codes. The reason why I say this is that the first reason is that everyone gets in touch with Bitcoin, and the most important thing is that everyone says that trading Bitcoin can make a lot of money. The threshold of the second centralized exchange is relatively low, easy to operate, similar to the stock market, and it will never stop. The third reason is that their wish of getting rich overnight can be realized here. To sum up: Bitcoin is becoming more and more popular, and more and more people know about it.

Which exchange reduces the popularity of bitcoin? I don't think any exchange can reduce the popularity of bitcoin. Also, exchanges are not responsible for creating any hype for coins. Exchanges just list the coins on exchanges.

Yes, i agree that exchanges can manipulate the prices a bit to liquidate people but they have nothing to do with the project. No exchange was involved in the LUNA crash, and in the case of FTX, it was a different story as the exchange collapsed which dumped the exchange token FTT.

Yeah, that was said in the original post. TBH I prefer not to use centralized exchanges, and especially not to hold there any of my crypto. FTX collapse should be a lesson for everyone.

I do not know about others, but for me the exchanges are very important. I spend most of my time on cryptocurrency there. All the buying and selling there, it increases bitcoin's visibility in different segments of the population. Exchanges have their disadvantages, but it is wrong to underestimate their role. Especially the decentralized system, it seems to me its role is incredibly significant to perform bitcoin manipulation and more secure. I would never say no to the exchanges.

Exchanges became the heart and soul of this industry. With a vast array of cryotocurrencies that exist on the market, trading them along with withdrawal and deposit options is surely a good idea not only to make money, but to also increase accessibility within the space. That's why exchanges, whether DEx or CEx, are integral in this industry.

Some of the exchange are scam and the same wrong exchange, because i understand that some of the exchange put a condition that will be difficult for their investors or exchangers will be difficult to solve when they are in trouble and mostly their kind of KYC verification,so it's good for someone to go exactly and research for some exchanges before starting investing in cryptocurrency exchange the way i noticed some of the problematic of exchanges.

Exchange are so important because they affect and inform business individuals of when, how and quantity of thier investment, it also enables government to make financial decisions.
Another thing is that you can predict it based on some previous actions or words of major marketing influencers or government decisions this is why inflation affects it... All this goes together and affect the crypto space

Yes of course, I think exchanges are indeed one of the prominent factors for the popularity and accessibility of Bitcoin.
Currently more and more people are interested in just finding out and even adopting Bitocin.
One of them is due to the massive advertising from several exchange platforms.

Indeed, there are still many deficiencies in the type of exchange platform whether it is a decentralized exchange (DEX) or a centralized exchange (CEX),
But apart from that, in my opinion, the exchange platform makes it easier for someone to transact and start adopting Bitcoin.

Exchanges are very important for any cryptocurrency. Trading among bitcoin traders has become easier through exchanges where people can buy and sell it easily. Exchanges have boosted the popularity and trading volume of Bitcoin, and also brought more users into the crypto space.

Is there any decentralised exchanges that supports P2P because the reason why I am still using Binance exchange today is because this is the only way I can exchange Fiat to crypto.

It seems that only centralized exchanges have this feature till date, I have no choice but to stick with a centralised exchange for using Fiat to buy crypto, I have no other options.

In my opinion, cryptocurrency exchanges have played an important role in the popularization of Bitcoin. 

For the functioning of Bitcoin, the presence of fiat gateways is essential.  In the future, the era of Bitcoin dominance over all other world currencies will come. 

However, at present, Bitcoin interacts with the traditional financial system (including through trading on cryptocurrency exchanges).  Currently, there are new ways of exchange, such as atomic swaps. 

The importance of cryptocurrency exchanges, especially centralized exchanges, is gradually decreasing.

Exchange is an important platform and due to this the demand of other currencies including bitcoin is increasing and it is reaching the masses and if there was no exchange no one would want to use bitcoin because no one is dependent only on bitcoin each one uses different currencies and what to trade.  Exchangers play a big role here by converting them into stablecoins and then reinvesting .so exchanger is must important

First I got to know Bitcoin because it can take advantage through trading. So I think trading being the main actor of Bitcoin could become as famous and thriving as it is today. Indeed, if you look at it, this deviates a bit from Satoshi's vision.
But at least this is the current business development. The current exchange has provided profits and improved the economic situation of some people. In addition to the exchange being a life, today they are the main actors bitcoin remains trusted and valuable. Even today there are more new exchanges even though sometimes they can't be trusted.

