Decentralized Exchanges Vs Centralized Exchanges - page 3.

Yogee

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Quote from: tvplus006 on October 19, 2021, 05:36:26 PM

Quote from: ven7net on October 18, 2021, 12:37:14 PM

...Therefore, as a trader, I always use those crypto-exchanges that are right for me to achieve my goals and these can be different crypto-exchanges.

Decentralized exchanges offer a very large list of coins that are not available on centralized exchanges. And this is the main advantage of DEX for a trader - it is an opportunity to buy a new coin at a low price until it has received a listing on CEX. Thus, the trader gets a big profit by buying on DEX and selling later on CEX.

Huge gamble but it may pay off. Turn a $100 "investment" in a microcap token into thousands after a month or more hehe.

Quote from: CryptopreneurBrainboss on October 19, 2021, 10:38:07 AM

...
My biggest issue with the so called decentralized exchanges is that, they aren't totally decentralized

The more appropriate name should probably be "non-custodial exchanges" since you can still connect your non-custodial wallet to these platforms but that's not as marketable as "DEX". It's probably too late to change that now.

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Quote from: tvplus006 on October 19, 2021, 05:36:26 PM

Quote from: ven7net on October 18, 2021, 12:37:14 PM

...Therefore, as a trader, I always use those crypto-exchanges that are right for me to achieve my goals and these can be different crypto-exchanges.

Decentralized exchanges offer a very large list of coins that are not available on centralized exchanges. And this is the main advantage of DEX for a trader - it is an opportunity to buy a new coin at a low price until it has received a listing on CEX. Thus, the trader gets a big profit by buying on DEX and selling later on CEX.

Those are involved of what if's because not all coins would be listed out on CEX which means you would might end up on trading that particular coin on DEX for a long time but if you do see some potential

then it isn't really bad to consider on buying it out because we've seen on how Centralized exchangers do really consider on listing a particular project basing not only on the liquidity but also into its real use case.

It cant be denied that when it comes to wide variety then DEX could give it but when it comes to value and somewhat dealing off with fiat then theres no other way but with CEX.

tvplus006

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Quote from: ven7net on October 18, 2021, 12:37:14 PM

...Therefore, as a trader, I always use those crypto-exchanges that are right for me to achieve my goals and these can be different crypto-exchanges.

Decentralized exchanges offer a very large list of coins that are not available on centralized exchanges. And this is the main advantage of DEX for a trader - it is an opportunity to buy a new coin at a low price until it has received a listing on CEX. Thus, the trader gets a big profit by buying on DEX and selling later on CEX.

CryptopreneurBrainboss

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Quote from: Beparanf on October 11, 2021, 10:31:45 AM

I think you are pertaining on DEX built on Ethereum not in general. Fee on other like BSC, SOL and Polygon are extremely cheap.

Here's the thing, this new projects coming up this days calming to be decentralized aren't that decentralized as they calm. You think your transaction on Binance chain aren't been moderated. They're just centralized project riding on the downside (high fees) of the Ethereum blockchain. I don't know much about Solana but if I'm not mistaken the network was paused just few months back after it got attack while that of Binance, the network is been controlled by Binance itself.

I'm pretty sure, your coins can be easily frozen on this blockchain unlike that of Bitcoin blockchain. For low (fixed) fees you won't be getting total decentralization that's just how it works. All this blockchain having fixed fee price are just centralized and been controlled.

My biggest issue with the so called decentralized exchanges is that, they aren't totally decentralized, for example, Binance Dex has restrictions on certain regions and the hacks this exchange surfer are becoming alarming.

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Quote from: 2double0 on October 18, 2021, 01:08:34 PM

Advantages of decentralised exchanges -
Have control on our coins as we own them, and they don't stay on exchanges
Low fees on certain Dex if use their native tokens, also get rewards in their native tokens

Disadvantages of decentralised exchanges -
Liquidity is low compared to centralised exchanges
Very limited trading pairs as not all coins are available on Dex
Sometimes transaction fails due to either less fee or nearly less slippage
Some trading pairs need high slippage which breaks down the capital and we must wait for the price to gain too much because the same slippage will be used when selling that token

One of the biggest issues I've had since I started trading on DEX is that the liquidity is usually too low and leads to high price impact which is not a good experience for me. You can't execute those big money trades and that's a huge downside and until DEXs starts getting that level of liquidity to support big money trades, CEX will still maintain its dominance.

Increasing slippage isn't a good experience too.

