Why does Bitcoiner still support the use of centralized exchanges?

[Abu-Naim]

I did some research on Bitcoin because I was interested in it, and I discovered that the key principles of Bitcoin are peer-to-peer, anonymity, pseudonymity, decentralization, and operating without a middleman to ensure that Bitcoiners can have financial freedom. However, despite knowing that Bitcoiners adhere to these tenets, why do some Bitcoiners act contrary to them? Why do they continue to support centralized exchanges, use them, and retain their Bitcoin there?

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[Solosanz]

I discovered that the key principles of Bitcoin anonymity

why do some Bitcoiners act contrary to them? Why do they continue to support centralized exchanges, use them, and retain their Bitcoin there?

Anonymity isn't one of key principles of Bitcoin, if you not use Bitcoin mixer or Coinjoin, you're still can get traced because Bitcoin use a public blockchain where anyone can see your address, transaction, how much you hold, where your coins come from etc.

Many people are still supporting centralized exchanges because they find it's more convenient to use and they feel safe to trust a top centralized exchanges. They're not entirely understand and use Bitcoin like the purpose, but they only focus about making money.

[Tytanowy Janusz]

I did some research on Bitcoin because I was interested in it, and I discovered that the key principles of Bitcoin are peer-to-peer, anonymity, pseudonymity, decentralization, and operating without a middleman to ensure that Bitcoiners can have financial freedom. However, despite knowing that Bitcoiners adhere to these tenets, why do some Bitcoiners act contrary to them? Why do they continue to support centralized exchanges, use them, and retain their Bitcoin there?

Funds on cex are held only by those who cannot safely store them themselves (lack of knowledge) and those who need funds for active trading (thanks to them, bitcoin has liquidity and, as such, price stability). Traders can't let go of CEXs, because dexes do not trade real bitcoin, but wrapped in a centralized way BTC on BSC or ETH (not to mention the performance differences). So trading on CEX is no different than trading on dex in terms of bitcoin and safety of funds.

[Lorence.xD]

I did some research on Bitcoin because I was interested in it, and I discovered that the key principles of Bitcoin are peer-to-peer, anonymity, pseudonymity, decentralization, and operating without a middleman to ensure that Bitcoiners can have financial freedom. However, despite knowing that Bitcoiners adhere to these tenets, why do some Bitcoiners act contrary to them? Why do they continue to support centralized exchanges, use them, and retain their Bitcoin there?

You know it much more convenient to have transactions to examples you've mentioned above OP. But still people could track your addresses which could cause to many criminal activities suich as fraud and scams. People still prefer to have centralized system as some legitimate exchanges could guarantee the safety of your funds and can ensure you to transact with legit people. Imagine putting your funds in not centralized manner and it's up to your decisions if your fudns would be safe.

[thecodebear]

Well, centralized exchanges are the primary way to buy and sell Bitcoin. Decentralized exchanges are much newer and much less well known and usually have large price differentials from the current price of Bitcoin - like on a decentralized exchange the price might be a thousand dollars higher, so that makes people not want to buy it through there.

Centralized exchanges are also just more efficient and easier to use, which is what most people want when they are buying and selling, along with the best price.

[Merit.s]

I did some research on Bitcoin because I was interested in it, and I discovered that the key principles of Bitcoin are peer-to-peer, anonymity, pseudonymity, decentralization, and operating without a middleman to ensure that Bitcoiners can have financial freedom. However, despite knowing that Bitcoiners adhere to these tenets, why do some Bitcoiners act contrary to them? Why do they continue to support centralized exchanges, use them, and retain their Bitcoin there?

Traders uses CEX for easy exchange and to trade,because cex makes it more convenient,easy and cheaper for them. So many people uses CEX because they are lazy and can't take the responsibility of keeping their bitcoin safe in a noncustodial wallet. Lack of knowledge on how bitcoin is designed and how to store it is also another reason. Bitcoin is decentralized in nature and should be used in that way. You can buy any kind of cryptocurrency in Cex because they have all type of cryptocurrency.

[Asuspawer09]

I did some research on Bitcoin because I was interested in it, and I discovered that the key principles of Bitcoin are peer-to-peer, anonymity, pseudonymity, decentralization, and operating without a middleman to ensure that Bitcoiners can have financial freedom. However, despite knowing that Bitcoiners adhere to these tenets, why do some Bitcoiners act contrary to them? Why do they continue to support centralized exchanges, use them, and retain their Bitcoin there?

A centralized exchange is a platform where you can easily buy Bitcoin using your Fiat money, you could easily use something like your Debit or credit card to buy on the platform, and an easy way to trade your cryptocurrency to the different blockchain networks. Yes, most of us hate centralized exchange but it just has advantages and disadvantages, one of the disadvantages of it is it is centralized and we don't have complete control of our own funds.

But it's still a legitimate exchange platform, it's easy, and convenient to use the platform, and most of the traders use the platform even though they hated centralized exchange because it's convenient, just don't put funds or invest in the long term on this platform. You could just buy on it, or exchange your crypto on an exchange then take the funds out to a more secure wallet.

[hugeblack]

Because they view the bitcoin as an investment, regardless of the way the Bitcoin is designed, but the abuse of use (using something other than what was made for it) is famous in almost everything and therefore the profits are what these people move.

Also, we cannot launch a specific template for the reason for using bitcoin, even if Satoshi returns and said: Do not use bitcoin except for a specific purpose, people will not listen to him/them.

[EarnOnVictor]

Why do they continue to support centralized exchanges, use them, and retain their Bitcoin there?

This might look strange to you, it's the centralized exchange that has made Bitcoin more colourful, adaptable and appreciated thus far, not the decentralized ones. Everyone needs speed, easiness, flexibility and dynamism in what they do, that's what the centralized exchange is giving. They've given us a reason to own a coin without fear of how to sell it and how fast it could be achieved since there is easy access to using it the way we want.

Is it for investment, skating, trading, exchange, you name it? The centralized exchange makes these so easy. And their P2P system is the best. Personally, I might have been discouraged without them.

[Minecache]

Yes, bitcoin was initially created as a payment method that could work without a 3rd party. But nowadays, people are considering and using bitcoin as an investment, they are less concerned with the function and utility of bitcoin but only interested in profit and convenience for them. And CEX provides all the services that investors need in the most convenient way. 
Moreover, the market is not only bitcoin, but we also have altcoins, and if you want to invest, buy, sell, and trade altcoins, you must go with CEX. It can be said that it plays an important role in the market whether you use it or not because people still need it.

[BitDane]

Convenience is one of the major reasons why most Bitcoiners use centralized exchanges.  Aside from that, many incoming Bitcoin users are informed by the advertisement of these centralized exchanges.  In short, centralized exchanges are the reason why these people get involved in Bitcoin so it is logical that these people who are informed by centralized exchange to use their services.  That is what I think why most of us uses centralized exchanges the same way I also use centralized exchange because it is the one that introduce Bitcoin and other cryptocurrency to me.

[LogitechMouse]

Why do they continue to support centralized exchanges, use them, and retain their Bitcoin there?

Can you name a more convenient way of buying and selling Bitcoin aside from buying it from Centralized exchanges?

I doubt you can't say because there's no other way that is consider convenient is more convenient than buying it on Centralized exchanges. I mean yes Bitcoin has been created so that people can transact without any middleman on it, but nowadays, there are many people who are scamming these innocent holders of Bitcoin, thus they find a way to buy more Bitcoin in a safer way, and the way that they see is to buy thru these centralized exchanges.

Why do investors retain their Bitcoin there? It isn't advisable to retain, and store any coins in exchanges especially in the centralized ones, but for some investors, it's a way for them to sell their coins way faster if they needed it. I mean if they store it in a hardware wallet, then suddenly the price of Bitcoin spiked up and they choose to sell it, they need to wait a few minutes because of the transaction, and in that span, price of Bitcoin might go low already, so I guess that's the reason why they are storing it there.

Another reason is that they're traders. It's pretty obvious that traders will really store their Bitcoins on Centralized exchanges. Why do people use CEX? Because it's convenient, easy to buy, easy to sell, and trusted (only a few).

[Gyfts]

Convenience is one of the major reasons why most Bitcoiners use centralized exchanges.  Aside from that, many incoming Bitcoin users are informed by the advertisement of these centralized exchanges.  In short, centralized exchanges are the reason why these people get involved in Bitcoin so it is logical that these people who are informed by centralized exchange to use their services.  That is what I think why most of us uses centralized exchanges the same way I also use centralized exchange because it is the one that introduce Bitcoin and other cryptocurrency to me.

Part of that convenience is that people have the false belief that CEX is safer because should any issues arrive, they have an entity to seek some sort of remedy. What they don't realize is that most of these exchanges don't operate within their jurisdiction and could disappear the next day without providing them an explanation. CEX gives the illusion of safety because a 3rd party intermediary exists but it's that 3rd party intermediary that should provoke the most distrust.

[bayu7adi]

Traders and investors require faster and more comprehensive services for their activities. If DEXs are not able to meet those needs, then CEXs will remain the best option. However, not all feature-rich CEXs can serve as a home for crypto traders and investors, but only those CEXs that have official permits and are supervised by relevant security agencies, both at the international and national levels. Additionally, pay attention to the reputation of the cryptocurrency exchange because every exchange has the potential to suddenly confiscate user funds.

Always be mindful of how you store your money because when you keep your funds in a custodial wallet, your money is managed by someone else who could potentially compromise its security. So, be cautious even if you're using the most well-known exchange, as their security is not foolproof.

[tabas]

I did some research on Bitcoin because I was interested in it, and I discovered that the key principles of Bitcoin are peer-to-peer, anonymity, pseudonymity, decentralization, and operating without a middleman to ensure that Bitcoiners can have financial freedom. However, despite knowing that Bitcoiners adhere to these tenets, why do some Bitcoiners act contrary to them? Why do they continue to support centralized exchanges, use them, and retain their Bitcoin there?

Time is passing so fast and things are changing and that's the most constant thing in this world. Yes, all of those attributes sums up with bitcoin and we can't help with these changes adoption that happens. Someone who uses a centralized exchange doesn't mean that he's not a bitcoin enthusiast. Yes, there are P2P exchanges and transaction that we can do for us to have those bitcoins that we sell converted into any currency that we want. But I guess these purposes and attributes is being defeated by comfort and availability that we can see in cexs.

[Jawhead999]

Can you name a more convenient way of buying and selling Bitcoin aside from buying it from Centralized exchanges?

I doubt you can't say because there's no other way that is consider convenient is more convenient than buying it on Centralized exchanges. I mean yes Bitcoin has been created so that people can transact without any middleman on it, but nowadays, there are many people who are scamming these innocent holders of Bitcoin, thus they find a way to buy more Bitcoin in a safer way, and the way that they see is to buy thru these centralized exchanges.

Why do investors traders retain their Bitcoin there? It isn't advisable to retain, and store any coins in exchanges especially in the centralized ones, but for some investors traders, it's a way for them to sell their coins way faster if they needed it. I mean if they store it in a hardware wallet, then suddenly the price of Bitcoin spiked up and they choose to sell it, they need to wait a few minutes because of the transaction, and in that span, price of Bitcoin might go low already, so I guess that's the reason why they are storing it there.

I think convenient is a subjective matter, I don't think it's not convenient to buy Bitcoin from decentralized exchange.

You're need to create your account by submitting your email and password, then confirm the code which send into your email.

In centralized exchange, you need to verify your KYC and they will ask you to wait for maximum 7 days, they can reject it and ask you to submit more clear version, let's say you've successfully verify your account, in the next month or year, they can demand more pictures, if you can't do it, you can't use the exchange.

In decentralized exchange, you don't need to verify anything and you can link your bank account or other payment, then you can start to trade!

[btc_angela]

I did some research on Bitcoin because I was interested in it, and I discovered that the key principles of Bitcoin are peer-to-peer, anonymity, pseudonymity, decentralization, and operating without a middleman to ensure that Bitcoiners can have financial freedom. However, despite knowing that Bitcoiners adhere to these tenets, why do some Bitcoiners act contrary to them? Why do they continue to support centralized exchanges, use them, and retain their Bitcoin there?

Centralized exchanges do offer liquidity though, that's why we keep on using them. As we all know that bitcoin is one of the most tradeable assets, so we look for platforms like those centralized exchange because they give us the ability to trade safe and provide liquidity.

Although there are DEX, it's kinda slow and their is not enough liquidity.

So there is a trade off for us traders on the used of CEX and DEX, each has it's own pros and cons.

[fuguebtc]

In general, people's need is convenient, fast, multi-functional, and cheap fees, and centralized exchanges provide all those features. In addition, people have been used to centralized services from banks for hundreds of years, so it is difficult to change their habits, and it is not uncommon for people to choose CEX over DEX. In addition, bitcoin today is not only used as a currency, it is used for investment purposes, buying and selling is also a way for people to make profits, and CEX is where you can trade. CEX offers many facilities while DEX has too many limitations.

[virasog]

I did some research on Bitcoin because I was interested in it, and I discovered that the key principles of Bitcoin are peer-to-peer, anonymity, pseudonymity, decentralization, and operating without a middleman to ensure that Bitcoiners can have financial freedom. However, despite knowing that Bitcoiners adhere to these tenets, why do some Bitcoiners act contrary to them? Why do they continue to support centralized exchanges, use them, and retain their Bitcoin there?

Mainly two reasons: -

1- There are no mature decentralized exchanges where one can do spot and future trading and also decentralized exchanges lacked liquidity.

2- Some people do not want to get into the hassle of seed phrases, decentralized wallets, bridging between the network, configuring meta mask, electrum, and trust wallets and they prefer to use one password and one 2fa to access the exchanges. They are happy with Web 2.0 and may need time to understand web 3.0.

[Rikafip]

In decentralized exchange, you don't need to verify anything and you can link your bank account or other payment, then you can start to trade!

I wish it was that easy. Have you tried buying bitcoin via Bisq, which is generally considered to be the best decentralized exchange?

First, you have to already have some bitcoin in order buy/sell, which means its not convenient for first time buyers. 2nd, volume is so low that you will wait for a couple of days for your order to go through and if you want to deal with bigger amounts you will lose a lot.

 

[Dr.Bitcoin_Strange]

Generally speaking about all Bitcoiners, that's false, but for some Bitcoiners, it's the truth, but centralized exchange plays a vital role in Bitcoin adoption. There are newbie in which when they join the crypto space, it was through some CEX that they were able to easily buy their first coin.

I bought my first Bitcoin on a CEX and that's because, I learned it was from there I could only buy and sell Bitcoin, I am just beginning to discover some non KYC p2 p Bitcoin trading platform recently. but even while using a CEX, always learn to keeps your coin off the exchange.

[YUriy1991]

In my opinion one of the main principles of Bitcoin is decentralization, well, there are several reasons why some Bitcoiners still use a centralized exchange because of Liquidity, User Experience and Security factors also exist and Please remember storing Bitcoins on a centralized exchange means you are essentially trusting a third party with your assets, which is against the principle of decentralization. In addition, centralized exchanges can be subject to regulation and government shutdowns, which can pose a risk to user funds.

In my view, regarding the decision to use a centralized exchange or not is a personal decision and depends on individual preference and risk tolerance and Some Bitcoiners may choose to use a centralized exchange for the reasons stated above, while others may prefer to stick with the decentralized option to maintain full control of their Bitcoins.

[o_e_l_e_o]

So many people simping for centralized exchanges. On a bitcoin forum as well. Unbelievable.

However, despite knowing that Bitcoiners adhere to these tenets, why do some Bitcoiners act contrary to them?

Here's the real answer OP: Laziness and greed.

They are either too lazy to do any research before they start and find out that centralized exchanges are some of the most corrupt and most scammy organizations in existence and the most dangerous and risky place to leave their coins, or they are so lazy that they know all this but decide they can't be bothered to set up a wallet and write down 12 words, so will just risk all their coins instead.

Alternatively, greed. They are willing to risk their coins on these centralized exchanges which promise them interest, staking, or other rewards at obviously unsustainable levels, even though we have seen dozens of such platforms scam or go bankrupt and everyone who was using them lose everything.

[Argoo]

Yes, bitcoin was initially created as a payment method that could work without a 3rd party. But nowadays, people are considering and using bitcoin as an investment, they are less concerned with the function and utility of bitcoin but only interested in profit and convenience for them. And CEX provides all the services that investors need in the most convenient way. 
Moreover, the market is not only bitcoin, but we also have altcoins, and if you want to invest, buy, sell, and trade altcoins, you must go with CEX. It can be said that it plays an important role in the market whether you use it or not because people still need it.

