Bitcoin, Privacy exchanges, and KYC verification

[boyptc]

Let's not hate the centralized exchanges, I'm sure that each of us have used them in the times that we actually need them the most especially during the bull runs for selling and for the time of accumulation.

Just like the crypto online casinos, they have also contributed a lot to the growth of Bitcoin and for this community. Without the earlier ones, the current popular ones won't be as popular as they are right now.

They played a role to become more acceptable and to make the government have more relaxed policies towards Bitcoin.

[Findingnemo]

~
They played a role to become more acceptable and to make the government have more relaxed policies towards Bitcoin.

It's the other way round, exchanges became popular when people realize that they can trade it and people started building exchanges and once they became too big, the government made KYC as mandatory even to use these exchanges. But I know that we had times when we could use exchanges with no KYC for lower trading limits like 2btc daily and one who needed higher limits had to go through KYC.

[Hazink]

kYC was a bad idea after all, but we can't control what others do with their Bitcoin, I'm then wondering why this is looking like something that's possible, I believe it would have been a better world without centralised exchanges right from the start.

It could have been better and this fight and the idea that some people have inside their heads about centralized exchanges being the best place for them to leave their coins would not have existed, but these centralized exchanges, from the way I look at it, have contributed to how Bitcoin adoption has moved in the early days, as some people could have not been able to buy bitcoin without centralized exchange help they don’t know how to access the market.

[Luzin]

In the past, it was easily to buy bitcoin without KYC because AML and KYC have been only applied and enforced more strictly in the last four years and around that. It's very possible to accumulate bitcoin anonymously in the past, it's just whether you value your privacy and intend to buy bitcoin anonymously in past years.

I really remember that back then I only needed an email and phone number to register. But that was the past; after that, some exchanges continued to ask for KYC to proceed with all transactions. What can I do? Of course, I meet all the requirements because my assets are there. So far, it really is a dilemma for all of us if in the end we are all connected to the fiat money produced by countries. We will never be fully anonymous as long as Bitcoin or crypto transactions can be used as a means of exchange. Maybe it could work among users themselves, but right now we can't do that because most of us use paper and metal Fiat.  CMIIW

[FinneysTrueVision]

It would have been great if a source had been included rather than just a screenshot of a snippet. The proposal seems interesting, although there are barely any details as to how it would work. There are different types of DEXs, whether order book, AMM, or intents based that allow trading or swapping of Bitcoin, but in my opinion these options have some shortcomings.

A Bitcoin DEX, if it was done right and was easy enough for the average person to use would get a lot of users. The mention of Mercury Layer and Nostr makes me think that this might end up being too technically advanced, though I still welcome the idea.

[The Cryptovator]

I am not against centralised exchange, but I am against keeping your funds in centralised exchanges. Because I have learnt a costly lesson while keeping my funds in centralised exchanges. If we can create a different industry, then it will keep a major role in the crypto economy. For example, centralised exchanges and gambling platforms keep a major role in crypto adaptation.

We know we must care about privacy as well; for that we can use privacy exchange, and as always, I prefer a noncustodial wallet. If you don’t want to use KYC, then still you can exchange or purchase Bitcoin. From the forum also you can buy Bitcoin without KYC from the currency exchange section.

However, we may gain Bitcoin without KYC from various sources as well, like marketing or any other task. From the forum also you may get some job orders that would be paid through Bitcoin, like we are doing the signature campaign.

[SilverCryptoBullet]

I am not against centralised exchange, but I am against keeping your funds in centralised exchanges. Because I have learnt a costly lesson while keeping my funds in centralised exchanges. If we can create a different industry, then it will keep a major role in the crypto economy. For example, centralised exchanges and gambling platforms keep a major role in crypto adaptation.

The risk is most people don't practice like funding their accounts, for example to buy bitcoin, and after that they withdraw bought bitcoin to their non custodial wallets. Their common practice that is risky is buying bitcoin and leaving their coin in account on centralized exchanges for a too long time. Even they don't trade actively, they don't mind to withdraw their bitcoin.

