Can DEX Replace CEX as the Future of Crypto Trading? - page 3.

palle11

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Quote from: BIT-BENDER on July 04, 2023, 03:33:31 PM

Why would anyone ever think Centralized exchange would replace decentralized exchange in the future. The only way I see that happening is if government takes over crypto-currency which I think would be impossible.

I don't think if government takes over cryptocurrency or cex exchanges that people will patronize it more than Dex. In fact it appears that Dex is not very much in use now or popular but if the government come up with policy to acquire cex then you will see more people living cex to patronize Dex, this is because of trust. Government is not trusted with the people, people already avoid KYC because of the believe that government could have them if they want so to have cex under government control directly, more people won't patronize cex. They would rather go with Dex if that happens.

tbct_mt2

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Quote from: dansus021 on July 04, 2023, 08:39:17 PM

Can DEX Replace CEX as the Future of Crypto Trading? My answer will be NO.

Because both of them has plus and minuses I know that a lot of people said that Centralized Exchange is bad and we don't have control over our money but in some government only Cex that can comply with government I mean as a "legal" exchange while Dex will not going to get the license because they are basically decentralized

Tho to country who ban bitcoin and there is no rule about crypto Decentralized Exchange will always be the number one exchange that comes to privacy and security.

Decentralized exchanges are like altcoins with doxed founders and developers. If they launch their projects publicly and reveal their identities, their decentralized exchanges are not decentralized. When governments want, they can arrest those developers and shut down those exchanges. So operating or not, it is very centralized on the founder team and core developer team and more important governments.

Only this is enough to say DEX will not replace CEX after many years in future. Governments will never let their citizens to use DEX and they lose their citizen income tax too and lose control on their citizen financial flows.

@sriyan

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Yes. It is possible in the future. But the decentralized exchanges must handle the following problems

1. Liquidity Problem: DEX has lower liquidity than CEX. Liquidity is mandatory for trading.

2. Less User experience: CEX has more user-friendly interfaces rather than DEX.

3. Less Regulatory compliances: DEX has fewer regulatory safeguards than centralized exchanges. Because centralized exchanges are using the KYC process to protect the users.

Fivestar4everMVP

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I should have known that all the energy put into setting this thread up was no other than just to promote a dex that is basically unknown and may not even be what it claims to be..

That aside, in as much as I love and prefer to carry out most of my trading activities on dexs due to the several challenges bothering cexs of since inception, for the sake of those who are not as learned and find it rather hard comprehending or understanding the intrics to trading successfully on dexs, I am of the opinion that cex and dex Co - exist, but I do hope dexs get bigger than how big cexs are currently and will be even in the future.

teosanru

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DEX are slow, very slow infact when it comes to actual day trading or real time trading. This is one of the main reason why they have consistently failed till now and all other exchanges have been able to win the race. I think even fees one can manage if it's under 0.5% or the value of transaction but eventually pace is everything when it comes to trading, you need real AMM and actual trade happening around in exchanges, you want your market orders to always get executed, no one wants it just to become a reference order for AMM to put their bid/ ask around that amount.

armanda90

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I don't think with all trader are happy trade their assets with DEX than using CEX Exchange, do you know with how much fees transaction has top pay when using DEX as exchange for trading? I don't think worth for trader with short term trading and try earn profit in daily day have spent much fees transaction trough trading with DEX Exchange.

I think CEX exchange is better place for trading than DEX, not sure exactly with many new DEX exchange are launching every day but without one year announced about they close operation. So far, CEX exchange looks secure and easy for trading with feature limit order for selling or buying and looks DEX not available with this feature.

tjtonmoy

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There are many decentralized exchanges available on the market and they are doing quite well. They have created a good reputation in the past few months. So while having them, what makes this one so unique and secure? What's your success rate and what have you achieved in the past? If you are unable to provide proof about them, no one will trust you just based on your words. This and that, this is what we do exceptional, this makes us special, cut the crap man. We just want something simple and user-friendly.

Something that gets the job done and does it easily. Nothing fancy that we need to learn about in order to use it. Just keep it simple. If you want to sell your thing, then make it something that people will buy based on its working ability, and not based on some random guy's opinion/word like this.

