Why does Bitcoiner still support the use of centralized exchanges?

[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.

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[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.