Topic: Why are centralized exchanges still dominating the crypto space? - page 5. (Read 13091 times)
April 14, 2019, 06:54:45 AM
I think we will see some more attention towards decentralized exchanges since the traditional ones are getting tougher and harder on there rules. Progress takes time and it will get more traction if it gets more user friendly. The sooner the better ; )
April 14, 2019, 06:39:56 AM
Centralized exchanges are still dominating the market because the decentralized ones are a bit slow and clunky, and they are not yet a good enough trade-off for the convenience centralized exchanges provide. But as time goes by and scaling solutions are found, along with user-friendliness, there will be a shift to decentralized exchanges. I'm not sure what the market share will be for them, though.
April 14, 2019, 06:31:27 AM
Now the real question is why this is happening, since after all, Satoshi intended Bitcoin to be free from middleman or third parties?
bitcoin IS decentralized and free from middleman or third parties. the fact that some people choose to trade bitcoin and do that on centralized exchanges does NOT change this fact.
as for why they choose them is mainly because no matter how much you try some people will never want to change so they will keep going back to their centralized ways that they are used to. any other market is centralized like stocks market so they want to have the same feeling so they choose centralized exchanges. these types of people are only in here for profit making.
April 14, 2019, 05:59:10 AM
Ever since Bitcoin launched back in 2009, the rise of centralized exchanges has been inevitable. A few years later, and now the whole crypto market is dominated by centralized exchanges. While there have been many alternatives to the solution (such as decentralized exchanges), people are still performing trades at centralized entities.
Now the real question is why this is happening, since after all, Satoshi intended Bitcoin to be free from middleman or third parties? Depending on an exchange or custodian, greatly defeats the purpose of true decentralization. Knowing how oppressive some governments are, it'll be easier for them to stop usage of crypto whenever they want to by just targeting centralized exchanges.
Nonetheless, what are your thoughts about this?
In fact i see a few reasonsNow the real question is why this is happening, since after all, Satoshi intended Bitcoin to be free from middleman or third parties? Depending on an exchange or custodian, greatly defeats the purpose of true decentralization. Knowing how oppressive some governments are, it'll be easier for them to stop usage of crypto whenever they want to by just targeting centralized exchanges.
Nonetheless, what are your thoughts about this?
People know little about decentralized exchangers. So their popularity is not high. The main disadvantages are volume and speed of exchanges.
With centralized exchangers everything is the opposite. In addition their number is growing and they are everywhere. Financial groups want to make money and the sooner they do it better for them. People who have influence will always put their conditions on any market. That is why centralized exchangers are filled with volumes and price.
It just is directly related to human behavior. You probably know about the Pareto rule (80/20)? When people are guided by emotions they relate to more people who are easy to manipulate.
April 14, 2019, 05:05:24 AM
Try Blocknet and BlockDX
https://blocknet.co/
They have had a fully functional DEX running for months. I use it all the time.
https://blockdx.co/trade-history
Atomic swaps wallet to wallet, no KYC, automated setup, fully decentralized.
https://blocknet.co/
They have had a fully functional DEX running for months. I use it all the time.
https://blockdx.co/trade-history
Atomic swaps wallet to wallet, no KYC, automated setup, fully decentralized.
April 14, 2019, 12:22:43 AM
i think the best way to get the answer to your question is if you go ahead and try the decentralized exchanges for yourself.
my observation is that nobody really trusts the centralized exchanges anymore and it has been the case for a couple of years now but the problem is that the alternative (being the decentralized exchanges) is not yet mature enough to be able to compete and eventually replace their centralized counterparts.
so until that day the centralization remains dominant mainly because we have no other choice.
my observation is that nobody really trusts the centralized exchanges anymore and it has been the case for a couple of years now but the problem is that the alternative (being the decentralized exchanges) is not yet mature enough to be able to compete and eventually replace their centralized counterparts.
so until that day the centralization remains dominant mainly because we have no other choice.
April 13, 2019, 08:50:18 PM
Ever since Bitcoin launched back in 2009, the rise of centralized exchanges has been inevitable. A few years later, and now the whole crypto market is dominated by centralized exchanges. While there have been many alternatives to the solution (such as decentralized exchanges), people are still performing trades at centralized entities.
The main reason for people flooding into centralized exchange is the ease of use and nothing else, there are some local exchanges in government controlled countries where they are set up as a centralized exchange but they are allowing users to purchase and sell the coins using P2P method where the centralized exchange acts as an escrow service and the security features in the decentralized exchange we now have is not that great as we have already seen many hacks and these may the reason we do not see much volume in those exchanges. 
April 13, 2019, 12:59:52 PM
Many factors for me personally, most of centralized exchanges have better UI and better support team for problem solving. They are more easy to use for me and the coins are not just from a single blockchain make me more comfortable. Listing decision is also a way to avoid cutomers from a scam project.
April 13, 2019, 12:54:02 PM
Centralized Exchanges CE still dominating Crypto because of liquidity, so it attract traders but Im sure CE will disappear soon with rise of Decentralized Exchanges DEX and Binance already realized this fact so they are working to launch a DEX.
Traders are leaving CE slowly due continuous changing of CE TOS , ask for more personal info ID etc.... Like what Bittrex did with its users , they change TOS suddenly and took Cryto coins as hostage until user provide complete ID + selfie above it
, Funny fact about Centralized Exchanges you can deposit unlimited amount of cryptocurrencies such as btc eth .... but you cant withdraw until you verified your account then you cant withdraw limited amount daily , CE are same thing as Banks .... above all that your coins could disappear if CE get hacked or owner exit scam like mtgox.
