CEX

valcyclovir

I'm not buying an 80k$ gain just in APY from lending your BTC on CDC. You probably earned CRO that went down with the market. Perhaps you can give us a bit more details (timeframe, APY, paid in CRO or BTC, capital gain vs interest earned). There are ways to earn with BTC with lending protocols, but they are mostly centralized such as Ledn. If you truly earned 80k$ in APY from lending BTC only, that means you have an absolutely huge amount of BTC on a CEX, which also means it could've gone down like Celcius, and you're lucky it hasn't. With that type of money in crypto, learn about self-custody. Not your keys, not your coins!

TheMissingNTLDR

regardless of what you wrote, why are you keeping the assets on a CEX 🤔

invokes

Got totally burned by CEX.io back in the day when they first launched. It didn't take long to realise you wouldn't make profit!

mrjune2040

He's asking to liquidate to fiat as safely as possible. Don't be a absolute twat that doesn't even listen to OP's question. No one wants to hear your P2P/anti-CEX lecture/rant.

valcyclovir

Don't. Spending with crypto is a tax nightmare and these CEX will charge you hidden fees where you least expect it (currency conversion, trading fees from crypto to fiat, horrible spread, etc.) Instead, look up credit card churning and work on those bonuses. Do NOT lock your crypto on a CEX and learn about self-custody.

valcyclovir

I'm not looking forward to any types of crypto credit or debit cards. Asides from stables, spending crypto that way is a tax nightmare. I don't trust any CEX with my crypto and they will find every way possible to charge you hidden fees either through trades (from your crypto to fiat to be spent on your "crypto cc") or through offering bad exchange rates for your crypto.

Albquerky

I am proud to be in the $hege community. It's not about "Buy buy buy!!", it's about vibing with a group, pulling together to show why Hege is worth investing into, supporting our dev who has continued to work tirelessly getting things in order, ads in place, international communities on board, animation short on tiktok with more to come, a story that becomes unlocked with mc milestones, and even more on the way before a CEX listing. It's going to explode.

Al8tk

There are countries where direct investment in USD is not possible at all. In this case, stablecoins become a good substitute. OP, don't even think about storing your money on CEX.

Petarda23

I think there are more partners now, and there is also a CEX -》 MEXC

naelastr

Yeah but in case of CEX, you can be jeopardized even if you don't make any mistakes whatsoever. I'd always rather have my fate in my own hands, but I guess we are all different

Still_Lobster_8428

On ramp through your government authorised CEX's, buy LTC, withdraw to a hot wallet, send through HoudiniSwap dot com, set up the exit wallet and NEVER let it interact with anything on your "dirty" KYC'd layer of wallets. 

cloudparis0421

Scam if a CEX doesn't materialize on May 20-30. If they say it's "delayed" with silly excuses then I say it's a scam. The fact that they own a lot of the supply and a lot more to be unlocked on May 20th, and that they're banning people in their TG left and right when asking about the top 10 holders, is something to be worried about. They also don't seem to give an update about the actual CEX at all on their Twitter. But then I maybe wrong and a CEX actually get's released, if so then I'll be happy for y'all.

funkinaround

> Have fun on the CeX where you can trade only what they allow you to trade, as long as they are not down for maintenance during peek volatility.  You can be just as critical about DEXs too. "Have fun on the DEX with your lower liquidity and much higher transaction fees". > They hold all your funds as you hold an IOU and trust them to pay you back, and they report on every little movement you make to the IRS.  I report every little movement to the IRS as required by law. Holding USDC or USDT is an IOU that you trust is paid back.  > USDT your trading on a CeX doesn’t even need to exist for them to sell it to you since you own a number on their balance sheet and have no way to verify the exchanges solvency until it’s too late.  Sure, but CEXs can help you correct errors. Make some fat finger error and trade at a price or amount you didn't mean to? They are able to help you undo it. Can't do that on a DEX. Some "drain my metamask wallet" type attack won't affect your tokens held on a CEX. > I mean if you’re gonna ignore the actual crypto ecosystem entirely, then what is the point of your comments at all? It was originally just about Tether and how USDC money moved to USDT in the wake of the SVB collapse. You started talking about DEXs and all sorts of other stuff. From what I see, crypto is about more than just exchanging for other crypto.

funkinaround

Who cares about DEX liquidity? They're puddles compared to CEX liquidity.

slash_networkboy

FWIW, this is a *lot* harder than people realize... Connecting to the outside world from within a properly shielded EMF enclosure while maintaining full EMF shielding is quite an effort. For example you can't really use normal BNC connectors as the cable shield would connect to the faraday cage, so you actually have to use TNC connectors such that the signal and signal shield are separate from the cage shield. Then inside the shielded enclosure you take additional measures so that giant antenna (the coax shield) you just piped through is properly dealt with. I did WiFi testing back when 802.11A/B was all there was and that was some of the hardest stuff to get right. We were near an airport (and RADAR happens to show up in the 802.11B ranges... we could tell we were "leaking" when we'd see the Airport Surveillance Radar pings on our SWR meters inside the box. Now to the question at hand... I am sure there are cold nodes in properly shielded enclosures rotated as part of continuity of data plans for some of the CEX's and possibly other nodes but I would be surprised at active nodes in (functional) faraday cages.