All participants in the cryptocurrency market live on the territory of a state and are forced to live according to its established norms. Also, probably, no one doubts that almost all exchanges sooner or later will fall under the influence and regulation of states. Therefore, a certain part has already come to terms with this and enjoys a certain protection when using centralized exchanges. Centralization and decentralization will exist together for a long time to come.

[Bananington]

Here's the real answer OP: Laziness and greed.

Misinformation is also a reason, some people think that because bitcoin is decentralised, every thing related to it is also decentralised, for example because exchanges are needed in cryptocurrency and for bitcoins, that they are decentralised. Some set of newbies do not really know what decentralised should be and it's importance, to them decentralised is just another word.

[Hypnosis00]

Because the market is flooded with centralized exchanges and they've been thinking that they are safe and anonymous ( which is unfortunately not).
Whatever their reasons are, as long as these centralized exchanges still exist in the crypto space, you can't ask these people not to support and use this platform as they certainly are.

And to be honest, I was one of these people who believe in and trust centralized exchanges because I was been comfortable using this.
They are not safe perhaps that is why I'd never keep my funds in them for a long period of time.

[Nwada001]

Anyone using centralized exchanges for storing Bitcoin and not just for buying or selling crypto does not deserve to be called a true Bitcoiner. 
Those who save their coins on centralized exchanges are those who I believed to be misformed, or will I say they are people who are not yet ready to take responsibility for their own security?
If not all that's just required is simple step, create wallet backup their wallet and take responsibility of their own security and not hand it over to a third-party which promise's what they can't actually keep.
Centralized exchanges are just meant for trading and not for storing crypto; there is no better use for them than that. 

[Ojima-ojo]

I did some research on Bitcoin because I was interested in it, and I discovered that the key principles of Bitcoin are peer-to-peer, anonymity, pseudonymity, decentralization, and operating without a middleman to ensure that Bitcoiners can have financial freedom. However, despite knowing that Bitcoiners adhere to these tenets, why do some Bitcoiners act contrary to them? Why do they continue to support centralized exchanges, use them, and retain their Bitcoin there?

Truth be told, bitcoin is embedded with all the necessary features that could enable its independent existence and usage with third-party involvement, but then for the sake of adoption and security bitcoin still need to interact with other third-party entities such as exchange and other payment platform that exchange bitcoin to fiat before it used for payment of goods and services.


Since Satoshi's idea of Bitcoin exchange is per p2p but for the p2p there is a need for escrow so the exchange is now the third-party escrow due to security challenges and trustees for transactions, if you don't want to use the centralized exchange you can choose to used other decentralized exchange we have around for privacy purpose.

[Ever-young]

Here's the real answer OP: Laziness and greed.

Misinformation is also a reason, some people think that because bitcoin is decentralised, every thing related to it is also decentralised, for example because exchanges are needed in cryptocurrency and for bitcoins, that they are decentralised. Some set of newbies do not really know what decentralised should be and it's importance, to them decentralised is just another word.

Their is no level of misinformation that can make one not be able to differentiate the difference between a centralized system and that of decentralization.
What exactly makes the person to be a Bitcoiner if they don't care about their privacy.. once you enter a platform which requires you to make some kind of verification that's above email confirmation, to the level that you need your ID and personal information. You should be concerned enough even if you were misinformed from the first place, you have the right to ask for clarification. 

[Taskford]

I did some research on Bitcoin because I was interested in it, and I discovered that the key principles of Bitcoin are peer-to-peer, anonymity, pseudonymity, decentralization, and operating without a middleman to ensure that Bitcoiners can have financial freedom. However, despite knowing that Bitcoiners adhere to these tenets, why do some Bitcoiners act contrary to them? Why do they continue to support centralized exchanges, use them, and retain their Bitcoin there?

Because its more convenient to use and more famous due to well known or groups of people promoting it. Cex are very well market that's why we can see majority going unto it than going to Dex. Also maybe many has less concern about anonymity now since what the matter the most is reputation and how they can use those platform since all want more accessible exchange to use.

[Gallar]

I did some research on Bitcoin because I was interested in it, and I discovered that the key principles of Bitcoin are peer-to-peer, anonymity, pseudonymity, decentralization, and operating without a middleman to ensure that Bitcoiners can have financial freedom. However, despite knowing that Bitcoiners adhere to these tenets, why do some Bitcoiners act contrary to them? Why do they continue to support centralized exchanges, use them, and retain their Bitcoin there?

Bitcoin is indeed decentralized, anonymous and those who own it are financially free, but at this time there are still many countries that have not allowed bitcoin to be fully legal, let alone to be used as a means of payment, it seems that it is still far from being able to happen throughout the world. Even though there are countries that use bitcoin as a means of payment, such as El Salvador. But still, that's only one country, there are still very many countries that have not been able to fully accept bitcoin.

And thus, bitcoiners must still follow the rules made by their respective countries, even though it is against the philosophy of bitcoin. But it is still an obligation that must be carried out by its citizens. such as using legal money in the country, and other rules.

maybe that's the factor that makes bitcoiners still use fiat money, a centralized system and other rules.

[Darker45]

There may be several reasons and factors. There's convenience. There's lack of Bitcoin education. There's also the fact that many purchased their Bitcoin from centralized exchanges and rather than move them right after, they just kept it there. There's also trading. But on top of this all, there's the fact that many Bitcoin supporters are not really supporters of the very essence of Bitcoin. They're with Bitcoin because of its fiat price equivalent. Had Bitcoin not been assigned with a USD price value, they wouldn't have cared about it.

But the more surprising thing really is not that majority, which are mostly ignorant Bitcoin laymen, fell victim to centralized platforms; it is that even those who came early, went all in, and were thoroughly convinced of Bitcoin's technology like CZ ended up creating the very problem Bitcoin tries to solve.

[light_warrior]

Centralized exchanges gives an extra stratum of security and safety when it comes to affairs and trading. By facilitating the transaction through developed centralized platform, centralized exchanges offer higher levels of comfort.

Only for comfort you have to pay. And sometimes you have to pay by unpopular methods, like KYC, for example. Yes, CEXs can provide enhanced security measures (such as two-factor authentication). However, it's important to note that CEXs can also be vulnerable to hacks and security breaches because they store large amounts of user funds in one place. So you need to be careful when choosing CEX for your use.

[Adbitco]

So many people simping for centralized exchanges. On a bitcoin forum as well. Unbelievable.

However, despite knowing that Bitcoiners adhere to these tenets, why do some Bitcoiners act contrary to them?

Here's the real answer OP: Laziness and greed.

Sorry sir to ask this, what about those who uses it for trade in some broker or in those centralized exchange. Does it mean you are  not in support of those using it for trading in other to remain anonymous?
I think there will be no profits using peer-to-peer for trading, it is only better when using p2p for a swap of other coin than btc, in as much as trading exist there is no way people do away centralized exchange for trading. In essence, they can move any amount of btc to a centralized exchange for trading and after which they make profits they pull it out and store in secure place.

Sorry if my question gets you angry or annoys you.

[Hyphen(-)]

Centralized exchanges gives an extra stratum of security and safety when it comes to affairs and trading. By facilitating the transaction through developed centralized platform, centralized exchanges offer higher levels of comfort.

I don't believe a centralized exchange provides additional security, as you claim, because I always feel unsafe when using one.

Remember that you will be providing your personal information during KYC before the exchange will allow you to trade with them, so why should I feel safe with my information and Bitcoin in their hands?

I hope you are aware of what happened with FTX; this should serve as a warning to avoid dealing with centralized exchanges because they cannot be trusted.

[vv181]

The financial freedom that Bitcoin could give can be utilized or not. Some people maximise the utility of Bitcoin's key principles, some choose not to. Does it a matter of preference or condition? I think so, people have the freedom to choose how they use Bitcoin. In an ideal way, they should have run their own node to maintain decentralization and participate in the community to advocate some changes within the developmental process, and many things that directly support the tenets you have mentioned.

Some people just don't care about what made Bitcoin stand strong, they just it as a gateway, say, for a mere investment purpose.

[o_e_l_e_o]

Centralized exchanges gives an extra stratum of security and safety when it comes to affairs and trading.

Centralized exchanges are, by far, the least safe and the most risky place to send your coins.

Does it mean you are  not in support of those using it for trading in other to remain anonymous?

You cannot be anonymous when using a centralized exchange. Even if you don't complete KYC, they log absolutely everything you do, everything about your computer, device, IP, location, etc., and use blockchain analysis to look in to the history of your deposits and withdrawals.

In essence, they can move any amount of btc to a centralized exchange for trading and after which they make profits they pull it out and store in secure place.

There exist non-custodial exchanges which allow day trading via smart contracts and atomic swaps.

[Jawhead999]

I wish it was that easy. Have you tried buying bitcoin via Bisq, which is generally considered to be the best decentralized exchange?

First, you have to already have some bitcoin in order buy/sell, which means its not convenient for first time buyers. 2nd, volume is so low that you will wait for a couple of days for your order to go through and if you want to deal with bigger amounts you will lose a lot.

That's why I not mentioned Bisq because many people find it's hard to fund your account before you can start to trade, there are still many choices of No KYC P2P where you don't need to submit KYC and you don't need to fund your account.

Liquidity matter in P2P or DEX is inevitable, but I don't understand why people need their Bitcoin in hurry except if they're traders. When I buy Bitcoin through P2P, I don't really care when someone will interested with my offer as I don't have a plan to sell it in the next few week or month.

[Etranger]

Why do they continue to support centralized exchanges, use them, and retain their Bitcoin there?

Using centralized exchange doesn't mean they advocate or support centralization when using Bitcoin. Unless you use USD or EUR, it's hard to find decentralized exchange which has liquidity/volume on your local fiat currency. For example, on Bisq there are only 4 fiat which has 7d volume higher than $50K[1] and 5 more which has 7d volume between $1K to $5K[1].

[1] https://bisq.markets/markets

In addition to high liquidity, centralized exchanges also usually have a simple and clear interface that allows traders to easily understand and execute buying and selling operations, while decentralized exchanges can be difficult for beginners to use. From my experience, I can say that one of the advantages of using centralized exchanges is the customer support service, which provides fast and efficient support in case of problems.

[Helena Yu]

In addition to high liquidity, centralized exchanges also usually have a simple and clear interface that allows traders to easily understand and execute buying and selling operations, while decentralized exchanges can be difficult for beginners to use. From my experience, I can say that one of the advantages of using centralized exchanges is the customer support service, which provides fast and efficient support in case of problems.

I don't think decentralized exchange don't have a simple and clear interface, there are many features offered by a centralized exchange like spot trading, leverage trading, trading account, personal account, etc. While decentralized exchange they only focus about the buy and sell offers, as there's no other thing you can use due to their limited feature.

Centralized exchange have a customer support because they will always receive a complaint due to their dirty activities e.g. freeze or terminate your account. While decentralized exchange they will not freeze or terminate your account, so they don't have any reason to have a customer support.

If you think it's difficult, they have a tutorial to use it [1]. Anything this world is difficult, but it will not be difficult if you have learn it.

[1] https://bisq.network/getting-started/

[yhiaali3]

The first reason to use CEXs is to trade for profit, some people want to increase their profits so they deposit bitcoins in CEXs and then take advantage of the price fluctuations.

Others find CEXs more than safer than P2P because CEXs secures users' money as they think it is, but they realize their mistake when accidents happen.

In every new invention, there is a category of people riding the wave and trying to turn the invention in favor. This is what happened with Bitcoin in a way that made it deviate from the goals for which it was created.

[DanWalker]

In addition to high liquidity, centralized exchanges also usually have a simple and clear interface that allows traders to easily understand and execute buying and selling operations, while decentralized exchanges can be difficult for beginners to use. From my experience, I can say that one of the advantages of using centralized exchanges is the customer support service, which provides fast and efficient support in case of problems.

I don't think decentralized exchange don't have a simple and clear interface, there are many features offered by a centralized exchange like spot trading, leverage trading, trading account, personal account, etc. While decentralized exchange they only focus about the buy and sell offers, as there's no other thing you can use due to their limited feature.

Centralized exchange have a customer support because they will always receive a complaint due to their dirty activities e.g. freeze or terminate your account. While decentralized exchange they will not freeze or terminate your account, so they don't have any reason to have a customer support.

If you think it's difficult, they have a tutorial to use it [1]. Anything this world is difficult, but it will not be difficult if you have learn it.

[1] https://bisq.network/getting-started/

Yes, the only difference between centralized and decentralized exchanges is the services and utilities that investors need. This is an investment, money-making market, so people will always find a way to make a profit, not just buy and hold, and centralized exchanges offer many different solutions for investors to choose from. One of the most used services is trade, and this is a limitation of most decentralized exchanges. I am a trader, making money mainly by day trading, and I can only find it on CEX, so using CEX is a must, no second choice.

[Mpamaegbu]

Why do they continue to support centralized exchanges, use them, and retain their Bitcoin there?

The only reason, I should think, to the best of my perspicacity for patronising centralized exchanges won't be far from the fact that they afford users an ease of trading and the availability of several cryptos to choose from on the site. Dexs don't have the type of options of cryptos centralized exchanges have. They have limited trading pairs. As for those who don't trade but keep their coins on Cexs, that's bad and should be discouraged because Cexs aren't safe and secured.

[Etranger]

Centralized exchange have a customer support because they will always receive a complaint due to their dirty activities e.g. freeze or terminate your account. While decentralized exchange they will not freeze or terminate your account, so they don't have any reason to have a customer support.

If you think it's difficult, they have a tutorial to use it [1]. Anything this world is difficult, but it will not be difficult if you have learn it.

[1] https://bisq.network/getting-started/

I don't think the only reason for CEX to have a customer support is due to complaints from the customers. I didn't have any problems with my account being blocked or my funds frozen, but I did get help from customer support on how to use the features, tools that the exchange offers, how to make certain types of trades, etc. And these answers were provided very quickly and qualitatively.

And I definitely did not mean that someone needs to use centralized exchanges, because it is easier. I am not advocating that one should avoid difficulties and not learn to understand them. I just meant that in many centralized exchanges the interface is more intuitive, which is a big advantage in modern life, because it saves time and allows you to focus not on the functional side of the issue, but on its substantive component.

[dansus021]

Like it or not Centralized Exchange is here to support the bitcoin

an early adopter is using Peer 2 Peer transactions but centralized exchange comes to help for the past 10 Year there is always a problem with Cex but not all the CeX is bad in my opinion. Some of it made bitcoin even grow more.

Decentralized Come to exist to made a balance between Centralized Exchange but not all the Dex is pure gold there is always some shit too. Just keep educate ourself and do our own research first

[puloweh555]

I think it all depends on the user's need for convenience, speed, ease of use, and low cost are often factors that influence the use of CEX compared to DEX. as well as some Bitcoiners who do use centralized exchanges for speculative trading or short-term investment purposes, and they may feel that centralized exchanges are better suited for this purpose than DEXs.

Today's use of Bitcoin is not only for day-to-day transactions but also for investment and trading purposes. CEX is often a more popular place to trade because it offers more features and support such as market analysis, automated trading tools and better customer support.

However, DEXs offer important advantages in the form of decentralization and direct control over assets. DEX is also capable of addressing some of the security issues and risks associated with CEX, such as the risk of platform failure and hacker attacks. However, because DEXs are still relatively new and growing, they may have limitations in terms of liquidity and limited feature support.

[Ale88]

I did some research on Bitcoin because I was interested in it, and I discovered that the key principles of Bitcoin are peer-to-peer, anonymity, pseudonymity, decentralization, and operating without a middleman to ensure that Bitcoiners can have financial freedom. However, despite knowing that Bitcoiners adhere to these tenets, why do some Bitcoiners act contrary to them? Why do they continue to support centralized exchanges, use them, and retain their Bitcoin there?

You are mixing too many things all together. Personally I have nothing against centralized exchanges because at the end they are the easiest, quickest and safest way to buy bitcoin for a newbie. If they didn't exist not everyone would understand how to buy them on some decentralized exchange or even on the street meeting someone, which is also dangerous by the way.

They should be seen just as the very first step, after you understand how they work you're supposed to move your coins/tokens in a private wallet, not leaving them there.

