Safety of Centralized Exchanges

Golden9 · Jul 18, 2023

Centralized exchanges in cryptocurrency are online marketplaces where people buy, sell, and swap crypto assets. Such an exchange is a private company, which means it has to abide by the rules of the place it operates in. One thing centralized exchanges need is your personal data by way of KYC.

Some people feel that this is not safe because these forums exchanges can be forced to share your information, or stop you from accessing your funds.

Does KYC make these exchanges Les safe?

Suba · Jul 18, 2023

Centralized Exchanges (CEX) are considered non-bank financial institutions, so CEX must comply with the licensing requirements of each country in which CEX operates. One of them is that members have to verify KYC, so basically the government can work with CEX to monitor members from their countries who launder money or the results of hacking and tax information, so the government can also freeze suspected member accounts.

Bisolami · Aug 5, 2023

Golden9 said:
Centralized exchanges in cryptocurrency are online marketplaces where people buy, sell, and swap crypto assets. Such an exchange is a private company, which means it has to abide by the rules of the place it operates in. One thing centralized exchanges need is your personal data by way of KYC.

Some people feel that this is not safe because these forums exchanges can be forced to share your information, or stop you from accessing your funds.

Does KYC make these exchanges Les safe?

There are some exchanges that we can trust like binance because that is what I use and it has never given me any problems but I don't know about others so you should make a research

uptrendfinancialsignal · Aug 8, 2023

Most of the centralised exchange give high liquidity and that is a primary reason why not other people would prefer to choose a centralised exchange to a decentralized exchange at any time.

Bisolami · Aug 10, 2023

uptrendfinancialsignal said:
Most of the centralised exchange give high liquidity and that is a primary reason why not other people would prefer to choose a centralised exchange to a decentralized exchange at any time.

I think the fact that most centralised exchange give high liquidity is enough for people to want to trade on those platforms because of the liquidity and nothing else
That is what I feel

Golden9 · Aug 11, 2023

Bisolami said:
I think the fact that most centralised exchange give high liquidity is enough for people to want to trade on those platforms because of the liquidity and nothing else
That is what I feel

Liquidity really is one of the main determinants. Smaller exchanges work on this too, but people also like the assurance that bigger exchanges will be more careful with customers money and criticism.

henrytuedor · Aug 11, 2023

better to use decentralized exchanges like fixedfloat that allows you to exchange money without kyc , it can create big hurdles actually for you honestly .

riberet19 · Aug 12, 2023

I think they can be quite safe as long as they stay solvent and have good commercial practices, I use a few exchanges and I have never had problems with them, but I certainly know that anything can happen at any time, so you should never leave too many funds there.

henrytuedor · Aug 12, 2023

yes kyc exchanges can be problematic at times so we should always take proper care when usnh such websites to have safety and peace of mind for ourselves .

jetsaints30 · Aug 12, 2023

These exchanges are private companies so they gotta follow local rules they ask for your personal info through KYC which can raise concerns some worry they might share your data or block your access. KYC's goal is safety but it's still debatable if it makes these exchanges less secure.

eldavis · Oct 18, 2023

The issue of KYC was ment to make things a lot safer. Yes its understandable to be worried when it comes to sharing your personal information but this is why you need to be careful when selecting a platform to use.

kirubel · Nov 1, 2023

Most of the time crypto exchanges was decentralized and now some exchanging websites are trying to make the exchange safer and make more stable for the users and they allow users to exchange on the site to make it centralized exchange and its good for users in order not to get scammed.

Safety of Centralized Exchanges

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Bisolami

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