Weighing the Pros and Cons: Perpetual Trading on CEX & DEX

Eternad

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Quote from: Phoenixtrader on June 18, 2024, 03:42:18 PM

But if security and decentralization are key, a DEX like ZKX is the better choice.

What's your experience with perpetual trading across these platforms? You prefer dex or cex..

I don’t know ZKX but most of the hacking incidents that resulted to loss funds are from DEC due to poor security of their code that leave a loophole for exploit. DEX is indeed secured compared to CEX if their code is foolproof but it’s very hard to guarantee and verify that as regular user alone.

I’m not recommending CEX over DEX but the current DEX still not perfect and still subject for potential exploits which doesn’t have insurance feature unlike CEX offers.

Iranus

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Quote from: Phoenixtrader on June 19, 2024, 05:38:50 AM

Quote from: _act_ on June 18, 2024, 04:01:49 PM

Quote from: Phoenixtrader on June 18, 2024, 03:42:18 PM

CEXs offer leverage, user-friendly interfaces, and advanced tools, but DEXs provide security, decentralization, and control over funds. While CEXs have better liquidity, some DEXs like ZKX are catching up. Ultimately, it depends on personal priorities and trading styles. If leverage and UX matter most, CEXs might be the way. But if security and decentralization are key, a DEX like ZKX is the better choice.

What you called DEX are not decentralized at all. You can browse and read about how they work and see how centralized they also are but not completely centralized like those centralized exchanges but also they are not decentralized. If it is about security, those DEX can be hacked also. We have seen CEX that were hacked and also there have been DEX that were hacked.

Saw a thread here arguing dex are unhackable..I laughed it off ahah.. anyways which do you prefer using for traders. ??

As _act_ explained, those exchanges are also not completely decentralized and they can still be hacked, they are not quite as secure as you think. Not to mention, as you know, they have low liquidity and higher fees than top centralized exchanges like binance or biget. Everything is so clear, I think you already have your own answer instead of wanting everyone to confirm it again for you.

Once you want to become a trader and want to make money through spot or futures trading then I think you will have no better choice than centralized exchanges. CEX has large liquidity, many trading pairs, low trading fees as well as providing high leverage...clearly CEX is superior to DEX in this aspect, we should not deny that.

Dr.Bitcoin_Strange

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Well, if it comes to perpetual trading, I prefer centralized exchanges because they have much liquidity and tools to help me. Since I started using my favorite exchange, I don't think I have encountered any issues. Although I have faced the issue of immediate liquidation on the coinstore exchange, I couldn't just explain how it happened, but I know it was not my fault. I contacted their support, but no valid reason was given. Since I have been using Digifinex exchange, I just feel comfortable with the exchange and have not found any need to explore new exchanges, although I tried Bybit recently after a friend asked me to try out their AI, and I did get a valid result with that exchange.

While trading on any of those platforms, both CEX and DEX, you just have to be conscious because none of those exchanges is above being hacked.

EarnOnVictor

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Quote from: Phoenixtrader on June 19, 2024, 05:38:50 AM

Quote from: EarnOnVictor on June 19, 2024, 04:35:19 AM

Quote from: Phoenixtrader on June 18, 2024, 03:42:18 PM

When it comes to perpetual trading, I'm torn between centralized exchanges like Bitget, Binance, or Bybit, and decentralized exchanges like ZKX.

CEXs offer leverage, user-friendly interfaces, and advanced tools, but DEXs provide security, decentralization, and control over funds. While CEXs have better liquidity, some DEXs like ZKX are catching up. Ultimately, it depends on personal priorities and trading styles. If leverage and UX matter most, CEXs might be the way. But if security and decentralization are key, a DEX like ZKX is the better choice.

What's your experience with perpetual trading across these platforms? You prefer dex or cex..

Well said, and above all, the CEX has it, except for the security of your funds and some bad practices they do. Since I have many traditional brokers dealing with, I have only traded with Binance and I can say they have the technology but they are not fair at the same time. Many may not know but I am sure that Binance is a Bucket shop, they've reaped me off my money many times.

