Topic: Centralised exchange getting better than Decentralised exchange? - page 4. (Read 612 times)

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.

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.

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.

Absolutely, and I don't know why people don't want to get it. You see, this is the reason I choose both cex has my preferences especially this bitget that I have been using for quite sometime and I see how crucial they get when it comes to securing users' assets.

True. That said, right now I'm really trying to do as much as I can on-chain and trying to minimize having balance in a CEX as much as possible. For basics like swaps and margin spot trades, I often go on-chain. The user experience is good, and there's plenty of liquidity. Most times, I don't have any problems doing spot trading this way.

But there's one big thing missing: orderbook trading. I don't think any blockchain has gotten it just right for an on-chain orderbook. I'm not even sure if it's possible to make a system where everything—from placing orders to matching and settling—is done on-chain. Even on fast chains like Solana, things can get tricky when there's a lot going on. For example, trying to buy during a big price move can be tough if you're not using a bot.

I hope there's a way to fix this in the future. I'm curious to see how a dedicated chain, built specifically for orderbook trading, would fare. The upcoming DYDX v4 with its own chain might give us a good indication. If that doesn't pan out, it seems we might lean more towards methods like GMX's AMM/pool or the hybrid on-chain/off-chain approach that DYDX currently employs.

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.

There have been a number of time that we have hard series of possible attacks on binance even though it minimal,  compared to others,  just for your information,  there is no exchange or platform that have not hard attempt of hack or what so ever but then also we have to give accolade to exchanges who have stood the test of time and survived all attempt to break it security at some point,  what made FTX own case to escalate to this point is because pf the internal fraud that happens and FTX did not have security attacks,  but was a pour exit scam by the CEO,  who spent investors money on personal pleasure.

But what has made Binance to be different in today's market is the fact that the series of possible attack on the exchange has its success in the hands of the COE because he keeps improving the security of the exchange and also keeps in mind that,  hackers and attackers will never seize to attempt to break the security protocol to gain access to the hot wallet.

What I mean about looking at "rumours" you should understand that they should be from security ends. Binance rumours are mostly about them leaving a particular region due to regulations or the other. But you won't hear when someone comes up with, something phishing happening in that exchange. Same goes to the other. In fact, the latter exchange operates in most regions where Binance don't and they're really doing well with all they know. We all know how the FTX problem started. Some people brought it to the notice of many on twitter before the crash. So we can't compare Binance with FTX

If you say Dex gives you the key. That's true, but how much control can dex do for any incoming hack? Could it be traced? If so, why then is Uniswap trying to get KYCed

The whole centralized vs decentralized exchange thing is less about one being better than the other, and more about figuring out what works for you based on your priorities and how much risk you're cool with taking on.  You talked about some of the nice parts of centralized exchanges, but left out one of the biggest downsides in my opinion.  Since centralized exchanges hold all the coins, you gotta trust them fully with your crypto which opens up a can of worms when it comes to who's really got control.  In crypto world, it's all not your keys, not your coins, so going through a centralized exchange means youre handing over the keys and just hoping they keep your funds secure.  On the other hand with decentralized exchanges you keep the keys and control over your assets.  That's a big factor to think about when deciding between centralized vs decentralized and  at the end of the day, it depends on your personal risk tolerance and what you value most.

CEXs are secure and reliable until they're not. You gave a good example with the FTX exchange, which rapidly became one of the largest crypto exchanges in the US. And we all know what happened in the end. As for the rumors, are you suggesting that there are no current rumors about Binance?

I hope you all are having a wonderful weekend!

So I recently came across a post where people are engaged in a lengthy debate over whether CEX (Centralized Exchange) or DEX (Decentralized Exchange) is better. So I decided to wrote down this. Frankly, I believe it's a matter we shouldn't dwell on too much because both have their advantages and disadvantages.

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

Now, Bitget: While Bitget hasn't experienced a direct exchange hack, although there was an incident that occurred with their wallet due to a link shared in a group that led to users' accounts being compromised, I won't really call this hack per se but a lesson to everyone. We all need to be careful of links sent suspiciously in any group you're in because you don't know what you will be clicking that will lead to total wipe pf your assets both in crypto and off crypto

 You can also read about it here: https://www.google.com/amp/s/ambcrypto.com/bitget-becomes-the-latest-victim-to-a-defi-exploit-as-bitkeep-loses-more-than/amp/

I use Bitget more often because I've delved into their security standards and believe they're doing well. However, I still use Binance, as it was the first CEX I encountered on my crypto journey.

Now, let's talk about DEX:

I won't say DEX is bad; it has its merits. Everything is decentralized, as the name suggests. I've used Uniswap and continue to do so. However, it's essential to note that DEX can also undergo KYC (Know Your Customer) processes, as evidenced by this tweet about Uniswap: https://twitter.com/WhaleChart/status/1713291249560535051?t=lyzx4IAlZNiG9Llt4g-Tqg&s=19

Furthermore, DEX can be vulnerable to hacking. Consider Mixin, for example.

What I'm trying to convey is that these debates about CEX vs. DEX should consider that both can coexist and work well if we find the right balance.

Even if I said ok, I want to go offline to be safer. The truth is, Im not sure I can be 100% safe offline either. I was researching offline wallets on Amazon and watching YouTube reviews for recommendations. At some point, I got discouraged because even some offline wallets can be hacked. But that won't stop me from using an offline wallet. Is just picking the best that I know that would be best for me. Just as picking the best exchanges among cex and Dex.

As I've said before, our security largely rests in our own hands. Before an exchange collapses, there are usually rumors. When those rumors start, it's essential to withdraw your funds promptly. Take FTX as an example; Sam Bankman Fried's actions had a significant impact on the exchange. If you've been following his legal case, you'll see that he meticulously planned it out with no remorse, unlike other exchanges that experienced hacks and returned stronger with enhanced security.