Can DEX Replace CEX as the Future of Crypto Trading?

wxa7115

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Quote from: jeraldskie11 on July 20, 2023, 06:31:59 AM

Quote from: Jawhead999 on July 20, 2023, 05:38:41 AM

There's no DEX offer futures, scalping, liquidity, and low fee, how it's possible DEX can replace CEX in terms of crypto trading?

Maybe there's someone use DEX for trading for short term trade like a week or a month, but it's not enough to replace CEX. DEX isn't used for trading, it's only for buy and sell Bitcoin not in hurry. Maybe less decentralized exchange can replace CEX in the future.

I completely agree with you. In terms of trade, CEX is better to DEX. DEX is a good solution for better safety if you only want to trade because you want to hold other assets. However, if you want to be a serious trader, CEX is a good option. Trading futures is possible, and the fees are small; it is also more efficient than DEX. If you look at their trading volume, you can see that many people use CEX. DEX has limited possibility of replacing CEX in the future until the government shuts down CEX.

DEXs are trapped in a difficult situation, they do not have the volume to attract the large investors they need, but without those large investors then the volume cannot increase, so this is a difficult cycle to break and will probably not happen until CEXs encounter a great deal of difficulties to service their clients due to an increase in the number of regulations they have to follow.

But politicians are really smart, even if they are pushing for more regulations now, they will not push to the point of forcing the hand of CEXs and people feel they have to use DEXs, so I doubt the above scenario comes to happen.

sana54210

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Quote from: hd49728 on July 20, 2023, 10:13:24 AM

DEXs will grow more with more products and maybe they will have bigger liquidity but I agree with you that it is so hard and liekly impossible for DEXs to replace CEXs because they can not reach or surpass CEXs in all those criteria.

People as exchange users will find exchanges which provide as many products they like as possible. They also find convenience, good trading fees and big volume, liquidity to avoid losing more by price change as their trading impact.

Only when DEXs can do it, they will be able to replace and surpass CEXs. So far I don't think DEXs will get it in too near future and they have very long development and need more adoption to get there.

If they can do that then it could have a better future and I believe that it will have a good result one way or another. But that will take some time because right now they are not providing a lucrative deal to anyone and no product that would be different neither.

I believe that we are going to end up having some sort of situation where it is going to take some time before people realize that DEX is not that bad, but for that to happen first these DEX websites needs to provide something more, as we can see from the current situation it is not really that much of a big difference. I know that it is not going to be simple, but I believe that it could end up being a bit different and that's going to cause a lot of trouble for sure.

Mahanton

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Quote from: hd49728 on July 20, 2023, 10:13:24 AM

Quote from: Jawhead999 on July 20, 2023, 05:38:41 AM

There's no DEX offer futures, scalping, liquidity, and low fee, how it's possible DEX can replace CEX in terms of crypto trading?

Maybe there's someone use DEX for trading for short term trade like a week or a month, but it's not enough to replace CEX. DEX isn't used for trading, it's only for buy and sell Bitcoin not in hurry. Maybe less decentralized exchange can replace CEX in the future.

DEXs will grow more with more products and maybe they will have bigger liquidity but I agree with you that it is so hard and liekly impossible for DEXs to replace CEXs because they can not reach or surpass CEXs in all those criteria.

People as exchange users will find exchanges which provide as many products they like as possible. They also find convenience, good trading fees and big volume, liquidity to avoid losing more by price change as their trading impact.

Only when DEXs can do it, they will be able to replace and surpass CEXs. So far I don't think DEXs will get it in too near future and they have very long development and need more adoption to get there.

Comparing up the liquidity then CEX does have more compared to other opposite side which we know that majority of traders would really be playing around on centralized platforms but theres still a significant volume
or liquidity on decentralized platforms or dex on which there are ones who are really that giving out importance when it comes to decentralization. We know that we dont possess the keys on the time that we do make out deposits with those centralized platforms on which it totally opposes the idea on being decentralized.

hd49728

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Quote from: Jawhead999 on July 20, 2023, 05:38:41 AM

There's no DEX offer futures, scalping, liquidity, and low fee, how it's possible DEX can replace CEX in terms of crypto trading?

Maybe there's someone use DEX for trading for short term trade like a week or a month, but it's not enough to replace CEX. DEX isn't used for trading, it's only for buy and sell Bitcoin not in hurry. Maybe less decentralized exchange can replace CEX in the future.