Generic_Globe

Bro. I said scam. You literally said FTX pumped it up and dumped down on people. That s like the textbook definition of scam. Then you vomited buzzwords like that makes any different. I own 770 ETH running 24 validators on a CEX. Which begs the question what does that even matter to the value proposition of ICP? Because it doesn't.

Generic_Globe

Im a crypto multimillionaire. I dont know what you think rich people but counting magic internet money doesnt take a lot of time. I already logged my CEX. Checked my validators. Everything seems in order. Now I got the rest of the day to talk crap online and waste time with insignificant crypto gamblers with little value that cant even hold a conversation.

finfinp

So CEX, but it’s a fact that institutions will prefer to use CEX’s such as Coinbase because that’s what they trust.

finfinp

So it’s CEX that the data uses but instructions, the people with money, aren’t using DEX very commonly.

uncapchad

Is this CEX data or incl DEX?

sparky_H7

It is a supported token, and is shown active on their platform, they did not mention it was disabled. Imagine you send some usdt through bep20 to binance by referring to the address through their site, and after you transferred, they mention the network is disabled. Point being my payment is stuck and their team is not responding which is not what i expected from mainstream CEX.

Smiling_Jack_

What's the point of this post? You sent a token over a particular network to a CEX that doesn't support it. And?

OfWhomIAmChief

I guess the only way to ensure youre buying taint free BTC is to purchase from an established CEX like Coinbase. These CEXs essentially clean/whitelist all Bitcoin that goes through them.

CointestMod

#DEX Pro-Arguments Below is a DEX pro-argument written by Shippior. > A Decentralized Exchange, often abbreviated to DEX, is an exchange that does not belong to a central entity and all transactions happen on a blockchain. The three largest DEXs by [Total Value Locked](https://cointelegraph.com/explained/what-is-total-value-locked-tvl-in-crypto-and-why-does-it-matter) (TVL) are [Curve Finance](https://curve.fi/#/ethereum/swap), [Uniswap](https://uniswap.org/) and [PancakeSwap](https://pancakeswap.finance/). For a full list of DEXs see this [dashboard](https://defillama.com/protocols/Dexes). > > The largest difference between a CEX and a DEX is the way that liquidity is provided. Most CEXs use an [order book](https://learn.bybit.com/trading/order-book-explained-for-beginners/_ style ) for transactions. Most DEXs employ [Auto Mated Market Making](https://blog.0x.org/market-making-in-defi/) (AMM). These type of transactions are essential for operating an exchange with low liquidity. The supply and demand are matched by a protocol to prevent orders from not being fulfilled for a long time as there are generally less transaction offers available when there is lower liquidity. > > AMM works by users "lending" their crypto as collateral for others to trade. This is done by depositing tokens in a [liquidity pool](https://www.moonpay.com/learn/defi/what-are-liquidity-pools). Users are often provided incentive by the protocol to deposit their tokens by receiving a fixed interest rate on the crypto that they deposit. Therefore users who wanted to hold their crypto for the long term can actually put them in a pool via a smart contract to earn interest on this crypto without having to trade it whereas it would be collecting dust on an CEX. APRs are as high at 100%+ on larger DEXs like [Curve](https://curve.fi/#/ethereum/pools) and higher than 250% for smaller DEXs like [Crescent](https://app.crescent.network/farm). > > Trading fees of DEXs are mostly rather straightforward. Uniswap take a flat 0.3% trading fee, just like [Osmosis](https://osmosis.zone/) on each trade on top of the network transaction fee. Transaction fees can go as low as 0.02% for Curve Finance. These swap fees are provided to the people providing liquidity in the pool as an incentive for putting in their crypto. > > All trades made on a DEX are available as they can be found on the blockchain. Therefore it is possible to base your trading activity on the activities of other people. This also means that you can verify that your assets are where you think they are at all time. Your assets can not be lended to other people without you knowing of it and in most cases without you agreeing to it through the use of a smart contract. > > Compared to a CEX (with the exception of Coinbase) it is possible to own a part of the DEX. Many DEX have their own tokens. For example Curve Finance has [Curve DAO](https://coinmarketcap.com/currencies/curve-dao-token/) and Uniswap has [UNI](https://coinmarketcap.com/currencies/uniswap/). These tokens are used to pay for transaction fees on the DEX, they can be just held on to in the hope of them increasing in value but most important of all these tokens can be used to participate in governance. Everyone can put a proposal for improving a DEX, see the [Curve DAO](https://gov.curve.fi/) as an example for this, up for vote and everyone that owns the token of the DEX can vote (mostly 1 token = 1 vote) to determine how to go forward. Thus one can decide how to go forward to make the DEX even better. Something that is almost entirely impossible with a CEX. > > Privacy on a DEX is much better than on a CEX. On most DEXs no Know Your Customer (KYC) is required, a wallet that can not be linked to the person that is using it is sufficient. > > DEXs can have all assets on their platform that are available on the blockchain itself of made available through wrapped assets by [bridges](https://blog.liquid.com/blockchain-cross-chain-bridge). In theory the number of bridges that can be made between blockchains is infinite thereby the number of assets that can be listed on a DEX is also infinite. In reality though there are only bridges between the major blockchains available at the moment. This still provides plenty to chose from. According to Coinmarketcap there are currently [935 coins](https://www.coingecko.com/en/exchanges/uniswap#:~:text=Currently%2C%20there%20are%20938%20coins,a%2024h%20volume%20of%20%24319%2C357%2C719.14.) available to be traded on Uniswap and [3,223 coins](https://www.coingecko.com/en/exchanges/pancakeswap) on PancakeSwap. ***** Would you like to learn more? Check out the [Cointest archive](/r/CointestOfficial/wiki/cointest_archive#wiki_DEX) to find submissions for other topics.

