CEX deserves all criticism but not the hate

[maydna]

I've used a few of the exchanges you mentioned above and so far, I do not encounter any issues and everything is still working fine. I still use CEX over DEX due to the convenience factor of trading and I haven't tried using DEX yet.

But it's true what you suggest that we don't keep all our funds in CEX because we don't know what will happen later. We should anticipate all the things that might happen than regret it later.

[1714840543]

1714840543

[fuguebtc]

For the umpteenth time it’s been said to never store your bitcoins on exchanges. You forget centralized exchanges demand KYC and have reserve the  rights to freeze your bitcoins if there is any suspicious activity on your account, it could be they don’t trust the source of your income e.t.c. The risks of using centralized exchanges are too great, the cons overweigh the pros.

The cons overweigh the pros, but the centralized exchange is essential in this market, without an exchange, I believe the market would never have developed as it is today. Nothing in this world is perfect, so the whole of CEX should not be blamed just for the demise of FTX, just as crypto cannot be said to be a scam when a project like Luna collapses. I know that when it comes to CEX, there will be many people who don't like it, but I still believe that those people are still using CEX silently because it provides a lot of convenience for us.

[zasad@]

There are definitely others and they may be better than this I listed but this are the ones I have used
After the whole issues of FTX my advice is though buying from CEX is safer but storing all your funds there should be avoided and for holders just stick with DEX.

I don't know why CEX is safer. Coins can be blocked after entering the exchange and not allowed to be withdrawn after trading on the exchange. In any case, it is better to use possible decentralized exchanges first, and if this is not possible, then CEX.

[hatshepsut93]

Centralized exchanges that operate fully legally make it simpler to comply with laws, compared to buying/selling BTC in decentralized way. Most banks in the world, especially in the West, are evaluating the risks of serving their customers. If a customer makes a lot of operations with cash or p2p transfers, it's often a sign of some shady economic activity. Banks often close accounts of such customers and/or report them to authorities. But if you use a registered centralized exchange, your bank sees that you are dealing with a company and will be less likely to cause problems, if they don't have a "no crypto" policy.

[cr1776]

...Government are going to strengthen the regulation of centralise and there will be more transparency from the exchange to their customers, especially with regards to custody of customers assets and proof of reserves .
...

If you really think that government regulation will result in more transparency, think about Bernie Madoff, Jordan Belfort, people buying houses in 2006-2008 with no way to pay for them etc.  There are 1000s of examples in highly regulated markets where crooks operated with impunity for a long time.  They will talk a good game but it is more about their power and control.

As far as the rest:  storing coins in a centralized exchange has always been bad for all the obvious reasons: seizure, fraud, bankruptcy etc.   It seems every year or two it becomes crystal clear that people think that this time it is different, they think "this time I can earn a riskless reward".  It is a hard lesson, but last year Celsius and FTX show that.  Genesis dragged it into 2023.   Sure, use whatever exchange you want to buy or sell, but do not leave coins or fiat on there.  And don't do it all at once so that if you are unlucky enough to deposit 10 minutes before another FTX shuts down, you don't have a total loss.

Crypto isn't difficult:  buy or mine coins, put them in cold storage and then just wait OR buy or mine coins and spend and use them using a non centralized wallet.

[Outhue]

People losing their assets and funds to centralized platforms due to selfish reasons or lack of good security isn't helping crypto space in any way, do not store your funds on centralised exchanges either big or small, it's as simple as this, centralised exchanges are good for crypto trading but when it comes to security of funds they are weak and unreliable, centralized exchanges have caused too much problem in this space already, I only keep using Binance exchange because they have emergency funds for reimbursement if anything goes wrong but, still I don't recommend trust them because of this.

[Henrobakkara]

CEX deserves all the hates it getting now but doesn't mean it has also not been helpful to bitcoin and crypto space.
I know that most issues that affected bitcoin and crypto space as a whole was mainly from Centralise exchange in 2022 but that can't just make us stop using it  instead we should be more cautious on the centralise exchange we use and since the whole issues happened , Government are going to strengthen the regulation of centralise and there will be more transparency from the exchange to their customers, especially with regards to custody of customers assets and proof of reserves .
Apart from the from this issues CEX has really helped in increasing bitcoin and crypto investors because most investors are not scared of buying coins from them because they are too many crypto scammers online and I myself got scammed last year,After that I come to the conclusion that if not CEX am not buying any coin.
Though I buy from CEX but I am always careful on the one's I use and I also use binance p2p. Some of the trusted one's are :
Binance
Coinbase
Kucoin
Kraken
Bybit
There are definitely others and they may be better than this I listed but this are the ones I have used
After the whole issues of FTX my advice is though buying from CEX is safer but storing all your funds there should be avoided and for holders just stick with DEX.

