After FTX collapse, some call for a return to decentralized roots

[justdimin]

As long as coin holders share custody with Centralised exchanges, the exchange's carelessness and insecurity will be everyone's problem, especially when the team behind the exchange is fraudulent as well. The ability to set up trade orders and P2P trade on decentralized exchanges could reduce the use of CEX, as there are currently no decentralized exchanges that offer such services. DEX needs to keep improving its use and trading since they seem more secure

DEX does need to keep on improving, but that doesn't mean that CEX will stop, the more DEX world improves, the more CEX world will have something that DEX doesn't have. This is why it's very important that they fight on the ideology part and not just the tech part.

If they keep fighting at the innovation and tech part of the situation, they are going to stay behind and not make any money at all and it will be something sad to watch, but if they go out and talk about how they are decentralized and they can't be hacked into because they are not keeping anyone's money in a centralization location, that alone would get enough people to make it very good to use.

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[DOH!]

Who should provide our money safety? no one can't be ensure that, try to keep safe from our own responsibility, an example will never keep holding long term on the centralized exchanges, although lots of user's storing their assets on top exchanges where my assets isn't under my own control. If you need to trade/p2p then it’s fine to hold on exchanges. We can't 100% avoid CEX's because there are some limitation in DEX's.  

I think DEX will be the future of the market. Most CEXs have long-standing major problems. "your key, your money" - that's the DEX, I think the market culture will react to the adoption that shapes that trend. I also think that, over time, the approach to crypto changes as well. CEX(Binance...) can be trusted as a bridge to the DEX and therefore, I think CEX will continue to grow the way it has been but the DEX will return to a stronger trend.

[maydna]

You/We can use centralized exchanges but only for trading purposes, other than that like keeping your/our funds in these centralized exchanges for any reason is wrong. Because you do not have the private keys of the wallets of those centralized exchanges management can freeze your funds at any time they want.

And can you tell me who the hell keeps its funds on the exchanges? There really are such dummies? Because I kept my currencies in the wallet from the very first day in crypto world and I never knew that someone does in another way.. Then they pay for their stupidity.

Of course, some traders keep their funds on the exchange and may use their funds to trade. But they only keep a small amount and the other funds in a separate wallet so they can control how they are used. We can't blame those who keep their funds in the exchange because they may have reasons for doing it. But hopefully, no one will get into trouble like yesterday's FTX case and immediately move the funds to their personal wallet.

As long as coin holders share custody with Centralised exchanges, the exchange's carelessness and insecurity will be everyone's problem, especially when the team behind the exchange is fraudulent as well. The ability to set up trade orders and P2P trade on decentralized exchanges could reduce the use of CEX, as there are currently no decentralized exchanges that offer such services. DEX needs to keep improving its use and trading since they seem more secure

We should really choose a centralized exchange that will not cheat or anything else. However, it can also happen in a trusted centralized exchange because there is a problem of greed among the employees who want to run away large sums of money from the coin holders or from the exchange itself. But many people still use centralized exchanges because they find what they want that they haven't been able to get from decentralized exchanges. And I agree that decentralized exchanges need to improve their service to users to have the opportunity to attract more members.

[s.tanishka]

Who should provide our money safety? no one can't be ensure that, try to keep safe from our own responsibility, an example will never keep holding long term on the centralized exchanges, although lots of user's storing their assets on top exchanges where my assets isn't under my own control. If you need to trade/p2p then it’s fine to hold on exchanges. We can't 100% avoid CEX's because there are some limitation in DEX's. 

The main disadvantage and at the same time the main advantage of DEX's is that you are responsible for your own safety.A decentralized exchange facilitates trade between people but does not control their coins.

[Sethrey]

We should really choose a centralized exchange that will not cheat or anything else. However, it can also happen in a trusted centralized exchange because there is a problem of greed among the employees who want to run away large sums of money from the coin holders or from the exchange itself. But many people still use centralized exchanges because they find what they want that they haven't been able to get from decentralized exchanges. And I agree that decentralized exchanges need to improve their service to users to have the opportunity to attract more members.

Can you please share what's wrong with the decentralized exchanges service?  As for me, the main advantage is when it's no KYC. All the other is not interesting. I don't want everyone to check my funds and transactions.