While we all know that with centralized exchanges, risk immediately appears when you fund your account, and a longer time you leave your coins on centralized exchanges, a higher possible risk for your account and fund.

Events made you scare about custodial wallets, centralized exchanges.
47 crypto exchange shutdown by Germany
Court freezes N548.6 Million belonging to ‘ByBit, KuCoin’ Nigerian crypto users
Be careful using Binance & Centralized Exchange
Sanctioned Services and the service traceability to this forum, Any danger?
Recent events should make everyone withdraw all their coins to their own wallets: Part 1
Recent events should make you withdraw all your coins to your own wallet: Part 2
Recent events should make you withdraw all your coins to your own wallet: Part 3
Get your coins out of custodial wallets now: Part 4

[Abiky]

Let's not hate the centralized exchanges, I'm sure that each of us have used them in the times that we actually need them the most especially during the bull runs for selling and for the time of accumulation.

Just like the crypto online casinos, they have also contributed a lot to the growth of Bitcoin and for this community. Without the earlier ones, the current popular ones won't be as popular as they are right now.

They played a role to become more acceptable and to make the government have more relaxed policies towards Bitcoin.

As much as we want to avoid centralized exchanges, we can't. Why? Because they serve as on/off ramps from the Fiat world to the crypto world. It's much easier to buy/sell crypto with Fiat on a centralized exchange, than on a P2P trading platform or even F2F (which is riskier). Privacy-oriented DEXs change the game to a whole new level, but they're far from being a perfect solution.

CEXs, although subject to the risks of a single point of failure, are widely approved by governments due to the way they're designed. They're regulatory-compliant, bringing the much needed legitimacy crypto needs in the mainstream world. Otherwise, crypto land would still be the "wild west". Just like in the early days. Institutional investors are now on-board, so we should expect a higher level of mainstream adoption for BTC in the long run.

[SilverCryptoBullet]

As much as we want to avoid centralized exchanges, we can't. Why? Because they serve as on/off ramps from the Fiat world to the crypto world. It's much easier to buy/sell crypto with Fiat on a centralized exchange, than on a P2P trading platform or even F2F (which is riskier). Privacy-oriented DEXs change the game to a whole new level, but they're far from being a perfect solution.

Centralized Exchanges provide best and highest trading volume for people who want to buy and sell bitcoin. There is also no risk to be scammed when people buy or sell on centralized exchanges, just set up their orders and wait for buyers or sellers to fill these orders.

With decentralized exchanges, people can be scammed by their trade partners or can lose money if they choose to trade with too small liquidity trading pools on some platforms. Centralized exchanges undoubtedly are usable for everyone with Decentralized exchanges require more knowledge and experience in this market before people can use them safely.

Privacy matters but safety of your money in very first experience is important too.

[Synchronice]

Don't care about privacy and anonymity, that's just right and very common with most people. They are still favorite in using centralized exchanges because with most people, privacy and anonymity are not important things with them. There are convenience from using centralized exchanges but there are also many disadvantages, even risks whereas there are enough warnings about these risks.

It's not only about privacy and anonymity. Even though I value privacy and anonymity, I still use Centralized Exchanges because they offer many benefits to me. It offers me Unified cross-chain balance and I can open long/short positions on futures on any coin at any time. For active trading, CEX is a clear winner but for passive trading and for the moments where you stick with certain coins, DEX definitely wins with its privacy and anonymity. CEX also offers native fiat deposits/withdrawals. I know that fiat is not the thing that crypto enthusiast should focus on but for trading and real life collaboration, that's a good deal.

[SensitiveEyes]

Let's not hate the centralized exchanges, I'm sure that each of us have used them in the times that we actually need them the most especially during the bull runs for selling and for the time of accumulation.

Just like the crypto online casinos, they have also contributed a lot to the growth of Bitcoin and for this community. Without the earlier ones, the current popular ones won't be as popular as they are right now.

