Re: After FTX collapse, some call for a return to decentralized roots
...
There's no reason to leave all of your crypto in an exchange, other than the amount you're willing to trade at the moment. It has always been advised to leave small amounts in an exchange due to hacks and/or other undesired events. It's just that people don't listen, because they want "the easy route". Convenience goes on top of everything else, right? We should expect further "scandals" from CEXs due to the way they're designed.
The question is: Will people continue to trust CEXs with their money? I'd say, yes. At least, we'll have decentralized exchanges (DEXs) at our side. Who knows if someday DEXs get the same level of performance and cost-efficiency as their centralized counterparts? Just my two sats
If I decide to use some exchange I trust it enough to leave some funds hanging there. Some funds, for some time... never "all in" and never "all the time". If I don't trust it, I will not use it, simple as that. And yes, we will continue to trust CEXs with our money, numbers are clear about that, simply CEX has a lot to offer. Because of that I am ready to close my eyes on security and risk some amount just to take advantage of some stuff. In my case, it's mostly staking.
But I never risked some big amounts on that, for me it's like gambling, I will never risk more than I can afford to lose. But some people are ready to risk literally "all-ins", and that is not smart/wise! In years we saw many exchanges/casinos/cryptoservices falling down just like that, so that old one worked and will work all the time "Never keep all of your eggs in one basket"!
The problem with many people is that they think that if they invest all their money in cryptocurrency they will become rich very soon. But unfortunately the opposite happens and they lose all their money and remain in debt. But this is not the problem of CEX or DEX, it's the problem of people who can't manage their money properly.