I don't want to compare which one is better, really for users it depends on their usage skills and choosing the platform that suits their needs. It is more important that you know how to protect yourself against the risks that appear on different platforms, and remember that there is no absolute perfect tool, it depends on your own usage behavior.
The cryptocurrency space is widely popular today, and there are many different attack problems that appear, so don't be too confident that any platform will ensure your assets are always safe, but lessons from The past happened a lot from CEX, or DEX, both of which have useful and challenging points for us.
Topic: Centralised exchange getting better than Decentralised exchange? - page 2. (Read 612 times)
November 04, 2023, 11:05:08 AM
November 04, 2023, 09:34:51 AM
Nope, centralized exchanges is becoming more regulated year by year and that is not a good sign for a trader. centralized exchanges has their own advantages too like high trading volume, more trading pairs, support system and etc but the term better is used to denote the security of funds in my opinion where centralized exchanges can't be trusted no matter what.
November 02, 2023, 08:42:35 AM
Personally, I don't really care which is better when it comes to exchange. Since I may not be an active trader, I only use centralized exchanges (CEXs) for a while and nothing more, to meet my needs when it comes time to buy Bitcoin and then immediately withdraw it to a cold wallet. Then what I often do is make sure like assessing low fees and not charging KYC fees.
The ongoing dispute about CEX and DEX usually arises from insiders themselves to ensure users have a choice. But we just need to make wise decisions according to our needs.
The ongoing dispute about CEX and DEX usually arises from insiders themselves to ensure users have a choice. But we just need to make wise decisions according to our needs.
Security of funds, making sure there are no hidden charges in the fees, asset diversification, good customer service, etc. are the main concerns when we invest in a centralized or decentralized exchange. Both exchanges have pros and cons, but ultimately, it's people's choice and their needs. Many people are exploring both. Even if they lean towards Dex rather than CEX because in DEX everything is executed on a block chain using smart contracts with no middlemen, more privacy as you do not have to go through KYC verification, unlike CEX, where just a wallet address is needed, and more security as you remain in control of your private keys. And Dex governance is decided by token holders. You're a CEX or DEX user, but make sure to consider the safety of your money and, at the same time, explore the trading world.
November 02, 2023, 03:23:43 AM
DEX exchanges have shown their flexibility over the years since the birth of the technology but it seems most of what is supposed to be advantage of its flexibility is now been exploited by nit-wits in the space. On the other hand, CEX has been putting the dots to the i(s) and ensuring the projects and investor's funds are safe, this has garnered more confidence in CEX than in DEX.
The fact that SEC looks into the operations of CEXs has also kept them on check at every point in time and then they have to always audit their accounts and financial records unlike DEXs with no particular entity in place regulating the operations rather than codes.
The fact that SEC looks into the operations of CEXs has also kept them on check at every point in time and then they have to always audit their accounts and financial records unlike DEXs with no particular entity in place regulating the operations rather than codes.
November 02, 2023, 01:31:40 AM
the prices in dex though are not consistent with what see on cex. for this more traders are drawn to cex for the prices are higher than what is offered in dex.
i have invested in some cex tokens in the past too. some of these dex died in thebear market and some of them just scam.
what i can conclude is that if you are for money, cex is way to go. if you give importance to crypto ethos despite th scam teams do so at your own risk.
November 01, 2023, 11:44:22 PM
Obviously the CEXs offer more guarantees and more security, peace of mind but they have only one major flaw they require KYC so they are not anonymous which is why wr must always opt for the DEXs
I would prefer to do KYC to ensure that all my coins are safe in a decentralized exchange irrespective of it flaw than hodling my coins in a DEXs exchange whose security of fund is not guaranteed, recall the disappearance of FYX exchange collapsed a year ago with investors funds that is one of the major flaw of CEXs exchange, a lot of investors lost huge amount of crypto, I can't imagine myself hodling some huge fund in such exchange and have a rest of mind, I would rather use them for trading thereafter withdraw every profit earn to DEXs thus saving me from any unforseen future circumstances such as the event that lead to the collapse of FTX exchange.However, even with KYC, safety can vary. DEXs, despite their decentralization, can give users a sense of asset control, but all systems have hazards. Diversifying by trading and withdrawing gains to a DEX can be smart. Due to crypto's intricacies and problems, the search for a flawless technique continues.