[Rikafip]

Liquidity matter in P2P or DEX is inevitable, but I don't understand why people need their Bitcoin in hurry except if they're traders.

True, getting BTC asap shoulnd't be a problem, but it can be a problem when you are on the other side and have to sell some bitcoin ASAP and then you have to wait for a couple of days (talking about Bisq here) for your order to go through or sell way below market price in order to speed it up.

Luckily, here in Croatia we have plenty of places where you can sell bitcoin in physical exchanges that don't ask for KYC under certain amount, or even better do a direct P2P via one of popular Telegram groups.

[avp2306]

I did some research on Bitcoin because I was interested in it, and I discovered that the key principles of Bitcoin are peer-to-peer, anonymity, pseudonymity, decentralization, and operating without a middleman to ensure that Bitcoiners can have financial freedom. However, despite knowing that Bitcoiners adhere to these tenets, why do some Bitcoiners act contrary to them? Why do they continue to support centralized exchanges, use them, and retain their Bitcoin there?

Because its more convenient to use and more famous due to well known or groups of people promoting it. Cex are very well market that's why we can see majority going unto it than going to Dex. Also maybe many has less concern about anonymity now since what the matter the most is reputation and how they can use those platform since all want more accessible exchange to use.

All true. We can see those decentralize exchange everywhere because their owners are willing to spend a lot of money to spread out the information about their businesses. Then also we can also see them up partnering with more famous people to hype up their brand that's why its really easy to navigate those dex since this is more use than thousand number of people online.

[crypticj]

Well, you can use decentralized ways to buy and hold Bitcoin. The fact that you have some options is great and gives you freedom.
And besides, exchanges are great for people who have no knowledge about crypto and they want to try buying bitcoin without spending a lot of time figuring out how the whole system works.

So I think centralized platforms are great in terms of new people coming in crypto and adopting it. And the fact that some exchanges even work with governments like bitfinex and Lugano shows that they play a role in crypto adoption and promotion.

[Kakmakr]

The answer is simple : Not all "Bitcoiners" support the technology because they want decentralization. A large group of people are just speculators and they use Bitcoin as an investment option, so they need a fast and convenient way to buy and sell bitcoins... and centralized exchanges offer that to them.

Bitcoin is for everyone..... the traders and speculators and also for the hardcore supporters of decentralized technologies. We do not force people to use Bitcoin in one specific manner... 

[Obari]

I did some research on Bitcoin because I was interested in it, and I discovered that the key principles of Bitcoin are peer-to-peer, anonymity, pseudonymity, decentralization, and operating without a middleman to ensure that Bitcoiners can have financial freedom. However, despite knowing that Bitcoiners adhere to these tenets, why do some Bitcoiners act contrary to them? Why do they continue to support centralized exchanges, use them, and retain their Bitcoin there?

Apart from the risk of folding up, I think it is much more easier, convenient and even safer to use centralized exchanges for trades because we no longer have to pay for an external escrow and most times don't have to panic over the safety of our coins while indulging in trades.

I Personally understand the danger the danger of using centralized exchanges but the trust be told that I also enjoy it's convenience and also safety associated with the use of  these exchanges.

Most times we just follow the Norms and begin fighting or preaching against every little argument but the truth be told that we don't make some deep research and we are scared of merely an exchange when we're in cryptocurrency forgetting that cryptocurrency is risky entirely and nothing is certain in the industry and people should do whatever profits them without being scared.

[wxa7115]

I did some research on Bitcoin because I was interested in it, and I discovered that the key principles of Bitcoin are peer-to-peer, anonymity, pseudonymity, decentralization, and operating without a middleman to ensure that Bitcoiners can have financial freedom. However, despite knowing that Bitcoiners adhere to these tenets, why do some Bitcoiners act contrary to them? Why do they continue to support centralized exchanges, use them, and retain their Bitcoin there?

For the same reason the fiat system is still in place even if it is clearly a defective system, and that is because of convenience, the number of people which hold some bitcoin and which adhere to its most basic principles is limited, the majority of those holding bitcoin are looking more than anything to make money with it.

And centralized exchanges are a very good tool for those which have this objective, as centralized exchanges hold a massive volume, a small spread and many different trading pairs, making them a better option than decentralized exchanges for those people.

[ivankoh]

There are many bitcoiners operating independently according to their ideology, time has changed positions, wills, environmental influences make them ambiguous and seem to have distanced themselves from the general meaning of bitcoin's deep roots  and Satoshi.  Their desire to make money is unsustainable and their mentality is that they expect the SEC to create wealth for them, which inadvertently is a game of their own.
The dream of financial freedom and independence seems to have changed.  we no longer see consolidation in some bitcoiners and that is reality.

[witcher_sense]

I did some research on Bitcoin because I was interested in it, and I discovered that the key principles of Bitcoin are peer-to-peer, anonymity, pseudonymity, decentralization, and operating without a middleman to ensure that Bitcoiners can have financial freedom. However, despite knowing that Bitcoiners adhere to these tenets, why do some Bitcoiners act contrary to them? Why do they continue to support centralized exchanges, use them, and retain their Bitcoin there?

Being a bitcoiner, adhering to principles of decentralization, anonymity, self-sovereignty, the absence of middleman in peer-to-peer transactions, and other ones mentioned by you, means being a consistent person who respects the rights of others to free speech, expression, freedom to choose with whom to do business and, above all that, private property rights that command how all other rights should relate to each other. I am not against centralized exchanges for a simple reason: if we want Bitcoin to remain a decentralized and permissionless system, we should not prevent others to utilize this system as they see fit, even for those use cases that we personally don't like. A centralized exchange is no different from other services built upon Bitcoin: some enterprising person found a way to make money by gathering Bitcoin traders in one place. In my opinion, it perfectly adheres to the principles of non-aggression and mutually agreed on voluntary exchanges among self-sovereign persons who understand their rights and respect the rights of others.

[karabiber]

Although we are talking about the technology and philosophy of this business here, we are also trying to make money. Bitcoin does not have a single purpose. Transparency of transactions other than anonymity encourages us to use it. 
Decentralized exchanges are a place where your money is safer than centralized exchanges but people who do not know about a cold wallet or decentralized exchanges may prefer to use centralized exchanges as a wallet. There is also the trade and liquidity part of the business. 

Dex's do not promise liquidity. Cex, on the other hand, can respond to your requests thanks to its high volume and liquidity. By using a centralized exchange, you will not be doing anything against Bitcoin principles.

[o_e_l_e_o]

I think it is much more easier, convenient and even safer to use centralized exchanges for trades because we no longer have to pay for an external escrow and most times don't have to panic over the safety of our coins while indulging in trades.

What are you talking about? Centralized exchanges lock accounts, freeze coins, or just straight up scam/go bankrupt all the time. You are handing complete control of your coins over to a third party, who can (and often do) do anything they like with them. With a good decentralized exchange like Bisq, the coins stay under your control until the trade is complete. There is no possibility for them to steal your coins since they never have them in the first place. A good DEX is exponentially safer than a CEX.

By using a centralized exchange, you will not be doing anything against Bitcoin principles.

I mean, literally the first page of the Whitepaper:

What is needed is an electronic payment system based on cryptographic proof instead of trust, allowing any two willing parties to transact directly with each other without the need for a trusted third party.

A centralized exchange is a "trusted" third party. I use quotation marks here because I wouldn't trust any centralized exchange with a single satoshi of my money.

[Obari]

I think it is much more easier, convenient and even safer to use centralized exchanges for trades because we no longer have to pay for an external escrow and most times don't have to panic over the safety of our coins while indulging in trades.

What are you talking about? Centralized exchanges lock accounts, freeze coins, or just straight up scam/go bankrupt all the time. You are handing complete control of your coins over to a third party, who can (and often do) do anything they like with them. With a good decentralized exchange like Bisq, the coins stay under your control until the trade is complete. There is no possibility for them to steal your coins since they never have them in the first place. A good DEX is exponentially safer than a CEX.

I basically don't store my coins in centralized exchanges but I trade most times on those exchanges like binance  and I like the entire experience I get from there and there there also possibilities of stealing coins on those private exchanges ?
I would love to know the risk of associated with using private exchanges apart from not being a sole holder of your coins.

[OrgonePyramid]

After many time doing research and connecting the dots...

Its clear that we are in an economic world change, and cryptos are not here by coincidence
the Brics, gold backed currency fiat, El Salvador....

Defi will be the way, and after the recent news coming from EAU about DEFI future it seems it will begin to unfold
Btw there is a hidden project of a CEDEFI platform, regulatory compliance and with no KYC named UNIZEN zcx, they have the Best by far Defi exchange, just launched, in a way better to use than a Cefi like coinbase for example, with the lowest fees, and their team just come back from meetings on Dubai, they are one of the 2 projects financing the Doge-1 Moon Mision with XI protocol that should be launched this summer. So this all seems to be just ready to go mainstream

[crwth]

As much as someone like me does not want to use centralized exchanges, it just makes things easier for me. I just have rules that I set in order to be okay with what is happening.

• The coins that I have deposited are what I can afford to lose
• I'm using it to make more money
• Regularly withdraw coins from the exchange

We can never control what happens to the CEXs, but we can mitigate and make sure to lessen the risk you have with it. That's just me.

[initim]

Centralized exchange is more popular and easier than the decentralized hence the reasons investors will go for the popular one.We all want the More comfort.

[mvdheuvel1983]

I did some research on Bitcoin because I was interested in it, and I discovered that the key principles of Bitcoin are peer-to-peer, anonymity, pseudonymity, decentralization, and operating without a middleman to ensure that Bitcoiners can have financial freedom. However, despite knowing that Bitcoiners adhere to these tenets, why do some Bitcoiners act contrary to them? Why do they continue to support centralized exchanges, use them, and retain their Bitcoin there?

I listened to an radio interview on this and the reason the person give was that, most people who go contrary to them are newbies. Because they do not yet have a lot of bitcoin holdings, they do not see the need in using a decentralized exchange. According to them, they are more familiar with it.

Another reason is that rule/law regarding bitcoin in some countries has made centralized exchanges like Binance the saviour for people to easily conduct peer-to-peer exchange. They have created the platform for them. In addition, there are some free incentives they get for using centralized exchanges.

[BlackHatCoiner]

I'm all in for decentralized exchanges, except the cost comparably to a very small fraction of centralized exchanges. Namely, Robosats. In my opinion, besides custody and the trust required, there isn't a single other reason I would prefer a DEX. It's cheaper, and has less liquidity (which is in favor of the trade maker sometimes).

But that's just an exception (which might also shut down at anytime) in the vast ocean called CEX. Bisq is my second option, and it will surely become the first if the DAO decides to be more competitive.

[The Cryptovator]

To be transparent, we do not endorse the use of centralized exchanges, even though some of us may be utilizing them. Personally, I must admit that I still use centralized exchanges for various reasons. Firstly, trading on centralized exchanges is more convenient and there is a higher level of liquidity. Although it's not ideal to hold our funds there, I always transfer my funds to my ledger wallet for added security. When I need to convert my assets into cash, I am compelled to use centralized exchanges due to their wider availability.

Additionally, centralized exchanges offer a broader range of trading pairs, enabling us to trade tokens that we are interested in. Decentralized exchanges may not always be an ideal solution for this purpose. The latest trading features are usually available on centralized exchanges, which is another reason why I prefer them. However, if decentralized exchanges offered the same benefits and facilities, I would happily switch to them.

[Minecache]

Yes, bitcoin was initially created as a payment method that could work without a 3rd party. But nowadays, people are considering and using bitcoin as an investment, they are less concerned with the function and utility of bitcoin but only interested in profit and convenience for them. And CEX provides all the services that investors need in the most convenient way. 
Moreover, the market is not only bitcoin, but we also have altcoins, and if you want to invest, buy, sell, and trade altcoins, you must go with CEX. It can be said that it plays an important role in the market whether you use it or not because people still need it.

...
Centralization and decentralization will exist together for a long time to come.

Since bitcoin was created, more people started to pay more attention to decentralization and privacy. But what I fear more is that governments won't leave us alone if most of us look to decentralization and ignore their centralized services. They are drafting regulations, and regulations will be a huge barrier for us. I am afraid they will squeeze everything and find a way to destroy our privacy even if we use bitcoin to evade them.
I don't know what measures they will use to control us, many say they will use centralized exchanges, but that is only part of it, they will have many more.

[justdimin]

I think it is much more easier, convenient and even safer to use centralized exchanges for trades because we no longer have to pay for an external escrow and most times don't have to panic over the safety of our coins while indulging in trades.

What are you talking about? Centralized exchanges lock accounts, freeze coins, or just straight up scam/go bankrupt all the time. You are handing complete control of your coins over to a third party, who can (and often do) do anything they like with them. With a good decentralized exchange like Bisq, the coins stay under your control until the trade is complete. There is no possibility for them to steal your coins since they never have them in the first place. A good DEX is exponentially safer than a CEX.

I basically don't store my coins in centralized exchanges but I trade most times on those exchanges like binance  and I like the entire experience I get from there and there there also possibilities of stealing coins on those private exchanges ?
I would love to know the risk of associated with using private exchanges apart from not being a sole holder of your coins.

That depends on the exchange that you are using. If you are using Binance then I would say that it is as safe as it gets, most probably it is safer than using any type of wallet yourself, because binance can do security better than any of us can do.

However, if you are using some small volume place, they could just exit scam everyone and steal their money, that would be a troubling thing. I hope that it wouldn't really become something boring and risky, I hope that it does as well as hoped for, but that doesn't change the fact that I would not be doing anything risky. Just keep it at a safe place if you want to, but using Binance would be enough for you, unless you have millions of dollars, in that case find something that is even safer.

[Obari]

I think it is much more easier, convenient and even safer to use centralized exchanges for trades because we no longer have to pay for an external escrow and most times don't have to panic over the safety of our coins while indulging in trades.

What are you talking about? Centralized exchanges lock accounts, freeze coins, or just straight up scam/go bankrupt all the time. You are handing complete control of your coins over to a third party, who can (and often do) do anything they like with them. With a good decentralized exchange like Bisq, the coins stay under your control until the trade is complete. There is no possibility for them to steal your coins since they never have them in the first place. A good DEX is exponentially safer than a CEX.

I basically don't store my coins in centralized exchanges but I trade most times on those exchanges like binance  and I like the entire experience I get from there and there there also possibilities of stealing coins on those private exchanges ?
I would love to know the risk of associated with using private exchanges apart from not being a sole holder of your coins.

That depends on the exchange that you are using. If you are using Binance then I would say that it is as safe as it gets, most probably it is safer than using any type of wallet yourself, because binance can do security better than any of us can do.

However, if you are using some small volume place, they could just exit scam everyone and steal their money, that would be a troubling thing. I hope that it wouldn't really become something boring and risky, I hope that it does as well as hoped for, but that doesn't change the fact that I would not be doing anything risky. Just keep it at a safe place if you want to, but using Binance would be enough for you, unless you have millions of dollars, in that case find something that is even safer.

Exactly mate and I always find very safe and secure especially when using the two factor authentication and most times people forget that same person who owns binance also owns trust wallet and if anything happens to binance, it might at some point get to affect trust wallet and there is this new scam going on with trust wallet where the seed phrase is gotten and all the available coins wiped out, hence no where is safe except you practice the right security measures.

[Woodie]

Why do they continue to support centralized exchanges, use them, and retain their Bitcoin there?

A decentralized exchange  usually is limited to what it can do if compared to a centralized exchange, like the number of blockchains it can support. So technically a cex is far much superior and can house all sorts of blockchains all under one roof something that can be the main reason for their continued use.

Liquidity is another reason, most Dex(s) usually don't have much of it and price is usually so bad compared to a Cex which will show true market prices for anybody wanting to buy/sell.

Centralized exchange is more popular and easier than the decentralized hence the reasons investors will go for the popular one.We all want the More comfort.

Agreed, useability with Centralized exchange is by far so much easy on these platforms compared to a dex which requires a bit of common sense and technical know how  to get around.

[o_e_l_e_o]

I would love to know the risk of associated with using private exchanges apart from not being a sole holder of your coins.

I mean, millions of users have lost everything from centralized exchanges scamming, going bankrupt, or simply locking accounts, so not holding your own coins is the biggest risk. There is also the risk to your privacy of course. Not only do you have zero financial privacy with the CEX monitoring everything you do and where your coins come from and go to, but you also have to hand over all the information and documents necessary to steal your identity and ruin your life.

