People are giving too much importance to exchanges

[Minhxx]

Yes, exchanges and bitcoin are two completely separate things. But it affects investor psychology, anyone is bewildered when an exchange has Fud, speculators will immediately take profits or cut losses to minimize risks.

[nullama]

Yes, exchanges and bitcoin are two completely separate things. But it affects investor psychology, anyone is bewildered when an exchange has Fud, speculators will immediately take profits or cut losses to minimize risks.

Although they are a different thing, as long as fiat remains the main method of payment, then people will need exchanges to obtain Bitcoin.

There's no way around it. The moment Bitcoin is used for most goods and services will be the time when exchanges are not needed any more.

[Venik]

Yes, exchanges and bitcoin are two completely separate things. But it affects investor psychology, anyone is bewildered when an exchange has Fud, speculators will immediately take profits or cut losses to minimize risks.

Although they are a different thing, as long as fiat remains the main method of payment, then people will need exchanges to obtain Bitcoin.

There's no way around it. The moment Bitcoin is used for most goods and services will be the time when exchanges are not needed any more.

You don't need an exchange to buy Bitcoin. At least centralized ones like Binance. There are a lot of P2P exchanges.

[Distinctin]

You're right — but what we think and want doesn't always reflect reality. The fact is, most of the cryptocurrency space at least for now is still largely speculation and not much people (at least yet) care about self-custody and self-sovereignty.

Unless bitcoin will become a global currency, the speculations will certainly end there. And people will prefer more self-custody and self-sovereignty rather than completely centralized and continue to miss opportunities offered by decentralized coins. However, it could be a long process before realization takes place and there will be consistent cases of study on decentralized cryptocurrency before the centralized government will side them.

[Viscore]

You're right — but what we think and want doesn't always reflect reality. The fact is, most of the cryptocurrency space at least for now is still largely speculation and not much people (at least yet) care about self-custody and self-sovereignty.

Exactly. People only see cryptocurrency as more on speculations so expect that they will not stick to the principle of decentralization but still prefer to use centralized exchanges because for them that is the trend and the right move for them. Hopefully in the future, things may change and decentralization may become a real thing so that people won’t never see it as speculations only.

[dunfida]

You're right — but what we think and want doesn't always reflect reality. The fact is, most of the cryptocurrency space at least for now is still largely speculation and not much people (at least yet) care about self-custody and self-sovereignty.

Exactly. People only see cryptocurrency as more on speculations so expect that they will not stick to the principle of decentralization but still prefer to use centralized exchanges because for them that is the trend and the right move for them. Hopefully in the future, things may change and decentralization may become a real thing so that people won’t never see it as speculations only.

Even if we do solely be sticking with DEX it would really be still seen to be speculative and this is something that cant really be changed because it would really be always been attached to it.When it comes to choices

on what are the things you would really be dealing is really depending on your preference and risks management since not all would really be that mindful that much in this regard and this is why they dont really care if
they would really be deciding on putting up their funds on an exchange platform on which its true that it isnt really ideal on doing so considering that the risks on losing those funds is high compared when its been holded up on your own non-custodial wallet.
Centralized exchanges wouldnt cease to exist considering that it would be having that kind of function which it do connects out the conversion of crypto into fiat on which this is something that cant really be seen on DEX and this is the main feature on why CEX is really having  that demand.

[Finestream]

The value of your coins goes up not because millions of people adopt Bitcoin to pay with it for their morning coffee, it's because companies like Binance allow millions of people to quickly and conveniently invest in Bitcoin and trade it. Binance is responsible for a large share of total Bitcoin trading volume, so like it or not, exchanges will be a major factor for Bitcoin's price, until most of the trading volume will move to DEX, which might not even happen ever.

Let’s just face the reality that bitcoin price is easily affected by big factors around which includes the future of the big exchanges that have gained so much demand from bitcoin traders. Since exchanges like Binance have stored large number of bitcoin, so if Binance suddenly becomes insolvent, those large amount of bitcoin owners will be greatly affected seeing their bitcoin vanish like thin air. And worst, bitcoin price instantly drop that made its owners unable to sell for profits.

[pawel7777]

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.

Your savings, if expressed in bitcoins, remained the same. And if you choose to look at the fiat value of your holdings, then you understand that this is only possible when there are ways to exchange btc to fiat, i.e. exchanges.
So I don't get why would you act surprised if events like the collapse of one of the major exchanges have an effect on Bitcoin's price.

And I wouldn't compare Binance to FTX. Unlike FTX, who were a bunch of scammers with no trace of any moral spine, Binance has a very good track record and so far they acted very professionally, and despite being hacked a few times, no customer has lost any money.