November 01, 2023, 08:35:49 PM
However, it's essential to note that DEX can also undergo KYC (Know Your Customer) processes, as evidenced by this tweet about Uniswap...
If Uniswap does implements kyc, i'm sure people will come up with other interfaces to use uniswap's smart contracts that does not require kyc, this is one of perks of being a dex.
November 01, 2023, 12:54:01 PM
Obviously the CEXs offer more guarantees and more security, peace of mind but they have only one major flaw they require KYC so they are not anonymous which is why wr must always opt for the DEXs
Do you think that's the only major flaw? To me, the first major flaw is security. This is because CEXs are attractive targets for hackers due to the large volumes of cryptocurrencies they hold, and them being completely in charge of your funds means you can't help it if anything were to go wrong.. the second major flaw is centralized custodianship in which you don't have full control over your assets. If the exchange experiences issues such as insolvency or let's even say regulatory actions, you may not be able to access your funds. There's more but I'll leave it here.
November 01, 2023, 12:20:32 PM
Obviously the CEXs offer more guarantees and more security, peace of mind but they have only one major flaw they require KYC so they are not anonymous which is why wr must always opt for the DEXs
I would prefer to do KYC to ensure that all my coins are safe in a decentralized exchange irrespective of it flaw than hodling my coins in a DEXs exchange whose security of fund is not guaranteed, recall the disappearance of FYX exchange collapsed a year ago with investors funds that is one of the major flaw of CEXs exchange, a lot of investors lost huge amount of crypto, I can't imagine myself hodling some huge fund in such exchange and have a rest of mind, I would rather use them for trading thereafter withdraw every profit earn to DEXs thus saving me from any unforseen future circumstances such as the event that lead to the collapse of FTX exchange. November 01, 2023, 05:00:07 AM
It completely depends on our preferences as some of us especially newbies don't bother much about the account security as they only focus on aspects like user interface, trading volume and some advanced features like bot trading, grid trading, and margin/futures trading and only centralized exchange can provide these features but t the same time there are tenured and more sensible users who prefer decentralized exchange but this comes at the cost of limited liquidity (volume), not great user interface and minimal support compared to centralized exchange but with DEX one don't have to worry about the risk of the account being frozen, also it can be used at any part of the world as CEX has its own geo-restriction and they have total control over your funds as they have access to private keys and we have seen so many exchanges going bankrupt or owner running away with funds but DEX eliminates all these risks.
I prefer a hybrid model wherein I need the security and anonymity of DEX with user interface, advanced features, and liquidity but there isn't any such exchange available in the market so I prefer CEX only for daily trades and not hold.
I prefer a hybrid model wherein I need the security and anonymity of DEX with user interface, advanced features, and liquidity but there isn't any such exchange available in the market so I prefer CEX only for daily trades and not hold.
Yeah, Dex could eliminate this but we should also know the risk that comes afterwards. I'm not against using dex thigh because I use one. I am at the look at on those that will save my assets. Like the exchange I mentioned above are my sure bet then uniswap
October 31, 2023, 02:41:49 PM
It completely depends on our preferences as some of us especially newbies don't bother much about the account security as they only focus on aspects like user interface, trading volume and some advanced features like bot trading, grid trading, and margin/futures trading and only centralized exchange can provide these features but t the same time there are tenured and more sensible users who prefer decentralized exchange but this comes at the cost of limited liquidity (volume), not great user interface and minimal support compared to centralized exchange but with DEX one don't have to worry about the risk of the account being frozen, also it can be used at any part of the world as CEX has its own geo-restriction and they have total control over your funds as they have access to private keys and we have seen so many exchanges going bankrupt or owner running away with funds but DEX eliminates all these risks.
I prefer a hybrid model wherein I need the security and anonymity of DEX with user interface, advanced features, and liquidity but there isn't any such exchange available in the market so I prefer CEX only for daily trades and not hodl.
I prefer a hybrid model wherein I need the security and anonymity of DEX with user interface, advanced features, and liquidity but there isn't any such exchange available in the market so I prefer CEX only for daily trades and not hodl.