That depends on the exchange that you are using. If you are using Binance then I would say that it is as safe as it gets, most probably it is safer than using any type of wallet yourself, because binance can do security better than any of us can do.

This is just factually incorrect. Binance have been hacked multiple times, both for coins and for data, not to mention the possibility of a bank run or other external event they can't control. Coins on any CEX, Binance included, are never safe.

[CryptSafe]

I did some research on Bitcoin because I was interested in it, and I discovered that the key principles of Bitcoin are peer-to-peer, anonymity, pseudonymity, decentralization, and operating without a middleman to ensure that Bitcoiners can have financial freedom. However, despite knowing that Bitcoiners adhere to these tenets, why do some Bitcoiners act contrary to them? Why do they continue to support centralized exchanges, use them, and retain their Bitcoin there?

I really see your points as you have said. Although it is true that bitcoin was invented for such purpose and it is in its course of fulfilling the sole reason it was invented. Come to talk of bitcoin peer to peer transaction, I believe a peer to peer transaction definitely would require two parties meeting to do transfer one on one which do not also guarantee ones safety of the account holder and it does not reflect the pseudo or anonymous transaction for which Satoshi Nakamoto clearly stated.

 Although CEX are not  pseudo or anonymous and they demand for kyc before depositing with them but the peer to peer with the CEX are anonymous and ok to go with just as the DEX is.

Do not get me wrong and also do not get things twisted. The CEX have played a big role in aiding the far and wide spread of Crypto currency including bitcoin to a global scale purchase and accessibility. Without the CEX and DEX, bitcoin and other Crypto currencies would have been limited in circulation in speed compared to the initial time bitcoin came to existence.

 So in all sense,  I believe someone people wants to remain anonymous through that means by dealing with CEX and DEX rather than doing a peer to peer or a one on one that would reveal their identities an possibly keep their wallets activities on track by their counterpart.

[BVeyron]

I did some research on Bitcoin because I was interested in it, and I discovered that the key principles of Bitcoin are peer-to-peer, anonymity, pseudonymity, decentralization, and operating without a middleman to ensure that Bitcoiners can have financial freedom. However, despite knowing that Bitcoiners adhere to these tenets, why do some Bitcoiners act contrary to them? Why do they continue to support centralized exchanges, use them, and retain their Bitcoin there?

Centralised exchanges are an imminent phenomenon, since people got used to buy things in fiat, so for most people involved in cryptoindustry, cryptocurrencies are just a tool to earn in fiat. And fiat banking systems are highly centralised, no one will ever pay fiat without tax report...

[Baoo]

Simply, Centralized exchanges are easier to use for beginners than decentralized ones and have more advanced tools. In addition to that, they offer tech support unlike DEX  and by using their platforms you are allowed to buy crypto with FIAT. In fact, crypto users especially newbies are more looking for simplicity through easy operation and regulation. Regrettably, centralized exchanges have a plenty of cons  such as risk of getting hacked, no anonymity, your funds are completely controlled by them.
As far I am concerned DEX’s have not been known well yet due to they are newer than CEX’s. Possibly more Bitcoiners or generally crypto users will move to DEX once they get to know the advantages of them.

[boyptc]

Exactly mate and I always find very safe and secure especially when using the two factor authentication and most times people forget that same person who owns binance also owns trust wallet and if anything happens to binance, it might at some point get to affect trust wallet and there is this new scam going on with trust wallet where the seed phrase is gotten and all the available coins wiped out, hence no where is safe except you practice the right security measures.

What is that type of new scam that's happening with Trust Wallet? Isn't it that it's always been the same scams out there that's currently targeting any type of wallet?

Simply, Centralized exchanges are easier to use for beginners than decentralized ones and have more advanced tools. In addition to that, they offer tech support unlike DEX  and by using their platforms you are allowed to buy crypto with FIAT. In fact, crypto users especially newbies are more looking for simplicity through easy operation and regulation. Regrettably, centralized exchanges have a plenty of cons  such as risk of getting hacked, no anonymity, your funds are completely controlled by them.
As far I am concerned DEX’s have not been known well yet due to they are newer than CEX’s. Possibly more Bitcoiners or generally crypto users will move to DEX once they get to know the advantages of them.

Anyone likes simplicity and ease of using it and that's why everyone is still with the cex's and if anyone who's using a dex finds it easier to use, we just have an option to use whatever we want.

So in all sense,  I believe someone people wants to remain anonymous through that means by dealing with CEX and DEX rather than doing a peer to peer or a one on one that would reveal their identities an possibly keep their wallets activities on track by their counterpart.

But with cex, we're giving up our privacy and that purpose is being defeated because most of them ask now kyc.

[Ale88]

there is this new scam going on with trust wallet where the seed phrase is gotten and all the available coins wiped out, hence no where is safe except you practice the right security measures.

Would you mind explaining this scam you're talking about? Scam from who? From Trust Wallet, hence Binance is scamming people? Or the scam has nothing do to with Binance? How do these people get the seed phrase? Do they trick the owner or can they just get it without any kind of real interaction? Just to understand if it's an app problem or just social engineering as usual.

[Hamza2424]

The concept of the bitcoin was established to remove the central authority power and to distribute the rights in segments/nodes to create a transparent environment. Time passes and the market continued to grow to control this idea centralized exchanges where introduced and the idea worked they provided some greedy features to the users of the space and attracted them then controlled their funds in the market which was created in the name of decentralization. So sad but this has happened to us and now these centralized exchanges and platforms which provide major services in the market control the market most of the time.

I was one of the centralized exchanges supporters until the last few weeks I use to say that centralized exchanges have done a lot in the adoption of bitcoin and crypto technology but I have recently realized that the have done it in their own favor to attract more users and control more market capital. They trigger us against the law enforcement and government centralized policies then do the same on the name of revolution.

[panganib999]

Basically over the fact that Centralized Exchanges are just extremely convenient and tailored towards that concept. They act as a means to safekeep and easily manage user's funds for when they wanna trade or sell their cryptocurrencies from the get-go. Plus most of them give rewards that you normally wouldn't get from regular exchanges. These are the major reasons why Centralized Exchanges are selling like hotcakes despite the fact that they are practically the unwanted son in the industry. Still, they are slowly slipping away from their throne as the big thing in the industry after multiple flaks against the name, with the only remaining exchange being Binance.

[o_e_l_e_o]

Come to talk of bitcoin peer to peer transaction, I believe a peer to peer transaction definitely would require two parties meeting to do transfer one on one which do not also guarantee ones safety of the account holder

You don't need to meet at all and the bitcoin being traded can be placed in escrow prior to the trade for safety. There are plenty of platforms such as Bisq and Robosats which have such a system in operation.

Although CEX are not  pseudo or anonymous and they demand for kyc before depositing with them but the peer to peer with the CEX are anonymous and ok to go with just as the DEX is.

Not correct. Trading peer to peer on a CEX is not in the least bit private or secure, since the CEX watches everything you do, reports it all to blockchain analysis companies, and has complete control over your bitcoin while the trade is taking place. You cannot trade peer to peer on a CEX - it is always peer to CEX to peer, with the CEX being a centralized third party. All CEXs which offer "peer to peer" are simply using the term as a marketing gimmick - it isn't actually peer to peer at all.

[Mate2237]

I did some research on Bitcoin because I was interested in it, and I discovered that the key principles of Bitcoin are peer-to-peer, anonymity, pseudonymity, decentralization, and operating without a middleman to ensure that Bitcoiners can have financial freedom. However, despite knowing that Bitcoiners adhere to these tenets, why do some Bitcoiners act contrary to them? Why do they continue to support centralized exchanges, use them, and retain their Bitcoin there?

Hey mate! I know that you have also used the central exchange platforms for transactions and you know the purpose of those platforms and also know the basic concept of Bitcoin. Those central platforms are carrying out some of the purposes and functions of Bitcoin. Those are the digital banks bitcoin, so bitcoiners use those platforms to make fast and easy transactions. There are some locations that there are no vendors so in such location your have to use the exchange platforms for the transactions.

Your financial freedom with Bitcoin is still guarantee because the exchanges do not or can not have access to your wallet. And the main thing is the wallet. It is when you transfer your coins to the exchange that you will make the transactions.

[Obari]

there is this new scam going on with trust wallet where the seed phrase is gotten and all the available coins wiped out, hence no where is safe except you practice the right security measures.

Would you mind explaining this scam you're talking about? Scam from who? From Trust Wallet, hence Binance is scamming people? Or the scam has nothing do to with Binance? How do these people get the seed phrase? Do they trick the owner or can they just get it without any kind of real interaction? Just to understand if it's an app problem or just social engineering as usual.

It absolutely has nothing to do with binance or trust wallet and it's just the social engineering as usual and if I'm not wrong,these scammers have to guess the seed phrase of these accounts and anyone that is gotten correctly, it's been wiped mercilessly.

Apart from the fact that they have the possibility of folding up without getting to let users have their money, I really enjoy using centralized exchanges and I think these exchanges have leveled up and wouldn't just vanish with users money and the case is with that of paxful because I think they're now respecting their users.

[DeathAngel]

Some people are lazy, some are complacent, some aren’t very tech savvy & don’t trust themselves to self custody, maybe they don’t even know how to.

I think whilst bitcoin has been around since 2009, it’s still a relatively new tech. People just aren’t very educated on it. It’s sad but sometimes people get burnt when they play with fire.

[Ale88]

there is this new scam going on with trust wallet where the seed phrase is gotten and all the available coins wiped out, hence no where is safe except you practice the right security measures.

Would you mind explaining this scam you're talking about? Scam from who? From Trust Wallet, hence Binance is scamming people? Or the scam has nothing do to with Binance? How do these people get the seed phrase? Do they trick the owner or can they just get it without any kind of real interaction? Just to understand if it's an app problem or just social engineering as usual.

It absolutely has nothing to do with binance or trust wallet and it's just the social engineering as usual and if I'm not wrong,these scammers have to guess the seed phrase of these accounts and anyone that is gotten correctly, it's been wiped mercilessly.

Then I'm sorry but I don't get your post: people scam other people with social engineering over everything, cryptocurrencies are just one of these things, so why did you make a post publicizing this "new scam going on with Trust Wallet" like it's something Trust Wallet related? Social engineering doesn't work with Ledger or other wallets? If someone is so naive to give away his seed phrase the problem is not the wallet but the person, no?

[blue Snow]

why do some Bitcoiners act contrary to them? Why do they continue to support centralized exchanges, use them, and retain their Bitcoin there?

The question is how do you know that?,

maybe not at all, some of them do not support centralized exchanges and always avoid the KYC.

But sometimes you won't get the hard life, In centralized exchanges you will get it easy, you can easily exchange your assets if the price starts to pump, and exchange also guarantees your asset is not lost if got hacked, Even if it's long and need a time (maybe over 10 years or never?)

[temple]

Come to talk of bitcoin peer to peer transaction, I believe a peer to peer transaction definitely would require two parties meeting to do transfer one on one which do not also guarantee ones safety of the account holder

You don't need to meet at all and the bitcoin being traded can be placed in escrow prior to the trade for safety. There are plenty of platforms such as Bisq and Robosats which have such a system in operation.

Although CEX are not  pseudo or anonymous and they demand for kyc before depositing with them but the peer to peer with the CEX are anonymous and ok to go with just as the DEX is.

Not correct. Trading peer to peer on a CEX is not in the least bit private or secure, since the CEX watches everything you do, reports it all to blockchain analysis companies, and has complete control over your bitcoin while the trade is taking place. You cannot trade peer to peer on a CEX - it is always peer to CEX to peer, with the CEX being a centralized third party. All CEXs which offer "peer to peer" are simply using the term as a marketing gimmick - it isn't actually peer to peer at all.

It is fascinating how you and some other Bitcointalk members relentlessly repeat the problems that come with the usage of CEXs. KYC, no KYC, privacy, no privacy, those aspects seem to be too superficial for some users to actually grasp the far-reaching consequences that the usage of CEXs can bring about later down the road. Tons of data is being collected and for most of those users the digital fingerprint is already perfect from the perspective of governments and other interest groups (hackers).

But my first thought often is that most people who think using CEXs is safe are often those who haven't burnt their fingers yet. I admit I have burnt my fingers and it helped me questioning my trading behavior far beyond what I initially thought is appropriate. Getting your funds frozen can be extremely distressing if the exchange literally blackmails you for an almost unlimited amount of proofs. I have had that in the past and I actually decided to let my funds go because I did at least take the precautionary measure in my mind to not deposit so much that I could be forced into providing whatever they ask me to provide.

I burnt my fingers twice. The above mentioned example was the second time. The first time the exchange just went offline. That is quite a couple of years ago but happened in the right time for me because that was when I was still experimenting. It was definitely hurtful because in relative terms I lost a lot of my crypto holdings.

As of today the funds I hold on a CEX is $0.00.

The saying 'don't risk what you can't afford to lose" applies not only to gambling, but also to keeping funds on a CEX. In essence, doing that can be very similar to gambling. I do understand some people who own so little that the transaction fees would be too much of a financial burden, but I think that trading makes even less sense in that situation. Rather try building a sufficient portfolio even if it takes time, but keep it off-exchange.

[o_e_l_e_o]

Your financial freedom with Bitcoin is still guarantee because the exchanges do not or can not have access to your wallet.

This isn't true at all. Once you send your coins to a centralized exchange, they have full control over them and you have no freedom whatsoever. You have absolutely no guarantee you will get your coins back and you have no guarantee that the centralized exchange will allow you to use them or spend them in the way that you want.

I think these exchanges have leveled up and wouldn't just vanish with users money

Have you not been paying attention to the news? FTX, BlockFi, Celsius, Voyager, 3AC, the list goes on. Literally dozens of exchanges in even just the last few months which have collapsed and taken all users' funds with them.

so why did you make a post publicizing this "new scam going on with Trust Wallet" like it's something Trust Wallet related?

There was a vulnerability in Trust wallet in which it generated key pairs and addresses in a insecure manner, allowing funds to be stolen. It wasn't via social engineering.

It is fascinating how you and some other Bitcointalk members relentlessly repeat the problems that come with the usage of CEXs. KYC, no KYC, privacy, no privacy, those aspects seem to be too superficial for some users to actually grasp the far-reaching consequences that the usage of CEXs can bring about later down the road.

People simply don't care until it affects them personally. We see small centralized exchanges collapse or scam all the time. But lots of people on here, Reddit, Twitter, etc., were sure that the likes of Celsius and Voyager were too big to fail and were perfectly safe, right before they lost everything. Then everyone was definitely sure that FTX was too big to fail, right before they lost everything. Now everyone is definitely sure (for real this time!) that Binance is too big to fail.

The same applies to your data. Everyone is happy to send all the documents needed to steal their identity off to literally any random internet stranger that can set up a website or copy the code for some shitcoin. Nobody cares until suddenly their identity is for sale on the dark net and they are now on the hook for $100,000 in debt someone else took out in their name.

[siniminomorocomunisakito]

In my view, the reason why Bitcoiners still use centralized exchanges can be explained by several factors. One of the main reasons is the convenience and accessibility that these exchanges offer. They make it easy to buy and sell Bitcoin for fiat currency and have a user-friendly interface. Moreover, centralized exchanges tend to have better liquidity, allowing for quicker trades at favorable prices compared to decentralized exchanges.

[BenCodie]

I did some research on Bitcoin because I was interested in it, and I discovered that the key principles of Bitcoin are peer-to-peer, anonymity, pseudonymity, decentralization, and operating without a middleman to ensure that Bitcoiners can have financial freedom. However, despite knowing that Bitcoiners adhere to these tenets, why do some Bitcoiners act contrary to them? Why do they continue to support centralized exchanges, use them, and retain their Bitcoin there?

Some reasons that I can think of to answer your question:
- Convenience - People like to instantly move to and from their bank account and would sacrifice their anonymity and privacy to be able to do so.
- Fear - Most tend to believe that by being private, they might be seen as doing something wrong.
- Ignorance or lack of knowledge - Whether it is by choice or not, people may not realize that privacy, anonymity, and decentralization are beneficial to them. Or, they simply do not know how to properly achieve it.

I suggested a Cybersecurity & Privacy board which would address these kinds of matters, which would help people to become aware and learn how to uphold the key principles of Bitcoin.

