Hi, I want to share my ideas about crypto currency exchanges. I think that there are some problems. And I am wondering people are agree with me or disagree?
Today's available exchanges have really big influence over crypto currency investors:
- They can appropriate the invests of investors.
- If they are attacked and lost the invests to hackers, there are not any legal regulation so you can not ask about your invests to anyone.
- They can stole the invests and can say that hackers has stoled the invests and anybody can not say not 'it was you'. Like Mt, Gox.
I would not say that they have a big influence over investors. All they have is a lot of control over investor funds, that is all. But all of these risks are present there whenever you use an exchange.
Especially with hacks. You are essentially constantly trusting the exchange itself to produce accurate figures, and not misappropriate funds in an event of a publicly announced hack. Without regulations, you'd be looking at the users copping all of the losses if the exchange administration is not honest.
So how can you trade securely? Do you feel comfortable?
How do you see the future of decentralized and centralized exchanges?
I think that the key to using exchanges securely is never be comfortable.
Don't get complacent with your funds on an exchange, just because they may have a good reputation and/or you've had it on there for a long time without any issues. You mention Binance as if it is some sort of model organization, but I would not even be comfortable with them holding my funds in the long term.
In regards to decentralized exchanges, I think that right now it's still a buzzword with no real adoption/real life usage, apart from potentially Idex. Unless they are able to tackle fiat <-> BTC transactions head on, mainstream adoption may be hard to get.