nick_117

Here is the big difference. Uniswap can't go to fiat and the transactions are public. If you're a criminal uniswap doesn't help you much. Say you swap your tainted ETH for USDT. You still can't unload that USDT because the transaction was public. They saw your signature they know where the swapped USDT went. They will continue to watch that address. At this point there is "tainted" ETH in the pool and someone else might get it in a swap. But not really, the taint has transferred to the swapped USDT. If someone did pull the tainted ETH out of the pool and tried to cash out at a CEX they might give them a hard time initially l. However, it would be easy to prove looking at the chain they aren't the criminal. The criminal has the problem that the USDT they swapped for is still known and now it's also been tainted. They need to do a swap where the address can't be traced. Or start "spending" it to other addresses that they actually control but aren't obvious by looking at the chain that they do control them. Ie they have lots of other legitimate transactions this could just be the hacker "paying" people with stolen funds. Those people are most at risk when trying to cash out their funds of a CEX calling the cops. On Haveno, they could swap their ETH to XMR. At this point they are gone. You could see who holds the ETH now and maybe conclude it was just the attacker moving wallets. But probably not because liquidity won't be high enough on Haveno to support offloading millions at one time. It will look like they are "paying" someone. Once the attacker has XMR they can do another swap on Haveno to cash. Even if you monitored everyone's bank account you wouldn't know which transaction was the attacker moving to cash because there is no way to know the wallet the XMR went to when they traded it for ETH. On Haveno it wouldn't even be possible to know they did a trade to monero / used Haveno. All you would see is the hacker transferring the ETH to some new address. Maybe it's the hackers friend, maybe it's the hacker with another address who knows. There isn't a smart contract to inspect showing the details. It was just a transfer. Let's say there was a smart contract - now we are talking about atomic swaps. In this case you still wouldn't be able to track the hacker anymore. You could see they swapped ETH to XMR with someone and that's it. You wouldn't be able to taint the XMR coins because they are private. You couldn't watch a wallet address to see if it moved funds because that's also private. At this point there is nothing more you could prove about the attacker unless you had their XMR wallet private keys.

OfWhomIAmChief

If you swap into XMR you dont have to worry about receiving flagged BTC or ETH but if youre swapping into BTC and ETH, yes that problem is possible but it can be avoided by remaining p2p and not sending those flagged coins to any CEX.

conceiv3d-in-lib3rty

Remember r/cc back when anytime someone had something critical to say about Binance, there would be 8-10 Binance Protectoors who would swoop in to defend their favorite CEX’s name with comments such as, “If you’re at the top, there’s always going to be haters” and unironically saying “4”. Every rumor would automatically be dismissed as FUD, becuz “I trust CZ”. Fast forward a couple years later and it’s revealed that not only was damn near every rumor circulating around that time true, but Binance was facilitating large scale fraud and money laundering with Russia and terrorist groups and sooo much more shady shit that even Binance haters would have never expected lol. With 70% of total trading volume coming from shady “VIP” clients lmao. Never change r/cc, never change. Lmao.

Snoo_14070

What CEX is the best and has the lowest fee for future trading?

Still_Lobster_8428

That's exactly why the status quo went after Monero (and all privacy coins). They understand the power of them.  Just watch as they start tightening the noose and automate chain analysis... I can guarantee that the narrative they will go with is that terrorist use Monero/privacy coins and that any coin transactions that have interacted with Monero/privacy coins will be automatically classed as Terrorist funds and then be up to the end user to prove they are not (by us ourselves exposing where the funds originated from and making any privacy obsolete in the process).  This will be done at the CEX/DEX level eventually and cut off the entry/exit points.  I use Monero somewhere in 90% of my crypto transactions purely because it IS private and fuck chain analysis!  Lately been using Houdiniswap dot com. Uses a Monero tunnel in the transaction to break the chain analysis. Exit to a clean layer of wallets that NEVER interact with anything that's interacted with my KYC layer of wallets.  People seem to forget that blockchain = immutable record forever! 

LucidiK

Yes, I agree with all of that. I was trying to understand the BTC/USD debate for scrutiny while traveling when that is going to be an issue any time you are knowingly (from the perspective of the portals) carrying six digits of value into another country. The presented situation seems exactly the same whether it is cash or Bitcoin. Bitcoin would just be easier to hide. But all of that is kind of drifting from the point. The previous commenter tried to use 'try to withdraw 50k from a bank and see if you have issues' as a comeback. And I was saying that is not a fair, or even remotely equitable situation. When I can hand you $50k in cash to you easier than sending that to you in bitcoin (as long as we're in the same room), and I will still need to make reports to the Fed if I transfer to my bank from a CEX (as long as it's a significant amount of money), is that not proof that crypto is the type of currency being onerous? Personally disagree, but using that exact same logic on these other situations makes it pretty undeniable.

