CEX Vs DEX ? | Bitcointalksearch.org

milewilda

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Quote from: aysg76 on December 15, 2019, 10:02:35 AM

Quote from: pawanjain on December 15, 2019, 09:11:11 AM

The debate between between CEX and DEX has been going on from so long. It's quite obvious that people have have different point of views on the both.
It's just a matter of priority now. Some people choose liquidity over security and privacy and so they choose CEX over DEX and vice versa.

The main problem with DEX is the complexity in the way they operate. First you have to import wallet through private keys which is not common among all crypto investors. Some investors have never used HD wallets so using DEX is wholly new concept for them.
Second the way orders are executed on DEX is not comfortable for all traders and all coins. I haven't used DEX in last 1 year or so but when I used to sell my coins on DEX, the orders only get executed when someone buy the entire order. Whereas in case of CEX, buyer can clear the partial order. So your order can be cleared by more than one buyer but in case of DEX, only one buyer have to clear your entire order. I don't know if any decentralized exchange has solved this problem but this is the major reason why I prefer CEX over Dex.

Talking about that main problem youve say, then im partly agree with that one where its too hassle on making up a trade yet you would need to import your wallet before you would able to proceed.

Next, on the order you have been talking then it just really the same on CEX, they've been automatically filled out once buyers or seller do tend to made an order.
CEX had much more volume than DEX even though majority does like anonymity and decentralized but they do end up on using cex ones.

aysg76

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Quote from: pawanjain on December 15, 2019, 09:11:11 AM

The debate between between CEX and DEX has been going on from so long. It's quite obvious that people have have different point of views on the both.
It's just a matter of priority now. Some people choose liquidity over security and privacy and so they choose CEX over DEX and vice versa.

The main problem with DEX is the complexity in the way they operate. First you have to import wallet through private keys which is not common among all crypto investors. Some investors have never used HD wallets so using DEX is wholly new concept for them.
Second the way orders are executed on DEX is not comfortable for all traders and all coins. I haven't used DEX in last 1 year or so but when I used to sell my coins on DEX, the orders only get executed when someone buy the entire order. Whereas in case of CEX, buyer can clear the partial order. So your order can be cleared by more than one buyer but in case of DEX, only one buyer have to clear your entire order. I don't know if any decentralized exchange has solved this problem but this is the major reason why I prefer CEX over Dex.

Hippocrypto

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Quote from: pawanjain on December 15, 2019, 09:11:11 AM

The debate between between CEX and DEX has been going on from so long. It's quite obvious that people have have different point of views on the both.
It's just a matter of priority now. Some people choose liquidity over security and privacy and so they choose CEX over DEX and vice versa.

Let's always see to it that the both sides will be fair in terms of profit and safety of everyone's asset. DEX over CEX is a very serious rivalry of exchanges, so we must respect the decisions of everybody who prefers which of the two would they thought safe enough and trusted. Both of them has commendable feedback from many people, so it really depends on everybody's opinion.

pawanjain

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The debate between between CEX and DEX has been going on from so long. It's quite obvious that people have have different point of views on the both.
It's just a matter of priority now. Some people choose liquidity over security and privacy and so they choose CEX over DEX and vice versa.

avatar_kiyoshi

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Quote from: mrdeposit on December 14, 2019, 08:42:44 AM

Quote from: drlukacs on December 13, 2019, 12:36:10 AM

So with many incidents happening at CEX, will there be more people trading in DEX in 2020? Although trading at DEX costs more, it is safer for us and we do not need to make any KYC.

Their only difference is their name. I would like to remind you that even DEXs can freeze your funds these days. If so, I would rather use CEX instead. At least in short-term trade, the centralized ones are more useful. I do not know, maybe some of the rules are obstacles to creating complete free and useful DEXs. But I think we have such freedom or I misunderstood everything.

The DEX that you know is actually CEX which implies a decentralized exchange.
Such model exchanges have mushroomed in this world by bringing the name of DEX to attract the interest of many people.
What I see, the "pure" DEX is lack of trading volume, it's due to lack of promotion and advertising, but the ecosystem is better than CEX.

deisik

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Quote from: mrdeposit on December 14, 2019, 08:42:44 AM

Quote from: drlukacs on December 13, 2019, 12:36:10 AM

So with many incidents happening at CEX, will there be more people trading in DEX in 2020? Although trading at DEX costs more, it is safer for us and we do not need to make any KYC.

