To be or not to be?
(decentralized) That is the real question. Or is it? idk
I’ve heard a lot of people share their dislike of centralized crypto organizations, chains, and exchanges, and I wanted to share my thoughts on both sides. These thoughts are coming from my perspective as a novice investor trying to make money. This article is not so much aimed at blockchain technology or the people behind these projects, but really just my personal experiences in crypto.
To be honest, most of my crypto is on Coinbase Pro. Although it is a centralized exchange/wallet, I feel the safest having my crypto there. It is run by a single entity, yes, but the trading fees are so cheap, and I feel confident that if my funds were stolen I would be reimbursed. I really like centralized exchanges because it makes crypto so much more accessible to people new to crypto, which I think is helpful for the crypto space in general.
I do agree that centralized organizations are susceptible to attacks, and that they can manage people’s funds selfishly. But I believe most centralized organizations currently, such as Coinbase, have people’s best interests in mind since it is still a relatively new company. This may change in the future, like I think we are seeing with Facebook and Mark Zuckerberg, but for now I think Coinbase really does like the crypto community and feels a sense of obligation to be honorable to their community.
There is something empowering about truly owning your crypto. To have complete and total ownership over something is rare in the world we live in. But again, a big reason I don’t hold ETH or Bitcoin or my other crypto on a decentralized entity or in a cold storage wallet is because of how costly the transfer fees can be, and with one wrong mistake if you don’t know what you’re doing, your funds can disappear. Of course the answer here is “know what you’re doing” but it’s easier said than done, especially if you’re a noob like me.
I think it is still too complicated for the public to be fully decentralized in some aspects. And to some, that is the appeal. If it were easy everyone would do it, sure. But that’s a double edged sword. Mass adoption helps the price of cryptocurrencies rise, which in turn helps early adopters.
In conclusion, I’m still continuing to learn more about crypto every day. After being in the crypto and NFT space for a little over a year, I’m still trying to navigate a combination of options that feels safe and comfortable to me, while still taking certain risks to maximize my investments.
Thanks for reading friends!
I hope you found something useful in this article. Let me know your thoughts in the comments!