Exchanges are major parts of the cryptocurrency industry.
Whether we like it or not as long as cryptocurrency is existing exchanges will also exist
Personally I prefer exchanges to banks . But before one could choose an exchange you need to be very careful about the reputation and the type of exchange you are into.
Finally, everyone should treat exchange as an exchange and treat their personal wallet as a personal wallet
Topic: I don't see this changing anytime soon (Read 589 times)
As the crypto economy witnesses its growing phase, I think what should determine the ability of a product to attract new users is the ease of use, and as we know, DEXs are still complicated for newcomers, thus most new people go to CEXs like Binance and Coinbase. In addition, marketing plays a major role in attracting new users, and there's no comparison between CEXs and DEXs regarding this point. Moreover, users might be victimized by phishing attempts when using DEXs. All these factors make me believe DEXs still have a long path before it become easily usable for everyone, regardless of their experience in crypto.
Privacy and security are very important, but after all, what people are still looking for is convenience and ease of use, so I don't think CEX will be phased out anytime soon and DEX will gradually replace CEX.
Personally, I'm still using CEX for my trading as well as converting to fiat, so I don't have too much prejudice against CEX. I just want to say that FTX crashes don't mean all CEXs will crash. Along with that, whether CEX or DEX has risks, DEXs are not absolutely safe, so we just need to be cautious when using them and never trust them completely.
We are really looking forward to the end of the FTX story, I hope there are confiscated assets to be returned to investors, of course it takes a lot of time to get a refund from FTX, this is an important lesson for us not to store large amounts of assets in central exchanges, because things are bad happens and repeats.
You are right that the scandal with FTX exposed problems with centralized exchanges. Until recently, most people didn't pay much attention to it because they were used to entrusting their funds to third parties and paying fees for it. Recent events have fueled a lot, but no doubt centralized exchanges will continue to thrive as long as we don't develop better alternatives.
For now it crosses my mind. Centralized exchanges have been here for a long time but who knows one day people will come back to storing their crypto on USB too. one thing i noticed DEX has proven to be a different breed and will be around for a long time. Hopefully, we'll see more DEXs enter the market and make that something sustainable in the future.
For now it crosses my mind. Centralized exchanges have been here for a long time but who knows one day people will come back to storing their crypto on USB too. one thing i noticed DEX has proven to be a different breed and will be around for a long time. Hopefully, we'll see more DEXs enter the market and make that something sustainable in the future.
As the crypto economy witnesses its growing phase, I think what should determine the ability of a product to attract new users is the ease of use, and as we know, DEXs are still complicated for newcomers, thus most new people go to CEXs like Binance and Coinbase. In addition, marketing plays a major role in attracting new users, and there's no comparison between CEXs and DEXs regarding this point. Moreover, users might be victimized by phishing attempts when using DEXs. All these factors make me believe DEXs still have a long path before it become easily usable for everyone, regardless of their experience in crypto.
What happen to FTX is just an isolated case and it just happen to them only, not the entire market. Of course, trust can be somehow affected by other CEX exchanges as they also think of the same scenario which is a very common thing to happen. But this kind of thinking won't stay long, TRUST will get back and that is why many people are still using centralized exchanges this time. I really don't think there is a huge change in the future of CEX but people will remain using these platforms as long as they are satisfied with their services.
I agree that it was isolated, and not the whole market, but we shouldn't say there are no others neither, there are some which could be considered doing something like this.FTX bankrupted, and they basically "stole" everyone's money, they didn't really steal it but used it without consent, but not for like buying villas and super cars or something, they used it to grow the business and invest in other things, so they could make more profit, but in reality they didn't make any profit and when people wanted to withdraw, they couldn't. Long story short, this type of thing happened before and will happen again, it is not the whole market, but it is not rare neither unfortunately.
What happen to FTX is just an isolated case and it just happen to them only, not the entire market. Of course, trust can be somehow affected by other CEX exchanges as they also think of the same scenario which is a very common thing to happen. But this kind of thinking won't stay long, TRUST will get back and that is why many people are still using centralized exchanges this time. I really don't think there is a huge change in the future of CEX but people will remain using these platforms as long as they are satisfied with their services.
I agree that it was isolated, and not the whole market, but we shouldn't say there are no others neither, there are some which could be considered doing something like this.FTX bankrupted, and they basically "stole" everyone's money, they didn't really steal it but used it without consent, but not for like buying villas and super cars or something, they used it to grow the business and invest in other things, so they could make more profit, but in reality they didn't make any profit and when people wanted to withdraw, they couldn't. Long story short, this type of thing happened before and will happen again, it is not the whole market, but it is not rare neither unfortunately.
The FTX case has passed for almost 4 months and it seems that there are no results that satisfy consumers, the latest development is that in March an audit of SBF assets will be carried out but I'm sure this will not be very useful, the court should immediately investigate the SBF transaction and then confiscate all these assets, thing ridiculous from the FTX case hope it doesn't happen again in the future.
