My gut is telling me that I am missing a part here

[cryptoaddictchie]

Since P2P on binance require KYC then its not decentralized approach already. Yes peer to peer is something we could say decentralized. However once a third party or any form of identity has been pass then its already violate the real definition of it.

If you used non custodial to transact with other users or directly trading against other people then thats decentralized.

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[Wakate]

I am trying to understand something about binance exchange and the other likes of it.

Binance exchange is a centralised exchange right? But they provide P2P, is it ok to say P2P is decentralized? If yes, doesn't that makes Binance 2 in 1, CEX and Dex? Because I use the P2P part more than the CEX part..

Endow me with knowledge this morning, tell me what I don't know.

Binance is purely a centralized exchanges because it requires KYC for you to have full access to the account you create on there website. P2p does not make a exchange a decentralized one because you don't have access to the full you have with them. They don't give you your seed phrase, anything that looks suspicious might lead to ban etc.

When we talk about decentralized exchanges then we can mention Pancakeswap, Uniswap etc that does not require any KYC and your transactions on these platforms are quite anonymous in some ways not like Binance and other centralized exchanges.

[Rengga Jati]

Binance exchange is a centralised exchange right? But they provide P2P, is it ok to say P2P is decentralized? If yes, doesn't that makes Binance 2 in 1, CEX and Dex? Because I use the P2P part more than the CEX part..

Simply, Binance is a centralized exchange.
- They require a KYC process for all users, both in their exchange platform and also P2P, moreover in some features, they need more verification based on real identity. They need our ID ad to upload it to the platform. It is a clear, centralized exchange.
- In P2P Binance, users need a third party as escrow to run the transaction, here is Binance.

So far as I know, in DEX, we don't need any identity verification. We only need to access the platform without any verification based on our identity, whatever it is to fulfill. DEX and CEX always have their positive and negative sides, so, this will depend on our own choice.

Btw, you can read the following articles to probably be able to help you more:
https://www.binance.com/ph/blog/all/what-is-p2p-trading-421499824684901877
https://www.binance.com/en/blog/from-cz/cz-on-centralization-vs-decentralization-2022-4766586322749082372

[Crypt0Gore]

Paxful is a good example of real decentralsed P2P platform but it isn't secured, I have lost money engaging in P2P trade on the platform and I follow their rules but later the team failed to help, this was a long time ago, maybe things have change I don't know .

Paxful is similar to Binance as they are both centralized platforms. They are third-parties that provide their Peer-to-Peer trading services to cryptocurrency users.

On Binance P2P and Paxful P2P, you will have to complete KYC to start trading. It is mandatory on Binance P2P but on Paxful P2P, you can start trading without KYC but there are limits for each KYC level. In some countries, Paxful force users to do mandatory KYC (many scammers from those countries ?)

Paxful: Limits and Verification
All Binance users must complete Identity Verification to access Binance products and service offerings, including P2P trading

Because they are centralized, they can freeze your account and your fund.

Best Peer-to-Peer trading is when seller and buyer does not know real identity of their trade partner like a peer-to-peer transaction from Satoshi Nakamoto to Hal Finney. Many years later we still don't know who is Satoshi Nakamoto and Hal Finney did not know about that too.

I don't know that Paxful is also a centralized platform, the last time I used this platform I don't pass any KYC verification, anyway, thanks for sharing the information.

By the way, do you have any P2P platform that's not centralised in mind? I am still looking for one.

Someone recommend localbitcoin but there are bad reviews about that platform.

[CryptoHeadlineNews]

Endow me with knowledge this morning, tell me what I don't know.

First of all, what is a Decentralized & Centralized exchange?

A decentralized exchange (or DEX) is a peer-to-peer marketplace where cryptocurrency traders make transactions directly without having to involve the need of a third party or doing a KYC, and the user has total controll over his/her fund
While,
Centralized exchange is a third party platform which helps to facilitate the buying of cryptocurrencies through the use of fiat currencies, whereby KYC is essential, the platform has total control over the users fund once deposited

[2stout]

Binance is straight up centralized, no way around it.  Also, no KYC doesn't mean an exchange is not centralized, for example, KuCoin is a centralized exchange but doesn't do KYC.

[Obari]

Binance is a private and centralized exchange and no matter how efficient and trustworthy they could be, they are not to be trusted with putting money or leaving money not meant for trading or exchange in there as the unimaginable can still happen just as it was the case of FTX months back.
Let me say that the P2P services of binance only allows buyer to connect directly with seller with binance serving as an escrow to entire safety of funds to boast their brand too.