The only one I could fully trust is probably the CB, but after FTX, I'm probably safer with an HW Wallet until I decide to dumb  :-\

Bitcoin in another way round can exist without exchanges, and if it does it will be very difficult to have a Bitcoin transaction that will give you Fiat currency, because P2P is very hard before you can as well see the transaction with very big amount, i will tell you that exchanges is what means the transaction of Bitcoin with fiat currency to be very simple and easier for us.

I think you are right, basically, we can easily access and get to know Bitcoin directly through trading or exchanges, both centralized and decentralized exchanges, of course, these two exchanges have experienced very massive development, especially in 2020-2022 there are many new platforms or projects as parties that provide a service for exchanging Fiat currency with Bitcoin, yes, even though it is possible with P2P but it is quite difficult and rather complicated, so maybe most people use exchanges more so they can make transactions easier.

The CZ was involved in the collapse of the FTX, but I don’t know if it was the influence of one exchange on another. Of course, it was a confrontation between two large exchanges and they were competitors in the market, and as a result, the stronger one removed the weaker one. But this is a natural course of affairs in the market where we are talking about big money. The SBF made many very serious mistakes, but in the end, this news did not affect the cryptocurrency market that much.

Exchanges are important for traders, for those who spend a lot of time trading, for holders and investors, this is just a convenient tool that could be dispensed with if necessary. But since they are convenient to use, why not use it, the most important thing is to follow the safety rules and not store your coins there.

Bitcoin without exchanges would've never been this high in growth. Exchanges have played a big part, there are flaws as scams to ruin the reputation of bitcoin. In other way these exchanges have made more good to the uplifting of the market. As suggested bitcoin can function without exchanges, but we don't experience the same level of convenience and comfort as now.

My prediction of Bitcoin without centralized exchanges it would be a market with less volatility and less daily volume, the price would be about the same maybe, I am not sure.
With enough time the lack of convenience and comfort would have gotten solved, though. There is already one project of decentralized exchange for Bitcoin which I have heard of (Bisq), but we all got used to businesses like Binance and Coinbase.

If you remove all the "IOU Bitcoin" from centralized exchanges, the price per unit of Bitcoin would just go incredibly higher.

Think about why companies like FTX went bankrupt, they just don't have the money that people put in there. They lend it to other people, they gamble it, etc. Basically they try to create more money out of thin air, but you cannot do that with Bitcoin.

The moment people withdraw Bitcoin to their own wallets, that means they actually have to give them real money. And that's when they go bankrupt. They tried to create more Bitcoins, but of course failed to do so.

So, if there's less Bitcoin available, price would go up.

Of course this is the case, and the function settings of many exchanges are still very practical. The frequent problems of centralized exchanges depend entirely on whether the founders are evil. This is the key.

This pretty much sums it up. This is the main difference between them and the legacy banks, not so much if they're "good" or "evil" per sei, but maybe more so how they present and conduct.

My brother the existence of exchange in the crypto ecosystem space helps a lot in the distribution of bitcoin in the world. Exchange make things easier for the industry, if we use peer to peer, most of us can't even sell or buy 0.0009 BTC a week because it is not everyone accept bitcoin in the locality. P2p can not be seen in everyday and everywhere but with the exchange platforms every day and anytime one can buy and sell. So exchange platforms means a lot in the cryptocurrency ecosystem.

The centralized exchange platforms, the ones I know do not charge transaction fees but the decentralized exchange platforms charges transaction fees. Though all have there advantage and disadvantage

Having an exchange actually makes bitcoin grow and you can even say rapidly because with an indirect exchange it will be a way to elevate bitcoin in terms of price.
This can be a quite important role, in fact, even though bitcoin can exist without an exchange, on the other hand, it would be great if there was an exchange, and now we are already feeling the impact of the current exchange.

That's the exactly the point i tried to rise, because it's very obvious that without an exchange Bitcoin will not be interested to some people to partner with, so the use or the establishment of an exchange is what really makes Bitcoin to be well known and many people began to develop interest. So it would have been very difficult from my perspective to convert Bitcoin to fiat currency if assume their was no exchanges.

Agree with this, because regardless of anything the exchange will also affect the volatility especially in this case and most likely as you said when it comes to bitcoin without an exchange there even though it will still grow but this will probably be less when compared to the exchange there . because indeed this is not a figment for me maybe even I can be said that I still have more dependence on some of the exchanges that you mentioned.

Exchanges play a big role in the crypto market by making it easier to buy, sell and trade cryptocurrencies.
The presence of exchanges also has a big impact on Bitcoin popularity. Make holders more convenient and comfortable, and make it easier for more people to enter the market.

