You also need to remember that CEX needs your privacy and that will not be in line with people who prioritize privacy, and you do not have full control over your assets, CEX has authority over your assets too. Whereas in DEX your key is your assets, only you have full control and without the need to implement KYC. So this is a choice about privacy and freedom of trading.
We're traders who's innocent, wants the best for ourselves, we have a choice to make in the system, just stay consistent on a private track and continue reaping good profits. Freedom of trading is guaranteed and we ought to make good profits from the system, not letting down any chances of making good returns from the market, we just have to be more careful whenever we're in the space because the slightest opportunity can cause us to lose hugh profits. CEX provide us with the reuqire information we think we should have. 
Topic: Is Uniswap reaping people off (Read 229 times)
I have withdrawn and trade ETH from MEXC multiple times already and I am never charged more than $3 but when I swap ETH ERC 20 on Uniswap the gas fee is almost always $10 and few times over $10, why is it like this? Are DEXs suppose to be more costly normal centralized exchanges?
In any centralized platforms or simply CEX if you do make out some direct on chain transaction on ETH to ETH then fees are less on which understandable, even if you do make out some deposits or transactions in betweennon custodial wallets into other wallets then it is really that cheaper. Speaking about Uniswap where you are really that tending to make swaps into other coins then we do know that bridging transactions
on which it would really be that normal that they would be charging you about those trading fees,network fees etc... Plus we do know that EVM transaction based are way too expensive when it comes
to gas, this is why its not really that shocking that you would really be paying up some premium whenever you do make out transactions.
This is why i do hate up and avoiding on making ETH transactions specially on hunting degens and meme coins because even making those simple swaps do really give out that kind of pain
when it comes to gas fees.Even if we do say about $3 per transactions or even that enabling that coin do really give out that fees which do really sucks.
This is precisely why CEX are more patronized than DEX, because centralized exchanges are more convenient and has cheaper transaction fees for smaller transactions than the decentralized exchanges, as is obvious from the OP unfavorable experience. People are advocating for DEX but with this Uniswap, being a reputable DEX high fees for small transactions it's not helpful, only favorable for big transactions.
You also need to remember that CEX needs your privacy and that will not be in line with people who prioritize privacy, and you do not have full control over your assets, CEX has authority over your assets too. Whereas in DEX your key is your assets, only you have full control and without the need to implement KYC. So this is a choice about privacy and freedom of trading.
I have withdrawn and trade ETH from MEXC multiple times already and I am never charged more than $3 but when I swap ETH ERC 20 on Uniswap the gas fee is almost always $10 and few times over $10, why is it like this? Are DEXs suppose to be more costly normal centralized exchanges?
Even the $3 charged by the exchange is high, well, it depends on the amount we are talking about, and I expected it to be much lower with the decentralised exchange. I always tell people, that the ease, comfort and low fee benefits, and even the business around the centralised exchange can't be achieved by the decentralised exchange, but they continue to argue, a lot more should be considered (Off and On-chain transactions).I'm glad you are another person who proves this right, it is good to have your privacy but privacy is not everything, especially if you do not have anything to hide and are transacting with a few bucks. What the centralised will do for you, the decentralised will not do for you but I read differently online even though I knew it can't be entirely so. The network charges are another thing, they must be applied to all your exchanges and the coin/token we are talking about matters so much. Exchanging Bitcoin these days will make you suffer the same fate. Perhaps this will be different with other altcoins since they could probably have a low transaction fee. In other words, the service charges of DEX are still very low but the network it must pass through could have a high fee, which is a serious issue that can spoil plans.
On a centralised exchange, what you are conducting is an on-chain transaction where you don't need to pay any fee for such transactions to be completed; only the trading fee is to be charged, which is always not up to 1% of your trading amount.
But on Uniswap, you are interacting with the network. First, you need to approve the token for it to be available for swap on Uniswap. With that approval alone, you will be charged for the gas fee, which is on Eth. And after that, before you can confirm your swap on Uniswap, you also need to pay another fee in order for the transaction to be completed. You pay a two-time fee before you can complete a swap on Uniswap.
