Topic: I hope it's finally over for CEXs (Read 388 times)

I'm one for the growth and stability of this industry but sometimes I find certain things arguable. Just like this Cex and Dex debate. I know that not owing ones' keys doesn't confer ownership and that's very bad. However, I think Cexs have done more good than harm to this industry. At least, it helped pushed cryptos to the world in terms of ease of trades and accessibility. Its harm may be obvious now because of awareness and the growing popularity of Dexs. Before now, Dexs weren't a thing and weren't popular. I think for Dexs to have an upper hand, they should up their game and create an avenue of populating their trading pairs with more tokens so traders can have an avalanche of tokens to choose from.

Nope it isn't a creation of Binance entirely, it was acquired in 2018 by Binance attempt to buy everything in the industry. They bought Coinmarketcap and are still actively buying the whole industry and who knows if they're been funded by the Chinese government in order to take over the cryptocurency space. Centralization had never been good for the industry, instead it's holding it backwards. We would had been 10 times better off if the industry wasn't as centralized as it's currently. Looking at the way things are going, you'll realized slowing that we're losing the true essence of the creation of Bitcoin. Slowing we're losing the decentralization of the industry, things people think are decentralized aren't even decentralized.

For example, the popular decentralized exchanges we have today been used by the majority aren't truely decentralized while the supposedly P2P platforms aren't truely P2P as well so tell me how the industry is achieving it goals of enabling a decentralized transaction. Wasn't there news of the former CEO of the second largest exchange that just collapse (FTX) was lobbying for decentralized finance (DeFi) to be regulated in the US. Centralized platforms are misinforming new users and before they realize it, it's already late. Centralization has never been a goodnews and they're definitely not one to the cryptocurrency industry.

This is the point that summarizes your whole point and position on the Dex issue. No matter how hard anyone tries to make a mess of what Cexs have been able to achieve despite the disadvantages therein, we shouldn't be in a haste to forget the good it has done in this industry for expanding the coast and creating awareness and trade volumes. By the way, is there anything in life that doesn't have demerits as it has merits? None.

TW is a creation of Binance and not a Dex in the true sense.

Both exchanges have their pros and cons as has everything else in this world, but the cons in centralized exchanges can have a devastating effect on its users as has happened quite a lot of times, from MtGox till FTX, funds have been lost, data sold in the black market, phishing links broadcasted to users' email, inside job scam, et cetera.

Having said that, i think decentralized exchanges are most importantly more secure than centralized ones, if you use the right decentralized exchange your funds are secure, and you don't have to lose your data/personal info, as a con it might be difficult for a beginner, low volume, not best for a day-trader and a few other stuffs, but when you compare the cons of the both of them, that of decentralized exchange is fairer to bear/handle, and can get better with time; but if you are on the receiving end when something goes awry with centralized exchanges you more often than not lose it all.

Could that really be? An out of existence for centralized exchanges? I mean, if they could be off and things will stay perfect with truly Decentralized exchanges then, it would be a worthy change.
It's just awful when your not in charge of your situation, although people have been given that chance with the wallets and chose not to take it but rather mistake an exchange for a wallet.
With this FTX failure, crypto investors would get to understand a focal point as evident in centralisation means weakness and points to more risk than could have been hoped. Somehow, I still don't think the advent of centralisation is over yet or would be at all.

Binance requires stuff such as full name, email address, phone number, bank account, home address, drivers license, passport, selfie, completion of captcha, and after you've submitted these, you have to wait for a few days to have an employee confirm your registration. I mean... in what application there's a more difficult registration form than that?

I can assure you that I've had an easy time trading at Bisq in comparison with a family member who'd freaked out until he'd his account verified in Binance, and I have handed over zero KYC to scums like CZ.

I haven't used Bisq so can't say much about the exchange but I'm a big believer that Dexs can overtake centralized exchange. Thankfully big platforms like FTX just showed the world that no matter how you think a centralized exchange is big and can't be touched, they aren't invisible. When we talk about volumes, everyone that was active during the days of Defi hype can testify how mighty Uniswap was and were competing with the big centralized exchange with volume. Personal I haven't used any centralized exchange when I want to trade Ethereum tokens or Binance tokens (I used pancakeswap and Uniswap respectively) and they have quite decent volume.

Anyone that grows to understand Dexs will realize that they're more convenient than cex, on my trust wallet app (the dApp function) makes it easier to swapp/trade tokens as easily as possible and also faster than centralize exchange that I have to wait until a certain confirmation before my coins are accessable.

It is not even that.  But Bisq is very inconvenient as of now to be used as the Exchange of choice by the average user.  Low volume is nothing when you realize you need a Bitcoin security deposit, there is a more complex trading process and the waiting time for transactions is typically high.  They are slowly making steps such as Instant trades, which makes it all more convenient.  But at the end of the day, if you want a very quick trade you are basically forced to use a Centralized Exchange.

The volume would actually not be an issue anymore if a significant part of Binance's user base moved to Bisq.  But the other issues I mentioned can not be solved even with a huge user base.  Of course almost everyone would choose Binance with their speed and convenience over Bisq which requires a security deposit and all of that.  We can call Binance the lazy guy's Exchange that comes with obvious big cons.  Unfortunately, we have a long way to go before we can call Decentralized Exchanges convenient for the average user.

