Topic: Can DEX Replace CEX as the Future of Crypto Trading? (Read 537 times)

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.

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.

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.

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.

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.

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.

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.

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.

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

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.

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.

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.

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.

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.

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

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.

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.

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.

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

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.

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.

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.

Talking about this chance for decentralized exchanges is like talking about opportunities of ebooks to replace paper books, e-newspaper to replace paper newspaper, digital currencies like CBDCs to paper or polymer currencies. It will not have any ending for discussions because we all see how paper books, audio books, ebooks coexist and none of them die. I believe the same for CBDCs and paper/ polymer currencies, Bitcoin and altcoins will all co-exist together.

Decentralized exchanges and centralized exchanges serve different users so they will co-exist if customers continue to have different types and each exchange type has its pros and cons.

Centralized exchange are popular now because they're very easy to trade on, they make their platforms so easy that any individual who's a newbie can make use of their platform without mentorship. Decentralized exchange aren't perfect yet but they're safer than decentralized exchange. Centralized exchange are what many individual are used to and they're just getting to know about decentralized exchange and with time they'll understand how to use them.

Decentralized exchange has all the potential to replace centralized exchanges, with the crackdown on centralized exchange and accusations of listing securities, attention might shift back to decentralized exchange as project move to list there to avoid SEC lawsuits.

These two will forever be the favorites of different types of traders, they won't outdo each other as long as they're on the right track. I mean, lately the emergence of shady business models outside of the main orientation has been implemented in several cex and dex behind the scenes which is a threat to the exchange as a whole, both in terms of user trust and government policy.

I agree, I mean even today I do not feel completely sure about what I am doing and I double or even triple check everything I do just to make sure I am not going to lose my coins due to a dumb mistake, then I can only imagine the kind of pressure a newbie may be feeling when doing something in which they do not have any experience and which may cause them to lose their coins.

So newbies using centralized exchanges is fine, at least for a time, and only once they feel more confident on their ability to secure their coins then they could try to use a decentralized exchange.

One thing to keep in mind about a DEX. Is that it’s extremely difficult for a new user to interact. It’s good for us who already are comfortable with Metamask and such but for a beginner it’s very difficult.

Also add in the fact that you got so many phishing scams and address poisioning that makes it very easy for some new comer to get his funds stolen.

So for beginners it’s best to stay on a CEX for their security. DEX is for intermediate type of computer and crypto users. Not very user friendly.

The biggest difference between a centralized exchange and a decentralized exchange is that a centralized exchange requires users to complete KYC verification and comply with rules and regulations imposed by the authorities, while a decentralized exchange operates without a license and requires nothing of that sort, now to come to the point, authorities are starting to notice decentralized exchanges and might be planning to impose regulations on them as well, once that is done, people wouldn't prefer decentralized exchanges at all.

A CEX provides way more features and offers than a DEX and users like that, that is the reason why there is more than enough liquidity on CEXs and DEXs suffer from lack of liquidity most of the time even for the tiniest tokens that have been released recently, the reason is that people prefer using centralized exchanges more often.

Not only the OP but there lots of them who actually think that a centralized exchange are going to replace decentralized exchange because it's obvious that centralized exchanges are more popular. They get more volume because many people are using them and many people thinks that decentralized exchange are dying because of that fact. This isn't only limited to decentralized exchange but this is also happening in decentralized casinos, decentralized games, and others.

There must be something with being centralized on why people likes them even though being decentralized do also have its own benefits like privacy or anonymity.

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.

I 've experienced in both of CEX and DEX, I realized that both of advantages and also some disadvantages. CEX is my favorite, i can trade with varieties of coins, which missing in DEX. CEX is too risky if exchange will get hacked and they can sell our personal documents, those will not happened in DEX.

Both have their respective fans and the two cannot be compared because the presence of CEX and DEX is to complement cryptocurrency exchanges.
CEX will always be used for those who like speed and high trading volume, while DEX is used by traders who are more focused on security but trading volume and the slow development of DEX make traders also use CEX for transactions that cannot go through DEX, So it has its advantages and disadvantages.

You're harsh dude, hehe ... but you're right in what you said, I just remembered recently when there was an issue with stablecoins on the centralized exchange platform, if that issue isn't really resolved, it's probably the investors who trust among stablecoins in centralized exchanges, it is possible to switch to decentralized or some may have switched and others still remained in centralized.

It's like if we look at it because if there's a problem with the centralized one, the DEX will catch it and if the DEX has a problem, the CEX will see it, It's that simple.

I think everyone knows that transactions on the Ethereum network are the highest, so if you want to reduce your gas costs, you need to use L2 networks. So if you bought ETH, for example, on the Arbitrum Nova network, you would pay a commission that is possibly even lower than on CEX.

Yes they do have their own disadvantages and advantages of their own on which it is really that hard to tell that DEX would overtake CEX.

