People are giving too much importance to exchanges

[Aanuoluwatofunmi]

Exchanges and BTC are 2 different things. One exchange going down doesn't mean BTC must follow.
Binance will disappear? I don't give a damn.

Bitcoin is entirely different from an exchange in many ways that they both were supposed bot to be compatible together because bitcoin is a decentralized digital currency while the exchanges are centralized platforms for cryptocurrency exchanges which means the exchanges perform both bitcoin transactions and other cryptocurrencies as well, you could also discover that there are many support coins from these exchanges that are nothing but shitcoins, scam memecoins promotions and so on.

[Wend]

Exchanges and BTC are 2 different things. One exchange going down doesn't mean BTC must follow.
Binance will disappear? I don't give a damn.

Bitcoin is entirely different from an exchange in many ways that they both were supposed bot to be compatible together because bitcoin is a decentralized digital currency while the exchanges are centralized platforms for cryptocurrency exchanges which means the exchanges perform both bitcoin transactions and other cryptocurrencies as well, you could also discover that there are many support coins from these exchanges that are nothing but shitcoins, scam memecoins promotions and so on.

In a word, bitcoin is like currency but decentralized, and exchanges are like banks. Bank failure does not mean the monetary system will collapse, and neither does bitcoin. But exchanges are also an important part of the market, without them, we would have quite a bit of difficulty in accessing investment and liquidity. Because this market is not only bitcoin, and in the future, everything will develop even more.

[kryptqnick]

We're in it with you, op. I've never user FTX and perhaps used Binance many years ago a couple of times, and yet here we are. The problem is that crypto exchanges are a big part of the infrastructure, considering that one can rarely pay for things directly in Bitcoin, and that many people do trading which requires exchanges. So it makes sense that the panic spreads when a big exchange is facing troubles. But it's temporary, and Bitcoin is already bouncing back. There isn't much we can do about it, and the price could go down for a different reason if exchanges didn't matter.

[Altryist]

We're in it with you, op. I've never user FTX and perhaps used Binance many years ago a couple of times, and yet here we are. The problem is that crypto exchanges are a big part of the infrastructure, considering that one can rarely pay for things directly in Bitcoin, and that many people do trading which requires exchanges. So it makes sense that the panic spreads when a big exchange is facing troubles. But it's temporary, and Bitcoin is already bouncing back. There isn't much we can do about it, and the price could go down for a different reason if exchanges didn't matter.

I think we need to get past the time when people hold their coins on centralized exchanges until everyone understands how dangerous it is. I use centralized exchanges because it's convenient, but I wouldn't keep significant amounts there for a long time. The current situation with regulator lawsuits is a separate issue, but that doesn't change the fact that exchanges are a bad place to store your coins.

[flyingcarpet]

6 months ago, my savings went down because of the FTX debacle. I've never used FTX, I've never been a customer of this company, but my savings are in BTC, and because of that failure, BTC's value went down, and so went my savings.

Today, bis repetita. I've never used Binance. I've never been a customer of this company, but because the SEC sues Binance, BTC is down, and so are my savings, so I have a message to all bitcoiners out there.

Exchanges and BTC are 2 different things. One exchange going down doesn't mean BTC must follow.
Binance will disappear? I don't give a damn.

I want to think like you, but sometimes the truth isn't like that. When there is negative news about Binance, bitcoin drops because many of the users do not know how to store bitcoin. They don't use cold wallets or anything like that. Therefore, when they receive negative news, they exchange bitcoin and withdraw their money from the exchange. In this case, we cannot blame them. At the same time, this situation will never be what we expect. Because the number of knowledgeable bitcoin users is really small.

If there were things we wanted, bitcoin would be the currency in the world right now. Unfortunately, some things don't happen right away.

[Dimitri94]

Bitcoin and Exchanges are different but they are both connected to each other that is why, as you have experienced when Binance has a problem, it affects the price of Bitcoin as well. And this is because exchanges have a huge role in the crypto space where people are buying and selling there, and if any problems arise with these exchanges, users are really affected. That is why people are giving more attention and importance to them as it was one reason why people are here and make a good profit and trading are alive.

Although Exchange and Bitcoin are two different things, they are closely related to each other. When negative events occur in the crypto space, the price of all other coins, including Bitcoin, will continue to fall down. Even though Binance US exchange attacked by SEC Lawsuit but Binance is still fine. If any company wants to conduct business in USA, they have to do business according to some rules. In this concern Binance US may get temporary restricted for investigation. it is not unusual to have some effect on Bitcoin. As we have seen when FTX falls, Bitcoin prices continue to decline massively.

