Now let’s talk about CEX or DEX | Bitcointalksearch.org

BALIK

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Quote from: Cynthia_sinach042 on August 01, 2023, 04:12:37 AM

Quote from: BALIK on August 01, 2023, 03:46:09 AM

Both DEX and CEX have their own advantages and disadvantages but in general CEX still prevails because of the services it provides more complete and convenient than DEX. DEX is just the right place for those who love privacy and value security, the rest are traders, simple, easy, like cheap fees… and don't value privacy, CEX is the one place for you. In terms of liquidity, CEX is obviously a lot bigger than DEX, so if judged fairly, CEX is dominating most of the market and 90% of investors are using CEX instead of DEX.

Both CEX and DEX has good and bad side you are right on that but CEX which centralized exchange has more disadvantages than the DEX decentralized exchange.

And in line with what the OP meant which was about how secured it is then it has to be Decentralized exchange, it's more secured than the centralized exchange because it does not require KYC (know your customer) a way centralized exchange usesntheir customers details for verification, this can lead to your identity being exposed.

Is CEX more disadvantageous than DEX? I don't think so, if CEX has more downsides, why is everyone rushing to use it? It can be said that almost any investor, trader has at least one account on centralized exchanges and most people will use it for their needs. If judged fairly, DEXs have more downsides and limitations, and that's why people are still not using DEXs widely.

People criticize CEX because it requires KYC, which makes them lose their privacy, other than that I don't see any other reason. The exchange should only be used for exchange and anyone using it to store assets is stupid because that is not its mission.

Dr.Bitcoin_Strange

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Although, at present, some CEX can be said to have a good reputation because they have been able to prove themselves worthy to their thousands of customers, one cannot yet determine what can happen in the future with those exchanges. A reputable and trusted exchange can possibly go bankrupt, get hacked, or experience other bad incidents that can cause it to shot down in the future. With CEX, investors funds are never 100% safe, which is why it's usually advised for one to store their coins in a self-custodial wallet. In terms of security and privacy, it is advisable that one trade their coins mostly on Dex because you will not need to pass some KYC like on CEX. Just that CEX usually has more liquidity than DEX.

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You might know the difference already CeX or centralized exchange is a platform owned and operated by a single entity acting as an intermediary between buyers and sellers according ledger.com while Dex is Decentralized Exchange usually community owned through DaO but you dont need deposit like Cex did or direct peer-to-peer cryptocurrency transactions to take place without the need for an intermediary

Whose the better liquidity in my opinion is Cex, Big CeX like Binance usually has a lot of liquidity and tight spread but in today Dex you can use dex aggregator like 1nch or DodoEx to route your transaction at best rate.

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Quote from: Owagee on August 01, 2023, 11:37:23 AM

Quote from: nelson4lov on July 31, 2023, 10:03:19 PM

You'd have to move the thread to altcoin discussion. Should be more appropriate given that it's about DEX.

~Snipped

I don’t ignore uniswap, just turned off by their limited liquidity. Unlike cex, DEX typing have lower liquidity due to the absent of market makers and order books yeah. Don’t you think this can result in wider spreads between buying and selling prices? And prolly a potentially slippage when executing larger trades ??

Yes, Liquidity has been one of the major issues with DEX. Uniswap made some head way with its liquidity mining program + rewards LP some fees earned by the protocol but it didn't really solve the problem and the spreads are still not tight. Trading larger amount results in wider spreads. Imo, it's still an evolving narrative and I won't say it's a major success yet until liquidity is as seamless as CEX market making is. Still a long way to go but a step taking in the right direction.

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It is not possible to accurately judge which is better CEX or DEX, there is no perfect platform, each of them has a lot of disadvantages and features.

For example, with regard to security, it is certain that DEX is safer than CEX, but at the same time it lacks many other features such as speed, ease of use, large liquidity, daily trading volume, and low trading fees that CEX provides.

There are some DEXs that offer good liquidity but the fees are high, especially on networks like Ethereum.

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I think it's a rhetorical question, since sometimes it's about understanding the Cex, Dex concept, if you know how it works, each one will find the answer.

That is, it is better perhaps to mention "I am using "x" ", because maybe you thinks; "yes, I understands that it is a Dex", and it turns out that it is not, many believe that the best exchange is the most popular or the that you have more trust in certain communities, like in this forum, but you determine that.

Greater liquidity, confidence, etc., are only a part of your decision, understanding that, you can use a CEX under the criteria that this implies, but the mistake is to fall for a CEX for offers, low fees or because it is popular and not you have no idea what CEX stands for.

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Quote from: Owagee on July 31, 2023, 09:53:25 PM

Which platform do we think is more reputable and have good track record of security? Does either of them have good liquidity?

