Centralized Exchange or Decentralized Exchange?

[RashidulIR]

Cryptocurrency is not yet legal in many countries of the world but in all those countries Crypto Trading is being bought / sold by Binance, KuCoin Exchange. Moreover P2P (Peer-to-Peer) is running Buy / Sell Bitcoin, ETH, BNB, USDT etc. with the currency of one's own country which is being done by Centralized exchange.

* On the other hand, Decentralized Exchange does not have P2P facility and Decentralized Exchanger is less used in many countries as Crypto is not legal.

* In this case, they are doing it even if they have to exchange money by KYC in centralized exchanges.  In addition, many times if a country wants to ban those centralized exchanges can easily, because of which users have to face a lot of problems that are not exactly right.
 
* On the other hand, they can use decentralized exchange freely.  Now the question is which or which is the best?

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[Charles-Tim]

To avoid repetition, can use read this: Newbies: Don't use centralized exchanges!

Bisq is the most decentralized exchange that is yet existing, other reputed ones like Hodlhodl and Localcryptos are also far better than using a centralized exchange. Localcryptos is recently having high trading volume among P2P exchanges.

According to the link you pasted above, https://kycnot.me/, there are centralized exchanges among, example is Kucoin, Kucoin do not require for KYC, but can force any of their customers to provide KYC at any time or they will freeze the customer's account. Some others that are listed like ChangeNow are instant exchange that can sometimes also force someone that is making use of their service to provide KYC once the person has already sent bitcoin or altcoin to an address provided by the instant exchange, they will not exchange the coin for him unless he do KYC as instructed by them.

[mk4]

* On the other hand, Decentralized Exchange does not have P2P facility

? ? ?

The decentralized ones are actually the ones that are P2P lol.

and Decentralized Exchanger is less used in many countries as Crypto is not legal.

You'd figure that if crypto isn't legal in a certain country, that people would be using decentralized exchanges, right?

* In this case, they are doing it even if they have to exchange money by KYC in centralized exchanges.  In addition, many times if a country wants to ban those centralized exchanges can easily, because of which users have to face a lot of problems that are not exactly right.

What.

* On the other hand, they can use decentralized exchange freely.  Now the question is which or which is the best?

Asking "which is best" is like asking if it's better to drive a top of the line Ferrari vs driving a armoured car. Do you prefer speed and ease of use? Or security/privacy?

[RashidulIR]

To avoid repetition, can use read this: Newbies: Don't use centralized exchanges!

According to the link you pasted above, https://kycnot.me/, there are centralized exchanges among, example is Kucoin, Kucoin do not require for KYC, but can force any of their customers to provide KYC at any time or they will freeze the customer's account. Some others that are listed like ChangeNow are instant exchange that can sometimes also force someone that is making use of their service to provide KYC once the person has already sent bitcoin or altcoin to an address provided by the instant exchange, they will not exchange the coin for him unless he do KYC as instructed by them.

Yes I have already read this topic. But Cryptocurrency is not yet legal in many countries of the world but in all those countries Crypto Trading is being bought / sold by Binance, KuCoin Exchange.  Moreover P2P (Payer To Payer) is running Buy / Sell Bitcoin, ETH, BNB, USDT etc. with the currency of one's own country which is being done by Centralized exchange.  

For This reason I question to all what is best for those people who haven’t facility To do everything in Decentralized exchange.

* On the other hand, Decentralized Exchange does not have P2P facility

The decentralized ones are actually the ones that are P2P lol.

> Decentralized P2P means Own County Currency to buy Crypto.

[Charles-Tim]

Avoid consecutive posting on a thread, it is against one of this forum rules, rule number 32.

Yes I have already read this topic. But Cryptocurrency is not yet legal in many countries of the world but in all those countries Crypto Trading is being bought / sold by Binance, KuCoin Exchange.

The decentralized exchanges above are P2P which I indicated up there and mk4 also corrected you about it.

Cryptocurrency is not yet legal in many countries of the world but in all those countries Crypto Trading is being bought / sold by Binance, KuCoin Exchange. Moreover P2P (Payer To Payer) is running Buy / Sell Bitcoin, ETH, BNB, USDT etc. with the currency of one's own country which is being done by Centralized exchange.

Countries where cryptocurrencies are totally banned in the world are very few, centralized exchanges are restricted in such countries. Only option that remain in such case are decentralized means.