Having learned my lesson with them that they can't be trusted, I changed from using market orders to Limit orders, and I do this for both the Opening of my orders and for Stop loss/Take profit.

Actually I leaned towards Bitget perps recently due to binance high fees. Felt like I was trading for the cex ahah.. then someone pitched ZKX to me.. which prompted this thread.. needed to hear forum members experience using dex and cex for trading before exploring it.

I understand and good luck with that. But in this case, are you sure that ZKX is a decentralised exchange? You have to ascertain this to avoid issues for yourself. Many establishments often claim they are decentralised but are indeed centralised. If they can't be sincere with a simple thing like that, how can you trust them? I don't know ZKX so there is little I can say now, but drawing from the point that you switched exchanges due to the high fee of Binance is doubtful of ZKX because I have not seen decentralised exchange having an overall lower fee (including blockchain) than the centralised exchange.

Their mode of operation should differentiate this for you though.

Quote

Saw a thread here arguing dex are unhackable..I laughed it off ahah.. anyways which do you prefer using for traders. ??

Anything online is hackable or disruptable, only that decentralised system can be better secure since there are no central rights or claims on assets.

Phoenixtrader

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Quote from: EarnOnVictor on June 19, 2024, 04:35:19 AM

Quote from: Phoenixtrader on June 18, 2024, 03:42:18 PM

When it comes to perpetual trading, I'm torn between centralized exchanges like Bitget, Binance, or Bybit, and decentralized exchanges like ZKX.

CEXs offer leverage, user-friendly interfaces, and advanced tools, but DEXs provide security, decentralization, and control over funds. While CEXs have better liquidity, some DEXs like ZKX are catching up. Ultimately, it depends on personal priorities and trading styles. If leverage and UX matter most, CEXs might be the way. But if security and decentralization are key, a DEX like ZKX is the better choice.

What's your experience with perpetual trading across these platforms? You prefer dex or cex..

Well said, and above all, the CEX has it, except for the security of your funds and some bad practices they do. Since I have many traditional brokers dealing with, I have only traded with Binance and I can say they have the technology but they are not fair at the same time. Many may not know but I am sure that Binance is a Bucket shop, they've reaped me off my money many times.

Having learned my lesson with them that they can't be trusted, I changed from using market orders to Limit orders, and I do this for both the Opening of my orders and for Stop loss/Take profit.

Actually I leaned towards Bitget perps recently due to binance high fees. Felt like I was trading for the cex ahah.. then someone pitched ZKX to me.. which prompted this thread.. needed to hear forum members experience using dex and cex for trading before exploring it.

Quote from: _act_ on June 18, 2024, 04:01:49 PM

Quote from: Phoenixtrader on June 18, 2024, 03:42:18 PM

CEXs offer leverage, user-friendly interfaces, and advanced tools, but DEXs provide security, decentralization, and control over funds. While CEXs have better liquidity, some DEXs like ZKX are catching up. Ultimately, it depends on personal priorities and trading styles. If leverage and UX matter most, CEXs might be the way. But if security and decentralization are key, a DEX like ZKX is the better choice.

What you called DEX are not decentralized at all. You can browse and read about how they work and see how centralized they also are but not completely centralized like those centralized exchanges but also they are not decentralized. If it is about security, those DEX can be hacked also. We have seen CEX that were hacked and also there have been DEX that were hacked.

Saw a thread here arguing dex are unhackable..I laughed it off ahah.. anyways which do you prefer using for traders. ??

EarnOnVictor

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Quote from: Phoenixtrader on June 18, 2024, 03:42:18 PM

When it comes to perpetual trading, I'm torn between centralized exchanges like Bitget, Binance, or Bybit, and decentralized exchanges like ZKX.