[s.tanishka]

We should really choose a centralized exchange that will not cheat or anything else. However, it can also happen in a trusted centralized exchange because there is a problem of greed among the employees who want to run away large sums of money from the coin holders or from the exchange itself. But many people still use centralized exchanges because they find what they want that they haven't been able to get from decentralized exchanges. And I agree that decentralized exchanges need to improve their service to users to have the opportunity to attract more members.

Can you please share what's wrong with the decentralized exchanges service?  As for me, the main advantage is when it's no KYC. All the other is not interesting. I don't want everyone to check my funds and transactions.

If you lose your money, in many cases there is nothing you can do about it. There will be no compensation and no one to sue. Because DEXs don't collect money (they don't charge transaction fees), they don't have capital to compensate for assets stolen from users.The potential of a decentralized exchange is as good as the idea of ​​Bitcoin, but like Bitcoin, DEXs are not yet ready for mass adoption. People still use fiat money and centralized exchanges.

[Sethrey]

So you really believe that centralized exchange will return my money back if they will be stolen? Haha. It doesn't work like that anywhere. You have to be quite accurate as the only responsible person for your money is you. No one will ever deal with that.

[s.tanishka]

So you really believe that centralized exchange will return my money back if they will be stolen? Haha. It doesn't work like that anywhere. You have to be quite accurate as the only responsible person for your money is you. No one will ever deal with that.

On centralized exchanges, funds are usually insured. Therefore, investors do not need to worry about the safety of their assets. Thus, protect investors from many risks and unpredictability

[Sethrey]

I've heard so many scandals about stolen funds on different centralized exchanges, that I don't believe in them at all. Choosing between privacy and "100% safety" I'll better choose decentralization.

[dbshck]

So you really believe that centralized exchange will return my money back if they will be stolen? Haha. It doesn't work like that anywhere. You have to be quite accurate as the only responsible person for your money is you. No one will ever deal with that.

On centralized exchanges, funds are usually insured. Therefore, investors do not need to worry about the safety of their assets. Thus, protect investors from many risks and unpredictability

Where do you read this? I've never heard of exchanges insuring their customers' funds. Some exchanges do have what they call insurance fund, like Binance, but it only amounts to a fraction of their total liabilities. So it won't protect customers from those risks and in general you shouldn't feel safe storing your assets in exchange.

[RealMalatesta]

So you really believe that centralized exchange will return my money back if they will be stolen? Haha. It doesn't work like that anywhere. You have to be quite accurate as the only responsible person for your money is you. No one will ever deal with that.

On centralized exchanges, funds are usually insured. Therefore, investors do not need to worry about the safety of their assets. Thus, protect investors from many risks and unpredictability

Where do you read this? I've never heard of exchanges insuring their customers' funds. Some exchanges do have what they call insurance fund, like Binance, but it only amounts to a fraction of their total liabilities. So it won't protect customers from those risks and in general you shouldn't feel safe storing your assets in exchange.

This is common knowledge, you could always google it if you want, but this isn't true for many, specially for Binance, it's true for Kraken and Coinbase though. The thing is, it's not about insuring, but it's about the fact that it's on cold storage, at the same time we are talking about something "small" with FTX whereas something x100+ times bigger with Binance, you think it would be easy to collapse that?

They would have make a 10+ billion dollar mistake, you don't make that big of a mistake with that kind of money. Plus, all they have to do is not use our money to fund anything and they will be fine, they are making so much money as it is anyway, why do that.

[carlfebz2]

So you really believe that centralized exchange will return my money back if they will be stolen? Haha. It doesn't work like that anywhere. You have to be quite accurate as the only responsible person for your money is you. No one will ever deal with that.

On centralized exchanges, funds are usually insured. Therefore, investors do not need to worry about the safety of their assets. Thus, protect investors from many risks and unpredictability

Where do you read this? I've never heard of exchanges insuring their customers' funds. Some exchanges do have what they call insurance fund, like Binance, but it only amounts to a fraction of their total liabilities. So it won't protect customers from those risks and in general you shouldn't feel safe storing your assets in exchange.

