Centralised exchange getting better than Decentralised exchange? - page 3.

justdimin

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Quote from: DapanasFruit on October 22, 2023, 10:32:34 PM

From time to time, as per my cryptocurrency experience, I am using both CEX and DEX platforms in trading and/or converting my digital assets to USDT which am using for P2P in Binance. I would say, however, that am more into CEX than DEX and this is all because of my full trust in Binance. As of now, both CEX and DEX are doing good business so this is just a matter of choice and convenience. Now, am expecting that years from now, DEX can be able to improve more on security as no one would love to be dealing with risks of hacking anytime.

You are carrying a signature which seems to be an exchange review site. Are you an owner of it? Maybe yes, because you said you are using both CEX and DEX from time to time. It's important so that you can review an exchange better and give an idea if what are their advantages and disadvantages.

DEX are not new so maybe a lot of them have now improved their security especially after we heard in the past that there are lots of hackings that occurred on them. It won't stop there obviously because hackers are also not stopping anytime soon. I don't own a platform like yours but I already tried both types of exchanges, and my remarks are also the same as yours.

livingfree

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Quote from: Best-mary on October 21, 2023, 09:30:44 AM

For CEX:

Security is reliable if you choose the right exchange.

If there's one thing that I've learned from all of the exchanges, it is that none of them are safe. What I mean by that? It's always that all of them are being targeted by attackers and that means to say that even if they've got a reliable security but once they lack update and the attackers see a backdoor, that reliability is gone. We've seen it many times in the past from these known centralized exchanges.

Quote from: Best-mary on October 21, 2023, 09:30:44 AM

You're less susceptible to phishing scams, especially when using a secure wallet.

Centralized exchanges have the same type of wallets and that's their own wallets. And in fact, they're one of the most targeted websites when it's about phishing links.

Because many users aren't securing themselves and don't know how to do that.

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Quote from: devil-soul on October 24, 2023, 04:43:03 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

KYC was not a serious problem these days, cex needs you to comply with it to make sure you were not being involved into the criminal activities. In fact, cex is giving more guarantee to the its users rather than dex.
Look at so much money gone caused by dex got hacked easily. There's no true decentralized dex. All of these self proclaimed themselves as decentralized exchaneg site totally bullshit.

There's no real dex here. These dex are still being controlled and monitored by the developers. Cex is performing better since some cex was able reimbursing their users even though this cex got hacked.
Dex is obviously bullshit.

Blitzboy

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The argument between CEX and DEX is more complicated than many people make it out to be after reading your in-depth explanation. For example, Binance has been able to keep its image even though it has had some problems. Why? Strong security steps and trust from users. On the other hand, what happened with Bitget should be taken as a warning. Ripples arent always caused by the system; sometimes they're caused by people.

When it comes to DEX, you're fully right. Decentralisation is good, but it doesnt make problems go away. This is about getting these details right and not letting big ideas cloud your judgement. When private wallets are brought up, they add another layer to the conversation. Can we ever make security that cant be broken? Most likely not. But the chase? Thats what matters. What we do, what we decide, and how aware we are are what you've called the fulcrum. Whether its CEX, DEX, or private wallets, the board is very big, and we need to be careful with our moves. There are no black or whites in the crypto world; instead, there is a range of greys that needs to be carefully navigated.

Best-mary

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Quote from: JeffBrad12 on October 24, 2023, 06:31:00 PM

Quote from: Best-mary on October 24, 2023, 05:58:36 PM

Quote from: Xal0lex on October 23, 2023, 02:06:52 PM

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.

most of the exchange also offer swapping like you said like mexc and kucoin literally has a way to convert instantly without the need to make orders.
but of course they will take fee and even sending money to the exchange itself is already charging you fee so basically its the same thing.
the different as mentioned is that using cex, if one is trading their assets frequently, they could save a ton, if only ethereum blockchain or any blockchain thats popular like bitcoin are cheaper i think dex could become popular
but right now, people prefer to save money from fee, since its not some small amounts either.
I guess both would still thrive though for upcoming decades.