2double0

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Advantages of decentralised exchanges -
Have control on our coins as we own them, and they don't stay on exchanges
Low fees on certain Dex if use their native tokens, also get rewards in their native tokens

Disadvantages of decentralised exchanges -
Liquidity is low compared to centralised exchanges
Very limited trading pairs as not all coins are available on Dex
Sometimes transaction fails due to either less fee or nearly less slippage
Some trading pairs need high slippage which breaks down the capital and we must wait for the price to gain too much because the same slippage will be used when selling that token

jostorres

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Quote from: GreatArkansas on October 11, 2021, 09:04:26 AM

what is/are the advantage is disadvantages of using decentralized exchange over centralized exchange these days?

As far as I have checked, most of the decentralized exchanges are only for smart contract based tokens and not for native blockchain based coins. It means you will never get your desired trading pair in most of the decentralized exchanges. This must be the biggest disadvantage of decentralized exchanges.

Another disadvantage of decentralized exchanges is, you might need to move your tokens twice in order to get ready for the trading. First one is, moving into your deposit address and then for trading again you need to make another transaction but in centralized exchanges just depositing will get you ready for trading.

ven7net

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Quote from: GreatArkansas on October 11, 2021, 09:04:26 AM

Recently, we heard a lot of issues about centralized exchange especially the China crackdown on some centralized exchanges like they have this law for people of China about restricted to have activities on most the centralized exchanges.
And here's the decentralized exchanges starting to make some noise, and I always heard dydx exchange, serum, uniswap, etc.

So, as traders. For you, what is/are the advantage is disadvantages of using decentralized exchange over centralized exchange these days?

It so happened that I use both centralized and decentralized exchanges and this is due to the fact that I also use different cryptocurrencies, take part in different crypto projects and all this makes me understand that at the moment there is no universal crypto exchange where it was possible would use any cryptocurrencies and trade them. Based on this, it is difficult to say that, for example, decentralized crypto-exchanges are better than centralized ones and vice versa. Each of the cryptocurrency exchanges has both disadvantages and advantages, and they are all different and their own. Therefore, as a trader, I always use those crypto-exchanges that are right for me to achieve my goals and these can be different crypto-exchanges.

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As long as the internet persists, government cannot entirely prevent its citizens from doing crypto. With strong VPN, Chinese can access some CEX while DEX can be accessed without limitations.

DEXs such as Uniswap, dYdX, pancakeswap etc would get more volume and patronage with this most recent regulation/ban from the Chinese government.

airdata

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Centralized exchange means you need to provide your all information to exchange owner, and Decentralize exchange means not need to provide your information to others third party, it is totally secure system and also need kyc verification for maximum centralized exchange for withdrawal fund but not have any kyc requirement in decentralize exchange. So Everybody can use decentralize exchange and it the main advantage of DEX.

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Quote from: virasog on October 12, 2021, 08:51:46 AM

Decentralized exchanges are yet not fully established. They have liquidity and high fee problem. Centralized exchanges like binance have a lot of volume and currently there is very less volume in decentralized exchanges. However, with passage of time we will see decentralized exchanges will grow but it may take another three to five years.

Big holders usually more like choosing decentralized exchanges because they caring about security of their assets, there are a lot of cases that centralized exchanges experienced a hack issues and the victime usually the big assets owner. So i think if you are a big holder or a whale, using decentralized exchange is more suitable due to security reason

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Quote from: GreatArkansas on October 11, 2021, 09:04:26 AM

Recently, we heard a lot of issues about centralized exchange especially the China crackdown on some centralized exchanges like they have this law for people of China about restricted to have activities on most the centralized exchanges.
And here's the decentralized exchanges starting to make some noise, and I always heard dydx exchange, serum, uniswap, etc.

So, as traders. For you, what is/are the advantage is disadvantages of using decentralized exchange over centralized exchange these days?

Decentralized exchanges are yet not fully established. They have liquidity and high fee problem. Centralized exchanges like binance have a lot of volume and currently there is very less volume in decentralized exchanges. However, with passage of time we will see decentralized exchanges will grow but it may take another three to five years.

Cryptoababe

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For me, the only disadvantage of using decentralised exchange over centralized exchange is high gas fee.. Centralized exchanges requires less gas fee than decentralised exchanges.

Ararbermas

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For me in my personal opinion the advantage of decentralised exchanges is the fact that you don't need to pass KYC stuff in other platform in order to trade in different assets, wherein unlike centralised exchanges that its a must for every traders. In fact that's the reason why mostly traders, decentralised is the common choice to trade because also of sone doubts of some frauds in the internet. I dont know if centralised exchanges is totally safe when it comes to such thing..

noorman0

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Quote from: Bollexz1 on October 11, 2021, 05:45:49 PM

I) Transaction on DEX is quite faster than CEX, as transaction on DEX has do with one-time swap.