When the FTX scandal got exposed I am one of those saying it's over for centralized exchanges, now people will have no choice but to stay away from centralised exchanges because of this, I went to get a few DEX tokens for long term hold but I was damn wrong.
I don't see people leaving centralised exchange because of what happened with FTX, some moved their funds out of exchanges but after all the bad news cool off they go back, it seems centralised exchanges will always be people's favorite, they are doing very well. Look at Binance, after the FUD cleared deposits start coming in, look at Crypto.com, the FUD is no more and people are screaming the name.
What happen to FTX is just an isolated case and it just happen to them only, not the entire market. Of course, trust can be somehow affected by other CEX exchanges as they also think of the same scenario which is a very common thing to happen. But this kind of thinking won't stay long, TRUST will get back and that is why many people are still using centralized exchanges this time. I really don't think there is a huge change in the future of CEX but people will remain using these platforms as long as they are satisfied with their services. I don't see people leaving centralised exchange because of what happened with FTX, some moved their funds out of exchanges but after all the bad news cool off they go back, it seems centralised exchanges will always be people's favorite, they are doing very well. Look at Binance, after the FUD cleared deposits start coming in, look at Crypto.com, the FUD is no more and people are screaming the name.
No one will leave the major exchanges, we already understand all this.Firstly, it is convenient.Many newcomers immediately go there and do not want to look for an alternative, because more knowledge and new skills are needed there.Most often, beginners want to press two buttons and buy what they are interested in.Many people do not understand how these or those exchanges are arranged and according to what principle they work,so most go to where there are more reviews and acquaintances.
People trust an exchange when there is a known entity behind its operations. This is the main reason why centralized exchanges are preferred over decentralized exchanges. Many users do not have the technical knowledge to verify the balances in a CEX's cold wallets, which are used to store funds securely. This lack of transparency makes users vulnerable to potential fraud or mismanagement of funds.The recent events with FTX illustrate the importance of transparency. Despite being a well-established exchange, FTX never made their cold wallets public, which raised concerns about the safety of user funds. On the other hand, exchanges like Binance are known for their transparency, which builds trust with users.
The FTX case will disappear because there is no clarity, investors' money will disappear, and this of course has happened many times, I have also lost money from several bankrupt exchanges such as livecoin, coinexchange, ooobtc and so on, the position of crypto consumers is very weak and since that moment then we have to store assets in a private wallet so we don't worry about surprises and bad news.
There are plenty of advantages to centralized exchanges. Both DEX and CEX have their place in the crypto world. Neither one will die out. They both have their uses and they both have their flaws.
I would say centralized exchanges are far superior for traders. But DEXes are good to pick up random alts if you want to invest in them, or swap out coins every once in a while when you want to change your investments, but I would never actively trade on a DEX.
I would say centralized exchanges are far superior for traders. But DEXes are good to pick up random alts if you want to invest in them, or swap out coins every once in a while when you want to change your investments, but I would never actively trade on a DEX.
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No matter how cryptocurrency enthusiasts like DEX, and also secure crypto investment holding through non-custodial wallets the reign of the use of CEX cannot be excluded from the crypto market. That's if we want cryptocurrency to achieve its purpose in the reign of payment and money aspect.
10% of all crypto enthusiast care about privacy this is the reason why CEX gaining more use than DEX.
it seems centralised exchanges will always be people's favorite, they are doing very well. Look at Binance, after the FUD cleared deposits start coming in, look at Crypto.com, the FUD is no more and people are screaming the name.
Am I evil for wanting to see CEX go or at least become less important?
CEX cannot go whether you like it or not unless DEX will go because CEX is somehow working with the government and I read that the government is planning for crypto regulation.Am I evil for wanting to see CEX go or at least become less important?
10% of all crypto enthusiast care about privacy this is the reason why CEX gaining more use than DEX.
The reason is that as long as crptocurrency exists,these exchanges must also exists because we need them to trade easily and because of this,so many people prefer leaving their coins in them for easy access,even when they know the consequence of their actions.
If one exchange crashes,there will be another exchange to take over the market. The problem with human is that when something drastic happens,they only take caution at that moment,after sometimes they become ignorant of what happened. Maybe because they were not the victims of circumstance,they only learn when they become the victims.
You are definitely right on this one and come to think that if DEX does only exist then how we would gonna make out conversions from our crypto to fiat? For sure we would really be finding up some mediums which i coudl say that it is a bit hassle unlike when we do have exchangers as of today that we could really make out some conversion in a snap or something that would really be that easy and this is where people would really be sticking into without minding that much about the risk.Even we are aware but we dont have any choice because this is the only method that we could really be able to make useIf one exchange crashes,there will be another exchange to take over the market. The problem with human is that when something drastic happens,they only take caution at that moment,after sometimes they become ignorant of what happened. Maybe because they were not the victims of circumstance,they only learn when they become the victims.
to make those conversions in most convenient way which it is really hard to ignore out.
