Topic: Why don't you use DEX? (Read 459 times)

As for how I use it, I don't have a preference between CEX and DEX. As long as it brings the convenience I want, I will use it. I think there is no need to separate which is the right one, because the issues have been stated quite fully, both positive and negative of each service. And we as users have the right to choose and accept that service. Currently, I see the majority of users tend to switch to DEX to trade more than before, but it seems to still be quite small compared to the scale that people use CEX, and maybe in the future there will be a change. It's different, but as I said, it doesn't matter which one we use as long as it's convenient for the usage process.

I mostly use CEX if I want to buy/sell Bitcoin for Fiat money because it's easier, quicker and more convenient rather than using DEX, and I always use local exchange so I can buy bitcoin using bank transfer in just a matter of minutes and a few tap on my phone. I can't find any DEX that support Indonesian bank so if there is there is any DEX that support Indonesian Bank transfer I will happily use that.

This is the first time I am hearing of the names of those dexesyou mentioned.
But basically most people prefer to use cex for the convenience it offers and moreso security reasons.
Personally I use cex and have never used a dex before. Maybe I will try it out one of these days

Most times they cares about the safety of their wallet although they still makes another wallet to connect it on DEX but still not convenient for people to always use it, I just tried to used dex few days ago to swap one of my token gain from bounty even as that was scared to connect my wallet because of hack not to empty my wallet. Centralized exchange are more convenient even though people are passing through kyc they don't care in as much it's fast in trading and also to make deposit through Bank card people would prefer that than dex.

There are few reasons, some dexes are a little bit complicated for some newbies, gas fees, slower compared to cex and other many reasons, mostly comparable to cex. There are people who preferred convenience over privacy, it's a fact that's why there are many people who are still using cex. Even with the past cex issues like the mt.gox hack, ftx scandal and also binance scandal, the cex users are still using the cex platforms as it is way better. I myself is using cex because of its convenience but I still use dexes sometimes. I don't register on other cex anymore, I submitted KYC before, why not use it? Just don't forget to not store crypto on these cex as you don't have full custody on your funds.

That's right and add it to what you have said. Many people are using KYC exchange platforms to buy and sell because of the the price difference with Dex. Like the price of CEX platforms are much more higher than the DEX platforms. And in most cases, CEX are very easy to use. Example if you are buying and selling with Binance exchange platform, there is no transaction fee attached to process in the transaction and everything is free but reverse is the case for DEXes. And I believe those are some the reasons why people use centralized exchanges than decentralized exchanges.

I'm not entirely sure what Circle was, but if you're talking about a simple fiat exchange from a large firm with a simple non-KYC registration, then I very much doubt there is any such service left. Especially in the US.

To me, the best and only truly decentralized exchange is Bisq, which is completely peer-to-peer, operated by a DAO. The next best ones, which are centralized, can be found in here: https://kycnot.me/search?q=&type=exchange&btc=on&fiat=on.

Shutting down Bisq is same difficult as shutting down any other peer-to-peer network. The rest of the non-KYC, centralized exchanges can be shut down easily, though.

I don't trade crypto like a lot of others on this forum do, but thinking back to years ago when there were services like Circle around, with which you could buy and sell bitcoin from a reasonably reputable firm with absolute ease makes me pine for those days.  If you're a US citizen and don't have a Coinbase account (those fuckers), what's an easy way to do that anymore?  Damned if I can think of any.

So I'd love to use a DEX for fiat transactions--assuming I had money to buy bitcoin on the regular--but as mentioned, liquidity/volume is low, and since I haven't become familiar with any of the exchanges out there, I haven't used one.  The principle of decentralized exchanges does appeal to me, however, and I'm guessing if someone could get ahold of Satoshi and poll him on his opinion of the DEX concept he'd be all for them.

These have been around for what, at least a few years now, right?  Given how many people care about their privacy and don't have as many hangups as I do, I would've thought they'd have caught on far more than they have.  Ah well, I suppose if governments decide to crack the whip harder than they already are, they will.  Hopefully.

Some coins lacks volume on DEX'es, and they're willing to share their private information just for them to have access to different features of that exchange.
TBH, I'm one of the many users here who don't use DEX'es because I find CEX'es comfortable to use already so there's no need for me to switch.

I guess there are lots of people here who prefer using CEX over DEX'es just because of the fact that they find it comfortable for themselves to use a CEX. Also the fact that CEX are easier to use than DEXes is also a reason for that. Overall, DEX'es are good, but people just prefer to use CEX'es.