Their only difference is their name. I would like to remind you that even DEXs can freeze your funds these days. If so, I would rather use CEX instead. At least in short-term trade, the centralized ones are more useful. I do not know, maybe some of the rules are obstacles to creating complete free and useful DEXs. But I think we have such freedom or I misunderstood everything

This would be an ugly and very misleading use of the term

Up to a point where we can say it is deliberately being used to deceive traders who are not familiar with the idea behind a decentralized exchange. With DEX there is no "exchange" in the way we usually think of it, and that's why people get fooled. Technically, your desktop wallet is that exchange, while trades occur on the blockchain itself. In this way, it is impossible to freeze your funds unless the whole blockchain gets frozen (and hell turns to ice)

To make things better and trades faster, it can be beneficial to use a third-party service as a proxy to that blockchain exchange, and which would still count as a decentralized exchange proper. But if it can freeze or outright steal your money, it is not a decentralized exchange, and there is no viable reason to think or believe you are dealing with one, no matter what they claim to the contrary. Simply put, they are lying to you, they are not decentralized

joniboini

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Quote from: drlukacs on December 14, 2019, 05:09:07 AM

hmm .. I don't think so. Because many sharks don't even think about IDAX going to scam in the future when this is an exchange with hundreds of millions of volumes every day. Even if the sharks are full of experience, they will be able to escape this trap? I don't believe in any other team now, they can all become a dust when they no longer care about the project or the business they run. I still hold the view about taking DEXs future of many.

Sharks? What do you mean? Why not dolphin?

What does IDAX have to do with this? There is no mention of IDAX on the post you replied. I'll make it simpler then. DEX security needs to be tested more and more, to make sure they can be called 'safer' than CEX. That's because CEX, in general, have a lot more attacks compared to DEX.

Anyway, doesn't matter which one is safer if you can't trade here. The best choice is to use a platform that's suitable for you and never rely your asset safety on third-party.

mrdeposit

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Quote from: drlukacs on December 13, 2019, 12:36:10 AM

So with many incidents happening at CEX, will there be more people trading in DEX in 2020? Although trading at DEX costs more, it is safer for us and we do not need to make any KYC.

Their only difference is their name. I would like to remind you that even DEXs can freeze your funds these days. If so, I would rather use CEX instead. At least in short-term trade, the centralized ones are more useful. I do not know, maybe some of the rules are obstacles to creating complete free and useful DEXs. But I think we have such freedom or I misunderstood everything.

Joseph Knight

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In dexes the trading happens between wallets using blockchain. This might be too slow for many, why there isnt too much liquidity on the dexes.

On a positive note, when exitscams or thefts happen on Dex we keep our tokens.

alyssa85

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Quote from: johnwest on December 13, 2019, 12:27:36 PM

DEX are definitely better than CEX but the design and their running is very poor so people have always preferred CEX as they give proper support as well as great User interface. There are only few DEXs are there which are genuine and at least can be used properly.

Also, DEX's don't have much liquidity, which means you can sometimes wait weeks for your orders to get filled.

You really need a critical mass of users to make Dex's work, but because no one ever markets them, they never ever reach the amount of users you need to have a liquid exchange.

deisik

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Quote from: drlukacs on December 14, 2019, 05:13:04 AM

Quote from: deisik on December 14, 2019, 04:46:44 AM

The incidents you mention (like scams, frauds, thefts, closures, etc) have been happening time and again since cryptocurrency exchanges ever came about (Bter, Cryptsy, Bitfinex, WEX, QuadrigaCX, to name but just a few). You would actually expect decentralized exchanges to get traction and momentum by now, right? I had written about this over 3 years ago, and not a lot has changed since then. So why should things turn out different in 2020? I'm very skeptical, to say the least. Sorry if this is not what you wanted to hear

but things can change immediately if the crowd thinks so. Like the ICO-raising projects, they are all labeled as frauds and so potential projects face difficulties in this. That is also the reason why IEO was born and Binance has made the speculation community more confident, when capitalization into the crypto market was more than 100 billion in less than 1 month. and the IDAX event is a scam and Binance, Upbit have been hacked a lot of money this year, which means that CEXs are increasingly unstable and the crowd is psychologically looking for a safer place. Do you agree ?

As much as I would love to, I simply can't

In my post I gave a link to my thread which is about essentially the same thing you are writing here (i.e. decentralized exchanges). It was created three and a half years ago, and if anything, it was that (in)famous Bitfinex hack (while some still think it was actually an inside job) with over 120k bitcoins stolen that could have changed the minds of the crowd. Put shortly, it didn't. So why should things be different now, all of a sudden? We should deal with the facts and not get entrapped in fantasies, pipe dreams and wishful thinking

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Quote from: Slow death on December 13, 2019, 02:02:33 PM

Quote from: drlukacs on December 13, 2019, 12:36:10 AM

Recently I have seen many people whining about exchange fraud and some of them stopped working and took away all investor money.