October 31, 2023, 01:17:20 PM
Both centralized and decentralized exchange has it's pros and cons, up to this date, even the top tier centralized and decentralized exchange haven't managed to merge the features that both type of exchange has. It has to be a thing or features that separates them from each other. Maybe in the future, the debate on what is a better type of exchange will end by having a product that caters both. At the end of the day it will still be our choice on what type of advantage and disadvantage should we take.
The both are prone to hack or to be compromised but one thing we have ti understand between the two is because decentralized is actually safe and prevent breach of data because it does not require KYC. KYC is one thing that makes many persons to see a centralized exchange to be a government influenced exchange because the government have full control of user data and can ask for data from the company just to carry out user tracking. We can't find such in a decentralized exchanges because they don't care who we are or what we are got. October 31, 2023, 12:55:43 PM
For CEX:
Security is reliable if you choose the right exchange.
Transaction fees are reasonable.
It's user-friendly for trading.
You're less susceptible to phishing scams, especially when using a secure wallet.
Various earning opportunities are available.
Let's consider two exchanges I'm familiar with as examples:
For Binance: Despite suffering a massive $570 million hack, Binance remains one of the largest exchanges and not just that, they still keep their standards high.
You can find more details in this link: https://www.investopedia.com/binance-got-hacked-6748215
Security is reliable if you choose the right exchange.
Transaction fees are reasonable.
It's user-friendly for trading.
You're less susceptible to phishing scams, especially when using a secure wallet.
Various earning opportunities are available.
Let's consider two exchanges I'm familiar with as examples:
For Binance: Despite suffering a massive $570 million hack, Binance remains one of the largest exchanges and not just that, they still keep their standards high.
You can find more details in this link: https://www.investopedia.com/binance-got-hacked-6748215
I’ll cut you here. First, Idk why you mentioned security under CEX especially considering the fact that you’re comparing with DEX. I also don’t know what these centralized exchanges have done to earn people trust so much that someone (well, a newbie) once told me that Binance is safer than Trust wallet. Lol. Let’s not forget what CEX means. No matter how tight their security is, it’s still centralized, and that is no different or safer than the bank.
Also, we’re talking about finance, a hack is a hack and for centralized exchanges, it can happen even if you played your part well. Experienced traders will always warn to not leave your funds in an exchange but only the amount you need to trade at that specific moment.
Unlike CEX, with DEX, you can always disconnect your wallet and be the only owner once again.
Summarily, I’m not saying that CEX is terrible but I see CEX like the local market where you should only go there with your money when you just want to buy or sell.
October 31, 2023, 12:14:45 PM
Both centralized and decentralized exchange has it's pros and cons, up to this date, even the top tier centralized and decentralized exchange haven't managed to merge the features that both type of exchange has. It has to be a thing or features that separates them from each other. Maybe in the future, the debate on what is a better type of exchange will end by having a product that caters both. At the end of the day it will still be our choice on what type of advantage and disadvantage should we take.
October 31, 2023, 11:53:52 AM
For long term holding a decentralized exchange is always recommended so as to keep security and watch over your coins and asset's private keys. While centralized exchange on the other hand is know for its lighting transactions features but, it shouldn't be used for long term holding due to trust issues. I find it more easy to make deposits into a centralized exchange than that of a decentralized exchange, and with all my observations I see the both of them very useful with their different features.
Anything hodling is not good for exchange but for wallet. Using non custodial wallet to hodle and invest in bitcoin is the best. But if you want to invest in short term then you can use decentralized exchange to do that and withdraw the coins once the set date expired. But if it for a long term but brother it is better you us real wallet. Anything exchange is for buying and selling of coins and you move them to your real wall but you want to sell within a short period of time then you are free to keep there but as for the CEX, you don't have to keep it and you buy, you send it out and as you send it to it, you sell it.We have to remember this general slogan, "not you key, not you coins". And this statement is referring to exchange and mostly to CEX.