Blessed2Breathe

Yea I remember that and funny how it was an account reflection error and thousands of people didn't actually lose their money. I buy on a CEX and move to cold wallet. Once more, I remember the zero balance scandal and also remember it being restored. I'm not saying Coinbase is flawless. Again, I store on a cold wallet, but the OPs story sounds fishy as others have pointed out in dozens of different ways. Unless the keys were compromised by a remote phish in his phone, malicious contract he signed or someone close to him, it doesn't make any sense. Smells like a classic case of personal security mismanagement.

LatinumGirlOnRisa

I use CEX's [in addition to DEX's] because some things just can't be done yet without giving in and using some of the services. but even though I'm not a fan of Coinbase those accusations are ABSURD.🙄 and those quotes sound desperate and pathetic. it even *feels* like they know they're not true. they seem like fake assumptions vs. like anything real, makes my skin crawl. Gensler & the government hate crypto, FULL STOP.🛑 they're fighting a battle they'll eventually lose because more Americans are learning how to get around such bans and why is Gary still the SEC chair?😠 I thought he was due to be replaced by March or April. anyway, they're all dinosaurs doing what they can to keep the USA in the dark ages! they are trying to make certain that instead of being one of the nations in the fore of innovation that we'll be dead last. it's embarrassing, infuriating & I'm just smdh😐

Still_Lobster_8428

I had high hopes that crypto was going to lead to that change.... Now with ETFs, the SEC moves and the likes of Blackrock becoming involved, all I see is caputure and the status quo being enforced further but now with the last bit of personal sovereignty removed, fiat!  Once ALL transactions are moved onto blockchain (CBDC's) it's the final brick in their control wall. No person will then buy or sell anything without the state being able to monitor and control that transaction. Then it's just a matter of time before we get a version of social credit scores..... and we are all fucked!  Just wait and watch them mandate that EVERY crypto transaction MUST be carried out using their CBDC as tge carry trade so everything is tracked!  You want to buy SOL with BTC, CEX's and DEX's will be required to track your wallets and the trade will go BTC - CBDC - SOL.  These criminals won't be able to help themselves but to enforce such granular tracking!  Sure, there will be some blackmarket options, because governments themselves need the avenues to conduct operations they don't want the public to know about,  but access to those will be limited to the small number who take tge time to educate themselves on how to access them safely.... but the majority of people will be 100% tracked all of their lives.  1 thing the status quo has ALWAYS been able to count on is human greed! We will literally sell ourselves out for the hope we will get rich from it! 

_BannedAcctSpeedrun_

I’d buy and hold kaspa until it hits a major CEX, then that’s when you sell.

Normal_Noise2024

This is proof that you do not own your crypto within your CEX account. Just numbers that will be calculated at the lowest value.  That's why I only use DEX #THORChain ( $RUNE )

naelastr

Damn, that sucks. I always try to go dex whenever I can... All the hodlings I have atm are in decentralized wallets, ocean, kas, rsr, fun, and even the shrl, which I am still waiting on. CEX can leave you rekt so fast, and they'll rarely set things right afterwards

k3surfacer

Interesting. Monero and Optimism are unsupported. Monero's lack of CEX is in long run is better because monero is supposed to be dex only coin in my opinion. But optimism? Hard to understand why. And monn is a concern for this sub.

PapaDragonHH

Do you keep them at a CEX or on a cold wallet? I would be afraid of losing it

Jaythiest

They are more familiar and more comfortable with that type of Financial Option. They understand Bitcoin has value but they don’t understand Bitcoin. They think of Bitcoin like a Stock They may already have Funds in the Parent Company. There is “security” and “protections” not offered by CEX or DeFi

Trade_on_Moby

1. Typically, spreads in a CEX are formed through orders from market makers and users. During this process, each market maker and user has different risk preferences and price judgments, and since each exchange has its own pricing methods, a certain level of spread is inevitable. In contrast, Moby calculates the overall risk of the OLP and market and provides liquidity and optimal makbased on this assessment. also by aggregating data from various sources, Moby is able to offer tighter spreads. 2. We utilize the Black 76 model, a choice heavily influenced by its common use among other options exchanges. Moby aims to become the standard for on-chain options in various structured products over the long term. Establishing this standard requires using formulas that can integrate seamlessly with the major existing players and product infrastructures. Additionally, as you are aware, even when variables such as implied volatility (IV) and price are identical, the chosen formula can yield different pricing outcomes. Importantly, even if we derive the narrowest spread within specific ranges, significant price discrepancies with other platforms can create arbitrage opportunities for users, which may lead to losses for liquidity providers.

MatchboxVader22

I did buy some, but only about 1500 KAS. You never know what can happen, but the fact that it won’t list on any major CEX kinda says something.