Truth be told, I don't even have any problem with any of the exchanges be it CEXs or DEXs because the main issue as you rightly mentioned is not to hold your crypto assets in the exchanges but again this has limits as well cus people have to trade and this means you need to have it in the change for trading and anything can happen while people have those coins/token in the exchange. Crypto investment is Risky and you must agree to that if you want to get involved, people can even lose access to their own private wallets.

[Nwada001]

but that can't just make us stop using it  instead we should be more cautious on the centralise exchange we use and since the whole issues happened , Government are going to strengthen the regulation of centralise and there will be more transparency from the exchange to their customers, especially with regards to custody of customers assets and proof of reserves .

Before you talk about government regulation making exchanges more transparent,Let's look at what centralized government is and then reference it to a centralized exchange. When you say something is centralized, it simply means there are a few authorities who have power over everything (minority), they make decisions without minding what the people will think, they always view and teach their decisions as the best, bringing this to centralized exchanges, they take control over users' assets and privacy, and they make decisions when ever they want to with their hidden terms and conditions (T&C) that almost 80% of users don't have time to read, which gives them the right to do what they want, when they want, with their hidden terms and With or without the intervention of government over centralized exchanges, centralized exchanges will always be what they are. All that we need them for is to trade our assets, and when we are done buying or exchanging any crypto that we intend to hold, it should be moved to a non-custodial wallet, either a hardware wallet or anyone at the users' reach. 

[Ayers]

I've used a few of the exchanges you mentioned above and so far, I do not encounter any issues and everything is still working fine. I still use CEX over DEX due to the convenience factor of trading and I haven't tried using DEX yet.

But it's true what you suggest that we don't keep all our funds in CEX because we don't know what will happen later. We should anticipate all the things that might happen than regret it later.

I have used DEX, but to be honest, I still prefer CEX, CEX provides more services and utilities than DEX. And I like you, never had a problem with CEX, I think we shouldn't hate all CEX just because FTX crashes. Cryptocurrency is a market that is always risky all around us, so whether CEX or DEX, never put too much trust in them, don't leave assets on CEX or DEX, they are all unreliable. We can continue to use CEX as long as we never leave money on it we will have no problem.

[jrrsparkles]

When we actually use those platform only for the intended purpose then no one will be hating it when it turns out to be scam or hacked, because we used their service to get our cryptos and we are supposed to move it to where it should be stored so called wallet.

I do agree that centralized exchanges helped the bitcoin adoption to great extend but in a wrong way cause if there is not such convenient then probably we will have less people speculating about crypto currencies so it can be used for actual creation so called transaction instead of trading.

[dimonstration]

I know that most issues that affected bitcoin and crypto space as a whole was mainly from Centralise exchange in 2022 but that can't just make us stop using it  instead we should be more cautious on the centralise exchange we use and since the whole issues happened.

Correction, CEX is always been the reason for crypto problems since the day CEX introduced to crypto space. Starting from Mt. Gox, Cryptopia and other popular exchange that got hack every year that result to there bankruptcy. CEX itself is really helpful because it helps people to trade easily anytime. The only problem was the security on their technology is very and some of them do an inside job to stole users money since exchange that operating outside US and UK is not fully regulated by the law.

CEX will be reliable if this exchange is audited frequently for user safety.

[Yatsan]

If people would choose to be mad towards Exchangers for what happened in FTX, then that would be their loss and not  towards exchangers' end. It will be wrong to generalize just because an individual or team of a project mismanaged handling of money or being responsible with their funds. Think of how good the reputations are of other exchangers especially with Binance which won't be popular for no reason. Also, if you'd stay with what happened your actions will be affected as well so atleast tey to jist forget what happened as a professional consent. Sometimes letting go of it would be a better idea to be able to focus on oneself.

[Cantsay]

I don't see how anyone is going to have issues with exchanges if they all finally decide to treat exchanges as exchange and not wallet then they'll all be fine.
Choosing to neglect exchange because we had issue with one of them is not logical is same thing as one saying he/she will never use a train/bus because they was an accident that lead to some people losing their lives. At one time I also thought of never using an exchange but it turned out that I will only end up just causing harm to myself.

[Issa56]

After the whole issues of FTX my advice is though buying from CEX is safer but storing all your funds there should be avoided and for holders just stick with DEX.