[Venik]

In my view, the reason why Bitcoiners still use centralized exchanges can be explained by several factors. One of the main reasons is the convenience and accessibility that these exchanges offer. They make it easy to buy and sell Bitcoin for fiat currency and have a user-friendly interface. Moreover, centralized exchanges tend to have better liquidity, allowing for quicker trades at favorable prices compared to decentralized exchanges.

That's true. Exchanges are mostly used by people who just want an easy way to invest in Bitcoin but don't care about anonymity, or just didn't do their research and not looking for a better way to store it. I always kept my Bitcoin in a non-custodial wallet, I'm using OWNR, but there are a lot of other options. A cold wallet is the best way to store Bitcoin, but IMO only if you have a lot of Bitcoin.

[Dzwaafu11]

Yes, bitcoin was initially created as a payment method that could work without a 3rd party. But nowadays, people are considering and using bitcoin as an investment, they are less concerned with the function and utility of bitcoin but only interested in profit and convenience for them. And CEX provides all the services that investors need in the most convenient way. 
Moreover, the market is not only bitcoin, but we also have altcoins, and if you want to invest, buy, sell, and trade altcoins, you must go with CEX. It can be said that it plays an important role in the market whether you use it or not because people still need it.

Actually, I agree with what you said about bitcoin being designed only for one purpose—transactions without a middleman. But thanks to modern technology and the ways in which new generations are embracing bitcoin locally, I believe that people use bitcoin as an investment because it is so secure and because there are so few jobs in their societies. Bitcoin is a way of life both now and in the past. I'm curious as to how someone may participate in the bitcoin market while refusing to use CEX, which we all know is crucial if we want to enjoy using bitcoin.
When some people, such as some wealthy people who use bitcoin today, hear about it from the other side as a wise investment, they may change their minds and carry on with their previously positive transactions after learning about another, less complicated method of transaction.

[Antonas1]

It's understandable, because bitcoin has grown to be more significant than people think. Not every bitcoin owner is an idealist, especially if it's a trader. The community or you cannot force traders to do what you want. They just worry about money and profit, not about centralized or decentralized.

[Cookdata]

I did some research on Bitcoin because I was interested in it, and I discovered that the key principles of Bitcoin are peer-to-peer, anonymity, pseudonymity, decentralization, and operating without a middleman to ensure that Bitcoiners can have financial freedom. However, despite knowing that Bitcoiners adhere to these tenets, why do some Bitcoiners act contrary to them? Why do they continue to support centralized exchanges, use them, and retain their Bitcoin there?

I don't think any serious Bitcoin enthusiast would endorse centralized exchanges. Decentralized Bitcoin exchanges existed prior to the dominance of centralized exchanges, and the primary reason for the latter's growth is their proficiency in marketing and promotions, as well as their ability to influence politicians and gain their favor to operate in a given country. Additionally, since the world is already entrenched in the banking system, many individuals prefer the ease of use of centralized exchanges. However, the drawbacks of centralized exchanges far outweigh any benefits they may offer.

Another reason why I think Centralized exchanges are everywhere is that the pseudonymous nature of Bitcoin makes it difficult for governments to regulate transactions,  they prefer centralized exchanges where they can quickly verify users' identities and transactions and freeze assets if necessary. Governments understand that they cannot control coins that are unidentifiable or untraceable, hence the need for centralized exchanges to silent decentralization.

[KiaKia]

Bitcoin has zero anonymity features, sorry mate, this digital asset is not a privacy coin like Monero or Dash, if you want to stay anonymous using Bitcoin you will need to use a mixer service. Your point is accurate and I use to ask myself why too, it's like people are using Bitcoin in the wrong way, no amount of Bitcoin should be deposited on any centralized exchanges from the first day of launch, but we can't control the people, we can only make them see reasons why Bitcoin was never built this way in the first place. Bitcoin is better running through DEX exchanges but we can't stop anyone from using centralized exchanges, all we can do is to warn them not to store their Bitcoin on any CEX.

[Abu-Naim]

In my view, the reason why Bitcoiners still use centralized exchanges can be explained by several factors. One of the main reasons is the convenience and accessibility that these exchanges offer. They make it easy to buy and sell Bitcoin for fiat currency and have a user-friendly interface. Moreover, centralized exchanges tend to have better liquidity, allowing for quicker trades at favorable prices compared to decentralized exchanges.

With the recent case of FTX is there any comfortability and reliability on centralized exchanges again?
As I go through the response from my senior members in the forum, I understand how risky it is to rely on centralized exchanges, and I understand that we can buy our Bitcoin from them and send them to our wallets not to leave the Bitcoin in there.

[Ale88]

so why did you make a post publicizing this "new scam going on with Trust Wallet" like it's something Trust Wallet related?

There was a vulnerability in Trust wallet in which it generated key pairs and addresses in a insecure manner, allowing funds to be stolen. It wasn't via social engineering.

I did a little research, are we talking about this?
According to an incident update shared by the company, the vulnerability only affected new wallet addresses generated by its browser extension between Nov. 14 and 23, 2022. The vulnerability could allow attackers to execute malicious code on the users’ devices and steal their funds.

It's a very limited case since it's related to a very short span of time and also linked to a browser extension, and it affected only new wallet, reading the previous comments I thought it was something that affected every single Trust Wallet user, which would have been way more dangerous.

Anyway I also read this:
Trust Wallet has assured its users that it will pay back eligible losses from hacks due to the vulnerability and has created a reimbursement process for the affected users.

This is the link to the source of the info I copy-pasted: https://www.binance.com/en-NG/feed/post/449497

So, as I see it, it's just a lot of unnecessary FUD, business as usual.

[Who is John Galt?]

In my view, the reason why Bitcoiners still use centralized exchanges can be explained by several factors. One of the main reasons is the convenience and accessibility that these exchanges offer. They make it easy to buy and sell Bitcoin for fiat currency and have a user-friendly interface. Moreover, centralized exchanges tend to have better liquidity, allowing for quicker trades at favorable prices compared to decentralized exchanges.

As o_e_l_e_o noted above, centralized exchanges pose huge risks in so many ways at once: while bitcoins are in their accounts, these coins are not in safe; as long as your data is held by any such organizations, it is not safe. Perhaps centralized exchanges provide a service that looks convenient and pleasant, but behind it lies the grin of a soulless organization that is not interested in the safety of users. I think that if bitcoin enthusiasts sometimes use centralized exchanges, it is unlikely that they use those require KYC. A centralized exchange in itself is not a good thing, but KYC is downright evil.

[pawanjain]

I did some research on Bitcoin because I was interested in it, and I discovered that the key principles of Bitcoin are peer-to-peer, anonymity, pseudonymity, decentralization, and operating without a middleman to ensure that Bitcoiners can have financial freedom. However, despite knowing that Bitcoiners adhere to these tenets, why do some Bitcoiners act contrary to them? Why do they continue to support centralized exchanges, use them, and retain their Bitcoin there?

It's mostly because people have given more importance to the store of value and has completely ignored the main objectives of bitcoin.
People use it as an asset for trading and investments and the only place where it can be easily feasible is a centralized exchange.
This is the reason why many bitcoiners tend to encourage the use of centralized exchanges so that they can trade it and gain profits on it.

[ZAINmalik75]

However, despite knowing that Bitcoiners adhere to these tenets, why do some Bitcoiners act contrary to them? Why do they continue to support centralized exchanges, use them, and retain their Bitcoin there?

Earth is full of different types of people, some are tightly adhered to a centralized system which is there for many decades and some are loosely adhered to centralization so they understood the features of decentralization. Most people on earth use the internet and almost 70% to 80% of them are already using centralized platforms like this post will give you an idea. The Op has emerged with the same query that and related to yours so i hope it could benefit you.

You just asked the same query in an alternative way like why there is less adoption of decentralization and vast adoption of centralization. The answer still remains the same. for example, if you have a family business of a bakery, or of any cooking industry, and your elders are making dishes with some secret ingredients and you have adhered to use those ingredients so that the taste remains the same so that the consistent customers remain permanent customers.

Same way, governments, and authorities are like those elders who have made you to tightly hold the tradition of using the same ingredients and restrict you to think outside the box so that they can control you with no or fewer efforts. And that's what they are doing now, you must read this thread of Social media, now looking more for business than for socializing. which emphasizes the importance of a global village to control each and everything easily. As we can no doubt make transactions on the internet as a global village, but this global village also made it easy for authorities to control us and spectate us.

[Z-tight]

The community or you cannot force traders to do what you want. They just worry about money and profit, not about centralized or decentralized.

The word 'force' does not exist in the BTC community, it is a permissionless network and community, if you want to use it without learning from those who have more knowledge that you, then it is your choice and if you lose your BTC, it is your money that is lost. In a decentralized network there is freedom and not force, that's why real bitcoiners encourage people to use BTC in a decentralized way because centralized exchanges can confiscate your funds and force you to do whatever they want, or you will lose your money.

With the recent case of FTX is there any comfortability and reliability on centralized exchanges again?

Even before ftx collapsed they were not reliable, only when you have your keys should you be comfortable.

So, as I see it, it's just a lot of unnecessary FUD, business as usual.

It is always fud until they bite the dust, while all the information you got about this current case is correct, it does not make Trust wallet a recommended one to use, i would not recommend a wallet that's closed source and owned by Binance to people, we all know how Binance operates.

[Ale88]

So, as I see it, it's just a lot of unnecessary FUD, business as usual.

It is always fud until they bite the dust, while all the information you got about this current case is correct, it does not make Trust wallet a recommended one to use, i would not recommend a wallet that's closed source and owned by Binance to people, we all know how Binance operates.

I use Trust Wallet just to keep very small amounts of cryptos because I find it very easy to use on the smartphone, I don't use it for anything else, I use a cold wallet to store the other cryptos and I'd never recommend Trust Wallet to someone to be used as their main wallet. At the same time, as I said, I don't think that creating FUD about anything CEX related is somehow helpful for the community and for the people who are approaching this world for the first time. It would have been enough to say that there's been a bug in Trust Wallet, under very particular circumstances and for a very short period of time, that affected a minor number of people and that Binance itself refunded all the users who lost money (approx $170k, so probably what they made by the time I wrote this message ) instead of simply saying "There was a vulnerability in Trust wallet in which it generated key pairs and addresses in a insecure manner" because that message, in my opinion, that message was very general and left a lot space for different interpretations

[GideonGono]

I did some research on Bitcoin because I was interested in it, and I discovered that the key principles of Bitcoin are peer-to-peer, anonymity, pseudonymity, decentralization, and operating without a middleman to ensure that Bitcoiners can have financial freedom. However, despite knowing that Bitcoiners adhere to these tenets, why do some Bitcoiners act contrary to them? Why do they continue to support centralized exchanges, use them, and retain their Bitcoin there?

The only reason why I support or still keep on using centralized on Bitcoin or crypto is due to safely withdraw or convert my crypto into Fiat.
But if there would be other way for me to securely withdraw or convert crypto into Fiat without doing it in person then I would stop using centralized platforms.

[Z-tight]

The only reason why I support or still keep on using centralized on Bitcoin or crypto is due to safely withdraw or convert my crypto into Fiat. But if there would be other way for me to securely withdraw or convert crypto into Fiat without doing it in person then I would stop using centralized platforms.

If you said you use it because you can quickly withdraw your crypto to fiat, they you may be correct, but 'safely' doesn't depend on you at all, but the exchange you are using. You have to trust them to safely allow you withdraw, your security is not in your hands, and as you already know, you have no privacy when using them. Decentralized exchange like Bisq allows you withdraw securely and with your privacy still intact, it is a p2p exchange, so no third party involved. You can make other choices here too: https://kycnot.me/

At the same time, as I said, I don't think that creating FUD about anything CEX related is somehow helpful for the community and for the people who are approaching this world for the first time.

I get what you are saying Ale88 Bruh, but i don't think it is fud, especially because of some of the recent events that have happened with centralized exchanges and services. And i noticed that if people approaching this BTC world for the first time start off with centralized exchanges, they tend to continue with it, forget that BTC is actually a decentralized network and even believe that without Binance BTC won't survive, so i think strongly debunking all these and trying to make them see decentralization as the way to use BTC is the right thing to do, and should not be called fud.

[o_e_l_e_o]

So, as I see it, it's just a lot of unnecessary FUD, business as usual.

I wouldn't say it is fud. There was a legitimate vulnerability, which thankfully (this time) was picked up when only minimal damage was done. What if the bug went unnoticed for months, and resulted in losses of hundreds of millions which Binance were unable to cover?

This is part of the risk you take when using closed source software like Trust wallet. It can be filled with all kinds of bugs and vulnerabilities, and no one would be any the wiser until it is too late.

[Ale88]

At the same time, as I said, I don't think that creating FUD about anything CEX related is somehow helpful for the community and for the people who are approaching this world for the first time.

I get what you are saying Ale88 Bruh, but i don't think it is fud, especially because of some of the recent events that have happened with centralized exchanges and services. And i noticed that if people approaching this BTC world for the first time start off with centralized exchanges, they tend to continue with it, forget that BTC is actually a decentralized network and even believe that without Binance BTC won't survive, so i think strongly debunking all these and trying to make them see decentralization as the way to use BTC is the right thing to do, and should not be called fud.

At the end it depends on what you want to do. If I just need to buy some crypto I can go for the easy way (CEXs) or for a more tech savvy way (DEXs), as long as the crypto world keeps growing I don't see the problem, it's benefits all of us at the end. Not everyone wants to learn all the necessary steps that are required to buy on DEXs and usually CEXs are almost idiot proof, almost. I think it's important to know what we're doing and what kind of options we have, then we make our choice. Luckily DEXs are getting better and more user-friendly, I remember years ago the first I used EtherDelta, I felt like I was in the 90s 

So, as I see it, it's just a lot of unnecessary FUD, business as usual.

I wouldn't say it is fud. There was a legitimate vulnerability, which thankfully (this time) was picked up when only minimal damage was done.

As I said it all depends on how you formulate the phrase because, to me, the way it was described looked kind of deceptive. Was there a vulnerability? Yes, absolutely. Did it create serious problems? No. But I understand that everyone has its own view of the facts. Just like CEXs, some people prefer those that (in theory) never had a single asset stole and others prefer those that actually had stolen assets but refunded the users. Is it better the exchange that looks unbreachable or the one that has shown how solves that situation? There is no wrong answer.

[John Abraham]

why do some Bitcoiners act contrary to them? Why do they continue to support centralized exchanges, use them, and retain their Bitcoin there?

I don't know if Bitcoiner supports Centralized exchanges. But yeah, Bitcoiners still use centralized exchanges like Binance and Coinbase. Some of them offer some excellent features and facilities. For example, Coinbase users can send Bitcoin to another Coinbase user for free without paying transaction fees. Binance users can do the same. This is one of the reasons, but the main reason is the unavailability of decentralized exchanges. I wouldn't say I like centralized exchanges. Still, I am using Binance and have compromised my privacy. I don't have other options to trade with my locals. There are a few numbers of platforms where I can find my locals and deal with them.

Of course, I don't want to trade with an unknown person who can run away with my money. I can also use this forum to trade, but I don't see any of my locals providing the service I am looking for. So, it's kind of I am forced to use their platform.

This is part of the risk you take when using closed source software like Trust wallet. It can be filled with all kinds of bugs and vulnerabilities, and no one would be any the wiser until it is too late.

Well, I didn't know that. Trust Wallet claims they are open-source wallet software. I don't know how to verify it. I should stop using Trust Wallet.

[posi]

At the same time, as I said, I don't think that creating FUD about anything CEX related is somehow helpful for the community and for the people who are approaching this world for the first time.

I get what you are saying Ale88 Bruh, but i don't think it is fud, especially because of some of the recent events that have happened with centralized exchanges and services. And i noticed that if people approaching this BTC world for the first time start off with centralized exchanges, they tend to continue with it, forget that BTC is actually a decentralized network and even believe that without Binance BTC won't survive, so i think strongly debunking all these and trying to make them see decentralization as the way to use BTC is the right thing to do, and should not be called fud.

At the end it depends on what you want to do. If I just need to buy some crypto I can go for the easy way (CEXs) or for a more tech savvy way (DEXs), as long as the crypto world keeps growing I don't see the problem, it's benefits all of us at the end. Not everyone wants to learn all the necessary steps that are required to buy on DEXs and usually CEXs are almost idiot proof, almost. I think it's important to know what we're doing and what kind of options we have, then we make our choice. Luckily DEXs are getting better and more user-friendly, I remember years ago the first I used EtherDelta, I felt like I was in the 90s 

So, as I see it, it's just a lot of unnecessary FUD, business as usual.