Countries with absolute ban of cryptocurrencies
Algeria
Bangladesh
China
Egypt
Iraq
Morocco
Nepal
Qatar
Tunisia

https://tile.loc.gov/storage-services/service/ll/llglrd/2021687419/2021687419.pdf

But the government will have control on centralized exchanges more and effective than comparing it to decentralized exchanges.

[jackg]

Cryptocurrency is not yet legal in many countries of the world

It's legal in most countries.


Decentralised exchanges have a lot of anonymity benefits and can save quite a bit in withdrawal fees too (since a lot use an wallet directly compatible with the coin's blockchain and not a fixed withdrawal fee).

I think dexes suffer from a lack of liquidity and a higher spread in some cases just due to having less volume and users.

[mk4]

The decentralized ones are actually the ones that are P2P lol.

> Decentralized P2P means Own County Currency to buy Crypto.

And? One of the main selling points of using a decentralized P2P platform is that the authorities don't need to know that what you're transacting is actually for cryptocurrencies.

[BIT-BENDER]

Decentralization is one of the core value of Crypto-Currency, a very strong quality that has seen the government doing all they can to destroy it, in my own opinion I would go for decentralized crypto exchanges, although even big exchanges has started to compromise on that. Crypto-currency has given many an alternative, freedom and choice. Doing transactions, trading and so on any where in the world without borders, and this can only work perfectly on decentralized crypto (exchanges), I see centralized exchange as a glorified form of slavery and against what crypto truly stands for.

[Stalker22]

I think the OP is answering his own question. If you live in a country where crypto (and therefore centralized exchanges) are prohibited, then the only options left are decentralized exchanges and P2P transactions. In countries where crypto is regulated, it is also often subject to tax laws, so P2P is still an option if you want to trade cryptocurrencies without being subject to taxes. But be warned, tax evasion is a form of fraud, and if caught will result in steep fines, and possibly jail time.

[tranthidung]

Cryptocurrency is not yet legal in many countries of the world but in all those countries Crypto Trading is being bought / sold by Binance, KuCoin Exchange.

Kucoin is a CEX but KYC is not mandatory, at least for now. Even so, storing your fund on CEX is never a good idea. Especially if you do it because a specific is non-KYC. It's just non-KYC temporarily because sooner or later, all CEXes will require KYC.

• https://kycnot.me/

Moreover P2P (Payer To Payer) is running Buy / Sell Bitcoin, ETH, BNB, USDT etc. with the currency of one's own country which is being done by Centralized exchange.

It's inaccurate. P2P means Peer-to-Peer.

[RashidulIR]

I think the OP is answering his own question. If you live in a country where crypto (and therefore centralized exchanges) are prohibited, then the only options left are decentralized exchanges and P2P transactions. In countries where crypto is regulated, it is also often subject to tax laws, so P2P is still an option if you want to trade cryptocurrencies without being subject to taxes. But be warned, tax evasion is a form of fraud, and if caught will result in steep fines, and possibly jail time.

The real problem is that my country is not a cryptocurrency due to which there is no system of Decentralized Exchange to buy / sell our Cryptocurrency and bring it in its own currency.  That's why we have to lean towards centralized exchanges, so which is the best in such a situation, so I wanted to know your opinion.

[pooya87]

Cryptocurrency is not yet legal in many countries of the world

You should know that there is a difference between not being legal and not being regulated. Bitcoin is not regulated in many countries but it is still legal.
There are also specific cases in cryptocurrency world that have been banned in some countries. For example buying/selling/owning bitcoin is legal in China but creating or participating in ICOs is illegal.

The real problem is that my country is not a cryptocurrency due to which there is no system of Decentralized Exchange to buy / sell our Cryptocurrency and bring it in its own currency.  That's why we have to lean towards centralized exchanges, so which is the best in such a situation, so I wanted to know your opinion.

Your first sentence makes no sense. Is cryptocurrency illegal in your country or not regulated?
If you in a hand of of countries that have actually banned bitcoin then you don't really have that many good choices since you are breaking the law after all. But if it is the later then any option is a good option.

First educate yourself about how bitcoin works, what wallet is the best and how you can secure your coins.
Then see which CEX you can use depending on where you live that is more convenient. Coinbase is a popular one that many use but they all would require KYC which is a privacy hazard.

There is also always other people in different countries that own bitcoin and are willing to trade. You can find them on the internet, this forum also has a currency exchange board that you can find others to trade with. Keep in mind that you should always use an escrow and educate yourself about the risks.
There is also Bisq that was already introduced.