[Kasabus]

If you are not interested in the exchange, you should not create this topic you should continue to hold your bitcoins. Everyone has the right to choose, you can't force everyone to follow your opinion.  i'm not a fan of centralized exchanges, but I don't hate them either, but to be fair, they're not as bad as you say.  they really have many utilities and benefits for us, I think without them, the crypto industry wouldn't be as strong as it is today.

We don’t need to hate centralized exchanges as without them, decentralized exchanges will never come to its existence. So let just people decide whether they’ll use the centralized or decentralized ones. After all it’s their coins they are going to spend. However, I only use centralized exchanges when trading but never when it comes to long term storage of my coins. That is to protect my coins from its sudden loss especially if they’re place on centralized exchanges.

[goldkingcoiner]

The reason why people are giving wayyy too much importance to exchanges is because people are lazy and do not want to claim responsibility for their own actions and especially, their own money. Not everyone is comfortable with the idea of "being their own bank" until something bad happens to convince them otherwise. And eventually it will happen, whether in the form of a bank unjustly freezing their accounts or the government plainly confiscating their money on whatever ground they deem fit.

Its frustrating because we have all the decentralized and unregulatable ways to buy Bitcoin or other cryptocurrency. But people cannot shake off the feeling that they need a third party to hold their money for them.

[serjent05]

If you are not interested in the exchange, you should not create this topic you should continue to hold your bitcoins. Everyone has the right to choose, you can't force everyone to follow your opinion.  i'm not a fan of centralized exchanges, but I don't hate them either, but to be fair, they're not as bad as you say.  they really have many utilities and benefits for us, I think without them, the crypto industry wouldn't be as strong as it is today.

We don’t need to hate centralized exchanges as without them, decentralized exchanges will never come to its existence. So let just people decide whether they’ll use the centralized or decentralized ones. After all it’s their coins they are going to spend. However, I only use centralized exchanges when trading but never when it comes to long term storage of my coins. That is to protect my coins from its sudden loss especially if they’re place on centralized exchanges.

Aside from that centralized exchanges are also partly responsible for the cryptocurrency's fast adoption.  Without these centralized exchanges, it will be hard for the cryptocurrency trader to exchange their holding.  Decentralized exchanges sure can also be used to trade our cryptocurrency but it is much more convenient to use centralized exchanges because they have more pairs than decentralized exchanges.  Though I would suggest that we must only use centralized exchanges as trading platforms and not as storing platforms.

[uche6215]

Because exchange makes things easy for them to use. It is through exchange the true meaning of crypto is manifesting. Through exchange people buy and sell Cryptocurrencies easily. The p2p in exchange is very good to use. So people patronize them more than any other ways of getting and selling cryptos.

[Wimex]

Bitcoin and exchanges are different, but there is a need of a platform through which the market for the bitcoin is built. If exchanges weren't available, what would've happened. Everyone who have got bitcoin will be holding it and there won't be any trading practice which keeps the market stable. If not we could've got moved to the ancient days or to the paper and pen on trading. Exchanges are part of the development. Everything can't be cent percent perfect, so is the service provided through the exchanges. The cryptomarket have got some connectivity with the exchanges, just because of that we were able experience downfall in the market when something good happens.

If exchanges weren't available, what would've happened

I think that it would not have stagnated, but its progress in the virtual market would have been slower, I consider that thanks to the exchanges everything developed almost perfectly, I wonder more…. How could you invest in bitcoin without the option of being able to buy with fiat currency? ……..I know that there are ways to access this asset, but with this action it could be said that it is easier, since it allows both the use and acquisition of this currency, unfortunately, since it is not legal tender in many parts of the world , people are forced to obtain an asset that they can manage, and with which they can cancel what they want to buy, since despite the fact that there is an establishment where they receive bitcoin, this option is still not global.

So that the exchanges are not so necessary, all the countries of the seven continents would have to accept their use, and therefore allow it to be received as a form of payment in any business, whether large or small, implementing applications where the transaction can be carried out. , like a bank transfer, but it is something that at the moment is difficult to see.

[Abiky]

Companies, like exchanges, come and go over time.

Bitcoin, on the other hand, is here to stay for the long term.

If you keep your bitcoin in your own cold wallet, it will be there tomorrow, and in the next few years.

If you trust your bitcoin with a third party, well, anything can happen, and you are not guaranteed to see it tomorrow, or in the next few years. The reason why the company doesn't have your bitcoins will be irrelevant, it can be many things.

And that's what people don't understand these days. They believe Bitcoin has a "CEO" or someone behind it. The public usually associates mainstream exchanges' success with the success of Bitcoin itself. If an exchange goes all the way down the drain, there will be panic all around the world. Market prices will drop, albeit for a short period of time. That's the way it works.