Same here. While most of us already knew about many reputed/well known CEXs, there aren't many who knows about DEXs (My opinion). For me, I knew of Binance, way before I knew about bitcointalk or crypto. I just knew about it somehow. Never searched google or anywhere. But for bisq, I recently got to know it. But it's already too late for me to shift from CEX to DEX. Already registered to 2 exchanges with fully KYC done.  

I guess promoting a Brand/Company/Service really do matters. Nowadays, whenever I'm on my social media, certain ads from Binance/ByBit/KuCoin like exchanges pops up.

Problems with DEXes

1. Lack of good volume.

2. Costly transaction fee on the platform.

3. Higher liquidity for traders is only available on centralized exchanges.


The only thing that DEX does better is no KYC and having control over your asset while swapping your coins and tokens, a bad news for those who like leaving their coins in the hands of a website, till today people are still leaving crypto assets on exchanges because they somehow trust centralized exchanges more than anything.

Dex is actually very good, it's something that fits Bitcoin decentralization, but due to high numbers of traders in crypto space it's clear that centralized exchange is way better for trading than dexes.

EXacly and I really agree with the first point that you have stated concisely and clearly. In fact, this must be the first benchmark that must be considered before starting to invest and it is also seen as a form of obstacle in the growth and adoption of decentralized exchanges (DEX). . So, in my opinion, if DEX platforms want to improve their performance, follow and combine the strategies that CEX platforms have implemented so that they will be able to attract the interest of traders and investors to stop by them.

Leaving your coins in DEX isn't a good choice too because the wallet is connected to internet, treat it as a hot wallet.

This is completely wrong, actually DEX doesn't limiting any regions to use their exchange, even you're live in China or Nepal, where they ban Bitcoin, you can still buy and sell Bitcoin using DEX. Although you need to learn about privacy and make sure you're not leaving too many trace.

I think sometimes coins not listing in DEX and still use exchange to sell it. Even more exchange ease of use, higher liquidity, and trust in established platforms. It's means non KYC platforms might be less familiar, harder to use for some users, and may not be available in all regions, which can deter people from using them. However, withdrawing cryptocurrencies from these platforms is entirely possible and isn't usually a barrier to their use.

No bro that's not the call at all, hehe good rhymes anyway, the point is using the Dex's is much more expensive for trading in the short time frame, due to the network cost on every interaction with the protocol. This is one of the most prominent reasons for now.

For the withdrawal and all such related stuff just remember these are bluffs only.

One of the reasons why many would choose to use a decentralized exchange is because of the of the safe breaches it could post to our individual self. Using a non decentralized exchange would require us to do KYC verification which is one of the things many are avoiding. The government could track our account from this means and get to us at time since they have our information. Decentralized exchange is usually for swapping or coins but there are some we can buy coin from them without any of our identity given to the exchange. I see decentralized exchanges as more of coin swapping which go safe us the stress of going to use a centralized exchange.

Dex is more safer than Cex when it comes to security. For instance if you keep your money on Cex and it happens that Cex has crashed, you'lld loos your money. But in Dex you have total control your money. You make your decision as it pleases you. Dex don't need to be reminding you about "not your key not your coin". On like CEX which will not even explain anything'

Here is the reason.
A centralized exchanges is made to be simple and easy, you know why? Because the complicated aspect of it is controlled by the middle man and not the user while in the Dex, the users do both the easy aspect and the complicated aspect of the exchange. For instance when you want to buy a coin through p2p in a exchange, the exchange hold the asset and allow agreement to be reach between the two people before all trades are been settled but in a Dex, smart contract is what control activity and everything you do in a decentralized exchange and you will have to pay fees to approve everything.

Dex are very complicated to some people because the design, all Dex don't have a unique approach but a centralized exchanges are know for email, password and Authentication system to protect your self while Dex is about you and your wallet. Dex also has low volume and liquidity issues, since centralized exchanges has more people they tend to have plenty of sales and buy buy Dex is usually in few.

However, the disadvantages of centralized exchanges is always bitter, your coin can be seize at anytime, you need KYC just as you have said but people don't look at these underlying problems anymore because they always think I don't do any wrong, definitely they can't seize my money until the day the reality set in.

There's a saying that you can only lead a cow to the stream but you cannot force it to drink water. This means it's entirely on people to do whatever they want with their coin. Some persons choose CEXs because of the simplicity, especially the newbies while others it might be the trading volume. Whatever is the reason is up to them, people who value their privacy will avoid CEXs by opting for DEXs or other NO KYC exchanges to trade their assets.

There is not enough liquidity not only on decentralized exchanges, but also on centralized ones, if these are not top coins. But the main reason I use DEX is that there are a lot more new coins on it that can be bought even before listing on a centralized exchange. In addition, the preservation of user anonymity is not the last place in this choice.

