Ask HN: Why are people trading over FTX or Coinbase?

2 points by amitgupta6 3 years ago | 3 comments

First, apologies if I don't manage to use the right crypto jargon. I am an absolute beginner in crypto and just trying to educate myself.

Crypto is making news again after FTX going bust but being a beginner I fail to understand one thing. Why are people still trading over central exchanges? Wasn't it the very same philosophy on which bitcoin and blockchain in general was founded, that we don't trust central authority as they are prone to fraud and going bankrupt? Ain't we supposed to "own" our money and have zero dependence on any central agency?

Same way, I noticed that Coinbase is now asking for my personal details in order to "verify" my account. Wasn't crypto all about anonymity?

Hope it's not a very naive question.

Kukumber 3 years ago |

It's all about trust, these "exchanges" are very popular in the news, and yet when you look at their volume, they are insignificant players

https://coinmarketcap.com/rankings/exchanges/

The real question you should ask is why the insignificant players are more prominent in the news than the big, and trusted players?

That's whats fishy

Coinbase: https://www.ycombinator.com/companies/coinbase

+ bonus: https://news.ycombinator.com/item?id=31012462

JoeyBananas 3 years ago |

If you want to buy crypto for USD, what's the alternative to using an exchange? A lot of people buy crypto by wiring or mailing their money to someone they don't know based on an eBay-like reputation system. Systems like this do exist, but does it make sense to use them when there are reputable exchanges that are easier/safer/cheaper? Especially considering that when you buy crypto on an exchange, you can still transfer it out to a wallet that you control.

rdtwo 3 years ago |

Coin base always has kyc rules in place. It’s probably the least shitty exchange but they charge and arm and a leg for the privilege of doing b business with them