What are the requirements that people use to choose a good centralized exchange?

we are more likely to hear: big volume, many trading pairs and security. but they ignore the question of who owns the exchange and where the exchange is located. Many people accept use shady exchange, may be because they have some new altcoin only listed in obscure exchanges

As the the crypto market grow the regulations will increase and there will come a time that using centralized exchanges will be very safe because these centralized exchanges will be regulated and the market will be very competitive so that they will be required to provide high quality services if they want to survive in this Marketplace

but wait until when? We had hoped to get some legal organization to sponsor ICO projects but until now, it seems to be dead but no one cares yet. After 2 years of joining this market, I realized it was a market of self-awareness. meaning when we see something wrong and bad we should voluntarily leave it and look for a better place instead of suing them and screaming at them. That doesn't work, that's why I think people will choose DEXs in the future.

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Quote from: EdvinZ on December 14, 2019, 03:46:10 AM

I see only correct way out in this difficult situation, it is trading on a centralized licensed exchange. Fraud in this case is reduced to zero, but all the advantages of a centralized exchange remain. Everyone appreciates the liquidity and fast operation of the site, this is what DEX lacks.

Yes, if I were to choose, I would still choose large CEXs to ensure the safety of my money. But the problem here is that DEXs all charge fees that are too high for CEXs, from transaction fees and transfers from normal wallets to trading wallets, which takes quite a bit of time and money. If in the future, someone recognizes the needs of traders and speculators, we will see a very good quality DEXs and will attract more people to it. I hope IDEX will do it in the future to change the bad situation of the market.

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Quote from: deisik on December 14, 2019, 04:46:44 AM

Quote from: drlukacs on December 13, 2019, 12:36:10 AM

So with many incidents happening at CEX, will there be more people trading in DEX in 2020? Although trading at DEX costs more, it is safer for us and we do not need to make any KYC

I don't think that things are going to change dramatically in 2020

The incidents you mention (like scams, frauds, thefts, closures, etc) have been happening time and again since cryptocurrency exchanges ever came about (Bter, Cryptsy, Bitfinex, WEX, QuadrigaCX, to name but just a few). You would actually expect decentralized exchanges to get traction and momentum by now, right? I had written about this over 3 years ago, and not a lot has changed since then. So why should things turn out different in 2020? I'm very skeptical, to say the least. Sorry if this is not what you wanted to hear

I'm not sure how it is going to help you in case of a successful theft or hack attempt. And let's be honest here, it is not a panacea from outright scams and frauds, either

but things can change immediately if the crowd thinks so. Like the ICO-raising projects, they are all labeled as frauds and so potential projects face difficulties in this. That is also the reason why IEO was born and Binance has made the speculation community more confident, when capitalization into the crypto market was more than 100 billion in less than 1 month. and the IDAX event is a scam and Binance, Upbit have been hacked a lot of money this year, which means that CEXs are increasingly unstable and the crowd is psychologically looking for a safer place. Do you agree ?

drlukacs

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Quote from: joniboini on December 13, 2019, 02:39:01 AM

Quote from: drlukacs on December 13, 2019, 01:56:38 AM

I know that volume is not as big as CEXs but it is safer, do you agree with me?

It is still questionable for me. The 'safer' side of dexes might comes from a lack of sophisticated attack from the crackers. There's also different dexes here, but if we're talking about those with smart contract as the backbone, then if a bug is found they can theoritically attack every single possible token on the platform.

IMO centralized exchange is probably still going to be dominant, especially if players like Binance still exist and keep on-going. It will be the users own responsibility to choose which one is the best from them. And that's true with dex. Doesn't matter if it's a dex or cex, if you use a bad one then you might lose your money in one way or another.

hmm .. I don't think so. Because many sharks don't even think about IDAX going to scam in the future when this is an exchange with hundreds of millions of volumes every day. Even if the sharks are full of experience, they will be able to escape this trap? I don't believe in any other team now, they can all become a dust when they no longer care about the project or the business they run. I still hold the view about taking DEXs future of many.

deisik

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Quote from: drlukacs on December 13, 2019, 12:36:10 AM

