Topic: Why DEX (Decentralized Exchange) still unpopular? - page 6. (Read 1428 times)

It seems to me that in order to open a decentralized exchange, we need serious investments. And who will finance the maintenance of stable operation of the exchange? Therefore, such exchanges are not popular.

The biggest problem is volume. None of existing DEX could provide high volume. That's it. Imagine if you are a big whale, for sure volume is the main factor and on DEX volume is small even for me

Inability to restore access, For example, due to lack of a KYC process and the ability to cancel a transaction in the event of a broken passwords or loss of a private key, the user cannot recover his or her data and return the assets. Chargeback and refund procedures are incompatible with a distributed registry. Users who have committed an operation by mistake or have lost control over their keys are not able to recover their access.

Yes, besides that, in the decentralized exchange, the pair is not for all of the cryptocurrency, but it's only for the tokens although some decentralized exchange has the btc-token, altcoin-token. But still the popularity of decentralized exchange cannot compete with the centralized exchange, and people still prefer to trade in the centralized exchanges. Maybe if the decentralized exchange can add more pair for btc and altcoin and not just for the tokens, people will try to use it, and I think people will like to trade in the decentralized exchanges.

Back when Etherdelta was still the top DEX, many people who tried it find ED as ugly, slow, and complicated. I think many still have that notion even though a lot of the DEX's today have improved in terms of UI and speed.

I think most traders don't think about security until their funds are stolen. But at the same time, as you said, decentralized exchanges scare them off with a small volume of trading. I think that decentralized exchanges are still ahead and with the growth of the number of such platforms, competition will begin to increase, the volume of trading will increase and professional traders will come.

Stakenet (XSN) are aiming to fix these issues with their upcoming DEX which utilises Lightning Network and their one click Lightning Swap solution.

The DEX will run straight from their Multi-Currency Lightning Wallet so no need to move your assets anywhere and the entire DEX is hosted on their Masternode Network. All trading fees earned by the DEX are paid back to the Masternode owners running the DEX too. Their Lightning Swap tech means trades are instant so will have the speed of a CEX while ensuring the security of a DEX, they also have built in privacy options like TOR.

Stakenet have 2 plans to ensure liquidity first up is the DEX Aggregator which will provide portals into other DEXs to ensure the best liquidity and rates can be found in one place.

The second which I believe is the killer feature is that due to the nature of their wallet and the Lightning Swap tech they have also built in Cross-Chain payment tech. What this means is that any asset they support can be used as payment for another asset. So for example if a retailer accepts BTC then you can pay that retailer in any asset supported by their Multi-Currency Lightning Wallet and during payment the asset will be instantly converted to BTC for the retailer. This suddenly gives all these assets a great new use case of being used as payments at an ever growing list of retailers worldwide and which project wouldn't want that. As such Stakenet are forming partnerships with assets that they list so that those projects nudge their communities to use Stakenets DEX over any other exchange out there which will provide the liquidity needed for the instant cross-chain swaps.

With Stakenet DEX there is no KYC, no accounts, no geo-blocking, no waiting for deposits, no withdrawal limits, no converting assets into arbitrary tokens, no problems. Just straight P2P trading, instantly without the hassle. They are also working on something they are calling Cold Exchanging, which is trading directly from hardware devices like Trezor and Ledger.

When presented with that why would you use anything else?

Stakenet DEX is just one area they are working on, though it is also near release hence the focus on it but it's defs worth checking out the other stuff they have going on too.

Because this is a general internship exchange and there are many shit-coins listed here. Many people do not use exchange platforms like Dex because it is not accessible. It is only a listing option for Tokens after the project ends. Investors think that top exchange options are always preferred, so they believe that DEX should not choose.

Low volume is the primary reason why DEX are still unpopular amog the traders because people want their trade to be completed instantly so they are going for the centralized exchange even if there are chances of hacking are there.

But in future it will change when people prefer security over the volume.

even Binance launch Decentralized exchange still make dex era not make trader interest, like you explain above DEX platform is have low volume trade that's why people still comfortable with Centralized exchange than DEX

i am not sure that this is the only reason but in my opinion, centralized exchanges manipulates and increases the volume of the coins in their platforms. and since there is no owner of decentralized exchanges, volumes are very low.

I'm personally very confused at DEX not continuing trading there, too many insider played are rarely fully played by traders so IMO also maybe PPL think the same as me so it won't be popular.

i agree with yours, DEX exchange not have a big volume trade every day.
same like Binance DEX until now just still low volume trade on it, i don't know how Binance DEX will perform next time but i think if it Binance that mean it is seuccess.
i think people here is same like me when you hear Binance the first think you have is success.
i just hope it.

I think traders don't care, or even don't know the pros and cons of using a centralized or decentralized trading platform. their only goal is to make a lot profit, as long as the trading platform is fully responsible for the deposited funds, they trust and that is enough for them.
traders will prefer to use a trusted exchange no matter which system are used, rather than using scam exchanges because there are lots of scams exchange out there.

Trading on a dex exchange is the slowest type of exchanging your coin as it may remain in order forever unlike a centralized one. Moreover, there are many decentralized exchanges and some of them have very poor user interfaces which makes everything complicated to the new user unlike centralized exchanges that have user friendly interfaces.

i agree with you, this is just the habbit from traders who just use centralized exchange for so on and on.
this condition maybe sometimes will change because when DEX exchange more bigger and more trade volume it will make trader move to DEX.
just my preditcoin.

More convenient but in terms of security, it's not secured as centralized exchange.
I mean, based on my experience using decentralized exchange where you have to put your private key to trade, I thin that step alone is very risky.

I like to try a new style for decentralized exchange which we can created username and password and I just don't know if its possible.

I also don't want to over think things, the fact that less people are using it now, that says they are not safe to use.
Compared to the volume of centralized exchange, the volume for decentralized exchange is just 1 to 2 percent.

it seems to me that time will pass and users will gradually migrate to DEX exchanges, there are more trading volumes on centralized exchanges and everyone is used to it and does not want to give it up, because DEX exchanges for most are something new and unknown.

they follow technological developments and market desires. because the market considers the decentralization exchange to be easier and more convenient to use, therefore the more people do trade there, it makes a number of new decentralized exchanges also be created.

It will take awhile to catch on, but DEXs are the future.
In fact, that is what crypto is all about.
From the beginning it was a way for p2p transactions to take place.
A way for people to directly do business and interact with each other without the need of a middleman or central agency.

Also, when people catch on to the security of a dex, then centralized exchanges will be a thing of the past.
Overall, dexs are cheaper, faster, and more secure.
Who wouldn't want that?

But for now, I think people don't have a fundamental understanding of it.
And oftentimes, it takes a while for people to truly catch on.