Topic: Is trading on CEX still worth it? (Read 306 times)

What do you mean with worth it?

It depends on what you are giving away and what you expect to get in return. Don't expect privacy if you are using a CEX. Your name is connected to the addresses you use there and that information is surely passed to blockchain analysis and government agencies in your country (if they are interested in it). If your coins are "clean" according to their standards and interpretations, you should be fine. If they notice connections to mixers, privacy services, scams, and activities they consider illegal, you might get your crypto frozen and have to answer questions about how you got them.

On the other hand, you have more trading volume, more liquidity, lower trading fees, and perhaps cheaper withdrawal fees compared to DEXs.   

Both of you have good points but there is much emphasis on some things that are not particularly true. This is at least based on my experience and what I have read on many reviewing websites, especially those that are alleging exchanges. First, it is a misconception that exchanges will ordinarily confiscate your money, no, they will never do so, and even in some cases where they delay some withdraws due to a huge amount to be withdrawn, they will still cite reasons and tell you to wait while they update you. Although this delay, and since it is unexpected, it can be so annoying.

Notwithstanding, confiscating your money because you can't complete the KYC can be possible but can't be as directly alleged as it was stated. It can be possible if you did not own the money through a legitimate means or you just did not want to cooperate, and this is not confiscation per se but to hold it until you do the needful. If you do, they will not confiscate it and will continue to tell you what they will do and their later stances as time goes on. I know this because it happened to me, they do not just behave anyhow.

In all, it is good to prepare for the KYC completion when you are dealing with any centralised system and also know that in any custodial approach, no one should be trusted entirely. They merely owe you the money with them and no matter how you think you trust them, they may not give you the money due to a reason or another whether genuine or not.

You are right crypto is being regulated now as due to wide adoption it needed to be regulated so there will be fewer scams. In the past Kucoin and some other exchanges allowed us to trade without KYC but with time complying with regulatory authorities becomes necessary so they have to change the policy as well.

But I don't think they will confiscate your funds. If the exchange is a good one like having a good reputation then they might give you the chance to withdraw your funds by giving you some deadline and after that if you won't complete the KYC they will confiscate your funds. I recently received an email from Bybit while I have done the KYC, still they ask for more documents or my funds will be confiscated (can't be withdrawn) they gave me time, before that time I withdrew all of my funds from Bybit and never gave the additional documents.

As much as I don't like centralized exchanges, I won't go as far as declaring they're not worth it. CEXes aren't for everybody. If you buy coins and trade every once in a while, you may not need a CEX, but if you are a day trader looking for the best deals, centralized exchanges might be your best option.

Of course, CEXes have their advantages and disadvantages. Many of us might think these advantages are far from outweighing the disadvantages, but to a certain group of crypto supporters, the disadvantages are worth risking.

Actually the bigger problem is when people who are not traders are keeping their coins on CEXes.

Centralized exchanges can and would confiscate your funds and require you complete kyc or provide source of funds, there have been so many cases of this, and in so many of them, the customers were not able to withdraw their funds from the exchange. Don't trust centralized exchanges to allow you just withdraw your funds because you could not provide source of funds or kyc details, they have stolen funds from many people in this way.

Exchanges are not casinos thankfully, all honest and professional ones will never confiscate your funds while requering KYC like scammy casinos, it doesn't align with good practices and common guidelines from the industry. They will let you withdraw your asset before closing your account if you don't want or if you are unable to complete their KYC procedure.

You are right, liquidity is the big difference among others, cexs have no deficiency of liquidity. Recently a centralized exchange in Japan got hacked and they had enough liquidity that they told there customers to not panic as they said they have enough funds to give all of the customers there funds back. I mean they don't have a problem of liquidity trades can happen in a matter of time. While on DEXs we see some problems but with the most famous ones we not face any.

Besides CEXs provide a lot of campaign in which we can participate like OKX and BYBIT etc. Binance is not coming up with good campaigns to reward there users. Overall,  fee is not an issue, I use CEXs for trading purposes or for p2p trading. So considering yours and my POVs I can say they still worth it.

Most of the no-kyc centralized exchanges have made kyc mandatory, and if there are a few that still allow customers to trade without kyc, they'll make it mandatory very soon and they can also confiscate your funds anytime and request for kyc. People who don't want to lose their privacy will go for decentralized exchanges, there is no in-between in it, they don't have to use any kind of centralized exchange if they don't want to.

Most people use Centralized exchanges because either that exchange offers something good that no other exchange offers, or they do not have other options. Take me, for example. Cryptocurrency is banned in my country. I don't want to deal face to face because of privacy reasons, and a couple of exchange websites can scam users anytime. I have seen a lot of people get scammed on those websites.