But on Uniswap, you are interacting with the network. First, you need to approve the token for it to be available for swap on Uniswap. With that approval alone, you will be charged for the gas fee, which is on Eth. And after that, before you can confirm your swap on Uniswap, you also need to pay another fee in order for the transaction to be completed. You pay a two-time fee before you can complete a swap on Uniswap.
I'd like to add little here. You don't always have to make approve transaction if you have already approved before for that contract address. For example, if you have approved $500 before on Uniswap, then you won't have to approve again for next swap transactions worth less than or equal to $500.
One should never set unlimited approvals as, if dapp gets hacked your approved amounts will be drained, and if you approved 'unlimited' your all tokens will get drained.
I always suggest people to never approve more than requirement of that transaction but in case of chains like Ethereum, approving transactions for each trade can be expensive, especially when you make frequent trades, so for such times you can approve what you are comfortable with so you don't have to make approve transactions again and again and save some on gas fees.
In case you want to revoke, this approvals can be revoked using tools like revoke cash or etherscan revoke tool.
@op Uniswap can't rip people off cause Uniswap doesn't earn anything from trades, there is 0.3% trade fee which is distributed to liquidity providers and what you pay as gas fee goes to the ethereum validators as an incentive to validate and some is burned.
As others said, they are correct, it's because of the Ethereum network.
Welcome to mainnet Ethereum.
That's why layer 2 networks are born, to fix this kind of issue, high transaction fees.
As you can see, there are 13 total networks that Uniswap has right now, most of the networks are layer-2 networks if you use some of them, you will extremely save a lot of transaction fees, even if you will only swap a few amounts.
Welcome to mainnet Ethereum.
That's why layer 2 networks are born, to fix this kind of issue, high transaction fees.
As you can see, there are 13 total networks that Uniswap has right now, most of the networks are layer-2 networks if you use some of them, you will extremely save a lot of transaction fees, even if you will only swap a few amounts.
ahhaha the answer already given by someone else but yeah when you swap on dex you need to pay gas fee every single transaction and those money goes directly to miner and not to uniswa. they do charge but fee is relative low just like the CEX
tho you can start trading on site like WooFi Dex that has feature with orderbook so you can skip the onchain fee
tho you can start trading on site like WooFi Dex that has feature with orderbook so you can skip the onchain fee
That's how ETH network works and as the cost of transactions are higher due to higher gas fee in DEXs and now that's the area where centralized exchanges has advantage as the transaction fee is way too lower compared to DEX and to be honest most of the casual users or short term investors will prefer CEX over DEX for this particular reason and thus you will see most of those who do regular trading or smaller transactions do not use DEX but if you are trading huge amount and don't want any trouble of centralization then DEX is the best option. Unfortunately that's how it works.
honestly nowaday people can easily switch and use L2, just bridge over their asset to L2 then we get few cent fee for swapping which is a lot more inexpensive if compared with ethereum, the underlying problem is ethereum, the fee there is simply too high that I think its ridiculous for many people and the reason why L2 these days are created so many because it does indeed solve the problem relating with fee with still staying faithful with using ethereum as the coin for paying the gas fee.but I guess if you still want to trade so frequently like basically every minutes then I guess using centralized exchange might indeed be a good thing since there's no fee for maker sometime and also no need to think about transaction confirmation since it happened almost instantly. at the end of the day it just up to personal preferences.
I have withdrawn and trade ETH from MEXC multiple times already and I am never charged more than $3 but when I swap ETH ERC 20 on Uniswap the gas fee is almost always $10 and few times over $10, why is it like this? Are DEXs suppose to be more costly normal centralized exchanges?
high fees at dex because of the high eth fees, at the dex direct exchanger direct transactions send from the buyer's or seller's funds are subject to fees you send are also subject to fees.
while in a centralized exchanger, the fee is when you deposit, you will be charged a large fee if you use eth. while the trading fee is low. and you withdraw it later in the form of USDT not on the eth network so the fee is also low. if you withdraw it using the eth network too, the fall regarding fees will be the same whether dex or a centralized exchanger.