Which is old, has good reviews, and definitely has good liquidity. Whether it's CEXs or DEXS, such factors are necessary to keep in mind before depositing on them. Many scammers could easily copycat other exchanges as many source codes are open source, so they might trap you into many offers while they might not have enough funds or liquidity.

So, choose wisely before depositing, and DYOR too. Because relying on members or others answers will not just make you knowledgeable but could also lead you off track, backup your knowledge you get from members with facts and proofs too.

Owagee

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Quote from: nelson4lov on July 31, 2023, 10:03:19 PM

Quote from: Owagee on July 31, 2023, 09:53:25 PM

Which platform do we think is more reputable and have good track record of security? Does either of them have good liquidity?

You'd have to move the thread to altcoin discussion. Should be more appropriate given that it's about DEX.

For DEX, I recommend popular ones like Uniswap since their code has been fully audited (this doesn't mean it's hack-proof btw). CEX is not recommended except you need quick on/off ramps fiat services which most CEX offer out of the box. For DEX recommendations, Popular ones like Uniswap, 1inch, etc should do just fine.

I don’t ignore uniswap, just turned off by their limited liquidity. Unlike cex, DEX typing have lower liquidity due to the absent of market makers and order books yeah. Don’t you think this can result in wider spreads between buying and selling prices? And prolly a potentially slippage when executing larger trades ??

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Quote from: Aanuoluwatofunmi on August 01, 2023, 06:48:45 AM

If you need security and privacy in its highest order, then go for a decentralized means of storage, using a centralized exchange will intrude into your private informations, they can be hacked or turn a scam ad government can regulate them against your wish.

Neither centralized or decentralized exchanges should be used for storage, whether you care about privacy and use a decentralized exchange or you don't care about that and you use a centralized exchange, your funds should be moved into your self custody wallet after trading, wallets like Electrum, Sparrow or BlueWallet.

Quote from: kro55 on August 01, 2023, 06:24:41 AM

If DEX is superior to CEX, why do people still trust CEX more? Even if there are some big whales holding a large amount of bitcoin, they will choose centralized exchanges as the place to sell and not a decentralized exchange.

People don't trust centralized exchanges more, they know their funds are at risk of confiscation whenever they trade in centralized exchanges, but people use centralized exchanges because it was the only type of exchange they were introduced to when they started trading crypto, so they now find centralized exchanges more convenient. People will trade large amount of BTC on centralized exchanges just because of they have more liquidity.

Aanuoluwatofunmi

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Quote from: Owagee on July 31, 2023, 09:53:25 PM

Which platform do we think is more reputable and have good track record of security? Does either of them have good liquidity?

If you need security and privacy in its highest order, then go for a decentralized means of storage, using a centralized exchange will intrude into your private informations, they can be hacked or turn a scam ad government can regulate them against your wish.

When we talk about decentralized exchange and centralized exchange, they both look good in appearance to the the eye but the real fact about them are not from what we can just ordinarily see, but what they were made up of, with decentralized wallet you're in charge while if centralized they are in charge but know this that not your keys not your coins.

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Quote from: Abu-Naim on August 01, 2023, 04:41:31 AM

Quote from: Owagee on July 31, 2023, 09:53:25 PM

Which platform do we think is more reputable and have good track record of security? Does either of them have good liquidity?

CEX are mostly use for trading that is why they might have more liquidity than DEX, aside from that they have no advantage over DEX.

CEX is very poor in terms of security due to their selfishness, they wanted to be in control of all their users' funds which makes it easier for them to go with the funds anytime they want.

DEX gives a chance to control your wealth as you wish.

Always avoid CEX.

If you talk about the privacy and safety of our assets, DEX outperforms CEX, but in terms of other services, DEX cannot compete with CEX. CEX offers more trading pairs, cheaper trading fees and simpler knowledge to use...and it provides a more favorable trading environment for day traders. If DEX is superior to CEX, why do people still trust CEX more? Even if there are some big whales holding a large amount of bitcoin, they will choose centralized exchanges as the place to sell and not a decentralized exchange.

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Quote from: Owagee on July 31, 2023, 09:53:25 PM

Which platform do we think is more reputable and have good track record of security? Does either of them have good liquidity?

Going with the typical way of determining about their liquidity, just look at the websites like coinmarketcap on this category.

So that's the list for dex and cex and if it's about the track of the record, you're able to get some ideas from the other members posted already on this thread. It's based on what they're using and what they've been with for a long time. And in terms of security, you need to remember that all of them can be targets and have vulnerability that will just be found out once an attack happens successfully.

GreatArkansas

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The only I hate about the centralized exchange is the user's fund is being controlled by the centralized exchange, once you already deposit your funds there, they already owned it and what you have is a "copy" of your balance which is stored on their own centralized database.

You can't guarantee 100% security here even on a decentralized exchange because decentralized exchange mostly run by smart contracts and some smart contracts could have vulnerabilities.