[ElmedoRator]

Exchanges play an important role in the price dynamics of Bitcoin and other cryptocurrencies. The easy accessibility, user-friendly interface, and interactive nature of exchanges have really contributed to increasing trading activity and acceptance in the cryptocurrency market. This increased activity can impact the dynamics of supply and demand, which, in turn, can affect the price of Bitcoin. So as recent concerns and regulatory actions surrounding exchanges like Binance or Coinbase affect market sentiment, it is likely to lead to short-term price volatility. It emphasizes the importance of prudence and caution when choosing and using exchanges to trade or store cryptocurrencies.

[mindrust]

Exchanges and BTC are 2 different things. One exchange going down doesn't mean BTC must follow.
Binance will disappear? I don't give a damn.

Exchanges are the FIAT gates. The truth is, there isn't much you can do with crypto other than trading. If people can't do that, what are they gonna do? Yes they can buy certain stuff with crypto but the adoption is nowhere near the use of the credit cards. Most people use crypto to make more FIAT and because of that they hold most of their crypto on the exchanges. Once a big exchange starts giving bad signs, people naturally panic and dump their positions so they can get back to FIAT quickly...

[Asuspawer09]

Yes actually, the centralized platform is actually a thing this day and where actually giving a lot when it comes to investments, information, etc.

Centralized exchanges like Binance, and FTX still has their use since it was an easy way to exchange, buy or sell cryptocurrency, we witness the fall of FTX and it really affects how exchanger is treated and affects the market as well. Bitcoin is different from Binance but still connected since that is the platform where you can buy cryptocurrency.

The centralized platform could easily freeze our funds since they have all the control over our savings, you putting your investments on an exchanger is a bad thing, We don't know but there is always a possibility that Binance could fall I mean it's still a business and investing on cryptocurrency is a risky investment. Most likely this is just another case that is going to ride for a long time but doesnt really make an impact.

[CPNpr]

By creating a relationship between the two, exchanges allow people to trade in bitcoins. Traders always feel panic due to the bankruptcy of some exchanges. It's no surprise that Bitcoin is a separate exchange process. If you are a bitcoin user, sell your coins without keeping them long term. Then there is nothing to worry about for you. It is normal for prices to fluctuate in the Bitcoin market. But a skilled bitcoin holder understands how to be self-sufficient in this process

[southerngentuk]

The negative news surrounding Bitcoin-focused exchanges lately is really affecting the market. But these price movements are often temporary in nature and do not necessarily reflect Bitcoin's long-term potential or value. While centralized exchanges can have an impact on short-term market dynamics, the fundamental factors driving Bitcoin growth and adoption extend beyond any single exchange or individual company. Bitcoin's value stems from its decentralized nature, scarcity, utility, and trust in its underlying technology. These factors, along with broader market trends, investor sentiment, and institutional acceptance, play an important role in shaping Bitcoin's long-term trajectory.

[Ultegra134]

How can you so sure about binance not shutting down? I agree that exchanges are more convenient to use but they can shut down anytime. FTX was promising and had a lot of customers in their exchange but they shut down. I will be not surprised if Binance close their activity and make all the users balance worth 0$.

I'm not 100% sure, but I can identify that it's unlikely to happen, as Binance is currently the exchange with the largest trading volume. FTX's story is much different from Binance's; their shutdown was a series of management mistakes, without excepting the possibility of it being intentional in an attempt to run away with the investors money.

Are people listening to me?

I'm quite thrilled to see that BTC is back to what it was before the SEC/Binance news. The down period lasted only 24 hours. That is impressive. It shows that BTC traders and holders are getting smarter. They know that one exchange having trouble is not the end of the world, and that we shall go back to business as usual. Good.

Hmm, you might have to rethink your statement. Ultimately, the SEC incident has caused a significant market crash, and Bitcoin itself hasn't really recovered yet, and doesn't look like it's going to anytime soon. Unfortunately, it's very possible that this crash will have a lasting duration, at least till the SEC issue is resolved.

[suzanne5223]

Like it or not there's no way cryptocurrency investors won't give so much importance to tier 1 centralized exchange because they are the most used and high Bitcoin volume holder in the market. Therefore, it is normal that the exchange issue will cause some downtrend in the BTC market due to some of the exchange users panic sell, and instead of being bothered by the issue or how your investment loose value it is better to seize the moment and accumulate more using DCA.

will disappear?

Binance won't disappear but if the situation gets out of hand only Binance.us will disappear since the issue only has to do with the US SEC.

[jrrsparkles]

6 months ago, my savings went down because of the FTX debacle. I've never used FTX, I've never been a customer of this company, but my savings are in BTC, and because of that failure, BTC's value went down, and so went my savings.