That's how ETH network works and as the cost of transactions are higher due to higher gas fee in DEXs and now that's the area where centralized exchanges has advantage as the transaction fee is way too lower compared to DEX and to be honest most of the casual users or short term investors will prefer CEX over DEX for this particular reason and thus you will see most of those who do regular trading or smaller transactions do not use DEX but if you are trading huge amount and don't want any trouble of centralization then DEX is the best option. Unfortunately that's how it works.
I have withdrawn and trade ETH from MEXC multiple times already and I am never charged more than $3 but when I swap ETH ERC 20 on Uniswap the gas fee is almost always $10 and few times over $10, why is it like this? Are DEXs suppose to be more costly normal centralized exchanges?
With Centralized Exchange you are not actually interacting with the blockchain network, the fee was defined by the exchange and on CEX you only charged with trading fee there is no blockchain transaction fee. But with decentralized exchange you are actually interacting and using the Ethereum Blockchain so the fee was affected by the network condition. What you could do is checking the average transaction fee on the blockchain before doing any transaction on the DEX.There is what we call a gas station for ETH where we can check the fee but before we initiate a transaction in a DEX, there will still be pop up telling if how much fee it will cost us to complete the transaction. I prefer this, and I still can decline it if I don't like what I see on my screen.
I have withdrawn and trade ETH from MEXC multiple times already and I am never charged more than $3 but when I swap ETH ERC 20 on Uniswap the gas fee is almost always $10 and few times over $10, why is it like this? Are DEXs suppose to be more costly normal centralized exchanges?
I used it last and the transaction fee was too high so after successfully transferring the coins from there I left the app and refused to use it again. Normally, though for once I have used the Centralized Exchange transaction fees are cheaper than the Decentralized Exchanges. And that is one the factors that I am not using Decentralized Exchange for any transaction for now. And their prices are lower than CEX. This is precisely why CEX are more patronized than DEX, because centralized exchanges are more convenient and has cheaper transaction fees for smaller transactions than the decentralized exchanges, as is obvious from the OP unfavorable experience. People are advocating for DEX but with this Uniswap, being a reputable DEX high fees for small transactions it's not helpful, only favorable for big transactions.
I have withdrawn and trade ETH from MEXC multiple times already and I am never charged more than $3 but when I swap ETH ERC 20 on Uniswap the gas fee is almost always $10 and few times over $10, why is it like this? Are DEXs suppose to be more costly normal centralized exchanges?
As people already explained, there is significant differences on how CEX and DEX works. Most of the trades in centralized exchanges are just adjustment on balance sheets and no real transaction occurs. But when you are doing a exchange in Decentralized exchange it could go through one or multiple transactions. And I agree that Ethereum network is about unusable, when it comes to DEX, I prefer to use BSC, many exchange even allow ETH (BEP token) withdrawal to BSC wallets.
I have withdrawn and trade ETH from MEXC multiple times already and I am never charged more than $3 but when I swap ETH ERC 20 on Uniswap the gas fee is almost always $10 and few times over $10, why is it like this? Are DEXs suppose to be more costly normal centralized exchanges?
same experience in Exodus recently that I even spend more than 10 dollars for exchanging Bitcoin into different currency and i thought this was just because of the congestion but is there really a relation?that's why Nowadays I prevent myself for a while in exchanging instead I directly use Binance instead of other wallets/exchange.
I have withdrawn and trade ETH from MEXC multiple times already and I am never charged more than $3 but when I swap ETH ERC 20 on Uniswap the gas fee is almost always $10 and few times over $10, why is it like this? Are DEXs suppose to be more costly normal centralized exchanges?
You have to consider tax rate from a token project. It is an extra fee and it comes from a project with their own policy to charge their users for any token transactions. Uniswap is only a DEX and they have their own swap fee policy.When you swap a token on a DEX, there are two fees: DEX swap fee, token's tax fee that depends on each project team. Tax fee is common with inflationary tokens like GameFi, Metaverse tokens because those project teams really want to reduce token inflation as much as possible. Tax fee will help them to do this but after charging tax on users, what they will do with it is unknown.