Using popular or most reputable and a DEX that is already here in the market for long is better to use.

20kevin20

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Quote from: Abu-Naim on August 01, 2023, 04:41:31 AM

CEX are mostly use for trading that is why they might have more liquidity than DEX, aside from that they have no advantage over DEX.

CEX is very poor in terms of security due to their selfishness, they wanted to be in control of all their users' funds which makes it easier for them to go with the funds anytime they want

CEXs provide a lot of advantages over DEXs, most of them convincing users due to how convenient they are. DEXs are way less easier to use and sometimes even require a little more knowledge to use than your average CEX. If DEXs were as easy to use as CEXs, everyone’d use them.

Poor security for CEXs isn’t caused by selfishness. It’s just that there’s pretty much no way to create a CEX that’s non-custodial, provides liquidity, so many trading pairs, the quickness of a CEX, customer support etc all while still being non-custodial. It’s either they go the tough route and provide less advantages than a CEX and simultaneously their profit drops too, or they just follow the typical business model and offer users the best user experience but you’re not in control as much anymore.

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Quote from: Owagee on July 31, 2023, 09:53:25 PM

Which platform do we think is more reputable and have good track record of security? Does either of them have good liquidity?

CEX are mostly use for trading that is why they might have more liquidity than DEX, aside from that they have no advantage over DEX.

CEX is very poor in terms of security due to their selfishness, they wanted to be in control of all their users' funds which makes it easier for them to go with the funds anytime they want.

DEX gives a chance to control your wealth as you wish.

Always avoid CEX.

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Quote from: Owagee on July 31, 2023, 09:53:25 PM

Which platform do we think is more reputable and have good track record of security? Does either of them have good liquidity?

I have had bad experiences with DEX, though almost at all times it was my mistake but it has higher chances of mistakes being made by users. At one point, I lost all the coins I have as someone got hold to my private key somehow. If those coins were on a CEX, it would have been difficult for any hacker to steal as it would have multiple degrees of security. Though there are some cases of Exchanges going scam, there are good options that are more transparent and secure at the moment. I'd keep my coins on CEX and make my trades on them anytime.

Cynthia_sinach042

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Quote from: BALIK on August 01, 2023, 03:46:09 AM

Both DEX and CEX have their own advantages and disadvantages but in general CEX still prevails because of the services it provides more complete and convenient than DEX. DEX is just the right place for those who love privacy and value security, the rest are traders, simple, easy, like cheap fees… and don't value privacy, CEX is the one place for you. In terms of liquidity, CEX is obviously a lot bigger than DEX, so if judged fairly, CEX is dominating most of the market and 90% of investors are using CEX instead of DEX.

Both CEX and DEX has good and bad side you are right on that but CEX which centralized exchange has more disadvantages than the DEX decentralized exchange.

And in line with what the OP meant which was about how secured it is then it has to be Decentralized exchange, it's more secured than the centralized exchange because it does not require KYC (know your customer) a way centralized exchange usesntheir customers details for verification, this can lead to your identity being exposed.

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Quote from: Owagee on July 31, 2023, 09:53:25 PM

Which platform do we think is more reputable and have good track record of security?

DEX has it in this category as it can't often be the target of hackers because it does not have the central storage point to keep people's assets, unlike CEX. This makes it less attractive to hackers unless they have another reason(s) to perpetrate their evil.

Quote

Does either of them have good liquidity?

Both are trying to build their liquidity but CEX has it here, the CEX's liquidity is far more, and it can't be compared to that of DEX. The reason is the businesses and convenience that CEX builds around its networks which attract more participants. Also, the users of DEX rely solely on the liquidity provided by the users, but CEX could create additional liquidity through strong external financial sources for profits.

BALIK

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Quote from: Owagee on July 31, 2023, 09:53:25 PM

Which platform do we think is more reputable and have good track record of security? Does either of them have good liquidity?

Both DEX and CEX have their own advantages and disadvantages but in general CEX still prevails because of the services it provides more complete and convenient than DEX. DEX is just the right place for those who love privacy and value security, the rest are traders, simple, easy, like cheap fees… and don't value privacy, CEX is the one place for you. In terms of liquidity, CEX is obviously a lot bigger than DEX, so if judged fairly, CEX is dominating most of the market and 90% of investors are using CEX instead of DEX.

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Quote from: Owagee on July 31, 2023, 09:53:25 PM

Which platform do we think is more reputable and have good track record of security? Does either of them have good liquidity?

Without more info from you, i can't just tell you that dex has more reputation and security because there are many dex that use smart contracts and are a product of DeFi, and many of them aren't truly decentralized nor exactly safe, but since you posted this in the BTC discussion board, i believe you are looking for p2p exchanges for trading BTC.