They played a role to become more acceptable and to make the government have more relaxed policies towards Bitcoin.

CEX's play an important part to legalise bitcoin. Governments will know how people are using bitcoin if they use a CEX but users have compromised. Criminals have used bitcoin so without CEX's it could be banned. CEX's have been key to bitcoin's growth because without them bitcoin would not be bought using money from your bank account. Times are changing, bitcoin adoption is expanding because its used by everyone so governments wanted CEX's to take a lead. Relaxing CEX policies towards bitcoin is your opinion.

[Dogedegen]

I am not against centralised exchange, but I am against keeping your funds in centralised exchanges. Because I have learnt a costly lesson while keeping my funds in centralised exchanges. If we can create a different industry, then it will keep a major role in the crypto economy. For example, centralised exchanges and gambling platforms keep a major role in crypto adaptation.

In an ideal world, most users would be capable of holding their own keys safely or at least consciously deciding that they will get familiar enough with these topics to do that. But unfortunately we don't live in an ideal world and we must adapt our advice accordingly. We can't really expect the very elderly to be able to do all of this very securely on their own, or a bit younger people say in their 50s now or 60s who are not proficient with technology. For them there is a higher risk of loosing their coins by doing self custody than there is with using centralised exchanges. If you think about centralised exchanges, the main risk to the funds comes from something happening to the CEX like a hack and this risk can be mitigated easily by distributing the funds across a very few regulated and reliable CEX.

We know we must care about privacy as well; for that we can use privacy exchange, and as always, I prefer a noncustodial wallet. If you don’t want to use KYC, then still you can exchange or purchase Bitcoin. From the forum also you can buy Bitcoin without KYC from the currency exchange section.

However, we may gain Bitcoin without KYC from various sources as well, like marketing or any other task. From the forum also you may get some job orders that would be paid through Bitcoin, like we are doing the signature campaign.

We must or we should but most people don't care at all unfortunately. I don't know the real numbers, I believe we don't have data like that but it could probably be more than 90 percent of all the users that don't really care about that.

As much as we want to avoid centralized exchanges, we can't. Why? Because they serve as on/off ramps from the Fiat world to the crypto world. It's much easier to buy/sell crypto with Fiat on a centralized exchange, than on a P2P trading platform or even F2F (which is riskier). Privacy-oriented DEXs change the game to a whole new level, but they're far from being a perfect solution.

CEXs, although subject to the risks of a single point of failure, are widely approved by governments due to the way they're designed. They're regulatory-compliant, bringing the much needed legitimacy crypto needs in the mainstream world. Otherwise, crypto land would still be the "wild west". Just like in the early days. Institutional investors are now on-board, so we should expect a higher level of mainstream adoption for BTC in the long run.

Well some people do P2P or cash trading too so for smaller amounts of money you can avoid them, but there are other risks that come with each of these choices. We must keep in mind that each choice has its own benefits and risks, there isn't one that is better than all.

[RockBell]

It's not only about privacy and anonymity. Even though I value privacy and anonymity, I still use Centralized Exchanges because they offer many benefits to me. It offers me Unified cross-chain balance and I can open long/short positions on futures on any coin at any time. For active trading, CEX is a clear winner but for passive trading and for the moments where you stick with certain coins, DEX definitely wins with its privacy and anonymity. CEX also offers native fiat deposits/withdrawals. I know that fiat is not the thing that crypto enthusiast should focus on but for trading and real life collaboration, that's a good deal.

In one way or another, I agree that we still use centralized exchanges because, when it comes to purchases, we are almost always using them. However, the only thing that is concerning is when you leave your money there, and we have seen numerous instances where people have lost their money because they felt it was more convenient. Privacy and anonymity are among the things that we all have to accept the more we align with the mandate that was prepared for Bitcoin.

A lot of people are having a hard time understanding how these things operate because, as far as I can tell, most of us use centralized exchanges for purchases rather than decentralized ones. The most crucial thing to do after making a purchase is to use a wallet.