Anahihah

I agree cash-crypto exchanges will continue to be heavily policed and such direct exchanges for regulated cryptos will only be available as a p2p dark market going forward. Seeing as this isn't really practical or sustainable, the current system of combining KYC on/offramps with non-KYC crypto-to-crypto exchanges will continue to play a vital role. Concealing the involvement of traceable cryptos in forbidden transactions is not impossible as long as the transaction occurs within a properly designed venue. A traditional CEX with public wallet addresses won't cut it - it needs to be a market locked behind zero knowledge proofs whose participants are forced to handle non-fungibles in a particular manner. Mixers were are more blunt, aspirational tool to attempt to grant fungibility to non-fungible currency. The chainanalysts have already won this war. I believe the regulators have only been late to the party because alphabet boys wanted to use the perception that bitcoin is untracable to monitor dark markets in the meantime. Now that they have all moved to Monero, the regulators have nothing to lose by piling on. Meanwhile, the privacy community has already moved on to the next frame.

imdabes

Exactly. That’s my point. Even CEX’s don’t usually handle payments themselves and instead outsource that to plaid or moonpay or whatever. It’s highly centralized because of the regulatory burdens.

Uda880

It's already being centralized. Most major apps that serve mainstream purposes basically use a large CEX to handle on/off ramp capacities. Most merchants don't want to keep tokens as it's a large tax and audit headache, it's usually immediately converted to fiat and then recorded on the transaction record.

PreventableMan

Let's see if we can spin this as good news for XMR. The CEX news that was touted to be good, which did not work out. Maybe this time?

YouCanBet0nIt

Similar rules have been approved for EU/UK/Canada quite some time ago, the difference is that with the Travel Rule they report only when user transacts/exchanges more than 1k worth of crypto in total instead of every single transaction and that exchanges are required to also include all historical trades of those users not only info from future trades. From what I know, out of the big players, only Binance did not comply yet and are not planning to send old logs. Exchanges like CEX.io/Kraken already been asking me to send proofs of identities I'm transfwrring my crypto to, even if the transactions were only 100-200€ worth. It's quite ridiculous process atm and I had transactions take few days to be cleared so I hope it'll improve with time.

R4ID

>(Edits, please if i spelled anything wrong just give me a reply where to correct thank you) Only because you requested it ( a rough redraft) So this is something you do not hear often in crypto. Some good news! Nexo a CEX, crypto lender and "staking" platform (they let you earn interest like Celsius but without the sketchy loaning without collateral) Not shilling just my opinion. Anyways they implemented a system where on loan repayment you had to pay a fee of 1% declining the rewards and increasing costs. Obviously nobody of the Nexo community liked this ( at least those who use the lending system) ~~After not even 2 weeks the community made it clear they did not like the sudden change how it was implemented that it was implemented and the lack of communication~~ 2 weeks after the changes went live, the community voiced their concerns about what and how the changes were implemented. ~~Today they send out an email to recent their adjustment an change it back to how it used to be~~. They emailed customers today saying they would revert the changes. A huge win for both Nexo and the community. For Nexo because they show that their customers matter & that they do have our best interest in mind (long term strategy) I just wanted to inform those who use Nexo but do not follow everything. So what do you think about this change and on Nexos response(regardless of their mistake to implement and the lack of communication originally) (Edits, please if i spelled anything wrong just give me a reply where to correct thank you)

bluelightning1224

So this is effectively generating a capital gains tax from moving coins from a CEX to a wallet?

etj103007

Another decentralized options trading platform? Amazing I do have some questions though: 1. Looking through the website, the liquidity and spreads are absolutely amazing. The spread is 0 and I was wondering how is that possible? Then, I saw the fees. It seems you make your money based on "risk premium" and "trade fees" of which half goes to LPs. Even when options are cheap, a contract will have the same fees whether it's strike is 62000 or 64000 (which is around 19$ in fees right now). Thus the benefits of having 0 spread and high liquidity are pretty much nullified by the fees. Is this the catch of your platform? 2. The use of futures price (instead of spot price) as an index is interesting. It also raises certain concerns when futures are mispriced compared to spot prices. Moby uses prices from CEXs so what are the **benefits to using CEX futures prices instead of CEX spot prices in calculations?** 3. Additionally, I didn't see anything in the documentation regarding the price at option settlement; is it like CEXs where they take a time-weighted index price like Deribit and OKX, or is it like other DeFi options where they take the price at expiration immediately? 4. Stryke (which I believe to be your main competitor) has support for multiple other tokens. I see something in your upcoming features about combo options for alts and even pre-listed assets which is interesting, but given how the platform is structured (with only options with high-liquidity from Deribit, OKX, Bybit supported for now, and something about an "Options Listing Standard"), how would that work? (especially for the prelisted assets because I find that intriguing) 5. **Any plans for more complicated one-click multi-option strategies (straddles, butterflies, etc.)?** Documentation shows call and put spreads possible already, and I do see a "Position Manager" tab on your website, so I think with how easy and liquid your platform is, these strategies would work beautifully in it.