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Regards,
PrivacyG

Remain blessed for that observation. Those who think Dexs are possible replacement for Cexs aren't being logical about it at all. I once asked someone who suggested Bisq as a great Dex to be used instead of any Cex (including Binance) and I drew the person's attention to the low volume there and few coins Bisq has too. Cexs may not be the ultimate but neither are Dexs. We shouldn't throw out the baby with the bath water.

I don't think so. Most new people start in crypto with cexes, and there are always new people.

People already use DEX for a long time. It is untrue if they just begin to use DEX because of the current bad issue on CEX. However, I agree that people prefer to use DEX over CEX now, they are afraid to keep their coins on CEX and trade them there. Since the bankruptcy of FTX and people get difficulty withdrawing their assets, people are aware of the risk of keeping coins in exchanges. It is actually a good thing, people are more careful to manage/keep their assets now.

Yes, CEX reputation is getting worse. But I am not sure if people will totally stop to use CEX. They only will avoid keeping their coins on CEX for a long time, they will send the coins on CEX if it is necessary only.

It's going to take a long time for decentralised exchanges to become the first and most favourable over centralised exchanges.

That's left for people to make that decision, once people start realising that decentralised exchanges are safer then centralised exchanges won't matter much anymore.

The present Dex exchanges out there aren't offering what Cexs are offering, for example, futures trading/Margin trading is better on centralised exchanges, honestly, for me, it's all about the experience.

If a Dex can offer what Binance exchange is all about right now in a decentralised manner then It's over for Centralised exchanges.

I agree with you to some extent, but overall I do not.  This is exactly the point.  Trust Wallet, Safepal are not Decentralized.  They are Closed Source, partially at least although I think they are fully Closed.  It is true that storing your coins in an online Electrum wallet is less safer than an Airgapped Wallet is, but we can not compare the safety and security a Decentralized Exchange provides with the safety and security of a Centralized one.

When you have your assets stored in something you have no control over, such as Binance's wallet, you have no power over the assets you supposedly own.  If you have your assets stored in Bisq or Electrum or whatever other Wallet or Decentralized Exchange, you have the choice to do whatever, whenever you want.  This is the point of the post theymos made.

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Regards,
PrivacyG

So you think decentralized exchanges are safe.?

I don't think so. Your funds are not safe if you are online. Even I think Trust wallet and safepal and other online wallets are also not safe. Because they also can be hacked or anyone can steal your assets anytime. And these wallets will do nothing if you lost your funds.

Always use Cold Wallets to safe your assets.

neither dex or cex has its own risk and both can be rekt and also have pros and cons

just like the other i will give a few tips only trade not save the money in cex or dex if you are hodler better to kept it on coldwallet and if you are trader only deposit money that you are going to trade, trade -> profit -> withdraw thats it

That's exactly what everyone would love to do but, who the Heck accepts Bitcoin as means of payment in a grocery stall? Based on its volatility?
If they dare, and the market structure gets muddled -- falling against the cost price(I'm not even considering the profits) how'll they cope?
You doubt that it happened in the past.... exactly what you should do.
People have got tired of FIAT along time ago... Buh crypto ain't made a legal tender yet so apparently, nothing much can be done about its renaissance.
No. It's not over just yet

Sandra 💇

Sadly, it isn't over yet for centralized exchange as new ones will always find their way to the heart of investors in the space. This isn't the first time a centralized exchange is getting bankrupt or disappearing from existence and surely won't be the last. Centralized exchange has a way of winning people over to their platforms as they're always easier to use and more convenient than the decentralized exchanges and promise mouth watering offers if you stake or use some of the product they offer which are usually very tempting especially to newbies just joining the industry and we get them alot especially during the bullish season of the market.

As we speak, there would be another centralized exchange looking to give Binance a fight for their money in trying to compete with it just as FTX was doing before the crash. The bear market always present an opportunity for some group of individuals to come together and copy paste code claiming they have design a more trustworthy centralized exchange which people will foolishly rally around ones launched.

Not sure though,  I mean we have been pitching this since 2017, that people should used DEX for their trades, but there's no volume for them and people still go and trust CEX more. If there is such a surge in used then it could have happen many years ago.

Maybe what we are using is just an offset obviously as to what happen to FTX, nevertheless, there are also disadvantage of DEX that we tend to play along with CEX more, just saying.

As awful as it may seem, centralized exchanges would aways be around. In the face of regulations, centralized exchange remains the closest thing to regulations.

Cryptos where supposedly an escape from centralization and the FTX case is just some way to give reasons as to why, Its always bad to have so much coins that you ca afford to lose on any exchange.
Not your keys, not your coins, it's as real as it gets and people are taking notes now.

Of course the rallying of Price on decentralized exchanges could be about that and as notable in the Times, the mempol is highly congested at the moment due to this effect.

It's going to stay, the trust of people won't be the same for now but I think when they offer some promos and airdrops or anything, people will come back to them wanting all of those.

No matter what will be the issues with the centralized exchanges, there will be customers that will get in and out on them.

They're far from losing the market on them because they've got millions of them and many of those won't feel affected with the issue that has materialized about FTX.