It had been told and been advised for thousands of times that storing up huge amounts of money or funds on an exchange wallet is never been that recommendable.You wont really be able to experience out this
kind of stress and problem if you are really just mindful about security and dont make yourself that confident that much about these services or platforms. We've seen the worst and this isnt only limited on
FTX but also in other exchangers where hacks and issues had been raised up. For Binance, they do able to cope it up because if those SAFU funds they've been talking
but we know that not all would really be able to compensate on total lost.

[Sethrey]

It had been told and been advised for thousands of times that storing up huge amounts of money or funds on an exchange wallet is never been that recommendable.

Exchanges are prone to hacks and attacks, and storing all your funds on one platform is a risky move. It is essential to diversify your portfolio and spread out your funds across multiple wallets and platforms.

Moreover, relying on the security measures of any single platform or service is not advisable. It is important to take proactive measures to secure our assets, such as using two-factor authentication and keeping our private keys secure.

[TravelMug]

So you really believe that centralized exchange will return my money back if they will be stolen? Haha. It doesn't work like that anywhere. You have to be quite accurate as the only responsible person for your money is you. No one will ever deal with that.

On centralized exchanges, funds are usually insured. Therefore, investors do not need to worry about the safety of their assets. Thus, protect investors from many risks and unpredictability

Where do you read this? I've never heard of exchanges insuring their customers' funds. Some exchanges do have what they call insurance fund, like Binance, but it only amounts to a fraction of their total liabilities. So it won't protect customers from those risks and in general you shouldn't feel safe storing your assets in exchange.

Yes, not all exchanges covered insurance on crypto's, not all are SAFU (term being used by Binance).

https://academy.binance.com/en/glossary/secure-asset-fund-for-users

But in mid to low tier exchanges, I doubt that they have similar programs though, because obviously, they don't have the funds. Just what it's not a good practice to leave your money in 3rd party like exchanges. Maybe small amounts to that you can just continue your trading, other than that, withdraw it in a wallet that you have control of.

[s.tanishka]

It had been told and been advised for thousands of times that storing up huge amounts of money or funds on an exchange wallet is never been that recommendable.

Exchanges are prone to hacks and attacks, and storing all your funds on one platform is a risky move. It is essential to diversify your portfolio and spread out your funds across multiple wallets and platforms.

Moreover, relying on the security measures of any single platform or service is not advisable. It is important to take proactive measures to secure our assets, such as using two-factor authentication and keeping our private keys secure.

I think that user data is especially vulnerable today. How can the user protect himself? Nowadays, this seems impossible. All user data is publicly available on the Internet.

[Sethrey]

Don't stick your personal information everywhere indiscriminately, choose apps that require minimal personal information to use, use a VPN, and create strong passwords. This is the minimum set to follow.

[s.tanishka]

Don't stick your personal information everywhere indiscriminately, choose apps that require minimal personal information to use, use a VPN, and create strong passwords. This is the minimum set to follow.

You don't have to post your personal information all over the place for it to be stolen. How the search giant Google leaked data. You can't call it "stick everywhere indiscriminately". Microsoft and Google have been stealing passwords and personal data for years. And sometimes it's just a human factor. It is very difficult for me to protect your data.

[Sethrey]

This is what I was talking about originally. If you want complete protection, you will have to abandon media giants like Google. There are alternatives to browsers, mail, instant messengers, and more that promise not to collect any data. But almost everything online is tied to Google accounts. So this is a rather inconvenient solution.

[StormHawk]

A call that's left unanswered, till this day many people are still using centralized exchanges, many funds are been withdrawn from Binance exchange after a false rumour was spread about CZ, but look how fast the exchange has recovered, most of the withdrawn funds are now back on the exchange, I think it's going to take a longer period of time before decentralized exchanges get the proper attention they needed.

[s.tanishka]

This is what I was talking about originally. If you want complete protection, you will have to abandon media giants like Google. There are alternatives to browsers, mail, instant messengers, and more that promise not to collect any data. But almost everything online is tied to Google accounts. So this is a rather inconvenient solution.

How to refuse them, if literally everything is tied to Google? If you refuse all applications, you can return to the Stone Age. Thanks to the fact that everything can be done on the Internet, namely, pay bills, order food, pay for the phone, and so on, a lot of time is saved.