DEXs will grow more with more products and maybe they will have bigger liquidity but I agree with you that it is so hard and liekly impossible for DEXs to replace CEXs because they can not reach or surpass CEXs in all those criteria.

People as exchange users will find exchanges which provide as many products they like as possible. They also find convenience, good trading fees and big volume, liquidity to avoid losing more by price change as their trading impact.

Only when DEXs can do it, they will be able to replace and surpass CEXs. So far I don't think DEXs will get it in too near future and they have very long development and need more adoption to get there.

jeraldskie11

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Quote from: Jawhead999 on July 20, 2023, 05:38:41 AM

There's no DEX offer futures, scalping, liquidity, and low fee, how it's possible DEX can replace CEX in terms of crypto trading?

Maybe there's someone use DEX for trading for short term trade like a week or a month, but it's not enough to replace CEX. DEX isn't used for trading, it's only for buy and sell Bitcoin not in hurry. Maybe less decentralized exchange can replace CEX in the future.

I completely agree with you. In terms of trade, CEX is better to DEX. DEX is a good solution for better safety if you only want to trade because you want to hold other assets. However, if you want to be a serious trader, CEX is a good option. Trading futures is possible, and the fees are small; it is also more efficient than DEX. If you look at their trading volume, you can see that many people use CEX. DEX has limited possibility of replacing CEX in the future until the government shuts down CEX.

Jawhead999

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There's no DEX offer futures, scalping, liquidity, and low fee, how it's possible DEX can replace CEX in terms of crypto trading?

Maybe there's someone use DEX for trading for short term trade like a week or a month, but it's not enough to replace CEX. DEX isn't used for trading, it's only for buy and sell Bitcoin not in hurry. Maybe less decentralized exchange can replace CEX in the future.

Captain Corporate

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Not for my taste, I do not think that it could for a while and that's literally why it can't because I think it won't. What do I mean? Well simply put, because I do not put my money in there, either for staking or liquidity providing, that means it has low liquidity and high chance of being manipulated, and all that jazz. This is why I believe that the high risk makes me not want to put my money in there, and when I do that the risk continues. If we all just put our money in there, maybe some would drop but at the end of the day it would not be a big problem for long term and we could use it, but because there are a lot of people like me who refrain due to fear, it can't really get high enough.

milewilda

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Quote from: AmoreJaz on July 18, 2023, 05:25:23 PM

Quote from: Dunamisx on July 18, 2023, 12:02:45 PM

Decentralized exchanges may not eliminate centralized exchanges but the crypto users will get to a stage where a number of them would have gotten the main idea and logic in using a decentralized exchange and many would stop the use of centralized or reduced the rate at which it's been used by the people, this may be coming on a gradual and steady way before the full explosion when everyone would have fully understand the importance of being decentralized, maybe only traders will be found using centralized exchanges in near future while holders will use a decentralized exchange.

do take note that some of these traders are converting their crypto to fiat, so they still need CEXs on this process. the truth is, we still need to convert our crypto to fiat to actually use it in our everyday life. not many merchants are directly accepting crypto. also, there are some bottlenecks why crypto is still not widely use as payment method. not only the availability but the fees involve.

One of the main reasons on why people cant really just leave out on CEX because of having the ability in speaking about fiat conversions on which it is true that we do really need nor want for us to have that fiat conversion
with our crypto because not all would really be tending to hold of their coins for long term and there would really be time that we do need money on which it is really just that possible or would really be that convenient
on processing on making use of CEX and which is something that cant really be done via DEX.This might really be that able to get that anonymity to be that contradictory but we do really have no choice
specially if we are really that minding about the convenience and accessibility on which DEX couldnt really be able to give out. We dont have any choice as of now unless if you are willing to make that
literal P2P transactions on which i would say that it is really that truly that risky as we do know.

hd49728

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Quote from: AmoreJaz on July 18, 2023, 05:25:23 PM

do take note that some of these traders are converting their crypto to fiat, so they still need CEXs on this process. the truth is, we still need to convert our crypto to fiat to actually use it in our everyday life. not many merchants are directly accepting crypto. also, there are some bottlenecks why crypto is still not widely use as payment method. not only the availability but the fees involve.

Most of them use CEXs because it is most convenient for them, cheapest trading fee and they don't care about privacy.

They can use non KYC DEXs but they see those exchanges are less convenient, risk to be scammed by trade partners.
They can use Bitcoin or cryptocurrency ATMs but they don't want to be charged very high fee such as 15% or even ridiculously higher.

