Ninjastic
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Post
Topic
Board Bitcoin Discussion
Re: CEX deserves all criticism but not the hate
by
Plaguedeath
on 26/01/2023, 03:25:52 UTC
Quote from: I_Anime on January 25, 2023, 06:55:45 PM
I know that most issues that affected bitcoin and crypto space as a whole was mainly from Centralise exchange in 2022
Wrong, centralized exchange has been got hacked since 2011 until now Hacked Exchanges since 2011 actually Mt.Gox insolvency is more have bigger effect than FTX because Mt.Gox is like Binance at that time.

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Government are going to strengthen the regulation of centralise and there will be more transparency from the exchange to their customers, especially with regards to custody of customers assets and proof of reserves .
When the government strengthen the regulation of the centralized exchange, it will increase the possibility all of exchange will ask to every users to complete the identity verification. Some people might accept it, but since I have an option to use decentralized exchange, why I need to use centralized exchange then? anyone need to read Why KYC is extremely dangerous – and useless

So you think it's good for the exchange to custody of customers assets? exchange is used to buy and sell your coin, it's not used to hold your coin.

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Apart from the from this issues CEX has really helped in increasing bitcoin and crypto investors because most investors are not scared of buying coins from them because they are too many crypto scammers online and I myself got scammed last year,After that I come to the conclusion that if not CEX am not buying any coin.
When you got scammed, it doesn't mean all of P2P and decentralized exchange are scam. Most likely you're not follow the exchange's instructions, example you're only allowed to complete the trade inside the exchange, but the scammer contact you via telegram and you just trust to trade it via P2P without escrow.

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After the whole issues of FTX my advice is though buying from CEX is safer but storing all your funds there should be avoided and for holders just stick with DEX.
Don't use decentralized exchange to hold your coin, you must use hardware wallet because you will have a seed phrase that can be used to access your coin even you lost your hardware wallet.