Your Key Your Coins , thats it.
Traders are leaving CE slowly due continuous changing of CE TOS , ask for more personal info ID etc.... Like what Bittrex did with its users , they change TOS suddenly and took Cryto coins as hostage until user provide complete ID + selfie above it
, Funny fact about Centralized Exchanges you can deposit unlimited amount of cryptocurrencies such as btc eth .... but you cant withdraw until you verified your account then you cant withdraw limited amount daily , CE are same thing as Banks .... above all that your coins could disappear if CE get hacked or owner exit scam like mtgox.Your Key Your Coins , thats it.
April 13, 2019, 11:58:32 AM
Ever since Bitcoin launched back in 2009, the rise of centralized exchanges has been inevitable. A few years later, and now the whole crypto market is dominated by centralized exchanges. While there have been many alternatives to the solution (such as decentralized exchanges), people are still performing trades at centralized entities.
Now the real question is why this is happening, since after all, Satoshi intended Bitcoin to be free from middleman or third parties? Depending on an exchange or custodian, greatly defeats the purpose of true decentralization. Knowing how oppressive some governments are, it'll be easier for them to stop usage of crypto whenever they want to by just targeting centralized exchanges.
Nonetheless, what are your thoughts about this?
Now the real question is why this is happening, since after all, Satoshi intended Bitcoin to be free from middleman or third parties? Depending on an exchange or custodian, greatly defeats the purpose of true decentralization. Knowing how oppressive some governments are, it'll be easier for them to stop usage of crypto whenever they want to by just targeting centralized exchanges.
Nonetheless, what are your thoughts about this?
Yes, although there were many centralized cryptocurrency exchanges have been hacked, it still dominating crypto space.
I think it is because the speed are faster than decentralized exchange. Another thing is, you can store multiple coins in most centralized exchanges.
April 13, 2019, 09:31:52 AM
Centralized exchanges are still more popular than centralized ones. Users prefer centralized exchanges because they are easier to use and facilitate their business. Centralized exchanges help new users to better adapt to the crypto market.
I prefer decentralized exchanges because the risk of hacking is low and because I inspire more confidence when I know that no exchange is monitored by anyone.
I think everyone should choose decentralized exchanges and choose safety, not ease of use.
I prefer decentralized exchanges because the risk of hacking is low and because I inspire more confidence when I know that no exchange is monitored by anyone.
I think everyone should choose decentralized exchanges and choose safety, not ease of use.
April 13, 2019, 09:18:17 AM
People feel more secured and convenient on centralized exchange over decentralized exchange and also wr can find lot of trading pairs on cex with huge trading volume so new traders are also going behind them.But one good thing is they never allowed one centralized exchange to dominant since crypto currencies were invented.
April 13, 2019, 09:13:52 AM
People are used to having support to fix any ussies that they have encountered, decentralized exchange is good but it's to technical for newbies, they want a support that they can rely on in case they want a tutorial on how to trade, and I guess I'm one of this people.
April 13, 2019, 09:11:57 AM
I personally don't like the ui of most decentralized exchanges, they often appears to be so confusing and very difficult at times, whereas, in centralized exchanges the ui are very sleek and appealing to use, without any help one can easily navigate their way around to get started, same can not be said about decentralized exchanges, just my personal experience and observation.
April 13, 2019, 09:06:22 AM
decentralized exchange is not suitable for those who practice ultra-fast automated trading. also coins that do not use smart contracts are missing from the listing in decentralized exchange.
April 13, 2019, 09:00:41 AM
I think there are two main reasons people still use centralized exchange over decentralized:
1. Centralized exchange interface is designed quite beautifully and easier to use. Besides, many people still do not understand smart contracts.
2. People still feel safer when using centralized exchange, in case of disputes, they still think they can get money back. But when using decentralized exchange, they must preserve their personal keys, this is probably still a fear for them.
1. Centralized exchange interface is designed quite beautifully and easier to use. Besides, many people still do not understand smart contracts.
2. People still feel safer when using centralized exchange, in case of disputes, they still think they can get money back. But when using decentralized exchange, they must preserve their personal keys, this is probably still a fear for them.
April 13, 2019, 08:58:54 AM
I think it is more secure than decentralized floors and managed by floor owners, which may be cheaper and have more updates from the floor.
April 13, 2019, 08:54:54 AM
Apart from better performance and more features, I think the main reason is because the centralized exchange provides an option to trade to fiat and withdrawal to local bank accounts.
Some large exchanges often even do various ways to attract traders to trade in their exchange such as promotions, giveaways, trading competition etc. Thus, the interest of traders is more active in the CEX than DEX.
Some large exchanges often even do various ways to attract traders to trade in their exchange such as promotions, giveaways, trading competition etc. Thus, the interest of traders is more active in the CEX than DEX.
April 13, 2019, 08:50:03 AM
Nonetheless, what are your thoughts about this?
I guess there are more traders who "trust" centralizes exchanges because they feel they are safe with them, specially centralizes exchange in the top 10. However, we can't discount that fact that they are prone to manipulation and even hacks.
Personally though, I used a mix of exchanges in my trading, take advantage of most centralizes exchanges feature, but I don't put all of my funds in my exchange wallet. And then I go with decentralizes because there are coins that is so cheap and I can play around with just small capital and then get out as fast as I can get. Sometimes I sell them all on that DEX otherwise I will transfer it to centralize exchange and continue my trading.
April 13, 2019, 08:47:46 AM
Maybe because you can't deal with fiat gateways in a completely decentralized way...
Most people still use exchanges to exchange from/to fiat money...
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