Yes, I think every cex differs in how they charge their fee. I haven't used the swapping yet but those who have said is quite easy to navigate especially when a token is about getting listed. Most times, it gets to be there first before the listing. I don't know if Kucoin does that too

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Quote from: devil-soul on October 24, 2023, 04:43:03 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

this now depends on the need of the trader. some coins can't be found in DEX. so it is not always that you need to choose DEX. also, a lot of traders are going to CEXs because of the p2p trading feature and other financial services. i believe the demand is high on this aspect as users need their fiat currency when it comes to everyday living. and they are offering wide range of local currencies, just look at binance. and you are pretty sure that you won't get rekt by p2p scammers.

JeffBrad12

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Quote from: Best-mary on October 24, 2023, 05:58:36 PM

Quote from: Xal0lex on October 23, 2023, 02:06:52 PM

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.

most of the exchange also offer swapping like you said like mexc and kucoin literally has a way to convert instantly without the need to make orders.
but of course they will take fee and even sending money to the exchange itself is already charging you fee so basically its the same thing.
the different as mentioned is that using cex, if one is trading their assets frequently, they could save a ton, if only ethereum blockchain or any blockchain thats popular like bitcoin are cheaper i think dex could become popular
but right now, people prefer to save money from fee, since its not some small amounts either.
i guess both would still thrive though for upcoming decades.

Best-mary

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Quote from: el kaka22 on October 23, 2023, 01:59:52 PM

For me centralized was better than decentralized at all times and never got below and if you look at the numbers that would support the idea as well. I think it should be noted that we are doing something that would be a lot better for the long term without a doubt.

The difference between the volume is staggering and has always been like that and never changed, it was like that during the bull run and it is like that during bear, it is always centralized that is used more. That alone should provide enough proof that people prefer that but if that's not enough then we could look at the hacked stuff, sure centralized places got hacked before there is no doubt about that but they are owned by people so you either get your money or they go to jail, so there is a response to it, whereas if it is a decentralized place with a malfunctioning code, they are going to get hacked too and there is nothing to be done. In both cases your money is gone, but at least in one of them people go to jail for it.

You've said it all. This is just the truth and is because is decentralised, any slightest hack couldn't be traced compared to centralised

Best-mary

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Quote from: Xal0lex on October 23, 2023, 02:06:52 PM

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.

devil-soul

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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

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Quote from: KingsDen on October 24, 2023, 03:14:57 PM

Quote from: Best-mary on October 21, 2023, 09:30:44 AM

For CEX:

Security is reliable if you choose the right exchange.

Yes, this is true because centralised exchanges are owned privately and the owner will release enough fund for security unlike DEX which might not be anyone's private business. But it is worthy of note that any DEX that has extended interest of the public would be secured, as everyone will have a stake on the security.

Quote from: Best-mary on October 21, 2023, 09:30:44 AM

It's user-friendly for trading.

This is very true. I couldn't imagine that I was lost the first time I visited a DEX UI. Why is it always not user friendly?

Quote from: Best-mary on October 21, 2023, 09:30:44 AM

Various earning opportunities are available.

The main reason so many people dwell so much on CEX. Binance is a good example.

Not that much if we do speak on demand and recognition.Yes, we do value security and anonymity but we cant really just resist on how these centralized platforms been offering which it does really give out that
great convenience and accessibility on which it do make things lot more easier on which its no brainer on why people would be choosing this over DEX and the prove itself would really be the volume or liquidity that has been generated in between DEX and CEX. Numbers dont lie and its pretty obvious on where the majority or community is really that focusing on. Having DEX isnt that means that its irrelevant too in together with existence of those centralized platforms. It is really just that great that we could really be having both that we could choose upon basing up into our needs and interest.

It is really just for us traders or users would really be the ones to make use if ever we are really that needing it.It would always falls down on someones preference on which at least we do have options.
For me then most of thetime i do make use of CEX but of course my long term holds are already that transferred to cold wallets which it is really just that sensible on doing so.

KingsDen

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Quote from: Best-mary on October 21, 2023, 09:30:44 AM

For CEX:

Security is reliable if you choose the right exchange.

Yes, this is true because centralised exchanges are owned privately and the owner will release enough fund for security unlike DEX which might not be anyone's private business. But it is worthy of note that any DEX that has extended interest of the public would be secured, as everyone will have a stake on the security.

Quote from: Best-mary on October 21, 2023, 09:30:44 AM

It's user-friendly for trading.

This is very true. I couldn't imagine that I was lost the first time I visited a DEX UI. Why is it always not user friendly?