Non KYC exchanges to trade with cash.
https://kycnot.me/?cash=on

AmoreJaz

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Quote from: Dunamisx on July 18, 2023, 12:02:45 PM

Decentralized exchanges may not eliminate centralized exchanges but the crypto users will get to a stage where a number of them would have gotten the main idea and logic in using a decentralized exchange and many would stop the use of centralized or reduced the rate at which it's been used by the people, this may be coming on a gradual and steady way before the full explosion when everyone would have fully understand the importance of being decentralized, maybe only traders will be found using centralized exchanges in near future while holders will use a decentralized exchange.

do take note that some of these traders are converting their crypto to fiat, so they still need CEXs on this process. the truth is, we still need to convert our crypto to fiat to actually use it in our everyday life. not many merchants are directly accepting crypto. also, there are some bottlenecks why crypto is still not widely use as payment method. not only the availability but the fees involve.

Hamphser

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Quote from: Dunamisx on July 18, 2023, 12:02:45 PM

Decentralized exchanges may not eliminate centralized exchanges but the crypto users will get to a stage where a number of them would have gotten the main idea and logic in using a decentralized exchange and many would stop the use of centralized or reduced the rate at which it's been used by the people, this may be coming on a gradual and steady way before the full explosion when everyone would have fully understand the importance of being decentralized, maybe only traders will be found using centralized exchanges in near future while holders will use a decentralized exchange.

On the time that regulation and government involvement would really go into that certain extreme extent on which they do really regulate everything then this is the time that they would really be considering on making

use of these decentralized exchange.For now, the regulation isnt really that too strict or really that trying out to constrict crypto space but i wont really be shocked that one day they would really be and this would leave no choice into those people who are really get used to CEX functions and would really be making out that transfer or would really be just simply dealing with those KYC despite on risking out their own personal details or simply their identity. It is really that hard to believe that DEX would be able to overtake these centralized exchanges when it comes to functions and other accessibility on which it do brings out great convenience.

On the time that we do see that things getting worst then i wont really be shocked if people would be starting on recognizing DEX once again but not really that much.
We cant really tell on when it would happen though.

Hamza2424

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Quote from: Plaguedeath on July 03, 2023, 10:46:11 AM

In short MUFEX is scam.

haha, you've nailed it, buddy. From the title, it seems like click betting haha but I was not expecting this, like really I thought in the written content why a person will use this Youber's technique hehe, But Op did it.

Anway my honest view on the CEX vs DEX I am standing with the DEX but not really still there is a need for huge developments on the protocols security better liquidity and marketing as well. But I respect all the services provided by the CEXs as well because they've played an important role in worldwide crypto adoption.

Dunamisx

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Decentralized exchanges may not eliminate centralized exchanges but the crypto users will get to a stage where a number of them would have gotten the main idea and logic in using a decentralized exchange and many would stop the use of centralized or reduced the rate at which it's been used by the people, this may be coming on a gradual and steady way before the full explosion when everyone would have fully understand the importance of being decentralized, maybe only traders will be found using centralized exchanges in near future while holders will use a decentralized exchange.

el kaka22

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I agree that it is going to be a bit more shift, but not pass it. Like I believe there will be more DEX used than what is used right now, and there will be less CEX used than what is used right now, but I also believe that we are not going to end up with DEX being used more than CEX neither, that's not something I expect happening anytime soon. This is why I believe that it is going to be a different situation, it is not going to be what we expect it to be.

Hopefully that can happen a bit differently, so that we can make more money but that doesn't mean that it is going to be simple. Hope that it is going to be an easy decision one way or another, that doesn't mean that it will be too simple though, there will be some differences for sure.

TheSpiral

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Quote from: Dr.Osh on July 08, 2023, 05:44:53 AM

if you look at the current situation, then people are more likely to choose to use their assets on CEX than DEX. So far, DEX still has many shortcomings, especially if we use the ERC20 network, the fees that can be used to make transactions are sometimes very large. However, in the future, DEX might be much better because it has a decentralized system.
However, if you try to advertise MUFEX here, it seems that people prefer to trade on CEX than new DEX advertised like this.