Advantage of CEX
1. Conversion of fiat to crypto vice versa
2. Make direct trade on different pairs which DEX doesnt have
3. Features which would really be that making trading so easy
4. Easy to buy crypto using up fiat

Main disadvantage?
1. Custodial
2. Everything could be seen and traced
3. Its not your wallet
4. Prone to sudden regulation change

DEX is totally that preferred when it comes to anonymity and decentralization on which it would really be
that no question about this manner but people do still end up on making use of CEX on which we do understand on why but
we cant really blame them out.

There are good DEX and CEX but not all will stay within the competition.
We all want the anonymity given by DEX but the real question is its security though you are just using your personal wallet here, some site are still risky to deal with. CEX are talking about great volume and great fundamentals and that's why they remain as the top choice. Let's see if this two will continue to be the best option, maybe a new developer will introduce to us a new way of trading as part of the innovation with crypto. 

That's why we need proof, not talk. Although simplification is not the major key, because people learn things by using it over time. But to use it, we need trust. And for a platform like this, they need to build up trust first. No one will be willing to put their money into something in which they have no trust. I don't know how this will turn out to be. But if they manage to keep a good track record, people will use it.

Being decentralized also arise the question, of how far can it get and how good of a service it can provide. So I will wait for that day to come. Until then, I will stick to my statement. Also one more thing. Simple also makes things unique. Just keep what is necessary and easy to use. Something exceptional is a trend that people try out for a certain period of time, then move back to which is easy to use and understand. Don't get me wrong. If the "exceptional" one is understandable and not so complex, people will use it too.

DEXs could replace CEX as the future of trading when people don't like the features of CEX and don't want to do KYC verification anymore. People use CEX for convenience in trading and to avoid transaction fees for trading, while transaction fees in DEX are higher than CEX.

I felt this way when I tried a DEX that was ETH based a few years ago and spent a lot of ETH just on transaction fees. While using CEX, the transaction fees are very low and it helps me to store ETH for sale at the highest price.

But if CEX can still offer something similar to what users already get, they will still trade at CEX, even if they have to do KYC. People will be trading on the DEX for certain coins not listed on the CEX and it's okay if they have to pay higher transaction fees than CEX. The comfortable thing is the most wanted of people search.

As far as I am aware, decentralised exchanges (DEX) have recently gained popularity as an alternative to centralised exchanges (CEX). While CEXs remain the most popular platform for trading cryptocurrencies, DEXs may provide you with a lot of benefits such as decentralisation, lower fees, security, and anonymity.

However, because of their simple and intuitive user interface, CEXs are often more user-friendly than DEXs. CEXs frequently provide a variety of tools and services that make it easier for consumers to purchase and trade cryptocurrency. DEXs, on the other hand, are more complicated and necessitate user interaction with smart contracts.

To top it all off, the MUFEX you referenced in your post, as industry leader, is simply a huge hoax!

Isn't that the point of having rivals? It paves the way for the development of novel goods and services that address specific customer requirements. While putting the needs of the consumer first is important, we must not lose sight of the creativity these transactions represent.

Isn't it true that the parameters you raise - "unique" and "secure" - are what define the development and expansion of these transactions? They may improve the blockchain ecosystem by expanding the range of possible transactions and boosting safety. In today's quickly developing cryptosphere, simplicity is no guarantee of efficacy. Is it possible, then, that the majority does not share your desire for simplification?

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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

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.

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.

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.

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.

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.

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.

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.

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.

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.

In reality people are not looking to use decentralized exchanges and find different reasons to avoid them. There is a list of credible Dexes which allow P2P trades and does not require identity verification, but the bulk of crypto users are still using centralized ones eeb though they have a long history of hacks and stolen identities.

If they want to trade P2P they use the knock down version on centralized exchanges.

Many people choose cryptocurrencies or specifically Bitcoins due to the decentralised nature only. So if there is any better facility available then of course people will move to it. I mean no one wants to get bounded by laws, and unnecessary taxes, so in that moment if you introduce them to a DEX, then definitely they will move into it to use the cryptocurrencies without any hassles or identity verification. People are nowadays using more P2P trades than futures, so yes this prediction of yours can be really possible in the near future.

I wonder how many minutes did the OP took just to create this thread only to find out that many will just simply ignore it.
You're straight to the point, but the chances of it to be a scam is high, or it might be 100%.

I've seen some of these threads in the past already. The title is asking question then the contents of the created thread is something that's about their project that they're promoting. This is one of them, and obviously this is a scam project... but a project can't be called a scam until it does, so like what others are saying here, it's possible that it's a scam project.

Well, I would be happy, and most here would be happy if we were wrong about accusing this new project as a scam.