Quote from: Best-mary on October 21, 2023, 09:30:44 AM

Various earning opportunities are available.

The main reason so many people dwell so much on CEX. Binance is a good example.

FinneysTrueVision

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DEXs can't match the convenience and low fees of centralized exchanges. Their appeal is in being open to anyone and having better liquidity for obscure and newly launched tokens. Not having to worry about KYC and getting arbitrarily blacklisted is a huge benefit.

Previously, Uniswap had delisted certain tokens from their website for compliance reasons. Although you could still access them through other means it set a bad precedent. Now we are hearing about KYC only liquidity pools which is an even worse idea. If DeFi becomes permissioned, on top of all the other drawbacks like high fees and scams being rampant, then it becomes a worse alternative to the traditional services it was intended to replace.

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Quote from: wheelz1200 on October 21, 2023, 04:03:58 PM

It's all preferences really. There are good and bad dexs' and good and bad cexs'. It's just what people are looking for. The problem with centralized exchanges really is that people tend to use them as theor personal wallets which is where hacks impacts the ecosystem. If people use exchanges like they should, meaning on board crypto trade then offload into a wallet where only you control the keys than centralized exchanges wouldn't be all that bad.

In other words, centralized exchanges are easy to use and convenient even for new users whereas decentralized are hard and you need some knowledge on how to trade there. back in the past, lots of people didn't know how to use it and they just simply asked others to trade their bounty rewards from those exchanges because if you didn't learn and watch on Youtube, you would just confuse yourself every time you want to trade on dexes but the good thing is, when you finally have a successful trade like in Forkdelta back then, the rest will be easy for you.

tvplus006

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For those who care about their anonymity, the advantages of centralized exchanges do not matter. For those for whom anonymity does not matter, centralized exchanges and occasionally DEX are used, if the desired coin is traded only there.

JeffBrad12

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many people are choosing centralised exchange for convenience, you would never try to spot trading with dex otherwise you will be wasting massive fee, thats the thing with dexes, they are good for swapping just one time swapping and you're done more than that you will need to pay high gas fee each which isn't really great.
moreover each swapping also requires quite long process, meanwhile with cex its almost instant process.
each cex and dex indeed has their own advantage but clearly when it comes to spot trading cex get the upperhand here, even though as we know, there has been many problem incurring about cex getting hacked and the customer are funnily enough got their fund frozen.

Wexnident

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In terms of being hacked, I'm pretty sure both types of exchanges have an equal chance of experiencing it. The difference would be how the exchanges tackle said attack so as to avoid losing their users. CEX probably has a lot more choices and actions available since they have more users, leading to more initial profit which lets them have ample funds to tackle said problem. Well in the end said problem isn't really a problem if you stop using hot wallets from exchanges.

In the end, it boils down to your preference as others have said. I like to simplify it with CEX being comfortable and easy to use without having to understand much, while DEX allows you to secure your tokens personally but is harder to begin with due to having to learn and understand a bunch of other stuff(if you're new).

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Both the centralized and decentralized exchanges are having their own strengths and weaknesses.

Centralized exchanges (CEXs):

Strengths: Low fees, fast transactions and multiple built-in security layers (e.g., OTP, Google Authenticator, biometric fingerprint, trading password, etc.)
Weaknesses: User has no full custody of the assets, KYC-required for regulation purposes, etc.

Decentralized exchanges (DEXs):

Strengths: 100% custody of your tokens, KYC-free and no third-party control
Weaknesses: Slow transactions and high fees (depending on the network) including approval fees before swapping, needs to install 3rd party apps and extensions to secure transactions (e.g., Rabby Wallet, Pocket Universe, Wallet Guard, etc.)

In regards to your question, we cannot say if CEXs are better than DEXs. Both are giving us various benefits, but storing crypto for the purpose of saving is not ideal in CEXs as it should be always in your cold storage wallets like Ledger Nano S, Trezor, SecuX, etc.

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Both have advantages and disadvantages, you just need to choose which one is best in your opinion and which one can be used to make a profit.
I trade on CEX all the time like on Binance with the many features provided. I only use DEX when there are coins that are only listed on DEX, I use all of them neatly. I tend to use CEX for trading every day.

Xal0lex

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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.

Topic: Centralised exchange getting better than Decentralised exchange? - page 3. (Read 612 times)