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It's got nothing to do with license, it's got nothing to do with self custody and safety etc. People honestly don't care or don't know about these things.

People want to have the easiest experience. Signing up in 1 step with Google. Recovery with email if necessary.

Nobody I know loves to open up a wallet, remember the seed phrase and then have the worry of keeping their own wallet safe which is absolutely what you need to do to use a DEX. Those using DEXs are like us, or are people who want to chase some kind of Defi dream.

Even among Bitcoin people, so few use DEX, including me. I still just use CEX to sell BTC as it's the easiest.

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Quote from: BIT-BENDER on July 04, 2023, 03:33:31 PM

Why would anyone ever think Centralized exchange would replace decentralized exchange in the future. The only way I see that happening is if government takes over crypto-currency which I think would be impossible.

The advantages Decentralized exchange has over centralized exchange is much and I think the only reason anyone is using centralized exchange is due to the way they understand crypto-currency. An experienced person in the ecosystem would readily for decentralized exchange because of the privacy protection they can get from it over centralized exchanges

Decentralized exchanges are going to have some problems becoming as popular as centralized exchanges as they have a huge advantage when it comes to volume, market share, brand recognition and many other aspects, so even if the advantages of decentralized exchanges are obvious to us, this is not the case for the newbies which are just entering this market.

As more than anything what they are looking for is a platform which is easy to use and in which they can buy their coins for a minimal fee, and centralized exchanges excel at both of those aspects.

dansus021

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Can DEX Replace CEX as the Future of Crypto Trading? My answer will be NO.

Because both of them has plus and minuses I know that a lot of people said that Centralized Exchange is bad and we don't have control over our money but in some government only Cex that can comply with government I mean as a "legal" exchange while Dex will not going to get the license because they are basically decentralized

Tho to country who ban bitcoin and there is no rule about crypto Decentralized Exchange will always be the number one exchange that comes to privacy and security.

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Quote from: BIT-BENDER on July 04, 2023, 03:33:31 PM

Why would anyone ever think Centralized exchange would replace decentralized exchange in the future. The only way I see that happening is if government takes over crypto-currency which I think would be impossible.

The advantages Decentralized exchange has over centralized exchange is much and I think the only reason anyone is using centralized exchange is due to the way they understand crypto-currency. An experienced person in the ecosystem would readily for decentralized exchange because of the privacy protection they can get from it over centralized exchanges

We do love that decentalization but we should really be that appreciating on what CEX is been offering on which DEX cannot. This is why its not shocking or surprising on why volume is really that created or molded on centralized platforms due to those known factors or reasons on why achieving these numbers which if you do make out that kind of indepth analysis then you would realize that CEX is really that much more preferred.

Even people do love decentralization and anonymity but since we do really end up on dealing with fiat or making conversions into paper money then it cant really be that avoided that it would really be that in exchange with our personal information on which it would really be that just that a common approach and something that people could just simply accept as long they would be able to utilize and make use of those features
then sharing up your information wouldnt really be that an issue even though it would really be that contrary on overall concept and preference.

BIT-BENDER

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Why would anyone ever think Centralized exchange would replace decentralized exchange in the future. The only way I see that happening is if government takes over crypto-currency which I think would be impossible.

The advantages Decentralized exchange has over centralized exchange is much and I think the only reason anyone is using centralized exchange is due to the way they understand crypto-currency. An experienced person in the ecosystem would readily for decentralized exchange because of the privacy protection they can get from it over centralized exchanges

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Quote from: KingsDen on July 04, 2023, 01:12:07 PM

So, government will choose to ban non corporating DEXs than banning their allies CEXs.

The government does not need to ban Cex for decentralized exchanges to get more popular. With the knowledge that;
• Centralized exchanges are regulatory arms of the government,
• You do not own they keys and they are not your coins,
• Your (not really yours) coins can be hacked,
• Your private information can be stolen, etc...

Crypto users who are privacy inclined should opt for decentralized options.

The Cryptovator

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I don't have any knowledge about MUFEX DEX, but regardless of its status as a decentralized exchange, it should undergo auditing by reputable firms. Dex platforms can pose significant risks if they are not thoroughly audited. Without proper auditing, there may be vulnerabilities or backdoors that can result in the loss of your funds. However, it is important to note that DEXs will not completely replace centralized exchanges (CEXs). Despite the controversies surrounding CEXs, many individuals still rely on them for trading. Several factors come into play when choosing an exchange, including liquidity, security measures, and the availability of trading pairs.