CEXs offer leverage, user-friendly interfaces, and advanced tools, but DEXs provide security, decentralization, and control over funds. While CEXs have better liquidity, some DEXs like ZKX are catching up. Ultimately, it depends on personal priorities and trading styles. If leverage and UX matter most, CEXs might be the way. But if security and decentralization are key, a DEX like ZKX is the better choice.

What's your experience with perpetual trading across these platforms? You prefer dex or cex..

Well said, and above all, the CEX has it, except for the security of your funds and some bad practices they do. Since I have many traditional brokers dealing with, I have only traded with Binance and I can say they have the technology but they are not fair at the same time. Many may not know but I am sure that Binance is a Bucket shop, they've reaped me off my money many times.

Having learned my lesson with them that they can't be trusted, I changed from using market orders to Limit orders, and I do this for both the Opening of my orders and for Stop loss/Take profit.

shinratensei_

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depends on which DEX if it is those popular DEX with long standing reputation the point about security is fair enough because they have gone through various audits to eliminate bad codes, but what about the new DEX, the risk of contract breach is there if there's no extensive audits and even with audits sometime there's always possibility for things to go wrong you know.

some thing that i just feels like there should be improvements in DEX more specifically perpetual trading is the clunky interfaces (most platfome doesn't handle the fact that they interact on-chain very well, falling short in giving user good experience navigating their platform), lack liqudiity (stark contrast compared to most of cex) and sometime making an order takes long time because it utilizes on-chain interaction, usually some DEX tries to eliminate that by using custodial means like depositing your money to their contract, but that also made the entire point being DEX rather useless.

so, personally I have no preferences just use whatever is best, mostly just follows where the liquidity is abundant also carefully choose cex that have emergency funds for user fund protection, that's it.

GreatArkansas

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Quote from: Phoenixtrader on June 18, 2024, 03:42:18 PM

(....)
What's your experience with perpetual trading across these platforms? You prefer dex or cex..

It really depends on the trader. Since most of the centralized exchanges right now already require you to undergo KYC.
So if you want an easy-to-use exchange and are not concerned with centralization and security go with CEX - but I advise is to deposit only a small amount like what you will use in trading.
If you are afraid of CEX - DEX is your friend especially if you have some problem with your jurisdiction regulation, DEX will fit to you as you have more control in you and no issue about centralization at all.

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I don't know what security you are talking about. I have seen "Decentralized" platforms get hacked. Those exchanges are not 100% decentralized. The sad truth is that when it comes to Perpetual trading. Liquidity and the speed of execution of an order are very important, which centralized exchanges perform in much better their counterparts.

You also forgot to talk about on chain fees which can prove to be so high as compared to the trading fees in Centralized exchanges especially with chains such as Ethereum

_act_

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Quote from: Phoenixtrader on June 18, 2024, 03:42:18 PM

CEXs offer leverage, user-friendly interfaces, and advanced tools, but DEXs provide security, decentralization, and control over funds. While CEXs have better liquidity, some DEXs like ZKX are catching up. Ultimately, it depends on personal priorities and trading styles. If leverage and UX matter most, CEXs might be the way. But if security and decentralization are key, a DEX like ZKX is the better choice.

What you called DEX are not decentralized at all. You can browse and read about how they work and see how centralized they also are but not completely centralized like those centralized exchanges but also they are not decentralized. If it is about security, those DEX can be hacked also. We have seen CEX that were hacked and also there have been DEX that were hacked.

Phoenixtrader

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When it comes to perpetual trading, I'm torn between centralized exchanges like Bitget, Binance, or Bybit, and decentralized exchanges like ZKX.

CEXs offer leverage, user-friendly interfaces, and advanced tools, but DEXs provide security, decentralization, and control over funds. While CEXs have better liquidity, some DEXs like ZKX are catching up. Ultimately, it depends on personal priorities and trading styles. If leverage and UX matter most, CEXs might be the way. But if security and decentralization are key, a DEX like ZKX is the better choice.

What's your experience with perpetual trading across these platforms? You prefer dex or cex..

Topic: Weighing the Pros and Cons: Perpetual Trading on CEX & DEX (Read 109 times)