I don't have any problem with CEX exchange, but I always advice people not to ever leave their coin on exchange, immediately you purchase your coin on CEX exchange, make sure you transfer all your coin to your non custodial wallet. You are advicing people not to leave all their funds on CEX exchange, you are encouraging people to leave some of their money on CEX exchange which I think is wrong, make sure you move all your funds from CEX exchange.

Don't you think Bitcoin could be more better without centralized exchanges than when we have them since all they could contribute is adding up alot of altcoins to pile up the whole crypto space and get people distracted towards investing on some of these coins at the end of their look for Bitcoin, to the best of my knowledge Bitcoin will be more under best of interest without them which will encourage having personal wallet that could be non custodial.

If we are to be honest, we all know both CEX and DEX exchange contribute to pile up of altcoins in Cryptocurrency space, we shouldn't blame only CEX for that. Am sure anyone that's really dedicated won't be distracted by altcoins, their are lot's of altcoins currently but people are still investing in bitcoin, anybody investing in altcoins those not have any excuse to give. I notice most people investing in altcoins are the once looking for fast money.

[coupable]

Trading platforms provide important services to crypto communities.  And since the whole field is newly formed, it is obvious that you will find loopholes for each system.  This is what stimulates critical thinking that helps users choose among many service providers, and helps platforms to further develop and update.

When you are forced to use a certain thing despite all its defects because there are no alternatives to compensate for some of its bad characteristics, you will surely hate it.

[lionheart78]

I agree taht CEX plays a major part in cryptocurrency adoption.  Without them to have a market for Bitcoin and other cryptocurrencies, only a few will take an interest in Bitcoin since there is no place for profit and people are highly motivated by profit.  With the presence of exchanges, people are able to put a flow of supply and demand.

CEX is just taking advantage of the business on top of the Bitcoin and cryptocurrency ecosystem.  Although there are exchanges that are cheating their client, there are still several CEX that gives a good and honest service to its client, so I agree that CEX may probably deserve the criticism but not hate because of their help in spreading Bitcoin adoption.

[Odusko]

In as much as we have trusted centralized exchanges we should not get carried away with the trust slogans since cex is in the hands of the CEO and no matter what the level of regulations are centralized exchange is still not the best choice for storing your coins.
But exchanges have been a helpful connection point for various crypto traders and help in the area of adoption.

[TimeTeller]

In as much as we have trusted centralized exchanges we should not get carried away with the trust slogans since cex is in the hands of the CEO and no matter what the level of regulations are centralized exchange is still not the best choice for storing your coins.
But exchanges have been a helpful connection point for various crypto traders and help in the area of adoption.

Centralized exchanges are here to offer various services to crypto users, which for me, I can appreciate their existence.
But certainly, we should not store our coins to these platforms but to your own wallet to ensure that you always have full control of your funds.
Even if the trading platform is reputable and top in this industry, we can never be sure what will happen next.
So better safeguard your funds rather than rely on third party wallets. You can't get out your funds fast if the platform encounter any problem.

[Scripture]

After the whole issues of FTX my advice is though buying from CEX is safer but storing all your funds there should be avoided and for holders just stick with DEX.

There are a lot of issues with CEX, this is why you need to choose the best option and never hold any crypto with CEX, you have to learn from what happen to many exchanges. I still not suggest to hold on DEX, better if you are planning for long term holding do it on your hard wallet, it is more safe and you have the control over your crypto. CEX is good for liquidity and trading, maximize that option and be wise.

[serjent05]

I've used a few of the exchanges you mentioned above and so far, I do not encounter any issues and everything is still working fine. I still use CEX over DEX due to the convenience factor of trading and I haven't tried using DEX yet.

But it's true what you suggest that we don't keep all our funds in CEX because we don't know what will happen later. We should anticipate all the things that might happen than regret it later.

I have used DEX, but to be honest, I still prefer CEX, CEX provides more services and utilities than DEX. And I like you, never had a problem with CEX, I think we shouldn't hate all CEX just because FTX crashes. Cryptocurrency is a market that is always risky all around us, so whether CEX or DEX, never put too much trust in them, don't leave assets on CEX or DEX, they are all unreliable. We can continue to use CEX as long as we never leave money on it we will have no problem.

Same here, I am uncomfortable using DEXes, maybe because I am used in the interface of a CEX.  Besides CEX makes it easy to trade different cryptocurrencies without the trouble of opening different kinds of wallets due to different networks.  No matter how we see it, CEX makes trading different cryptocurrencies more comfortable and easier.  Even though it is easier to trade in CEX, it is not advisable to use it as a safe to keep our funds in it since it is not designed that way.