However, every time I read this on the internet, people stop at the Bitcoin storage step. That's not enough. There's another important step: exchanging Bitcoin.
So why not just advise and tell people to stop using CEX entirely? Bitcoin is by nature decentralized, why make it centralized?
So why not just advise and tell people to stop using CEX entirely? Bitcoin is by nature decentralized, why make it centralized?
Because most think like this
- you need to find a trader that matches your offer, which is not so easy
- it's more costly as with a CEX they survive on the fees, with a P2P the guy that is always there to handle your exchange is doing this for money also, so the rates will be lower, and also you're going to pay the transfer fees
- are you uncomfortable with CEX knowing your name and face? Then are you happy with a total stranger on the internet knowing your full name and bank account when you do a so-called P2P exchange?
- with a CEX you always think you have support, you send some coins, you exchange them, and that's it, there is no third party with which you have to dispute sanctions, there is no fear of somebody doing a chargeback, there is no fear that you might have just bought coins from somebody who is going to be raided tomorrow and he has your contact as last person called in his list
Some will reply that CEX users choose "convenience ". Even that's not true! How is passing your KYC to Binance and using their UI easier than installing/using the Peachbitcoin (for example) app? It’s not! The only reason CEXs are in this position is because they benefit from substantial advertising resources.
I have to install an app, meh! Is it open source? Nope!
I'm giving my name and my bank details for a SEPA transfer, I am!
So, what's the difference?
Don't get me wrong, I completely hate CEX, I hate the charade that is called bitcoin cards with a visa logo, and I hate Binance and CZ probably the most on this entire forum, but let's not ignore facts, CEX are more convenient, that's why they are used because I don't have to contact some stranger, I don't have to log in my bank accounts and make a payment to exactly Quassam Bon Loden of exactly 1446.6 Euros to this account AD1400080001001234567890 and not one wrong letter and number.