Trading on DEX is completely onchain which needs to go through some smart contract calling process which in my opinion is less efficient, transaction speed it depends on fee level, mempool etc. So, not guaranteed to be faster than CEX (CEX is always superior in trading speed).

Quote from: Bollexz1 on October 11, 2021, 05:45:49 PM

III) Majority of this new launched tokens prefers to go through DEX first before having it listed on CEX.

The sales method followed what was mainstream at the time.
2017-2018: ICOs are trending.
2019: IEOs are trending.
2020 (mid) - now: IDOs are trending

o_e_l_e_o

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Quote from: Bollexz1 on October 11, 2021, 05:45:49 PM

I think the no. 1 and most fearful disadvantages of DEX is that DEX is still at ita infancy stage as one's wallet can easily get compromised if care is not taken.

Not true. With a true DEX, your coins remain in your control until you trade them and are never deposited to a centralized wallet. There is no possibility of your exchange account being hacked for coins because your coins are never on the exchange. If your DEX requires you to deposit coins to a central wallet, then it's not really a DEX.

Quote from: SquirrelJulietGarden on October 12, 2021, 12:37:30 AM

Other decentralized exchanges I implied in my post (since 2020) are from DeFi projects. Their team members are publicly announced and known. A decentralized project can not be actually decentralized if owners or core members can be arrested and given pressure to shut down those exchanges.

The same can be said of any exchange which runs via a centralized website, as law enforcement can simply shut down the website. Bisq is the only exchange which runs on peer to peer software, and so is completely resistant to censorship.

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Quote from: GreatArkansas on October 11, 2021, 09:04:26 AM

So, as traders. For you, what is/are the advantage is disadvantages of using decentralized exchange over centralized exchange these days?

This experience made me use CEX more often than DEX, indeed what I experienced happened in the early days of DEX such as etherdelta, idex, forkdelta and others, the transactions speed is very slow compared to CEX, liquidity is still less than CEX, and currently if trading ETH Tokens on DEX must pay an unreasonable fee in my opinion. Lastly using waves dex because there are many other features such as staking and lending options, but still CEX still my main place to trades.

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Quote from: o_e_l_e_o on October 11, 2021, 10:18:39 AM

The first version of Bisq was released in 2014 - https://github.com/bisq-network/bisq/releases/tag/v0.1.0. Bisq has been around longer than most centralized exchanges.

Bisq is a real decentralized exchange but its liquidity is low. Other decentralized exchanges I implied in my post (since 2020) are from DeFi projects. Their team members are publicly announced and known. A decentralized project can not be actually decentralized if owners or core members can be arrested and given pressure to shut down those exchanges.

Quote from: Oshosondy on October 11, 2021, 10:24:15 AM

You ain't wrong at all because it is yes that Chinese government is looking for ways to make sure its citizens use digital Yuan which makes them to ban crypto like bitcoin. But do you think China will ever support coins like bitcoin? I do not think they can because nothing outside of China are Chinese government supporting, just like social media that they also ban.

They don't ban crypto and they won't be able to. They wanted and will want to do so but they won't be able to do it and maintain their ban for too long.

The global trend of crypto adoption will force Chinese government have to lift their ban in the future. With some sort of restrictions, as many as they can do, like what they restrict Chinese to use the Internet in China mainland with Great Firewall.

tygeade

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Swaps seem a little bit more limited. Centralized ones are using the benefit turning fiat to crypto and vice versa for their power, you could use swap in between but you will always need centralized ones to put money into crypto or take it out. Which is why swaps are good and all but I doubt they would ever be as good as what centralized ones can do, which is turning fiat into crypto.

Uniswap has god knows how much volume right now and I believe that there are way too many people making way too much money from it, we are talking about tens of billions of dollars swapped daily in all swaps in all chains, so it is definitely a huge deal. However we gotta realize that it is obvious for centralized ones are 100x bigger because they can do so much more. Aside from the whole fiat/bank deal, I believe swaps are definitely much better in my opinion.

Bollexz1

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Pls. permit me to mention few based on my lil knowledge. Grin

Advantages
I) Transaction on DEX is quite faster than CEX, as transaction on DEX has do with one-time swap.
II) Upon finalising your swapping, your newly swapped token will go directly to your desired wallet and you won't feel the urge and stress to have it transfer to your desired non-exchange wallet again like CEX.
III) Majority of this new launched tokens prefers to go through DEX first before having it listed on CEX.

Disadvantage
I think the no. 1 and most fearful disadvantages of DEX is that DEX is still at ita infancy stage as one's wallet can easily get compromised if care is not taken.

Topic: Decentralized Exchanges Vs Centralized Exchanges - page 3. (Read 516 times)