The Value Of P2P Bitcoin Exchanges – Bitcoin Magazine

This is an opinion editorial by Okada, mechanical engineer and contributor to peer-to-peer bitcoin exchange RoboSats.

Buying your first bitcoin has dramatically changed since the early days of trading on forums or Internet Relay Chat (IRC). Large exchanges sprung up and nowadays, they’ve perfected the art of attracting newbies through demystifying the buying experience with seamless and, quite frankly, mindless user interfaces.

Over time, regulators pressured exchanges into collecting users’ data to verify their personal credentials. Exchanges such as these — we’ll call them “verification” exchanges (VEXs) — have custody of your funds and have tools at their disposal to track your identity-linked funds on chain. The reader should already be aware of the advantages of self custody, a topic worthy of its own detailed exploration.