October 31, 2023, 10:54:06 AM
My answer won't be any different from the others, the centralized and decentralized exchanges has both their merit and demerits, and the choice of using them is based on what you intend to do. For short term holding a decentralized exchange is always recommended so as to keep security and watch over your coins and asset's private keys. While centralized exchange on the other hand is know for its lighting transactions features but, it shouldn't be used for long term holding due to trust issues. I find it more easy to make deposits into a centralized exchange than that of a decentralized exchange, and with all my observations I see the both of them very useful with their different features.
October 31, 2023, 10:21:30 AM
Any exchange platform that asks KYC is no longer decentralized exchange again but Centralized exchange. It is decentralized because you don't have to provide your identity again. Then coming to which is better while and you said. All have their strong and weak point. As for me I will like to use decentralized exchange because it gives user the autonomy and anonymity. And only things that is make me to run from them is because of the transaction fees and their price. Their price are not encouraging me to patronizing them.
While Centralized exchange are also good and you said. Binance has been my favorite and Remitano. All the exchanges I have used in the cryptocurrency ecosystem worldwide Binance is the best. Their price is attractive, and they also have free transaction fee. Then Remitano is the second to the list. And for the DEX I have not used any because they not attractive.
While Centralized exchange are also good and you said. Binance has been my favorite and Remitano. All the exchanges I have used in the cryptocurrency ecosystem worldwide Binance is the best. Their price is attractive, and they also have free transaction fee. Then Remitano is the second to the list. And for the DEX I have not used any because they not attractive.
October 31, 2023, 10:10:31 AM
I am not sure if you have seen the strict regulations going up for the centralized exchanges or not but that is one of the biggest issues in using them. Let us keep the KYC thing aside for a minute. If you still think CEX is full proof running and has more security features then start reading what happened to one of the biggest exchanges in the world. You can start with the example of the same exchange that you wrote to explain how they are better. Binance already winded up their business from the USA long ago due to strict regulations that were employed on them and they failed to fulfill it OR they just did not think they needed to do it. If such a huge exchanger can fail to survive in one of the developed countries then anything can happen. Such an exchange would be the last destination I wanna be with when I have my funds locked up there. Now on the other hand if it is DEX then obviously government has the least control over them and one easily has access from any region thus giving more security to fund access. This is a tricky discussion, the more you learn about one and the other, its gonna pile up with doubts. Just use the one that best fits you.
October 31, 2023, 09:35:04 AM
Centralized exchanges are needed for trading, decentralized exchanges are needed for swap, where you use your wallet. It's safe and fast, but expensive. Centralized services are prone to scam and hot wallet attacks, decentralized exchanges are prone to vulnerabilities in smart contracts and rug pull scams in liquidity pools. I can't say any platform is better than the other as they both have their advantages and disadvantages. There is no perfect solution.
Actually, I think exchanges are venturing into swapping. Like the one I use Bitget has a swap for different tokens and also has a cold wallet. I don't really know much about other centralised exchange because I haven't researched deeply to know if other exchange supports it as well.They're basically trying to cover everything they can, and they're already preferred by day traders for their trading activities because of the options and advantages they provide such as paying no trading fee for using certain stablecoins or making trades as a maker, and many other things that decentralized exchanges don't offer.
October 25, 2023, 09:52:18 AM
But still, you cannot keep your assets under their control for a long time. I think I have said this many times, use the exchange as it is defined. An exchange. Centralized or decentralized it doesn't matter. That is not your wallet so you better not keep it there. I think decentralized is better though since you are still under control with your own assets but in centralized, take it as not your coin anymore because you sent it to them which means you lose the rights on it.
I think the forum members here had explained it too much already in different threads and I think the fall of different popular exchanges is already a big proof that we should not keep our coins in their services. There's no assurance and insurance when we make them our wallet, if they declare bankruptcy, expect you will not be paid back or it will take a year or more before you can get all your funds back. But that also means you need to prove it's yours which is not an easy part of the deal.
I think the forum members here had explained it too much already in different threads and I think the fall of different popular exchanges is already a big proof that we should not keep our coins in their services. There's no assurance and insurance when we make them our wallet, if they declare bankruptcy, expect you will not be paid back or it will take a year or more before you can get all your funds back. But that also means you need to prove it's yours which is not an easy part of the deal.
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