I wouldn't say it is fud. There was a legitimate vulnerability, which thankfully (this time) was picked up when only minimal damage was done.

As I said it all depends on how you formulate the phrase because, to me, the way it was described looked kind of deceptive. Was there a vulnerability? Yes, absolutely. Did it create serious problems? No. But I understand that everyone has its own view of the facts. Just like CEXs, some people prefer those that (in theory) never had a single asset stole and others prefer those that actually had stolen assets but refunded the users. Is it better the exchange that looks unbreachable or the one that has shown how solves that situation? There is no wrong answer.

I'm not taking sides as I'm using both CEX and DEX. But I have a question, if DEX is really better than CEX, then why are people using CEX more? DEX is not new, it was also born at the same time as CEX but is hardly chosen by many investors, proving it has limitations compared to CEX.
Depending on the needs of investors, we have suitable options, as traders or investing in altcoins, the use of DEX is extremely limited, but with CEX, it is very easy. And I believe many people are talking bad about CEX there are still some people who have signed up for CEX and use them.

[John Abraham]

Your financial freedom with Bitcoin is still guarantee because the exchanges do not or can not have access to your wallet. And the main thing is the wallet. It is when you transfer your coins to the exchange that you will make the transactions.

It's like you are saying you send your Bitcoin to me, and I can't access the funds. If you say that for the self-custodial wallet, I agree. Self-custodial wallets don't have access to your funds. But, when it comes to exchanges. They have access to your funds. They can use your coins to do whatever they want. This is why you see exchanges freeze user accounts and confiscate their funds. There are a lot of cases where exchanges like Binance and Coinbase freeze their user account and their balance. I have mentioned this in many threads so far.

Coinbase Case: https://bitcointalk.org/index.php?topic=5444423.0 In this thread, OP claims one of his known people had a Coinbase account, and Coinbase froze her account and seized her assets.
Binance Case: https://bitcointalk.org/index.php?topic=5370726.0 Binance Disabled user withdrawals and asked him to deposit to get unlocked. I would quote myself here;

During the Dogechain upgrade, Binance Mistakenly did some transactions twice a few years ago. It was their developer's mistake. To recover those funds, Binance locked their user's accounts and asked them to deposit to unlock their account. Imagine you withdrew 500K Dogecoin to an unknown wallet address about a year ago.

After a year, Binance sent another 500K Doge to this address, and now they ask you to return that amount. You may don't have access to this wallet anymore. How would you return them? Also, There was a massive pump of Dogecoin. Just imagine your 500K Doge was worth $100 only. But, when Binance asked you for a refund, 500K Doge was worth around USD 80K.

You can read more here https://bitcointalk.org/index.php?topic=5370726.0

If they couldn't access your funds, How would they freeze and seize your account? Exchange always has access to your funds. You can do nothing if they run away with your funds (If something happens like FTX).

[jokers10]

The only reason why I support or still keep on using centralized on Bitcoin or crypto is due to safely withdraw or convert my crypto into Fiat.
But if there would be other way for me to securely withdraw or convert crypto into Fiat without doing it in person then I would stop using centralized platforms.

It looks safety only until first problem with CEX: as any centralized financial project they consider user money in their accounts like something what they have a right to control. And it is just the most obvious problem which happens from time to time with many. Even big CEX sometimes scam and fail. And what is not less disgusting they lose and illegally sell personal data of users. And as many of them are dubious organisations without a proper state regulation it is not something unexpected at all.

It is not so easy and sometimes costly but I never pass KYC in crypto. I hope, will never be in need of that. What I wait is that most of spending can be done directly in bitcoin and there will be no need for anyone to use CEX or any other centralized third party.

[Minecache]

Yes, bitcoin was initially created as a payment method that could work without a 3rd party. But nowadays, people are considering and using bitcoin as an investment, they are less concerned with the function and utility of bitcoin but only interested in profit and convenience for them. And CEX provides all the services that investors need in the most convenient way. 
Moreover, the market is not only bitcoin, but we also have altcoins, and if you want to invest, buy, sell, and trade altcoins, you must go with CEX. It can be said that it plays an important role in the market whether you use it or not because people still need it.

Actually, I agree with what you said about bitcoin being designed only for one purpose—transactions without a middleman. But thanks to modern technology and the ways in which new generations are embracing bitcoin locally, I believe that people use bitcoin as an investment because it is so secure and because there are so few jobs in their societies. Bitcoin is a way of life both now and in the past. I'm curious as to how someone may participate in the bitcoin market while refusing to use CEX, which we all know is crucial if we want to enjoy using bitcoin.
When some people, such as some wealthy people who use bitcoin today, hear about it from the other side as a wise investment, they may change their minds and carry on with their previously positive transactions after learning about another, less complicated method of transaction.

Similar to you, I don't rule out DEXs entirely and don't encourage people to use CEX, but I'm curious to know how some investors who didn't use CEX can enter the market, especially newbies. Lately, even whales who have been holding bitcoins since their early years wake up and want to sell their bitcoins, they move them to centralized exchanges, they rarely use DEXs. And if we compare the trading volume of DEX and CEX, we can see a huge difference. When I use an exchange with small liquidity, it also worries me.

[BD Crypto]

I think Bitcoiners still support only trusted Cex exchanges because Thay are used to trade with higher liquidity and they want a good interface for trading. Actually centralized exchanges are far better for crypto trading as they have higher liquidity and many more options. But the main problem is that the funds aren't in your control that's why decentralized exchanges are the most secured. I think when decentralized exchanges will be more user-friendly then Cex exchanges will be rarely used by the Bitcoiners.

[jokers10]

I think Bitcoiners still support only trusted Cex exchanges
...

To invent a trustless peer to peer currency to trust later a CEX... genius! What can go wrong?! I trust no CEX first because they are CentralizedEX. And I see nothing they can do to change my opinion of them. Freezing of accounts, hacks, frauds, scams are always possibe with CEX, because they have a control over everything in their relationship with you and everything left for you is to trust them and hope nothing will go wrong.

[Wend]

Your financial freedom with Bitcoin is still guarantee because the exchanges do not or can not have access to your wallet. And the main thing is the wallet. It is when you transfer your coins to the exchange that you will make the transactions.

It's like you are saying you send your Bitcoin to me, and I can't access the funds. If you say that for the self-custodial wallet, I agree. Self-custodial wallets don't have access to your funds. But, when it comes to exchanges. They have access to your funds. They can use your coins to do whatever they want. This is why you see exchanges freeze user accounts and confiscate their funds. There are a lot of cases where exchanges like Binance and Coinbase freeze their user account and their balance. I have mentioned this in many threads so far.

Coinbase Case: https://bitcointalk.org/index.php?topic=5444423.0 In this thread, OP claims one of his known people had a Coinbase account, and Coinbase froze her account and seized her assets.
Binance Case: https://bitcointalk.org/index.php?topic=5370726.0 Binance Disabled user withdrawals and asked him to deposit to get unlocked. I would quote myself here;

During the Dogechain upgrade, Binance Mistakenly did some transactions twice a few years ago. It was their developer's mistake. To recover those funds, Binance locked their user's accounts and asked them to deposit to unlock their account. Imagine you withdrew 500K Dogecoin to an unknown wallet address about a year ago.

After a year, Binance sent another 500K Doge to this address, and now they ask you to return that amount. You may don't have access to this wallet anymore. How would you return them? Also, There was a massive pump of Dogecoin. Just imagine your 500K Doge was worth $100 only. But, when Binance asked you for a refund, 500K Doge was worth around USD 80K.

You can read more here https://bitcointalk.org/index.php?topic=5370726.0

If they couldn't access your funds, How would they freeze and seize your account? Exchange always has access to your funds. You can do nothing if they run away with your funds (If something happens like FTX).

I have also encountered several cases of user accounts being frozen by centralized exchanges. But we need to find out the reason behind that, why those users' accounts are frozen. Don't jump to the conclusion that they take money from users because those accounts have very small amounts, nothing compared to the assets of Binance or Coinbase. One more thing, I have never heard of having to deposit to unlock from Binance, maybe a new type of scam. Don't just listen to one side and jump to conclusions just because you don't like CEX, there should be fairness here.

[o_e_l_e_o]

Did it create serious problems? No.

Which was almost entirely luck. This vulnerability could very easily have resulted in millions in losses.

Is it better the exchange that looks unbreachable or the one that has shown how solves that situation?

Neither. It's better to keep your coins under your own control by using your own wallet and DEXs, and not have to trust a third party at all.

Well, I didn't know that. Trust Wallet claims they are open-source wallet software. I don't know how to verify it. I should stop using Trust Wallet.

Have a read of my post here: https://bitcointalk.org/index.php?topic=5415683.msg61049268#msg61049268

[Ale88]

At the same time, as I said, I don't think that creating FUD about anything CEX related is somehow helpful for the community and for the people who are approaching this world for the first time.

I get what you are saying Ale88 Bruh, but i don't think it is fud, especially because of some of the recent events that have happened with centralized exchanges and services. And i noticed that if people approaching this BTC world for the first time start off with centralized exchanges, they tend to continue with it, forget that BTC is actually a decentralized network and even believe that without Binance BTC won't survive, so i think strongly debunking all these and trying to make them see decentralization as the way to use BTC is the right thing to do, and should not be called fud.

At the end it depends on what you want to do. If I just need to buy some crypto I can go for the easy way (CEXs) or for a more tech savvy way (DEXs), as long as the crypto world keeps growing I don't see the problem, it's benefits all of us at the end. Not everyone wants to learn all the necessary steps that are required to buy on DEXs and usually CEXs are almost idiot proof, almost. I think it's important to know what we're doing and what kind of options we have, then we make our choice. Luckily DEXs are getting better and more user-friendly, I remember years ago the first I used EtherDelta, I felt like I was in the 90s 

So, as I see it, it's just a lot of unnecessary FUD, business as usual.

I wouldn't say it is fud. There was a legitimate vulnerability, which thankfully (this time) was picked up when only minimal damage was done.

As I said it all depends on how you formulate the phrase because, to me, the way it was described looked kind of deceptive. Was there a vulnerability? Yes, absolutely. Did it create serious problems? No. But I understand that everyone has its own view of the facts. Just like CEXs, some people prefer those that (in theory) never had a single asset stole and others prefer those that actually had stolen assets but refunded the users. Is it better the exchange that looks unbreachable or the one that has shown how solves that situation? There is no wrong answer.

I'm not taking sides as I'm using both CEX and DEX. But I have a question, if DEX is really better than CEX, then why are people using CEX more? DEX is not new, it was also born at the same time as CEX but is hardly chosen by many investors, proving it has limitations compared to CEX.
Depending on the needs of investors, we have suitable options, as traders or investing in altcoins, the use of DEX is extremely limited, but with CEX, it is very easy. And I believe many people are talking bad about CEX there are still some people who have signed up for CEX and use them.

Using DEXs is not something that every person feel safe and comfortable because everything is on you: you make a mistake, you pay, and of course you may lose everything, so they prefer CEXs because to buy and sell are easier and safer, that's it. As I said CEXs are almost idiot proof, there are no contracts to double check and approve and when you want to withdraw there are several security steps.

Did it create serious problems? No.

Which was almost entirely luck. This vulnerability could very easily have resulted in millions in losses.

In Italy we have a saying which you can pretty much translate as "if my grandfather had three balls it was a pinball machine".

Is it better the exchange that looks unbreachable or the one that has shown how solves that situation?

Neither. It's better to keep your coins under your own control by using your own wallet and DEXs, and not have to trust a third party at all.[/quote]
I never said to store the coins in an exchange. Exchanges are made to buy and sell, then withdraw, that's it. But there always is the possibility that something bad could happen even during that short timeframe.

[hZti]

Neither. It's better to keep your coins under your own control by using your own wallet and DEXs, and not have to trust a third party at all.

It’s true that your coins should always stay in your own custody and you should avoid any exception from that rule. However if you go to trade at an well established professional exchange, you will probably not need more then 10 minutes to buy/sell coins and withdraw your money and/or bitcoin. The probability of an attack or something like that are so low, that I would not think it is way higher than the probability to have some issue at a DEX.
The benefits of centralized exchange are obvious however, since you can go to established KYC exchange and have clean tax statements. For me this outweighs the benefits of a DEX.

[Ale88]

However if you go to trade at an well established professional exchange, you will probably not need more then 10 minutes to buy/sell coins and withdraw your money and/or bitcoin. The probability of an attack or something like that are so low, that I would not think it is way higher than the probability to have some issue at a DEX.

It's nice to see that someone gets it. Let's not forget that the final goal, for all of us, is growing the BTC/crypto community, that is going to benefits all of us, we still need to grow a lot.

Let's say that, hypothetically, CEXs didn't exist, how many people would be able to buy using a DEX? And how many of those people would probably fall in some kind of scam and lose all their money? And at that point do you think they're still going to be interested in the crypto ecosystem or are they just going to tell their family and friends how everything is a scam because they've been scammed? I have an idea

[BITCOIN4X]

It’s true that your coins should always stay in your own custody and you should avoid any exception from that rule. However if you go to trade at an well established professional exchange, you will probably not need more then 10 minutes to buy/sell coins and withdraw your money and/or bitcoin. The probability of an attack or something like that are so low, that I would not think it is way higher than the probability to have some issue at a DEX.
The benefits of centralized exchange are obvious however, since you can go to established KYC exchange and have clean tax statements. For me this outweighs the benefits of a DEX.

My first bitcoin purchase was through a centralized exchange licensed to operate in the jurisdiction of my country. I had to go through KYC there due to user obligations before purchasing, but it wasn't exactly the threat that scared me the first day.

What I'm trying to say is, centralized exchanges have more potential to keep the crypto industry and the bitcoin community growing. Adoption can also be expected as more people become familiar with bitcoin, but if they care deeply about privacy from day one, then a centralized exchange is clearly not for them. Of course they have to withdraw all their budgets from a centralized exchange to the wallet which gives them complete control for increased security and the risk of losing money for whatever reasons may be stated. Privacy is obviously very important, but when users don't really care about privacy because they use a centralized exchange then that doesn't mean users don't support bitcoin.

[o_e_l_e_o]

The probability of an attack or something like that are so low, that I would not think it is way higher than the probability to have some issue at a DEX.

And how many of those people would probably fall in some kind of scam and lose all their money?

Don't take this the wrong way, but have either of you actually used a real DEX before? I often see people on these forums talk about how DEXs are complicated, DEXs are high risk, newbies can't use DEXs, etc., but they have never actually tried one themselves.

DEXs are not any more complicated than CEXs. Different, yes. But that doesn't mean more difficult, it just means different to what you are used to. I would argue that having to create an account on a CEX, and then send off all my documents and a selfie while holding today's newspaper with the name of the CEX written on it, and then wait 5 days for approval, and then have to do a video confirmation, and then wait another 5 days, and then link a bank account, and then wait 3 days for my transfer to clear, etc., etc., is significantly more complicated than opening a DEX and being ready to trade in 5 minutes.

There have been literally billions of dollars worth of crypto stolen via CEXs, and millions of users have had their private information leaked, hacked, shared, or sold, via CEXs. With a DEX, not only have such attacks not happened, but such attacks are largely not even possible since you don't hand over your data or your coins in the first place.

[John Abraham]

we need to find out the reason behind that, why those users' accounts are frozen. Don't jump to the conclusion that they take money from users because those accounts have very small amounts, nothing compared to the assets of Binance or Coinbase.

What if the exchange refuses to explain why they blocked the account, and what if they don't respond to your email for months? According to their TOS, they are not responsible for explaining this to you or any other 3rd party. Most exchanges Write this kind of thing on their TOS page, which we never bother to read. By accepting their TOS, You are giving them ultimate power over your exchange account and the funds you have there. Once again, I refer you to this thread; Do you know what is hiding behind Centralized exchanges User Agreement?

One more thing, I have never heard of having to deposit to unlock from Binance, maybe a new type of scam. Don't just listen to one side and jump to conclusions just because you don't like CEX, there should be fairness here.

It's not like a typical scam. They won't scam you in a typical way. I don't think you have read carefully what I've said. I refer you to this thread Binance Stuck My withdrawal by shasan for more detailed information. It doesn't look like a scam. But, It's a scam.