At least, not everyone thinks the same way. There's a small minority that believes in decentralization and Bitcoin's ability to be used as digital money regardless of what happens with CEXs. What's important is that the main BTC blockchain keeps running as usual no matter the circumstances. As long as there's more than 2 nodes on the network, don't count on Bitcoin going away soon. Maybe it will live alongside CBDCs (digital Fiat) in the future? Just my thoughts

[nullama]

~snip~
You don't need an exchange to buy Bitcoin. At least centralized ones like Binance. There are a lot of P2P exchanges.

You literally need an exchange to buy Bitcoin with another form of money. That's what an exchange is.

It can be centralized or decentralized, that doesn't matter. We will need exchanges in one way or another as long as most people get paid in fiat for their goods and services.

[RewFrew]

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.

There has big connection with Bitcoin and Crypto Exchangers. Because most of the crypto traders and holders use Exchanger. You are not using FTX or Binance or any kinds of exchanger but 99% traders and investors doing it through Exchanger. Binance is largest crypto exchanger. Today in Binance Exchanger trading volume is $9471005836. How we avoid impact from it. When Binance will affected then BTC will also affect there has no doubt. So i think it is normal that people will give importance to exchanger.

[Outhue]

So what are we going to do about it? Can you control the minds of millions of people that are using crypto exchanges? Even with the crazy crashes happening with centralized exchnages these peole are not ready to take responsibility of their assets themselves.

Imagine people telling you that they still keep their Bitcoin on Coinbase in 2023, some people trust others easily and its the same with entrusting their assets with centralized exchanges.

Sam Bankmanfried or whatever his name is failed many but he is not CZ, or Brain Armstrong, this is the type of excuse you will be hearing from people, some are so lazy that they don't want to hold Bitcoin in a wallet that they control, they want others to control it for them, so that they can blame them easily if something happens to their Bitcoin.

Aside from traders using exchanges for trading, some prefer leaving their assets on exchanges than keeping their assets themselves. 

[Blitzboy]

The reason why people are giving wayyy too much importance to exchanges is because people are lazy and do not want to claim responsibility for their own actions and especially, their own money. Not everyone is comfortable with the idea of "being their own bank" until something bad happens to convince them otherwise. And eventually it will happen, whether in the form of a bank unjustly freezing their accounts or the government plainly confiscating their money on whatever ground they deem fit.

Its frustrating because we have all the decentralized and unregulatable ways to buy Bitcoin or other cryptocurrency. But people cannot shake off the feeling that they need a third party to hold their money for them.

Banking as we've known it for millennia has taught us to put our money in the hands of others. Many people find it unsettling to consider the idea of "being your own bank," which is central to the cryptocurrency movement.

Time and learning are necessities for this transformation, and we must accept that. As leaders in the crypto community, it is our duty to help neophytes learn the ropes. Thats the only way to bring about the necessary adjustment toward greater individual ownership and less reliance on market forces.

Proponents of Bitcoin and other cryptocurrencies need to keep stressing the advantages of decentralization and being there for people as they make this massive financial change.

[bayu7adi]

Yes, exchanges and bitcoin are two completely separate things. But it affects investor psychology, anyone is bewildered when an exchange has Fud, speculators will immediately take profits or cut losses to minimize risks.

Although they are a different thing, as long as fiat remains the main method of payment, then people will need exchanges to obtain Bitcoin.

There's no way around it. The moment Bitcoin is used for most goods and services will be the time when exchanges are not needed any more.

After reading this thread "Not your keys, Not your coins" is not enough , I find myself pondering the intricacies of the world of finance. It's quite challenging to accept the reality that exchanges and governments are intertwined.

Indeed, as long as FIAT remains the dominant currency, we must exchange it either through exchanges or peer-to-peer transactions. And currently, the easiest route is through exchanges. However, many underestimate the significance of peer-to-peer services, despite it being the only way to truly safeguard our privacy.

To this day, exchanges continue to perplex me and occupy my thoughts whenever I power up my computer.

[BlackHatCoiner]

The p2p in exchange is very good to use.

The "P2P" in usual exchanges is a gimmick. There very much exists an intermediary in CEX like Binance, and as usual, it lies about being P2P exchange. If it was actually peer-to-peer, it wouldn't require you to create an account, give KYC etc. For truly peer-to-peer exchange, look on Bisq.

Sam Bankmanfried or whatever his name is failed many but he is not CZ, or Brain Armstrong, this is the type of excuse you will be hearing from people

Lol. You can't believe how accurate this feels. I heard like, quite the exact same words from a friend of mine.