Another limitations in the dex is that you cannot buy token with fiat and dez give you options for buying crypto through credit card. P2P is also best for safe deal without involving your credit card with crypto which is best option in country where crypto is banned. Dex speed is also not fast like Cex. In future if these limitations overcome then maybe DEX replace CEX but at current situation its not possible

wxa7115

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Quote from: tvplus006 on July 13, 2023, 11:45:03 AM

Quote from: jaberwock on July 13, 2023, 09:38:32 AM

To be fair no matter how great it becomes it is not going to be just fully DEX, it is going to still have some people at CEX without a doubt. But during bull run we have seen DEX grew a lot and now it is much smaller, and even though exchanges dropped too, they didn't drop this much and kept their marketshare and DEX lost marketshare, that's the warning sign for it...

Nevertheless, we know that there are a lot of people who care about their privacy and it is due to such traders that the number of DEX users will increase. This will happen every time the next CEX introduces a mandatory KYC in exchange for the right to trade on a centralized exchange.

We also know that the pressure coming from governments against centralized exchanges is increasing, and they are not going to relent on their idea of forcing every single user of those platforms to identify themselves and even explain the exact source of those funds in order to monitor this market.

And the more centralized exchanges give up to their demands the lesser options those that care about their privacy will have, and as such they may decide one day to finally use a DEX and never use a CEX ever again.

Mr.right85

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Not one of your best ways to introduce your project to users on the forum and on the Web I must say. Seeing you the OP having to cret a thread title that centers on the future of centralized and decentralized exchanges with you at OP having to promote or project something else, MUFX which happens to be your username as well is something not expected.
If that be the case, you might he just announced yourself on the service board and be done with it.

On course, the crypto space calls for more decentralisation as it prioritises on privacy and financial freedom, both of which decentralisation offers and as such, its just normal to expect that it would be the order of a time.

Fatunad

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Quote from: jaberwock on July 13, 2023, 09:38:32 AM

Quote from: tvplus006 on July 11, 2023, 06:39:33 AM

Since the creation of DEX, we see their constant improvement and the main goal in the near future will be to fully provide all the functionality that exists on CEX to its users. Already, no one is surprised by the presence of limit orders on DEX, which traders dreamed of a few years ago. But at the same time, CEX will also not stand still, but introduce new useful functions on the exchange, and DEX will still be in the role of catching up.

To be fair no matter how great it becomes it is not going to be just fully DEX, it is going to still have some people at CEX without a doubt. But during bull run we have seen DEX grew a lot and now it is much smaller, and even though exchanges dropped too, they didn't drop this much and kept their marketshare and DEX lost marketshare, that's the warning sign for it.

I hope that it gets better and people would see that DEX is a far superior situation if you want to protect your funds and just keep it on your wallet, but it will certainly not be an easy decision. I know that it is going to be a tough one, and it is going to hurt a lot but we could still end up doing something that could make sense slowly, and should be fine eventually.

Would really remain just like that and i dont really believe that DEX would be able to overtake CEX when it comes to volume and popularity which it might really be totally
opposing on the general idea and utility of crypto but we cant really deny that the accessibility and function of CEX is much more preferred and convenient on which its not something
that could be questioned out by most users of CEX. When it comes to security then there's no doubt on DEX but we arent that dumb not to make those significant differences.
Trading volume does signify on which one is most preferred.

CEX vs DEX: Understanding The Differences
This article is a good read up for those people who are really that interested in between CEX vs DEX thing.
Well its not that forcing out people to stick into one place which we could always have the option which one we would really be taking on.

Vivageneviv

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I sincerely don't see that happening. While DEX has its own perks and promotes decentralisation more which is the very essence of cryptocurrency, CEX is still ahead and offers a lot more in terms of liquidity, stability, user experience and so on. With CEX you also feel more secured especially on platforms that take extra measures to secure users funds with some like Binance and Bitget announcing their protection funds with the later announcing a whooping $300m protection funds. When you look at this edges, you'd think that DEX will keep playing second fiddle to CEX for a long time

tvplus006

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Quote from: jaberwock on July 13, 2023, 09:38:32 AM

To be fair no matter how great it becomes it is not going to be just fully DEX, it is going to still have some people at CEX without a doubt. But during bull run we have seen DEX grew a lot and now it is much smaller, and even though exchanges dropped too, they didn't drop this much and kept their marketshare and DEX lost marketshare, that's the warning sign for it...

Nevertheless, we know that there are a lot of people who care about their privacy and it is due to such traders that the number of DEX users will increase. This will happen every time the next CEX introduces a mandatory KYC in exchange for the right to trade on a centralized exchange.

Topic: Can DEX Replace CEX as the Future of Crypto Trading? (Read 529 times)