[Ale88]

The probability of an attack or something like that are so low, that I would not think it is way higher than the probability to have some issue at a DEX.

And how many of those people would probably fall in some kind of scam and lose all their money?

Don't take this the wrong way, but have either of you actually used a real DEX before? I often see people on these forums talk about how DEXs are complicated, DEXs are high risk, newbies can't use DEXs, etc., but they have never actually tried one themselves.

DEXs are not any more complicated than CEXs. Different, yes. But that doesn't mean more difficult, it just means different to what you are used to. I would argue that having to create an account on a CEX, and then send off all my documents and a selfie while holding today's newspaper with the name of the CEX written on it, and then wait 5 days for approval, and then have to do a video confirmation, and then wait another 5 days, and then link a bank account, and then wait 3 days for my transfer to clear, etc., etc., is significantly more complicated than opening a DEX and being ready to trade in 5 minutes.

There have been literally billions of dollars worth of crypto stolen via CEXs, and millions of users have had their private information leaked, hacked, shared, or sold, via CEXs. With a DEX, not only have such attacks not happened, but such attacks are largely not even possible since you don't hand over your data or your coins in the first place.

I used (and still use) DEXs, and for each one I create a separate wallet to avoid making a simple mistake that could lead me to lose everything I have. I used to buy shitcoins during the bull runs and I knew that had I approved the wrong smart contract everything would be gone.

Would I ever suggest to a newbie starting with a DEX? Personally no, I wouldn't, there are too many risks, before that person needs to understand how the crypto world works, and I doubt that someone completely new is in such a hurry he can't wait for their KYC to be completed... CEXs for me are the best starting point, let's not forget that there still are thousands of people who still give away their seed to some fake customer service representative on Telegram, can you image these kind of people on a DEX?

[FahriZah]

This Question Very Important And I Hope My Need To Answers Little That I Know As Well Why Does Bitcoiner Still Supporting The Use Of Centralized Exchange Because Bitcoin Is One Of The Best And Biggest Currency And When Compared With Decentralised I Mean DEX And Centralized That Means Shortly CEX It’s Totally Different Way And I Also Using Both Exchange DEX And CEX But Primary I Support And I Suggest CEX Is The Best Way To Starting Anyone.

[Ale88]

This Question Very Important And I Hope My Need To Answers Little That I Know As Well Why Does Bitcoiner Still Supporting The Use Of Centralized Exchange Because Bitcoin Is One Of The Best And Biggest Currency And When Compared With Decentralised I Mean DEX And Centralized That Means Shortly CEX It’s Totally Different Way And I Also Using Both Exchange DEX And CEX But Primary I Support And I Suggest CEX Is The Best Way To Starting Anyone.

Please don't use capital letters for every single word 

[FahriZah]

This Question Very Important And I Hope My Need To Answers Little That I Know As Well Why Does Bitcoiner Still Supporting The Use Of Centralized Exchange Because Bitcoin Is One Of The Best And Biggest Currency And When Compared With Decentralised I Mean DEX And Centralized That Means Shortly CEX It’s Totally Different Way And I Also Using Both Exchange DEX And CEX But Primary I Support And I Suggest CEX Is The Best Way To Starting Anyone.

Please don't use capital letters for every single word 

Thank You So Much For Your Advice I Will Try From Next Time Everything As Well 🙏

[Kryptowerk]

I did some research on Bitcoin because I was interested in it, and I discovered that the key principles of Bitcoin are peer-to-peer, anonymity, pseudonymity, decentralization, and operating without a middleman to ensure that Bitcoiners can have financial freedom. However, despite knowing that Bitcoiners adhere to these tenets, why do some Bitcoiners act contrary to them? Why do they continue to support centralized exchanges, use them, and retain their Bitcoin there?

Because, lets face it, there are way too many people that came from the idea to do some "investment" and even worse from a "get rich quick" mindset. And not from a "oh, what an incredible technology, let me explore this thing that will change the way our financial-world works" point-of-view.
I'd go as far and say 80%+ of people holding Bitcoin have no idea what it really is and what its core values/strengths are.

If you keep that in mind, it won't suprise you that still the majority doesn't care about using a centralized exchange service - to the contrary even: These folks may feel that with a company owning an exchange instead of a peice of software that allows p2p exchange (such as Bisq for example) there is someone that can be held accountable if things go wrong. Ofc that's wishful thinking but that's how things have been for ages and the only thing they know.

[o_e_l_e_o]

I used to buy shitcoins during the bull runs and I knew that had I approved the wrong smart contract everything would be gone.

The problem is that there are dozens of exchanges out there which call themselves a DEX, which are in fact not in the least bit decentralized at all. If you are depositing coins to a smart contract, or linking your wallet to a smart contract, then I don't think that's really decentralized at all. Most likely one or two people have written the smart contract and none of the users of the platform have even bothered to read it before sending their coins to it, meaning your coins are still under centralized control. You can absolutely lose coins from such a centralized, poorly written or deliberately malicious smart contract, and indeed, lots of people have done so in the past.

Compare this to a real DEX such as Bisq, where the only place the coins go other than your own wallet is to an escrow address controlled by you and the party you are trading with.

[jokers10]

...
Would I ever suggest to a newbie starting with a DEX? Personally no, I wouldn't, there are too many risks, before that person needs to understand how the crypto world works, and I doubt that someone completely new is in such a hurry he can't wait for their KYC to be completed... CEXs for me are the best starting point, let's not forget that there still are thousands of people who still give away their seed to some fake customer service representative on Telegram, can you image these kind of people on a DEX?

If the one gives a seed phrase to someone in a chat imagine what can a rogue do with him if to get enough personal data? When you pass KYC everywhere who controls your data safety? Some unknown company registered in some offshore? They ask to excuse them each time it's revealed that they "lost" another bunch of users personal data. It can look safer at the first stages, but you lose control for much longer. And when you get used to use CEX you start to trust it and you'll hardly start searching an alternative... until you'll face with all the problems CEX can bring. Okay, problems are usually not immediate as like if you uses DEX not wisely, but with DEX you know exactly what do you risk with, and that's not the same for CEX with KYC. Money is just a part of risk. Who knows how exactly can your personal data can be used? So many opportunities for a rogue!

[o_e_l_e_o]

Who knows how exactly can your personal data can be used? So many opportunities for a rogue!

Latest studies I am aware of:
https://javelinstrategy.com/2022-Identity-fraud-scams-report
https://javelinstrategy.com/research/2023-identity-fraud-study-butterfly-effect

In the region of 40 million individuals costing $50 billion, per year, in the US alone.

Identity theft is not a joke Jim!

[Doan9269]

why do some Bitcoiners act contrary to them? Why do they continue to support centralized exchanges, use them, and retain their Bitcoin there?

Am not a fan to using a centralized exchange but i have some likely reason i think some newbies or even experienced bitcoiners take for using a centralized exchange.

1. Some make use of a centralized exchange because they perform their daily trade on it and it's very easy for them to use and understand.

2. Some make use of a centralized exchange because there they always convert their fiat to bitcoin or bitcoin to fiat whenever they need to pay bills for their daily living expenses.

3. Some uses a centralized exchange because they don't know the difference between it and a decentralized exchange or how to engage one.

4. Some decided to just make use of a centralized exchange because they feels it makes no difference from any form of wallet or like the exchange and take the risk at their own will.

[Distinctin]

I did some research on Bitcoin because I was interested in it, and I discovered that the key principles of Bitcoin are peer-to-peer, anonymity, pseudonymity, decentralization, and operating without a middleman to ensure that Bitcoiners can have financial freedom. However, despite knowing that Bitcoiners adhere to these tenets, why do some Bitcoiners act contrary to them? Why do they continue to support centralized exchanges, use them, and retain their Bitcoin there?

The only reason why I support or still keep on using centralized on Bitcoin or crypto is due to safely withdraw or convert my crypto into Fiat.
But if there would be other way for me to securely withdraw or convert crypto into Fiat without doing it in person then I would stop using centralized platforms.

Exactly. If only we had an easy choice to make then we might've or surely already immersed ourselves in using Decentralized Exchange (DEX) rather than using Centralized Exchange (CEX) where anonymity is not on the table. I know that DEX also have their own share of advantages but for me, that's still an unknown water compared to CEX where we mostly do our transactions because of the advantage it can give like high liquidity, faster transactions, etc.

[Z-tight]

I know that DEX also have their own share of advantages but for me, that's still an unknown water compared to CEX where we mostly do our transactions because of the advantage it can give like high liquidity, faster transactions, etc.

The advantages of DEX are surely not unknown, and its advantages are in line with how BTC should be used, which are: privacy, true p2p without a third party, security because trading funds are deposited in an escrow address controlled by the two parties.

I believe these advantages are greater in line with with how BTC is expected to work, like for example BTC's transaction confirmation time is 10 minutes on average, it is not the fastest around, but one of the safest because once confirmed it is immutable and irreversible, but there are many networks and institutions with quicker confirmation time, but yet transactions can be reversed even after days. BTC network is about security and privacy over speed and 'convenience'.

[Who is John Galt?]

Exactly. If only we had an easy choice to make then we might've or surely already immersed ourselves in using Decentralized Exchange (DEX) rather than using Centralized Exchange (CEX) where anonymity is not on the table. I know that DEX also have their own share of advantages but for me, that's still an unknown water compared to CEX where we mostly do our transactions because of the advantage it can give like high liquidity, faster transactions, etc.

Under the brightest and most colorful candy wrapper created by a marketer, not the content that is advertised is often hidden. High liquidity and fast transactions are good as long as everything is running smoothly. But when CEX scams, it turns out that all the funds entrusted to it disappear, even if they were earned through fast transactions and wide trading opportunities. And we know that even the biggest exchanges scam from time to time. Losing control over your money even for a short time in the case of bitcoin can be critical: I remember there was a case when the owner of the exchange died, and allegedly took all private keys with him to the grave. Accordingly, there was simply nothing to compensate for the losses of those who trusted this exchange.

And I have not yet touched on the topic of personal data security raised above. But this topic may be even more important. The transfer of such sensitive information to a third party greatly increases the risks of running into big trouble.

Yes, DEXs may not look as comfortable, but they are much safer in the long run.

[dunfida]

I did some research on Bitcoin because I was interested in it, and I discovered that the key principles of Bitcoin are peer-to-peer, anonymity, pseudonymity, decentralization, and operating without a middleman to ensure that Bitcoiners can have financial freedom. However, despite knowing that Bitcoiners adhere to these tenets, why do some Bitcoiners act contrary to them? Why do they continue to support centralized exchanges, use them, and retain their Bitcoin there?

Whether we do hate up that centralization and been opposing on whats Bitcoins is all about, then we cant really still able to avoid on what CEX do able to offer which is something that
we cant be able to do on a DEX. If you are really that doesnt like centralization then you could always make use of DEX but somehow you cant really make out those withdrawals or  deposits via fiat which is something
that we could say that it is really that convenient honestly. It does really remove out that anonymity of yours once you do pass up your documents or your identity because most likely you would
be doing this if ever you would be touching P2P trades in between exchange users. Also there are perks when it comes to limits when your account is verified. No matter how  much we do hate up
centralization then it cant be that avoided to see up its good side which it does bring up that convenience.

The only thing that you should remember that never ever make an exchange wallet to be your main wallet or putting up all of your assets on one place specially if you dont posssess the keys.
We do have that bad history of exchange hacks and faked out bankruptcy calls which it isnt something that we do like on getting up on begging to get those coins back.

[ItsCrafty]

I don't know real reason behind this but as far as i think the most possible reason Cex support many Payment method like Visa, Credit card, Master card and other which make it easy for everyone to buy Btc easier. Cex also provide many payment method for withdraw. for this purpose Users prefer to trade in cex rather than Dex because this is easy for users to quickly buy and sell with Fiat.

[firesurfer]

Larger trading volumes and seamless borderless operations help centralized exchanges win hearts. If there are a lot of Bitcoins I choose a centralized exchange because of the large liquidity and also I can trade with altcoins or exchange them for FIAT coins easily.
If Bitcoin has a better and more popular smart contract, it is certain that more people will choose a decentralized Bitcoin exchange.

[Ale88]

with DEX you know exactly what do you risk with

Then why so many people lose everything? Probably YOU know exactly the risks but many others don't. It's like people who wire money to perfect strangers: would you ever do it? I guess not. Everyone should know that, right? And yet, it keeps happening. Never take for granted that people always know what they're doing, you just need a second of distraction and even an expert can make a mistake, shit just happens.

[BlackHatCoiner]

Then why so many people lose everything?

Because they don't use real DEXs, if you're referring to DEXs' incidents. I haven't ever heard of one individual losing everything with Bisq, the most well known and tested decentralized exchange, with most liquidity. Every other "decentralized" exchange I've noticed being shilled is either some shitcoin-based platform or a centralized exchange that makes abuse of the term, like Binance with peer-to-peer trading, that is actually peer-to-Binance-to-peer.

[Ale88]

Then why so many people lose everything?

Because they don't use real DEXs, if you're referring to DEXs' incidents. I haven't ever heard of one individual losing everything with Bisq, the most well known and tested decentralized exchange, with most liquidity. Every other "decentralized" exchange I've noticed being shilled is either some shitcoin-based platform or a centralized exchange that makes abuse of the term, like Binance with peer-to-peer trading, that is actually peer-to-Binance-to-peer.

I'm not talking about DEXs incidents, I'm saying that in general, when you're "out into the wild", it takes just one little mistake and potentially you can lose everything. And some people simply don't want to take this kind of risks. Are they renouncing to privacy/freedom/choice whatever you want to call it? Sure, but it's their decision so I don't see why someone else should feel entitled to criticize it.

And I have a question: let's say that every single CEX disappears overnight, I'm not talking about scam, they just vanish and people get their money back, no one loses everything, do you think that BTC and the crypto world will grow quicker or slower at that point? In my opinion we'll stop for a good while.

Anyway I don't think CEXs will last many more years, I think CZ itself said something similar time ago, but we need more time for people to get used to this "new system".

[cydrix]

Although we are discussing the technology and business philosophy in this conversation, our primary goal is to generate revenue. Bitcoin serves a variety of purposes. Other than anonymity, transparency in transactions encourages us to use it.
Your money is safer in decentralized exchanges than it is in centralized exchanges, however those who are unaware about cold wallets or decentralized exchanges could prefer to utilize centralized exchanges as their wallet. The firm also has a trade and liquidity component.

[BlackHatCoiner]

I'm saying that in general, when you're "out into the wild", it takes just one little mistake and potentially you can lose everything.

Not if you take the time to learn from the experts. Sure, if you have no idea what you're doing, and you're following random articles / tutorials without further research, and you put serious amounts of money in that, at some point you might lose everything. But that would be obtuse and irresponsible. Buy things you understand.

And some people simply don't want to take this kind of risks

What kind of risks? Downloading a free software and reading a little about how it works? And against what? Centralized exchanges with exponentially greater risks?

And I have a question: let's say that every single CEX disappears overnight, I'm not talking about scam, they just vanish and people get their money back, no one loses everything, do you think that BTC and the crypto world will grow quicker or slower at that point? In my opinion we'll stop for a good while

It will obviously slow down things, as everyone has used to centralized exchanging. But judging by the fact that most have either got hacked or bankrupt, and Bitcoin is still valuated at about 30 grand, I doubt it will take long until people switch to decentralized alternatives.

[GxSTxV]

Why do they continue to support centralized exchanges, use them, and retain their Bitcoin there?

First of all welcome to Bitcointalk and the world of Bitcoin. As a Bitcoin user and holder who deals with it and other cryptocurrencies on a daily basis I can answer your question from my experience. The main use of Bitcoin for me is investing and getting paid since it is fast, secure and I dn’t have to pay taxes unlike when dealing with fiat currency and banks. This is a significant advantage for me and many users but unfortunately the absence of Bitcoin in my region brings me to centralized exchanges as a solution because I can only use Bitcoin online since it’s not possible to use for everyday use such as shopping, paying scholar fees, food, and expenses in my region none of these establishments are accepting or dealing with crypto yet.

Therefore I have to exchange my Bitcoin to our currency using Binance or any other exchanger so i can spend my earnings of bitcoin even that it is not a good idea to retain and hold your assets in a centralized exchange and it is better to save them in a cold wallet which is way safer. Personally I cannot purchase a hardware wallet but I keep my assets in a safe desktop wallet that I only connect to the internet when I need to exchange it.

