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I think the security risk of centralized exchanges is overblown. If you only transfer tokens to an exchange when you want to sell them your risk is pretty low.

I think the security risk of centralized exchanges is overblown. If you only transfer tokens to an exchange when you want to sell them your risk is pretty low. Plus, most exchanges have most of their coins in cold storage (kind of like a bank doesn't keep all the cash at one branch). Plus, if you're interested in actively trading coins centralized exchanges have the best liquidity. It takes seconds to execute your order. Decentralized exchanges mostly function as a tax dodge. Imagine all the early bitcoiners who got in before the gold rush, reinvested profits into ICO's, and have never paid one cent in capital gains.

deweller 9y ago
The risk of centralized exchanges are a real problem. See https://magoo.github.io/Blockchain-Graveyard/ https://magoo.github.io/Blockchain-Graveyard/. The idea of transferring tokens only when you want to sell them is a nice idea, but it doesn't work in practice for a lot of people. Imagine speculating in 30 different alt coins. It is just too much work to run wallets for each coin. So people keep them in an exchange. Also, people may want a lot of open orders. Successful investors can accumulate a lot of value in an exchange quickly. 0x doesn't solve the alt-coin problem but encouraging people to hold their own ethereum tokens is a start.
- thinbeige 9y ago
  May I ask if you are invested in 0x?