They can use tax fee for token buy back and burn or other things.
the high fee coming from the ethereum blockchain itself its not mistake on the part of uniswap, you see swapping requires a lot of gas to be executed and if the gwei is increasing ever so highly you will definitely know automatically that executing swap will definitely costs a lot more, the thing with CEX is that the process of trading or swaping is done off chain its done within the exchange platform that was why its being called cex in the first place, therefore they can flexibly set the fee based on their own preference but you can't do so with dex, since the transaction happened directly on chain then you can only rely on the gas fee to write data to the blockchain and if its ethereum, its no new thing that this blockchain have highest fee, sometime it even hits few hundred dollars just to execute some smart contract so its no wonder, the dex itself usually have reasonable fees.
so basically its the fault of ethereum to be having that much fee, mainly because it lacks in scalability to overcome the ever increase transactions.
so basically its the fault of ethereum to be having that much fee, mainly because it lacks in scalability to overcome the ever increase transactions.
Always check the gas price for the transactions because they're incredibly high and you may just want to use other chains to save those fees when you trade.
I'd also highlight that you can in fact transact on Uniswap for extremely low prices, the key is to use a different chain (Polygon, Arbitrum, Optimism etc.)
USDC/USDT on UniV3-Polygon for example has 0.01% fee, and usually around 1 dollar cent transaction cost. Slippage is also not an issue in most cases.
I agree, there are other chains that a trader can use to have lesser fees and won't be hurting your pocket every time you trade there.
~ https://support.uniswap.org/hc/en-us/articles/11045742405517-How-to-switch-networks
Quote
This is not an inherent problem of Uniswap.
I'd also highlight that you can in fact transact on Uniswap for extremely low prices, the key is to use a different chain (Polygon, Arbitrum, Optimism etc.)
USDC/USDT on UniV3-Polygon for example has 0.01% fee, and usually around 1 dollar cent transaction cost. Slippage is also not an issue in most cases.
~ https://support.uniswap.org/hc/en-us/articles/11045742405517-How-to-switch-networks
I have withdrawn and trade ETH from MEXC multiple times already and I am never charged more than $3 but when I swap ETH ERC 20 on Uniswap the gas fee is almost always $10 and few times over $10, why is it like this? Are DEXs suppose to be more costly normal centralized exchanges?
Well using erc20 contracts is expensive, and this is nothing. Just few years ago swapping fees in uniswap went to $50+ . If current one is too expensive, you should use L2 versions in uniswap, like polygon, arbitrum, and optimism. That's why they were developed in the first place. Until ethereum scales, if you are not swimming in money you should look for alternatives to use for bad days.And yes, DEXes definitely are more expensive then cexes. There's a literal price to pay if you want to use decentralized services.
Quote
This is not an inherent problem of Uniswap.
I'd also highlight that you can in fact transact on Uniswap for extremely low prices, the key is to use a different chain (Polygon, Arbitrum, Optimism etc.)
USDC/USDT on UniV3-Polygon for example has 0.01% fee, and usually around 1 dollar cent transaction cost. Slippage is also not an issue in most cases.
I have withdrawn and trade ETH from MEXC multiple times already and I am never charged more than $3 but when I swap ETH ERC 20 on Uniswap the gas fee is almost always $10 and few times over $10, why is it like this? Are DEXs suppose to be more costly normal centralized exchanges?
This is not an inherent problem of Uniswap. The cost of sending ETH directly from one wallet to another is about 21,000 gas limit and after final calculations[1]:
Code:
gas limit * gas price
So whenever you want to do smart contract operations, it costs more because more EVM opcode are being used for the operations - hence the reason why it is expensive. Using Uniswap on Layer-2 chains will effectively combat this. EIP 4844 will soon be implemented and fees on layer2s will see 60-80% cut in transaction fees.
[1] Ethereum Yellow paper: https://github.com/ethereum/yellowpaper
[2] https://eips.ethereum.org/EIPS/eip-4844
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