[lizarder]

I did some research on Bitcoin because I was interested in it, and I discovered that the key principles of Bitcoin are peer-to-peer, anonymity, pseudonymity, decentralization, and operating without a middleman to ensure that Bitcoiners can have financial freedom.

It is these advantages that make people can trust bitcoin easily and today we have not determined any other form of investment that is more perfect than bitcoin, despite the magnitude of the risks posed by its price fluctuations.

What most people expect from an investment that is run, decentralization and freedom and these two things are the basic considerations that make people make decisions in bitcoin.

However, despite knowing that Bitcoiners adhere to these tenets, why do some Bitcoiners act contrary to them?

Utilization will decide something according to its use, there are many reasons why people still act outside of conflicting principles as you mentioned.

Why do they continue to support centralized exchanges, use them, and retain their Bitcoin there?

Some people still use centralized exchanges for transactions made in bitcoin, but that doesn't mean they don't understand the principles of bitcoin and there are still many people who currently store bitcoin in wallets that are much more secure and not everyone stores bitcoin in centralized exchanges. Centralized exchanges are only used when they are trying to make transactions, whether small amounts or larger amounts.

While in my case it's possible to use a centralized exchange only when I want to make a transaction, the exchange I use is usually licensed to operate in the country where I live, but I don't hold bitcoins on a centralized exchange either in the short or long term.

[Awaklara]

Why do they continue to support centralized exchanges, use them, and retain their Bitcoin there?

most of those who still use centralized exchanges are those who trade. they use, but I'm not sure they still keep their Bitcoins in a centralized exchange. the experience has served as a warning to anyone not to keep their Bitcoins on exchanges, or to do so at their own risk.
some people know Bitcoin from trading, even centralized exchanges that make marketing on social media. the brand campaigns for crypto trading as a whole, not a benefit from the use and ownership of Bitcoin assets alone.

[Alpha Marine]

I don't see using centralized exchanges as a very bad thing. The problem comes when you leave your money in centralized exchanges. You can use centralized exchanges for just trading but don't leave your your money in a centralized exchange. You can just leave the amount you want to trade so if even you lose it, it won't be much l.

[abel1337]

I did some research on Bitcoin because I was interested in it, and I discovered that the key principles of Bitcoin are peer-to-peer, anonymity, pseudonymity, decentralization, and operating without a middleman to ensure that Bitcoiners can have financial freedom. However, despite knowing that Bitcoiners adhere to these tenets, why do some Bitcoiners act contrary to them? Why do they continue to support centralized exchanges, use them, and retain their Bitcoin there?

Not all people who has bitcoin are inclining the bitcoin characteristics on how they use it. Most of the people who has bitcoin today treat bitcoin as an investment and doesn't really care how bitcoin really works. As long as they have profits and they are still earning, they will continue to have bitcoin. I'm sure they won't use a decentralized exchange because of the fees that they hate, Instead they will just rely on the centralized exchange that has a massive fee differences. It's a hard to swallow pill that centralized exchange is part of crypto and it definitely has it's part on the growth of majority of the cryptocurrency. I don't think that centralized exchanges will become obsolete in the near future. 

[freedomgo]

with DEX you know exactly what do you risk with

Then why so many people lose everything? Probably YOU know exactly the risks but many others don't. It's like people who wire money to perfect strangers: would you ever do it? I guess not. Everyone should know that, right? And yet, it keeps happening. Never take for granted that people always know what they're doing, you just need a second of distraction and even an expert can make a mistake, shit just happens.

Well, that's one of the downsides of using DEX. Anything can happen especially mistakes because we are only human beings bound to make some mistakes, but what if that certain mistake is just too much to carry with like sending some huge funds but to a wrong address? What I'm trying to say is that DEX is indeed a good exchange to use especially if we wanted anonymity but regarding about making some mistakes, I think it's still good to use CEX just in-case.

[serjent05]

I don't see using centralized exchanges as a very bad thing. The problem comes when you leave your money in centralized exchanges. You can use centralized exchanges for just trading but don't leave your your money in a centralized exchange. You can just leave the amount you want to trade so if even you lose it, it won't be much l.

Same here, centralized exchanges are created to serve users and to have easier access to trade cryptocurrency.  The only mistake users have is that they use these exchanges as stash to save their cryptocurrency.  It is not the exchange's fault but the user's fault of trusting the exchange platform too much.

Aside from that without these centralized exchanges, the proliferation of cryptocurrency will not be fast.  Cryptocurrency exchanges are one of the major contributors when it comes to cryptocurrency adoption and information dissemination.  Without these centralized cryptocurrencies, I do not think we will have this kind of adoption level.

[Woodie]

I did some research on Bitcoin because I was interested in it, and I discovered that the key principles of Bitcoin are peer-to-peer, anonymity, pseudonymity, decentralization, and operating without a middleman to ensure that Bitcoiners can have financial freedom. However, despite knowing that Bitcoiners adhere to these tenets, why do some Bitcoiners act contrary to them?

Its not like they don't want to support the true value cores of bitcoin, its just that to survive in this game they need external influence  which means being regulated and enjoying other perks...besides having to support the likes of visa or MasterCard was always going to point  in the direction of centralization as its the only way to protect the merchants and customers.

Why do they continue to support centralized exchanges, use them, and retain their Bitcoin there?

Like i said, centralization has more perks than been decentralized, it opens up to more buying power, opens up a wide range of coins unlike decentralized exchanges that can only operate with a few select coins.

[Stedsm]

@OP, the reason behind that is the fact that Bitcoin is being valued in terms of fiat. Fiat itself is centralized, so we need alternatives that allow us to go for P2P and use those alternatives as escrow (here: centralised exchanges like Binance). However, nowadays I'm also aware of the fact that people are being screwed for using these P2P as they're suffering from chargebacks and even bank account freeze scams.
I also know that we all hate providing KYC when we talk about privacy and decentralisation, but at some point it's for our own good and that's where these exchanges help us out whenever we get stuck in those scams.
Till we can't transact BTC for its own value (not in fiat, but giving BTC a different value for its usage which isn't possible because we all are here for profits through speculation), I don't think Dexes will take over.

[Ale88]

I'm saying that in general, when you're "out into the wild", it takes just one little mistake and potentially you can lose everything.

Not if you take the time to learn from the experts. Sure, if you have no idea what you're doing, and you're following random articles / tutorials without further research, and you put serious amounts of money in that, at some point you might lose everything. But that would be obtuse and irresponsible. Buy things you understand.

All the things you're saying make totally sense in an ideal world, and unfortunately that's not the world we live in otherwise many things wouldn't keep happening over and over again, and I'm not talking only about crypto. The majority of people are lazy and are not interested in learning new things, that's how other people keep taking advantage of them. Of course you can say it's their fault but then you probably lost that person forever.

[Franctoshi]

For now I think why some Bitconers still supports centralized exchanges is due to the fact that CEX are  really helping out in the quick adoption of Bitcoin across the globe, and it has made Bitcoin become more accessible to people who wants to trade, invest and own some portion of Bitcoin. So, in order for Bitcoin to reach its destination point successfully, Centralized exchanges has a role here to play through its P2P method which helps people to convert their fiat into Bitcoin.
Too some people feels that saving their crypto in centralized exchanges is less stressful to them , as they have no need to wory much about securing their seeds phrases and forgetting that not your keys not your crypto.

[Falconer]

Some people still use centralized exchanges for transactions made in bitcoin, but that doesn't mean they don't understand the principles of bitcoin and there are still many people who currently store bitcoin in wallets that are much more secure and not everyone stores bitcoin in centralized exchanges. Centralized exchanges are only used when they are trying to make transactions, whether small amounts or larger amounts.

While in my case it's possible to use a centralized exchange only when I want to make a transaction, the exchange I use is usually licensed to operate in the country where I live, but I don't hold bitcoins on a centralized exchange either in the short or long term.

I wouldn't say some people, but the average trader or investor is a user of a centralized exchange even if they don't hold their assets on the exchange. The best advice is to use a suitable centralized exchange, this can help you convert your bitcoins or crypto to fiat and not keep your investment there in the long term.

I don't expect the presence of a centralized exchange to have deprived bitcoiners of complete anonymity as long as they have other exchange options without KYC. So anyone can use and not use centralized exchanges, but they also know that centralized exchanges also played an important role in making bitcoin more popular.

[nurilham]

As long as CEX has advantages for Bitcoiners, they will always support CEX. CEX offers more comfortable places for trading coins, there are varied features as well. While in DEX, the features are more limited and sometimes they have no big volumes for transactions of certain coins, too. So, Bitcoiners prefers to use CEX over DEX in some cases.

However, for keeping BTC or altcoins, many people avoid CEX now. People know that CEX is riskier to be a place for storing coins for a long time.

[John Abraham]

As long as CEX has advantages for Bitcoiners, they will always support CEX. CEX offers more comfortable places for trading coins, there are varied features as well. While in DEX, the features are more limited and sometimes they have no big volumes for transactions of certain coins, too. So, Bitcoiners prefers to use CEX over DEX in some cases.

Huh? Do you think Bitcoiner supports Centralized Exchanges? I don't think so. Yes, Bitcoiners use Centralized exchanges because sometimes you may need cash, and you can use Centralized exchanges to sell your coins. At least I only use Centralized exchanges to sell my coins and cash out them. I never use centralized exchanges for any other purposes. I use Decentralized exchanges if I need to exchange Bitcoin for any other currencies. I won't say Bitcoiners support Centralized exchanges. They use them for emergency purposes only.

People know that CEX is riskier to be a place for storing coins for a long time.

There we go again. Not only for a long time. I won't suggest anyone hold their coins on exchanges for a day. You don't know when the desired day will come. Not only centralized exchanges but also decentralized exchanges. I mean, why would you hold your coins on exchanges while you can keep them in your self-custodial wallet? You cannot control them when you keep them in an exchange. They are not in your hands. Their service could be unavailable to you anytime. I don't see any point in holding your coins in exchanges. I never suggest doing it. Use your wallet to store your coins. Not your keys, Not your coins!

[jokers10]

with DEX you know exactly what do you risk with

Then why so many people lose everything? Probably YOU know exactly the risks but many others don't. It's like people who wire money to perfect strangers: would you ever do it? I guess not. Everyone should know that, right? And yet, it keeps happening. Never take for granted that people always know what they're doing, you just need a second of distraction and even an expert can make a mistake, shit just happens.

Right, and the same can happen with the CES as well, can't it? But CEX has much more underwater stones. Some people if they are not cautious enough will lose their money anyway and we can just warn them about possible problems. Their decisions they make themselves.

When someone starts using a trustless currency like bitcoin we should warn him that all transactions are irreversible, that entire control over his money are on him what means that all risks are on him as well. It is not very simple, I understand, but if to use a decentralized currency people should learn that. Otherwise there is a fiat system they still can use.

[Who is John Galt?]

I don't see using centralized exchanges as a very bad thing. The problem comes when you leave your money in centralized exchanges. You can use centralized exchanges for just trading but don't leave your your money in a centralized exchange. You can just leave the amount you want to trade so if even you lose it, it won't be much l.

If there is no KYC on these CEXs, you only risk the funds currently held on the exchange. And if there is KYC, then you additionally risk the security of your personal information, and this is very serious. 42 million only of US citizens (which is more than 10% of the country's population) are victims of identity theft per year. Many people underestimate the importance of their personal data and the negative consequences of using this data by fraudsters.

[lizarder]

I wouldn't say some people, but the average trader or investor is a user of a centralized exchange even if they don't hold their assets on the exchange. The best advice is to use a suitable centralized exchange, this can help you convert your bitcoins or crypto to fiat and not keep your investment there in the long term.

I don't expect the presence of a centralized exchange to have deprived bitcoiners of complete anonymity as long as they have other exchange options without KYC. So anyone can use and not use centralized exchanges, but they also know that centralized exchanges also played an important role in making bitcoin more popular.

If investors are active in trading but I mean some investors who are holding bitcoin long term and not active in trading, so they don't always use a centralized exchange and automatically they will store bitcoins in a much safer place to avoid problems. Anyone can avoid centralized exchanges that require KYC and choose exchanges that don't require it, but it seems to me when someone decides to use a centralized exchange, only in the trading area instead of keeping assets for the long term in the exchange because we've seen how insecure stored assets can be on a centralized exchange.

It is therefore necessary to take into account when someone uses a centralized exchange and most importantly they understand that to store bitcoins for the long term is not a safe place in a centralized exchange. As has happened on several centralized exchanges in recent years, this reason is sufficient not to store bitcoins on centralized exchanges.

[nimogsm]

I did some research on Bitcoin because I was interested in it, and I discovered that the key principles of Bitcoin are peer-to-peer, anonymity, pseudonymity, decentralization, and operating without a middleman to ensure that Bitcoiners can have financial freedom. However, despite knowing that Bitcoiners adhere to these tenets, why do some Bitcoiners act contrary to them? Why do they continue to support centralized exchanges, use them, and retain their Bitcoin there?

Because not everyone cares about security and not everyone has cold storage. Most often, ordinary laziness prompts you to store everything on the stock exchange, that's the whole answer. Not many people care about their funds and when problems happen with exchanges, as it has happened more than once when users remember the main idea of Bitcoin and security.

[Mauser]

I did some research on Bitcoin because I was interested in it, and I discovered that the key principles of Bitcoin are peer-to-peer, anonymity, pseudonymity, decentralization, and operating without a middleman to ensure that Bitcoiners can have financial freedom. However, despite knowing that Bitcoiners adhere to these tenets, why do some Bitcoiners act contrary to them? Why do they continue to support centralized exchanges, use them, and retain their Bitcoin there?

Bitcoins became quite popular in the last few years and attracted a lot of new investors. Especially institutional investors were looking at ways to quickly buy large quantities of crypto coins. Moving large sums of money peer to peer is much harder and requires a lot of work compared to a centralised exchanges. I think that for the average investor who is looking to buy a few hundred USD worth of Bitcoin it's fine to engage in decentralised transactions. But for any larger corporation the advantages are with a big exchange than can quickly process their trades. Even with the scandals we had in the past where an exchange got hacked, or scammed the user out of their money, it's still attractive for many investors. Personally I have uses centralised exchanges regularly in the past and think that security risk is not that big if we regularly withdraw our coins. It makes no sense to leave our funds at the exchange for a long period of time.

[BVeyron]

I did some research on Bitcoin because I was interested in it, and I discovered that the key principles of Bitcoin are peer-to-peer, anonymity, pseudonymity, decentralization, and operating without a middleman to ensure that Bitcoiners can have financial freedom. However, despite knowing that Bitcoiners adhere to these tenets, why do some Bitcoiners act contrary to them? Why do they continue to support centralized exchanges, use them, and retain their Bitcoin there?

This happens because BTC needs adoption. Nearly none of business initiatives accept payments directly in BTC, that's why all the cryptocurrency universe is still highly dependent on fiat banks and exchange hubs. This dependence brings some degree of centralization, but at the current level of adoption crypto to fiat transfers are the only way to use cryptocurrency as money.

[Lida93]

I did some research on Bitcoin because I was interested in it, and I discovered that the key principles of Bitcoin are peer-to-peer, anonymity, pseudonymity, decentralization, and operating without a middleman to ensure that Bitcoiners can have financial freedom. However, despite knowing that Bitcoiners adhere to these tenets, why do some Bitcoiners act contrary to them? Why do they continue to support centralized exchanges, use them, and retain their Bitcoin there?

This happens because BTC needs adoption. Nearly none of business initiatives accept payments directly in BTC, that's why all the cryptocurrency universe is still highly dependent on fiat banks and exchange hubs. This dependence brings some degree of centralization, but at the current level of adoption crypto to fiat transfers are the only way to use cryptocurrency as money.

Wether bitcoin adoption because globally accepted by government of all countries permitting and accept the use of BTC in doing business like they do with fiat, still a lot of people wouldn't stop the use of centralized exchanges that's because CEX provides a convenient platform for bitcoin traders to do their trading be it spot or features trading, I wonder how many DEX has such features in their platform.

In view of the fact that nearly everyone using bitcoin conceives it as a means to make earnings and grow in profits other than the main vision of Satoshi as means of doing transactions without a third party involvement, and to earn, a bitcoiner has to either hold or trade, hence the odds are that there are more bitcoin traders than holder (some holder even trade too), so much as we trade then the use of centralized exchanges can't be stopped.