KingsDen

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Quote from: ruski on July 04, 2023, 11:43:24 AM

While DEXs have gained momentum and offer notable advantages such as decentralization, user control, and privacy, it is unlikely that they will completely replace CEXs in the foreseeable future.

Both types of exchanges have their strengths and weaknesses, and the coexistence of CEXs and DEXs is more probable, catering to different types of traders based on their preferences, trading strategies, and regulatory requirements.

There will never be a time that DEXs will replace CEXs, never!
If there should be a replacement, the reverse should be the case. But coexistence has always been better.
CEXs are the friends of the government. The government like centralization such that they can control, manipulate and tax everyone. So they work closely with CEXs to collect KYC data of people. So, government will choose to ban non corporating DEXs than banning their allies CEXs.

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Quote from: ololajulo on July 04, 2023, 12:33:16 PM

I believe decentralized exchanges (DEX) offer significant advantages for trading and escaping government regulations and oversight. However, one limitation is that gains made through DEX cannot be easily converted to fiat currency for everyday expenses or other investment opportunities. Until DEX platforms address this issue, their full potential may not be realized.

Yes, there is a lot of promises for the future of DeFi technologies. Uniswap took the crypto space by a storm when it wsd initially launched and it took me over a year to actually learn how it works. But it has gotten better since and yes, security is still a nig pronl6and that is why Security and auditing of smart contracts is actually a big deal right now.

Once security has been addressed, we can begin to discuss new protocols that allow users to securely trade with each other as they do in a classic swap trade on existing DEXs. It would be a while until we get a solution that actually works. The space is still young, a lot is yet to come.

ololajulo

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I believe decentralized exchanges (DEX) offer significant advantages for trading and escaping government regulations and oversight. However, one limitation is that gains made through DEX cannot be easily converted to fiat currency for everyday expenses or other investment opportunities. Until DEX platforms address this issue, their full potential may not be realized.

bittraffic

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With the activation of CBDC, it wouldn't be surprising that more users will prefer the DEX for privacy. Although the prices really differ in each platform, I think users will find it a lot more important to have privacy than sending KYC documents. 33.4% is a surprising growth just this year.

What is not great about DEXes is that they usually have no BTC in them. No BTC wallet that works to connect but Metamask. The users depend on how many are fans of ETH and all its 2nd layers.

KiaKia

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People still decided to use Binance exchange after the FUD months ago, I mean millions was withdrawn from Binance in a day and later millions went back into the exchange, peole understand the risk, they just seem to prefer using centralized exchnages over DeX, by now DEX should be the top crypto projects by volume but nah.

We already have good numbers of DEX and many new ones are already gearing up for launch, there is GNS trade, Dodo, ZigZag, and pancakeswap, where kYc is not important, it's a matter of choice and that's why centralized exchanges are still winning, when will dEX takes over? That's unknown and it may never happen, FTx collapse was scary enough to make people stop using CEX but that is not happening.

I don't know much about your Mufex and some are calling it scam already, if it's your Dex do drop a link, and let's see how the Dex look, also you need ANN and marketing for the DEX, because true be told, no one knows MUFEX and there are indeed new scam DEX out there where you don't want to connect your metamask to or other wallets to avoid assets getting drained.

Cryptomultiplier

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I think you don't clearly understand the scenerio you are trying to paint, OP.
DEX is what many of the crypto trading gurus use to successfully trade crypto currency. It is more like the name that I call my personal bank network. Since I am in control of it. Not the government can detect when I exchange my currency or tell who I exchanged it with. That's why major SEC in some countries like U.S, UK, are trying so hard to tax and regulate the activity of DEX in order to know the dealings and doings of everyone having cryptocurrencies.

The CEX is the one we see with physical buildings and financial monitoring agents and government bodies watching and tracing every transaction details and taxing according to what they see.
Although both have some level of security like KYC verification and i.d verification, authentication protocols, the DEX is the mechanism on which the future of cryptocurrency is expected to succeed. CEX defeats the purpose of individual control over their finance and puts it in the hands of the government.

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