DigitylRise

I mean technically you can report any fake trades if you want, just if you get audited you will get screwed if you cant prove them. So if they audit you and see coinbase showing a transfer in (buy) they will want documentation where you bought it from, like another KYC CEX or a DEX with your wallet you used, and then you will need to prove where you sold it for the transfer out. If you can't prove it, then this is where you can get into some serious trouble.

wafflepiezz

Wonder how they’ll track coins in cold wallets/storages? Because apparently, even if I held crypto in a cold storage for years and want to sell it on a CEX, it’s still considered a short-term capital gain 🤔

imdabes

Correct me if I’m wrong but won’t this new reporting requirement in addition to the existing tax laws on what qualifies as a crypto taxable event apply to any person or small business that deals in crypto outside of CEX? Like if I’m a small business that allows my customers to pay me with crypto for a good or service the existing tax laws treat those payments as “exchanges.” So if I handle these payments myself this new requirement would mean I’d be responsible for collecting sensitive personal information on all my customers and sending this information to the IRS for all my customers. If this is the case I’d probably not have the funds to build the infrastructure to comply with this obligation and either a. Stop accepting crypto payments entirely or b. Outsource it to a large middleman like “bitpay” which in turn would further centralize crypto into the hands of businesses that could afford the high regulatory burden of handling crypto transactions.

Django_McFly

That stinks. I mainly buy and sell stablecoins at a CEX and use defi to convert to and from what I want. Coinbase sucks at tracking stablecoins properly (they track mine like I bought them for $0 and sold them for $1, which obviously didn't happen) but if they fix that I'll have the boringest of reports.

Django_McFly

This is how Coinbase works. I primarily buy stablecoins on a CEX, withdraw to my wallet, and use DEXs to get what I want. Coinbase shows me as having bought a bunch of USDC at $0 and withdrawing/selling it @ $1.

Jeremy_Thursday

A compromised personal computer could lead to loss of funds for a wallet you setup yourself. A well time SIM swap could lead to loss of funds on a CEX account. The best mitigation IMO is setup a wallet on a brand new computer. Then just keep the seed phrase via pen/paper as a physical copy protected via safety deposit box. Send money from CEX to wallet address and pray USDT doesn't become insolvent in the next 3 years. But personally I'd just ask for a different escrow arrangement. I don't really see the point of being forced to hold your own million on crypto (especially since you control it anyways). Get the vibe this is Step-1 for multi-part scam.

frozengrandmatetris

if you transfer coins between multiple exchanges, P2P, defi, or receive coins outside of just buying them on an exchange, all these reports are going to have an incorrect cost basis sent to the IRS. I'm hoping I can just keep doing everything in my coin tracking software and submit that, but I'm afraid I'll have to go in every CEX and correct their bullshit one by one or it won't match.

Maxx3141

"Dust attack" is a term used more often wrong than correct. This transaction looks like a typical batch payment from a big CEX - they didn't pay 165$ to send YOU some BTC, they paid that much for all recipients. And with over 300, that's basically about 0.50$ per recipient. In your case I would just assume the company accidentally paid you twice for your voucher. Any way, in BTC there are no such things as malicious smart contracts, so you can use that 30$ for whatever you like.

Grunblau

Robinhood reported mine, not sure what Coinbase or CDC did but whatever they reported was wrong because of me constantly moving assets from CEX to DEX to DeFi.

DigitylRise

Yeah I agree it's all bullshit. I'm just saying the CEX has no idea where you sent the coins nor how you received it, so they treat as if you receive 1 BTC from some mysterious wallet that you had to "buy" it. So they say, oh your cost basis is $60k for that BTC. Then if you send it to a wallet they don't know if you sold it there so they just say oh it left your account and was sold for $65k...(even though you never did). This is legally what they report to the IRS so the CEX themselves isn't held liable. You can report your trades however you want, but if you don't justify these transfers as "non trades" you're gonna be hurting when the IRS uses Coinbases records as a buy and sell, and screws you over.

DaBoogiemanSJ

Regarding MVRV, wouldn’t it be slightly skewed one way or the other due to CEX customers buys and sells being off chain?

MikeMiller8888

Yes, they do. I’ve drawn out 2 BTC at once without issue. You just need a history of large transaction for their automated fraud system to not flag the transaction; the first time I tried taking out an amount with a fiat value over $10k they wanted KYC checks. Once it checks out, it’s all yours. Just be patient, it’s not like any of us are selling it and need it right now lol. Us hodlers have nothing to worry about with CB, and in the end we all have to get our BTC from somewhere. You’re taking it out to cold storage once it’s available, so it all looks good to me. The fraud checks helps them avoid losses on checks that don’t go through, or any weird crap with people laundering crypto for criminal purposes. Which is necessary if we all want a solvent CEX where it’s safe to get our BTC.

AllCapNoBrake

CB is CEX...of course they don't care about BTC. They have federal regs to follow.

docdose411

The scam happens when you download something from a link he gives you. Or a fake site designed to look exactly like a legit CEX, you link your wallet and it drains it.

Ulysses_Zopol

Passing on the data is one thing, passing on the skills, the process, the entire portfolio the other. As long as you've got only BTC in cold storage, that's still easy. If you have stuff in Metamask, in dedicate wallet apps, or things like HEX with their own UI, things get more difficult. Also, how offramping if you never used a CEX? I am pondering using an old laptop, installing Linux on it, and install all the necessary apps and links, along with a password manager with all the nessary passwords. Then I place that laptop where my relatives can access it, and create an automated email with instructions, that is being sent once every four weeks IF I don't prevent it from doing so.