Currently, these centralized exchanges are the only options for selling my USDT for my local currency. I have started hunting airdrops lately, and some centralized exchanges offer zero-fee trading, bonuses on deposits, and many other things. I wouldn't use them if I had not been KYC'ed before. But, I am already KYC'ed on a couple of exchanges which is the reason I am still using them.

A lot of us for sure are using CEXs, while we should be supporting more with DEXs. The liquidity of the two are different and far behind each other.

There are more traders and volume with the CEXs and they have got more incentives compared to the DEXs.

The fees on CEXs aren't that much and even I, still uses a CEX into this day but not as active as the others. I only trade when I have to or when I have seen some opportunity to buy/sell.

I am quite amazed to hear this question, as to why you think it is not worth it. I mean a lot of users almost every single member of this forum might be using CEXs even if they are saying they are not. I mean, people who prefer to use DEXs and somehow have to use CEXs. Might come up with an alternative solution like maybe preferring CEXs with no KYC or a lesser level of KYC solutions.

I get the idea that you are more concerned about the fee not about the privacy, I don't think fee are that high on these centralized exchanges. I still uses a lot of the CEXs and all of them have different withdrawals rates, speaking of BTC especially, I think OKX is much better.

I used to think that the primary use of P2P is to exchange to cash, as there are auto DEXs that make waiting for the transaction to be completed in cryptocurrencies slow. Also, we are talking about trading, where the trader buys and sells cryptocurrencies for profit, and some types of trading require speed in executing orders and low fees in order to trade. It is profitable, so it is natural that most of the trading is in CEXs.

Governments usually do not have problems with centralized exchanges that has the required license to operate, restricts sanctioned countries and complies with their kyc/aml laws. The government even like these centralized exchanges because they are data farms and they can use them to confiscate funds from people they suspect are into illicit activities.

It is obvious that one should not store their coins in a centralized exchange, not your keys, not your coins, and if you trade there, you should move your money into your self custody once you are done.

I am confused about the reason why you buy your coin with self-custody and still have to send it to CEX just because of fees. Won't they charge you for buying through Jupiter or Metamask? Certainly, they will. The gateway companies used and even the credit/debit card companies will charge you more.

This is unless I am missing some points in your statement. I think that it will be fair for you to even use the CEX to send the crypto in and send it to your self-custody wallets for keeping and sending it back if there is a need for it. By then, you might have reduced the amount of money you would have been charged to some extent.

Through P2P, you can get your coin/token without any charges, and if you cannot get it directly through P2P due to the lack of popularity of the coin, you can easily exchange the popular ones you can buy through P2P for the coin/token of choice with a reduced rate. This is what I do though, and it is cool unless you have another reason for doing what you explained other than for the charges considerations.

If you know some DEX allowing to easily place limit orders, I would be very happy to leave CEX for them. In addition which DEX do you use to sell your cryptos for fiat currencies? CEX will always be used, in the same way are banks still used by any people in industrialized countries. Because they are the easiest and quickest way to change crypto again fiat in a transparent and rather safe way, or to buy cryptos from fiat ofc.

As a long ago I have used dex for trading like as you with the tokens which are not listed on centralized exchangers but currently, I don't do trade on tokens so mostly for regular using I use cexs like Kucoin and Binance exchangers and I don't have any complaint about them till yet. And if you are a shorterm trader then I will say that CEX  will be best to use for you but for the long-term trader like holding coins never going to suggest CEX. 

Exchanges being blocked depends from country to country, yes. About the fees... be aware that although the trading fees are lower, the withdrawal fees tend to be rather high. Make sure you check those too before depositing.

You're right CEXs do tend to have lower fees and higher trading volumes and I've also gotten a few free bucks too but another problem I have with them is the regulations blocking most exchanges, Binance and many more exchanges are blocked or don't work well in my country and Bitget is one of the currently functioning ones

Considering the recent way the governments have been taking it hard on many of these exchanges, i will say its something risky for us to make use of a centralized exchange to that much extent because governments and the exchange remain unpredictable, we cannot afford to loose any of our asset with them if any uncertainty should pop up today concerning their take on the existence of any exchange, we may also play this mature way by not keeping our entire cryptocurrency assets on centralized exchanges.

I think Jupiter & Mm are self custodial wallets. But they're a lot of factors users use cex. Most times coins listed on cex are vetter, and if you get rugged & be platform has safu or protection funds you can get reimbursed, there's also benefits of launchpools, launchpads. For the current ongoing deposit rewards ongoing you listed. Is this one of them? deposit rebates Saw it on Reddit.