PSA: when getting monero from a centralized exchange, ALWAYS withdraw your funds to your non-custodial wallet when you can (lemmy.dbzer0.com)

submitted 5 months ago by aldalire@lemmy.dbzer0.com to c/monero@monero.town

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Unless you enjoy holding paper monero, and letting centralized exchanges get away with fractional reserves, always withdraw your crypto!

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[-] g2devi@feddit.nl 2 points 5 months ago

I've never understood the attraction to CEXes. IMO, they're confusing, slow, require you to put funds into them and take funds out and wait for each to process, and have heavy KYC/AML. I gave up on then the first time I tried them. My first purchase of Monero was on the ChangeNow instant exchange. It was simple and at the time the KYC/AML was only a document. There's no way I'd ever give a 3D video Selfie with the modern state of AI. Changing between cryptos on DEXes was even easier since there was no KYC/AML. I've never used LocalMonero but was willing to try it before it was shut down, but I'm looking forward to Serai. I'm not yet comfortable with Haveno but if I were to buy Monero now, I'd likely buy DAI or LTC or BCH on an instant exchange (depending on the exchange rate) and then swap with XMR immediately so it doesn't cause a taxable event from the government's perspective. Yes, it would be registered with the government that you had crypto, but unfortunately I love boating and things happen.

[-] aldalire@lemmy.dbzer0.com 1 points 5 months ago

Why not buy monero directly if you can? Kraken has Monero. Say you lose it in a gambling accident, never reuse wallet addresses, you have some plausible deniability no?

[-] g2devi@feddit.nl 2 points 5 months ago

I don't like CEXes and the whole transfer money in and transfer out process and Kraken appears to require an account. and I see a sign in. If ChangeNow or any other instant exchanges that don't require 3D KYC/AML, I'll use it. I haven't purchase XMR in the last few months since I have enough for a major emergency and I can't tie up more money, so I don't know the current state of instant exchanges. But when I do need to buy again, if I can't find an instant exchange with low KYC out there to buy XMR, I know that they still exist for the popular POW coins so I'd go the DEX route. But if those don't exist, I will be more open to explore other options like Haveno or Kraken.

[-] aldalire@lemmy.dbzer0.com 1 points 5 months ago* (last edited 5 months ago)

Regardless, CEX’s are the most convenient way to obtain monero. People should do what you describe, try to dodge as much KYC as you can.

On a sidenote, this is probably why i think Monero is undervalued in the market lol, a large proportion of monero trades happen outside of CEXs, and the market prices come from the API’s of CEXs