The reason is that as long as crptocurrency exists,these exchanges must also exists because we need them to trade easily and because of this,so many people prefer leaving their coins in them for easy access,even when they know the consequence of their actions.
If one exchange crashes,there will be another exchange to take over the market. The problem with human is that when something drastic happens,they only take caution at that moment,after sometimes they become ignorant of what happened. Maybe because they were not the victims of circumstance,they only learn when they become the victims.
If one exchange crashes,there will be another exchange to take over the market. The problem with human is that when something drastic happens,they only take caution at that moment,after sometimes they become ignorant of what happened. Maybe because they were not the victims of circumstance,they only learn when they become the victims.
Decentralized exchanges have no peer-to-peer payment, there is no way one can buy crypto using Fiat on dex, this is one of the very few reasons why people won't ever leave centralized exchanges and go DEX.
Centralized exchanges make things easier with FIAT currency straight from the banks worldwide, the day that Dex will be capable of these, it will make a very big difference, I know that CeX is better in many ways but Dex is more secure and there is no way a Dex will allow connections with banks without breaking the Decentralise meaning.
Centralized exchanges make things easier with FIAT currency straight from the banks worldwide, the day that Dex will be capable of these, it will make a very big difference, I know that CeX is better in many ways but Dex is more secure and there is no way a Dex will allow connections with banks without breaking the Decentralise meaning.
But unfortunately I don't think that this will (ever!) happen. I have a feeling that sooner or later the CEX will be bought or replaced by our "beloved friends", the banks themselves.
That could be, though I think a big bank might start their own or perhaps buy an established and regulated exchange like Coinbase--and though I think that would be bad for the crypto economy, I can't stand Coinbase or banks so let 'em have it.Most people aren't technically savvy, and I think it's a lot easier for the majority of them to use exchanges like Binance or, before they went belly-up, FTX. They probably saw all the advertisements and thought that an exchange like FTX couldn't be a scam, and at the same time those same people might not even know what a DEX is or what the advantage is over a CEX. I don't necessarily fault anyone for that, because if you want to get into the crypto game fast there's just too much research to be done if you're starting with very little knowledge.
Also, in a world where user experience is becoming smooth, things are getting fast & easier, while people are getting dumber, it becomes impossible to make people interested in more complex tasks. They prefer to use 3rd parties and give up on control in exchange of smooth and easy experience.
World is moving this way. For instance, gaming industries actively implement cloud gaming where you just subscribe the service of Xbox Live, PS Now, Ubisoft Origins and play this way. I mean, by doing so, you own nothing. You are renting games and equipment together. One may say that my example sounds funny but if you look deep enough, this means that in future, people will just rent product and equipment online, giving them false sense of ownership while in reality they'll own nothing. Preparation for this kind of future starts today, in niches where you don't even think about this. Then you become familiar day to day and the lit of protest is fading away.
But unfortunately I don't think that this will (ever!) happen. I have a feeling that sooner or later the CEX will be bought or replaced by our "beloved friends", the banks themselves.
That could be, though I think a big bank might start their own or perhaps buy an established and regulated exchange like Coinbase--and though I think that would be bad for the crypto economy, I can't stand Coinbase or banks so let 'em have it.Most people aren't technically savvy, and I think it's a lot easier for the majority of them to use exchanges like Binance or, before they went belly-up, FTX. They probably saw all the advertisements and thought that an exchange like FTX couldn't be a scam, and at the same time those same people might not even know what a DEX is or what the advantage is over a CEX. I don't necessarily fault anyone for that, because if you want to get into the crypto game fast there's just too much research to be done if you're starting with very little knowledge.
The problem is that one-time events don't fully discourage humans from doing anything.
Yeah, but FTX wasn't a one-time event (if you're talking about an exchange going bust because it's a scam). After all the exchanges I've seen go under over the years, people still use centralized exchanges as if nothing ever happened--and that would be fine if people didn't leave large amounts of crypto on them, but apparently they do. So yeah, I don't think people are going to give up the CEXes anytime soon. 
No one will leave the major exchanges, we already understand all this.Firstly, it is convenient.Many newcomers immediately go there and do not want to look for an alternative, because more knowledge and new skills are needed there.Most often, beginners want to press two buttons and buy what they are interested in.Many people do not understand how these or those exchanges are arranged and according to what principle they work,so most go to where there are more reviews and acquaintances.
Until they blow the huge scandal up , they won't leave.You can never say the biggest centralized exchange like binance could be forever run smoothly without a problem , unexpected things could always happened included to exit scam people in the future due its centralized nature that has zero protection for its customer. We do go for them because yeah we have not much option to choose.
No one will leave the major exchanges, we already understand all this.Firstly, it is convenient.Many newcomers immediately go there and do not want to look for an alternative, because more knowledge and new skills are needed there.Most often, beginners want to press two buttons and buy what they are interested in.Many people do not understand how these or those exchanges are arranged and according to what principle they work,so most go to where there are more reviews and acquaintances.
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