So with many incidents happening at CEX, will there be more people trading in DEX in 2020? Although trading at DEX costs more, it is safer for us and we do not need to make any KYC

I don't think that things are going to change dramatically in 2020

The incidents you mention (like scams, frauds, thefts, closures, etc) have been happening time and again since cryptocurrency exchanges ever came about (Bter, Cryptsy, Bitfinex, WEX, QuadrigaCX, to name but just a few). You would actually expect decentralized exchanges to get traction and momentum by now, right? I had written about this over 3 years ago, and not a lot has changed since then. So why should things turn out different in 2020? I'm very skeptical, to say the least. Sorry if this is not what you wanted to hear

Quote from: EdvinZ on December 14, 2019, 03:46:10 AM

I see only correct way out in this difficult situation, it is trading on a centralized licensed exchange. Fraud in this case is reduced to zero, but all the advantages of a centralized exchange remain. Everyone appreciates the liquidity and fast operation of the site, this is what DEX lacks

I'm not sure how it is going to help you in case of a successful theft or hack attempt. And let's be honest here, it is not a panacea from outright scams and frauds, either

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Quote from: drlukacs on December 13, 2019, 12:36:10 AM

Recently I have seen many people whining about exchange fraud and some of them stopped working and took away all investor money. So in my head, I now have the thought that will 2020 be the trend of DEX?
I will give a brief summary of CEX and DEX. CEX stands for centralized exchange where all your money is managed by exchange, it has its own wallet system and money is transferred there.
DEX stands for a decentralized exchange, and there, you trade the number of coins in your wallet with someone else's wallet and there are absolutely no middlemen in between.
So with many incidents happening at CEX, will there be more people trading in DEX in 2020? Although trading at DEX costs more, it is safer for us and we do not need to make any KYC.

we know that every time many CEX exchanges always have problems that never change, it's usually easy to hack, even though those who keep their users' money in a cold wallet can still be hacked (I just think it's the work of people inside to make FUD), I rarely hearing the DEX exchange on hacks might be just a few if there really is, why I say DEX is far safer because it's far from drama and news hacked, trust people are worried about putting funds on the CEX exchange, maybe next year DEX will be more trusted for everyone to trade without identity or KYC, it's easier to make people trade freely without worrying about their money being hacked

EdvinZ

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I see only correct way out in this difficult situation, it is trading on a centralized licensed exchange. Fraud in this case is reduced to zero, but all the advantages of a centralized exchange remain. Everyone appreciates the liquidity and fast operation of the site, this is what DEX lacks.

princerepon

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Quote from: drlukacs on December 13, 2019, 12:36:10 AM

Recently I have seen many people whining about exchange fraud and some of them stopped working and took away all investor money. So in my head, I now have the thought that will 2020 be the trend of DEX?
I will give a brief summary of CEX and DEX. CEX stands for centralized exchange where all your money is managed by exchange, it has its own wallet system and money is transferred there.
DEX stands for a decentralized exchange, and there, you trade the number of coins in your wallet with someone else's wallet and there are absolutely no middlemen in between.
So with many incidents happening at CEX, will there be more people trading in DEX in 2020? Although trading at DEX costs more, it is safer for us and we do not need to make any KYC.

I agree with you and i think DEX is more safer than CEX too. But still people choose CEX for couple of reason. And market depth is one of them. Because of Dex is not popular than CEX, people comfort to trade their coin in CEX. That's why DEX is too much un-comfort zone for big trader whom trade with big volume.

This year couple of big exchange (Binance is one of them) start their DEX service but i don't think they achieve their goal. But the positive thing is in this year many exchange working to start their won DEX platform. Hope nearest future people will be appreciate DEX for more secure trade.

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Quote from: drlukacs on December 13, 2019, 12:36:10 AM

So with many incidents happening at CEX, will there be more people trading in DEX in 2020? Although trading at DEX costs more, it is safer for us and we do not need to make any KYC.

It doesn't necessarily cost more. Gas fees are flat and market-based. Centralized exchanges charge high percentage commissions so the larger your position, the larger the fees.

Not all DEX are the same. Some do demand KYC because their infrastructure is so centralized that they have the SEC knocking on their door (IDEX).

I really only trust Ethereum-based DEX platforms. The others are mostly working with custodial/tokenized arrangements and permissioned blockchains. Trading between ETH and ERC20 tokens can be done completely trustlessly and without custody. Trading ETHDAI on a DEX is the only trustless way to hedge ETHUSD value I am aware of. This can't be done with BTC at all.

Topic: CEX Vs DEX ? (Read 518 times)