[Doan9269]

* On the other hand, Decentralized Exchange does not have P2P facility and Decentralized Exchanger is less used in many countries as Crypto is not legal.

That is the answer to your first statement, Binance and Kucoin are part of the examples of p2p exchanges

* On the other hand, they can use decentralized exchange freely.  Now the question is which or which is the best?

Your question seems unclear but let me try answer base on how i understand it, OP need to understand that there's a difference between decentralized exchange and centralized exchanges, in centralized exchange like Binance, user can perform p2p but the security of your asset on them is low because government can track you down using them, their site can be attack by hackers and all data in the centralized exchange can vanished away and the private keys needed to accessing your coins is only  with them, which means you can't be able to claim your coin back since you don't have the keys.

If you're using a decentralized exchange, you have the private keys to accessing your coins with you, if the device you're using got lost, stolen or damaged whereby you have your wallet on, you can as well download another app and access your coins using your private keys on a new device.
remember that your coins are not in your wallet, they are on the block chain, your wallet only bears the address which you will need to unlock access to your coins on the blockchain using the private keys. and base on your question, decentralized exchange is the best.

[Zilon]

Cryptocurrency is not yet legal in many countries of the world but in all those countries Crypto Trading is being bought / sold by Binance, KuCoin Exchange. Moreover P2P (Peer-to-Peer) is running Buy / Sell Bitcoin, ETH, BNB, USDT etc. with the currency of one's own country which is being done by Centralized exchange.

Centralized exchange borrowed the concept of p2p exchange from decentralized exchanges. And it's becoming more swift in centralized exchange because the swap between crypto and fiat happens almost at Everytime.

* On the other hand, Decentralized Exchange does not have P2P facility and Decentralized Exchanger is less used in many countries as Crypto is not legal.

If not for decentralized exchanges p2p would still have been in it's test run stage. P2P is a concept from decentralized currencies and because there is no central authority the Blockchain match users on the network using this peer-2-peer concept

* In this case, they are doing it even if they have to exchange money by KYC in centralized exchanges.  In addition, many times if a country wants to ban those centralized exchanges can easily, because of which users have to face a lot of problems that are not exactly right.
 
* On the other hand, they can use decentralized exchange freely.  Now the question is which or which is the best?

If you must use a centralized exchange you have no choice but to dance to the tune of KYC verification selling out your personal data just to do a transaction

[Stalker22]

I think the OP is answering his own question. If you live in a country where crypto (and therefore centralized exchanges) are prohibited, then the only options left are decentralized exchanges and P2P transactions. In countries where crypto is regulated, it is also often subject to tax laws, so P2P is still an option if you want to trade cryptocurrencies without being subject to taxes. But be warned, tax evasion is a form of fraud, and if caught will result in steep fines, and possibly jail time.

The real problem is that my country is not a cryptocurrency due to which there is no system of Decentralized Exchange to buy / sell our Cryptocurrency and bring it in its own currency.  That's why we have to lean towards centralized exchanges, so which is the best in such a situation, so I wanted to know your opinion.

Could you rephrase that? What do you mean by "my country is not a cryptocurrency"? Moreover, I am pretty sure every country with centralized exchanges has access to decentralized exchanges as well. Perhaps it would be easier if you simply said which country it is?

[BD Crypto]

When it's about security, Obviously decentralized exchanges are suitable. Because no one have access of your funds when you use decentralized exchange. But centralized exchanges have many facilities and have higher liquidity for trading.

[tranthidung]

When it's about security, Obviously decentralized exchanges are suitable.

You miss something between security and privacy. With decentralized exchanges, you will have better privacy but about security, it's not actually better. Do you know that there are risk of flash loan attack in DeFi?

Over time, according to Chainalysis report, more and more DeFi hacks happen and total value hacked per case increases dramatically with time. It might be caused by the growth of DeFi which contributes to increase TVL on a DeFi platform; or worse security of new DeFi projects (which I don't think so); or better skills to run such hacks.

Because no one have access of your funds when you use decentralized exchange. But centralized exchanges have many facilities and have higher liquidity for trading.

It's true that you have control of your keys but when you do transaction or you put your coins into liquidity pool in time of a hack, you will lose your crypto to hackers too.

• DeFi hack history
• Money Laundering Picks Up Steam on DeFi Protocols: Chainalysis. Read the from Chainalysis