I agree with you, but we can't deny that centralized exchanges is better than decentralized in terms of "faster transactions". And this is one of the reasons why Bitcoin price increased so high. There are many people attracts to Bitcoin because of that and its features not difficult to understand. But the only disadvantage for me is it's transaction fee.

If you use lightning you will have an almost instantaneous transaction and the fees will be almost nothing.

You can't really beat that, because you get the benefits of Bitcoin with the scalability of lightning.

We also need to remember that not everything revolves around Bitcoin, the majority, yes, but there are other cryptocurrencies, so we need to have a medium.

The main use of exchangers are simply making users do able to make buy and sell in between different coins that been offered and the best thing is that you could make out conversion of your
coins or crypto into fiat which i do believe that this is the main reason of their existence or main usage or purpose which we could tell that it is really that convenient but of course it
do really oppose out total decentralization because it would really be dealing up with some centralized and  regulated thing which its not a surprise.
Its important on the ecosystem but people should mind about the risk most of the time.

The function and use of Bitcoin is not only limited to investment, in some cases Bitcoin is often used as a medium of exchange in buying and selling goods or services online. Bitcoin is not yet accepted in some countries as legal tender, but people living in those countries are very familiar with Bitcoin and often use it for online transactions. The presence of the Exchange as a facility that makes it easier for users to sell and buy Bitcoin. Indirectly, the presence of exchanges has attracted interest for business people to accept payments in the form of Bitcoin. This awareness is due to the Exchange as a place to exchange Bitcoin into Fiat.

It is not a question of importance, but there must be an exchange, because value is generated in the process of transmission, and not only Bitcoin needs to be traded, but other currencies still need to be traded. The way Bitcoin is globalized is to flow around the world , still more people have Bitcoin in their hands, this is called the sea of ​​stars.

I am using Binance for a while not but so far I didn't hear about lightning network from them. As we know that there are some exchanges who already supported it.

Hoping that lightning network for BTC will be added to all crypto exchanges soon and if these happened we all gonna benefits it.

Bitcoin withdrawals fees are basically free money for the exchanges, so I'm guessing they don't have a huge incentive to implement lightning any time soon.

But yeah, there are some exchanges that do offer lightning, and it's great.

What about Binance? Regarding the FTX crash, Binance also processed over $6 billion in exchange withdrawals without any issues. Is that " IOU bitcoin"? Bitcoin could still work without an exchange, but I assure you it would not be as popular and valuable as it is today without an exchange.

A newbie who wants to invest in bitcoin and use p2p is unreliable, and without an exchange, they have no way to enter the market. If bitcoin has no trades, it means it has no demand and will make bitcoin unpopular and unable to increase in price. Exchanges are extremely important to the growth of bitcoin and to us.

Exchanges play a significant role in the cryptocurrency market by providing a platform for buying and selling cryptocurrencies. They are a key component in the infrastructure of the crypto ecosystem, and they serve as the primary means for individuals and institutions to access the market and trade cryptocurrencies.

Here are a few ways that exchanges are important in the cryptocurrency market:

Liquidity: Exchanges provide liquidity to the market by allowing individuals and institutions to buy and sell large amounts of cryptocurrencies quickly and easily. Without exchanges, it would be much more difficult for buyers and sellers to find one another, making it harder for the market to function effectively.

Accessibility: Exchanges make it easy for people to buy and sell cryptocurrencies, even if they are not technically savvy. Most exchanges have user-friendly interfaces and provide helpful tutorials and guides to help new users get started.

Price Discovery: Exchanges help to establish the market price of a cryptocurrency by bringing together buyers and sellers. As prices fluctuate, this helps to determine the true value of a cryptocurrency.

Security: Exchanges are responsible for safeguarding the assets of their users. They have to follow strict regulations and guidelines to ensure that customer assets are protected against hacking or theft.

Offer additional services: Many exchanges now offer additional services such as margin trading, lending, staking, and derivatives trading. These services can help traders to maximize their returns and can make the market more attractive to investors.

In summary, exchanges are important for the cryptocurrency market because they provide a platform for buying and selling cryptocurrencies, they increase the liquidity of the market, they make it easy for people to access the market, they help establish market prices and they offer various security and additional features. However, its important to do research and pick a reputable and secure exchange that aligns with your needs.

Exchanges are very important for all cryptocurrencies. There are a large number of cryptocurrencies in the market, and using an exchange allows for quick and safe exchange of currencies, while also making buying and trading easier. But the exchange also has certain risks, don't trust it completely.