DowntownDiveBar

I've set up automatic DCAing through a CEX which equates to about 5% of my after tax income and I will periodically move the amount from the CEX into a non custodial wallet. My rationale is to "set and forget" so I don't have the opportunity to second guess myself or try to time the market. And I think in the short term it's probably better for me to delete some apps from my phone and even not read the crypto news too much. I genuinely do have a very busy job and I've come to the realisation that following crypto so closely is detrimental to me (both in terms of negatively affecting decision making as I am too swayed by short term sentiment, but also because it distracts me from living my life lol). Thank you for your input!

blaxx0r

normies still conflate the most fraudulent CEX with crypto

r2d2overbb8

Yes, the IRS can't track everyone, but if you are the one that is audited then you could be royally fucked. Is it worth risking jail times and huge fines just to save on some tax gains? The IRS would just need to find one instance where you slipped up and interacted with a CEX or any other financial rail and your crypto wallets and they can tie you to your wallets.

houganger

As a non US citizen, how tf would IRS even find out about your crypto if you stash it outside of a CEX? There are millions of citizens and surely they can't track most of the small fish?

liquid_at

I guess you regret the mistake of moving from self-custody and DeFi on an independent blockchain to the comfort of a CEX that is owned by corporations that are required to register with the SEC but didn't... One of the problems is that people think crypto is just like apple pay and won't accept anything less... You can't have a product that you own, without taking responsibility of it. But apparently, the SEC going after private financial firms is a problem for you, because you don't feel you have what it takes to manage your own finances without the help of for profit enterprises...

BookieOnFoodStamps

L2s of btc. I would just have some patience after establishing a position. RSIC is the only one trading on a CEX (on Okx). Interface is roughhhh else where right now but that’s where I think the opportunity lies.

gopack42

I wish there was a way to have a wallet send a transaction to a CEX or any other wallet address, but have it set as a "pending" transaction that will never go through unless you put in a one time password or code into it to "release" the transaction. That way, you could give this to someone or have it in a will, etc for them to enter to have the transaction execute without them having to access the wallet or know private keys. So if I had $100k in BTC sitting in a cold wallet, I could go ahead and enter a wallet address and essentially send the amount but it would never send unless this external password was entered that would tell that one transaction to execute. You would tie that one time password only to that one transaction. I guess it would kind of be the same concept of "signing" the transaction with your cold wallet device (like a safepal QR code, etc) but it would already be signed and just need the password someone else would enter to complete the transaction. You could have the Tx ID entered into a custodial website and then the site could allow the password to be used to release it. Hell, I don't know. I'm probably way off and being completely retarded with this idea......but it never hurts to have wild or "impossible" ideas, right 😂

mel2000

> I'm not asking for legal compliance in my country at all. I'm asking about how CEXs handle situations where the source of funds is from prior crypto trading, hence there are no bank account statements to show The country can be important. In the US, the CEX will verify the source of funds to the IRS. Then the IRS will want to know the source of any windfall profits deposited into your bank account. That will usually be shown on the IRS Form 1099 created by the CEX.

Chillbizzee

The negative is you are not in any market which can be extremely negative. Since you don’t cash out to a bank the pro is you have more money available to time the bottom. You may pay taxes eventually but not on every trade, which is a significant advantage and a big reason traders have an uphill battle. If you cash out a smaller percent I believe it would be on you to report profits, I don’t see a government having any data here. Is there any way to buy or sell without having to go through a CEX while on ramping and off ramping to a DEX?

0xjellybean

SEC is against all CEX with lawsuit 1 after the other

Big-Finding2976

You bought coins on a CEX in the first place though, so your ID is linked to the wallet you withdrew those coins to. Even if you then create another wallet for the DEX and send the coins to that, there's still a link to you, and at some point you'd have to send your coins back to the CEX to sell them for fiat, so you'd have to explain where they came from and disclose all your trades, and then you'd get done for not paying tax on them.

8reticus

That’s standard among banks in the 1st world. That said, once you deposit your money into a bank, it’s no longer your money. It’s their money. You effectively get an IOU. Furthermore, after the last banking crisis, most governments authorized the use of bail-ins if there is another crisis. That means if the bank is at risk of failure they can seize the money in its users bank accounts. This includes Germany and Deutsche Bundesbank. And if that kind of crisis happens, how quickly do you think the government will restore your money? It won’t. The bank will still be solvent and your money won’t be at risk. You just won’t be able to get to it. Are CEX’s any better? Of course not. But don’t delude yourself into believing your money is safe anywhere.

EmptyReceptors

Not on a dex. The dex does not report to the IRS. You can swap all day, every day on a dex and don't have to worry about taxes. The dex doesn't even know who you are, there is not even a first name associated with your wallet address, so how could it be taxable? Only on a CEX is it taxable because you have to kyc on a CEX. They have your name, address, etc .

stunvn

Not again. Things like this have happened in the past. Specifically, it was right after the Bitcoin halving in 2016. People should move their funds out of that shitty CEX.