You have options for truly decentralized p2p exchanges like Bisq, AgoraDesk, RoboSats and others, in terms of security, they are more secure because there isn't really a single point of failure and customers control their funds and trade p2p, but most people use cex because it has more liquidity, even though it is less secure and private than a true p2p exchange like Bisq for example.

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Obviously, CEXs have far more liquidity than DEXs but are more disastrous when exploited. Central limit order books (CLOBS) are simply far more capital efficient than automated market makers(AMMs, which DEXs like Uniswap use).

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Both have their own advantages and disadvantages. If I want to buy a bigger amount of Crypto, I will go with a CEX. It has less fee as compared to the slippage on DEX and also the chance of the transaction getting failed. On the Ethereum layer, one transaction of this type can cost 40-50 bucks. If I want to pay somewhere using Crypto, that also I can do with Binance and most of the companies have started using Binance Pay, which allows instant payments on Crypto Network without paying any fee.

DEX can be used for trades on-chain and when you want to invest in a project which isn't listed on CEX as of now.

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Quote from: Owagee on July 31, 2023, 09:53:25 PM

Does either of them have good liquidity?

On DEX:
On 1inch BSC chain, you can swap 1 000 000$ on BTC/USDT trading pair with only 0.23% slippage. 10 000 000$ with 4% slippage.
On 1inch ETH chain, you can swap 100 000 000$ on ETH/USDT trading pair with 3.7% slippage, 1 000 000$ with 0.18% slippage.

On CEX:
On binance spot you can buy 6 000 000$ worth of bitcoin with only 1% slippage.

I don't think any of us need more liquidity (and we're talking about a single trade here, buying/selling in smaller chunks would have a significantly smaller impact on the price)

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Quote from: Owagee on July 31, 2023, 09:53:25 PM

Which platform do we think is more reputable and have good track record of security? Does either of them have good liquidity?

Dex is the best,as it gives you high level of privacy. Unlike Cex that is not private and needs KYC for you to use it. Cex only have am advantage for traders because they have so many cryptocurrency and you can convert it to your local currency,and I think that these are the main reasons why people are using Cex. Cex has so many disadvantages like,users can be tracked by the government, it relies on third party for transactions and the they can easily sell out your information to whoever pays for it. We have some good Dex like bisq and Agora Desk,you can try it out. Big Cex has more liquidity than Dex because some small Cex depends on the big ones by keeping their funds with the big ones.

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Quote from: nelson4lov on July 31, 2023, 10:03:19 PM

Quote from: Owagee on July 31, 2023, 09:53:25 PM

Which platform do we think is more reputable and have good track record of security? Does either of them have good liquidity?

You'd have to move the thread to altcoin discussion. Should be more appropriate given that it's about DEX.

Not true. You have always been able to trade Bitcoin using a DEX... Uniswap and all them altcoin-swapping platforms don't lay claim to being the first DEXes around, you know. They may have popularised liquidity pool style AMMs but certainly weren't the first, nor the only ones.

They're not even half as decentralised as p2p exchanges like Bisq. Non-custodial is probably the only aspect most DEXes can claim accurately.

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Quote from: Owagee on July 31, 2023, 09:53:25 PM

Which platform do we think is more reputable and have good track record of security? Does either of them have good liquidity?

First let's ask yourselves why you did not search?

Because with searching, you will get enough answers for the basic questions and won't have to ask them here. You can ask after doing your due diligent research and got some ideas. You can describe what you understood, what you did not and what you are confusing. Your topic is purely questioning without any signal that you already did your research.

CEXs usually have higher trading volume than DEXs but not all CEXs have higher trading volume than DEXs.

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I’m terms of security and reputation it will always be the Dex since unlike cex it does not have a central body controlling it. Meaning users funds won’t be confiscated by the exchange whenever an unusual activity is detected.

If you’re the type that takes privacy and security seriously then you probably would go with Dex, I would love to believe that the main reason why a lot of people still use cex is because of the features that they offer and still pretty much easy to navigate which usually draws the attention of newbies.

In all Dex has more security and privacy than Cex.
If you wish to learn more then check out this link

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Quote from: Owagee on July 31, 2023, 09:53:25 PM

Which platform do we think is more reputable and have good track record of security? Does either of them have good liquidity?

You'd have to move the thread to altcoin discussion. Should be more appropriate given that it's about DEX.

For DEX, I recommend popular ones like Uniswap since their code has been fully audited (this doesn't mean it's hack-proof btw). CEX is not recommended except you need quick on/off ramps fiat services which most CEX offer out of the box. For DEX recommendations, Popular ones like Uniswap, 1inch, etc should do just fine.

Owagee

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Which platform do we think is more reputable and have good track record of security? Does either of them have good liquidity?

Topic: Now let’s talk about CEX or DEX (Read 192 times)