I will make this in addition that if someone never have the experience of being scammed by the centralized exchanges he may not understand what it really means to be decentralized, to me if you're still under a centralized exchange, you're no difference from someone using the banks to hodl his money no matter how you've invested in bitcoin but still having them under the control of a centralized exchange, one day the prophecy of not your keys not your coins will surely manifest and by then it would have been too late to adjust.

Few DEX are bringing back the features that are only present on centralized exchanges, in near future DEX can take over and become the top 5 crypto exchanges by rating, this is possible, but what is MUFEX? I thought you created this thread to discuss about the future potential of DEXs over CEX but now it looks as if you created this to shill this scam MUFEX, upon all the good crypto DEX in this space right now, from VeloDrome to DyDx and even integral, you only come up with MuFEX? That's a scam I believe, prove me wrong if you think I am wrong.

Not on MUFEX but I believe the entire DEX ecosystem works well when it comes to trading crypto pairs. The fees and UI issues will be eventually solved as the time goes by. But DEX can never replace CEX in one things - P2P trading. Not every crypto users are traders. Majority of the crypto users want liquidity so that they can spend. That's where CEX stays mile ahead of DEX and that will never change.

When it comes to transactions involving bank account, people will prefer KYC verified traders every single time.

Brutal but highly possible!

Whenever I see all that bla bla bla hyper ultra state of art never seen before technology vaporware it's either a rug pull, a long con scam, or just your average shitshow platform that will die a painful death of neglect.
Anyhow, assuming it's not, I saw a 150x leverage mentioned there in the first lines on their website, it's just an invitation for users to lose money gambling on the second especially since we're dealing with shitcoins. That aside, OP, if it's a decentralized solution, how do you ban IPs? 

In short MUFEX is scam.

The rise of blockchain technology and the burgeoning popularity of cryptocurrencies have ignited a fresh wave of decentralization in finance - DeFi. DEX, a significant component of this emerging field, is witnessing rapid growth in line with the overall DeFi ecosystem. Its current market value stands at USD 15.5 billion, accounting for approximately 35% of the total DeFi market value.

DEX operates in a decentralized manner, providing a platform for users to trade directly and securely. This is the key distinction from CEX. As scandals involving CEX continue to surface and global regulatory efforts intensify, distrust and concern towards CEX have been escalating among users. According to data from CoinGecko, DEX grew by 33.4% in Q1 2023, while CEX only saw a 16.9% growth rate. DEX's growth rate is almost double that of CEX.

Given these developments, will DEX potentially usurp CEX's dominant position in the future?

The value proposition of DEX

Before we address this, it's important to understand DEX's advantages over CEX. The main benefits of DEX's decentralized model include:

1. Enhanced user asset security: Users maintain control over their cryptocurrencies rather than storing them in the exchange's wallet, which has often been a focal point of security concerns in the crypto community.
2. Transparent trading process: Operating on blockchain, all transactions on DEX are open and verifiable.
3. Reduced systemic risk: Users don't have to place assets in the exchange, averting potential losses from operational risks. The absence of a centralized "agent" makes DEX less susceptible to single-point attacks.
4. Openness and freedom: Any type of crypto asset can be created and traded on DEX, providing it has a matching supply and demand.
5. Strong financial inclusivity: There is no KYC process in DEX, significantly lowering barriers to entry, especially for those without access to banking services.

Despite these advantages, DEX also faces challenges including high user thresholds, unfriendly user interfaces, and inadequate liquidity.

However, technological advancements and growing demand for privacy and security are likely to make the benefits of DEX more pronounced.

The innovative path of DEX

DEX's main issues to tackle include lowering the entry barrier, improving user interfaces, enhancing transaction efficiency, reducing transaction costs, and boosting liquidity.

MUFEX, a DEX focusing on derivatives, has integrated several innovative technologies and mechanisms to achieve these goals:

1. Account Abstraction: MUFEX uses account abstraction technology to simplify the usage of on-chain wallets, significantly lowering the threshold for new users.
2. ZK Rollup: This solution increases the throughput of the blockchain network, further optimizing trading costs.
3. Hybrid Liquidity Pool and Off-chain Order Matching Mechanism: MUFEX improves liquidity pool utilization and ensures adequate liquidity, thus providing a superior trading experience.
4. Multi-chain Asset Aggregation: MUFEX can access assets from multiple blockchain networks, enhancing traders' options.

MUFEX's design showcases the best of both worlds, CEX and DEX, offering a top-tier trading experience for both beginners and seasoned traders.

In conclusion, DEX is in a phase of rapid evolution. With the advent of new technologies and innovative practices, DEX has a plethora of possibilities ahead. MUFEX, being an industry leader, is expected to offer valuable insights into the development of DEX. Whether DEX can ultimately replace CEX depends on several variables including regulatory policies, technological advancements, and market acceptance. However, under the guidance of exchanges like MUFEX, DEX will continue to mature and challenge the dominance of CEX.