Today, bis repetita. I've never used Binance. I've never been a customer of this company, but because the SEC sues Binance, BTC is down, and so are my savings, so I have a message to all bitcoiners out there.

Exchanges and BTC are 2 different things. One exchange going down doesn't mean BTC must follow.
Binance will disappear? I don't give a damn.

But these are the factors affect the prices of cryptocurrency assets since people who invested in crypto will start panicking and sell their assets so the price will decline however its only a short term effect so long term investors no need to worry about that. Exchanges may come and vanish but bitcoin won't so that is also another reason why don't keep your bitcoins in exchange wallets cause if exchange disappear then your assets will vanish too.

[serjent05]

Crypto exchanges are the platform where we trade our cryptocurrency, it is an obvious thing that whenever a huge platform experiences difficulty, there is a chance that the price of cryptocurrency is affected.  In trading, trader sentiment is important in moving the market.  So when the sentiment is negative, we might see price dive depending on the severity of the market sentiment.

So for me, it is normal to give too much importance to a platform that processes trades and conversion of cryptocurrency.  How can you claim profit if your holdings can't be converted?  This is the reason why holders are giving importance to exchanges.

[ChiBitCTy]

6 months ago, my savings went down because of the FTX debacle. I've never used FTX, I've never been a customer of this company, but my savings are in BTC, and because of that failure, BTC's value went down, and so went my savings.

Today, bis repetita. I've never used Binance. I've never been a customer of this company, but because the SEC sues Binance, BTC is down, and so are my savings, so I have a message to all bitcoiners out there.

Exchanges and BTC are 2 different things. One exchange going down doesn't mean BTC must follow.
Binance will disappear? I don't give a damn.

That's pretty damn risky to have your savings in bitcoin like that.  What I think you need to understand is that bitcoin is still a new thing.  It's a new asset, and a new investment to a lot of people (even though technically it's not an investment, it's a revolutionary payment system).  So it still being pretty new, any event like this involving a major exchange is going to effect the minds of many, even  if it shouldn't , like you point out here.

[carlfebz2]

Exchanges and BTC are 2 different things. One exchange going down doesn't mean BTC must follow.
Binance will disappear? I don't give a damn.

Exchanges are the FIAT gates. The truth is, there isn't much you can do with crypto other than trading. If people can't do that, what are they gonna do? Yes they can buy certain stuff with crypto but the adoption is nowhere near the use of the credit cards. Most people use crypto to make more FIAT and because of that they hold most of their crypto on the exchanges. Once a big exchange starts giving bad signs, people naturally panic and dump their positions so they can get back to FIAT quickly...

Even if we are really that too skeptical when it comes to centralized platforms or something that it is regulated but we cant really ignore the fact and see their importance or relevance on this space on which we could really say that they are really indeed useful. Without having these platforms then how we would be able to make conversions out of those crypto you do have into fiat? There's no way on doing that
but rather with p2p with other people which we know that it cant really be that something comfortable and that having the accessibility.

Thing here that you should mind about when dealing up with these platforms is that you shouldnt really be making it as your main wallet of your coins or assets. Despite on being useful and relevance, we do know
that exchange hacks and other exploits could really happen along the way on which it might be causing up that kind of huge loss of our money which is something that we dont really like to happen.
Use it according into your needs and if you dont bother up on spending up fees then it would be better on pulling off those funds actively out of exchanges.

[countryfree]

Are people listening to me?
...

No, they aren't. Major players use everything to play with the market and smaller players react to what the first ones do. Major exchanges are major players also so their games also impact the market, so it is impossible that any serious situation with Binance won't impact. Even if you'll reach some people on the forum (hardly) there are much more in the outer world who will not hear nor you, nor me. To impact the market the one should became the whale.

Yeah, not much doubt about that. still, I hadn't expected the market to recover so fast.
It's good to see that trouble at an exchange is seen as minor.

[Awaklara]

Exchanges and BTC are 2 different things. One exchange going down doesn't mean BTC must follow.

but there is a causal relationship between the two. it's not even just Bitcoin that's getting impacted. This happens because the bad news that hits the exchange makes most of the traders and holders panic and move their Bitcoins or convert Bitcoins to stable assets.
Such situations kept repeating when the market was crushed by disasters involving exchanges, most of which held large amounts of Bitcoin and assets.

[famososMuertos]

It really was something momentary, but it is a reality that will surely hit bitcoin, but that does not mean the end, there is no drama, in fact that effect if we qualify it that way, it only lasted less than 24 hours, it reached +/- 25K for then be at +27k.

But that does not imply that it does not harm, times change and although the solution is to use dex, it is an effective formula that is diluted in the widespread use of CEX exchanges. It is a reality in the adoption of bitcoin.