Skyobliwind

I'm quite interested in Bitpandas PANTOS atm. It started as a research project from some universities in coorporation with Bitpanda. It is built to be a multiblockchain project that resolves the security problems many bridging contracts often had and allows decentral switching between chains. Mainnet launch is planned for Q3-4 this year. It is not yet listed on any other CEX than Bitpanda, and other than on Bitpanda only buyable at Uniswap and HitBTC yet. When mainnet goes live together with Bitpanda onboard I think it should increase in market cap quite a lot.

BoneFire

A lot of time users don't give the full story. There is usually more going on then what they reveal. Big CEX's like Binance and Coinbase arent going to stay in business if they are constantly freezing accounts for no reason. I've never had an issue with KYC or any of the big US exchanges.

Johan544

The thing with source of funds requirements and AML triggers is that they are extremely inconsistent. Sometimes you can move relatively large amounts of $$ between CEXs, even cash out 4 figures or low 5 figures without any headache, but other times as soon as you try to cash out 3 figures the CEX will flag your account and you'll need to provide all sorts of BS to prove you're not doing anything illegal. At least you can prove you paid taxes on the money you have cashed out so far, but what about those that can't, or that haven't paid their taxes on all the crypto money they made? They're in a financial limbo pretty much, and governments, banks or CEXs have no intention of helping them. My advice would be to either use DEXs (particularly futures DEXs, which offer leverage), or to cash out some of that money you have on your bitstamp account and then purchase crypto (small amounts at first, like 4 figures at most) and declare that money in your tax returns (or keep the bank statements showing the deposits), and only cash out with Binance or any other exchange you haven't used so far once a year or so has passed. That way, even if your account gets flagged you won't go through a lot of headache because you'll have everything they could ask for.

truckstop_sushi

Yet you believe that when you need to sell you will be able to successfully use a CEX to on-ramp> off ramp into fiat? If it's NEVER a good idea, then you will never be able to sell and the price isn't real.

imadumbshit69

Each time I see a CEX delist Monero, I buy more

MusingsOfASoul

For me a motivation for leaving in CEX's would be getting some form of interest on them.

Buydipstothemoon

Not your keys not your coins. A good example why storing on CEX is never a good idea.

WR3CKONER

Read up on everything you can, buy low sell high. Don’t invest what you can’t lose, and nobody’s said it yet but not your keys not your coins. Buy on a CEX such as kraken (I don’t like Coinbase or binance personally but to each their own) and transfer your funds into a self custodial wallet, write down your seed phrase and keep it private. Read up on what are the most trusted wallets for the coins your buying. Transfer back to the CEX when you want to sell, it’s worth the security.

Hunter-North

If your recipient is using CEX address maybe

ckhumanck

that's it. his inbound exchange address would be different. obviously don't send to the one you found, it's a CEX hot wallet.

misterjoego

If you want to do it legit in NY with a CEX, you can only use Coinbase and Gemini. Otherwise read up on peer-to-peer options as mentioned in other posts.

RemarkableFinger7963

I actually completely disagree, dumping this much into the market is certainly going to affect the price: https://platform.arkhamintelligence.com/explorer/entity/grayscale And to clarify, it's not moving into other ETF's, it's probably moving into Grayscale's new ETF but instead of just moving holdings over equivalent to the total value needed in the new ETF, they're dumping a ton of it on the open market which will create downward price momentum as all these ape leverage traders get liquidated and then Grayscale gets a sweet deal re buying at a lower value for their ETF. Plus they made 1.5% in fees off all those customers moving out and 0.15% to customers moving in. Not to mention they're probably trying to establish the new norm of ETF fees to be equivalent to CEX exchange fees for like Tier 3-4? I know zhao when to jail and we all hate Jerome Powell but Grayscale came to play this week.

FunWithSkooma

CEX = Evil, learn p2p

Sugar_Wan_GH

i’m actually honored you scale us to bots. that’s great and we’re actually heading the right direction. Kendu is gem to withhold this bullrun and it’s heading for Billions just like 2021 SHIB style. and you know what’s more interesting? Shytoshi Kusama- SHIB head dev is actually following KenduInu on X. and this is super bullish as all growth has been engineered organically with no paid shills calls influencer KOLs, no coins given to CEX and it’s on a great chain ETH

EitherInvestment

Those that make their money from a token, it is the former. Those with a large CEX, it is the latter. SBF was the exception to this.

ajtyeh

I can see idiots complaining, Cost 1,000 to move my 1 btc when its worth a million. It's all relative. bitcoin isnt great for L1 transactions, consolidate then move on, dont move such small amounts from CEX

disgustingquart59

P2P is filled with scammers and is honestly very time intensive to vet properly. CEX is great for onboarding onto crypo.

FunWithSkooma

Any CEX is, you will just discover that when it too late

imdabes

Phew! Came here to say this. Saylor, ETFs, and CEX’s are not our friends. There is a war going on to coop crypto. Stay vigilant.

imdabes

Phew! Came here to say this. Saylor, ETFs, and CEX’s are not our friends. There is a war going on to coop crypto. Stay vigilant.

KaydeeKaine

Allegedly. You can probably accuse any CEX of doing the same though so why is only the biggest CEX targeted?

yatoshii

It’s not a matter of using CEX, it’s that you recommended telegram out of all the MUCH safer options out there.