Only 2 Real DEX's out atm with every component decentralized including orderbooks, no middlmen services

Katomic Dex ----> aka Komodo Wallet, aka atomic dex, aka hyperdex, aka barrrterdex, aka ....   been made aged a fine wine over the years
Qortal ---->  new and working now

Both use Real Atomic Swap Tech, even though qortal has not opened the ability yet to crosschain trade directly from x coin to y coin the ability is their so dont let the platforms coin fool you it dont work the same like all these bullony dex's that claim to be decentralized...   

Cexs just offers beginner friendly environment. It's primary advantage is the ease of use and wide variety of features compared to dexs. DEX is more expensive compared to CEX, every move need gas fee, the cost depends on the blockchain that you are using but generally it is more expensive than CEX. I think we need more user friendly DEX to be made next bull market, popular dexes has a good UI but I believe we need better.

Well first of is convenience I think or they are trading other altcoins that arent listed on bisq. Many people are doing more trading on alts than simply bitcoin thats why they prefer some big exchange with different  shitcoins, meme or different L2s.

Also the restriction maybe on their country they are required to use certain exchanges or the one aligned with the SEC or government ruling.

Nice question op. On my own opinion, many people are not using Decentralized Exchange because of the Price differences. The vendors in decentralized exchanges buy Bitcoin with a lower  than the vendors in centralized exchanges. If I sell 0.001 Bitcoin as the rate $45 in Binance then the decentralized exchanges would reduce that amount and sellers of Bitcoin like to sell them in higher prices so most people would like patronize centralized exchanges more than decentralized exchanges base on Price differences.

For some people, it's a different stroke. Some people prefer trading crypto without going through KYC above the high liquidity, a wide range of supported cryptocurrencies, additional features, ease of trading execution of crypto to fiat, and fast time frame of trading execution of CEX since DEX often operates on blockchain networks.

I don't know the exchanges you use, but If the exchange is truly decentralized, then it is great for peer to peer trade. When you use a decentralized exchange for p2p, you basically trade with the other party directly, without submitting any KYC documents and without the exchange hodling your funds as a third party. Mind you that when you use the "p2p" option in a centralized exchange, you aren't actually trading p2p since the exchange acts as the intermediary and hodls the funds before the trade is complete, thus it isn't truly p2p.

Here are a couple of reasons from the top of my head:

- There are no shitcoins, and usually people get into cryptos for getting rich quickly.
- They've spread their personal documents in quite a lot of places already, so they don't care doing it again.
- They don't know KYC might pose them a threat.
- There is less liquidity.
- There is no marketing, as with affiliate links and advertisements, which draws the attention.

yeah. people really are willing to give up on their identity because of little convenience but I think it is a natural thing. humans are natually impatience specially when there are alternative and faster ways they don't see the bigger picture.
and the lack of convenient in DEX is also a problem. I wish they could've solved that. then it would've been a lot better for everyone to get rid of CEX and completely live on DEX exchanges. I mean no one like KYC. everyone do that because of that particular reason.
I myself use DEX whenever I can. they are good source for trading/swaping tokens. they just not good for P2p.

I think that the same users who know about the subject tend to externalize based on their knowledge and the reality is that people are in CEX because they are better advertised and other users who are in Dex because they got there, from that group of users, only a few have the knowledge that It means a Dex or Cex.

Finally, the issue is not whether I use them or not, It is understanding, then take advantages.

You know what? Even if you have a reliable source that says centralized exchanges X is going to collapse tomorrow and this indeed is confirmed to be true, some people will prefer to keep the rest of their coins on centralized exchanges X until they confirmed that the source before they will withdraw their money. That shows you how condemned the centralized exchanges has capture the attention of everyone, they just don't care about privacy nor what happened if these exchange run off one day.

Many people that come to crypto today are been introduce to centralized exchanges even before they learn about bitcoin and other coins because the first thing they think of is how to buy and sell and when they eventually get money, that's the place they go, that said.

Now. We have very few Dexes and most of them aren't interoperable, you can't just buy all the type of coins in a single chain. If you want to buy a coin that is having it's own native chain, you have to buy it on the dedicated decentralized exchange or you have to go extra mile to use a bridge or switch of the chain is EVM compatible and these process looks complex for newbies. Some centralized exchanges operate like brokers which are the conventional way of trading but Dexes don't operate on oder book system but on liquidity pools. This might look complex for a new person that is new to crypto.

those who are very serious about privacy certainly use DEX. no problem with withdrawals or deposits that take quite a long time if dealing with fiat. if the interest is only selling or buying, you may still be comfortable using DEX. but for those who want to trade with better trading volumes, of course, there is another option by using CEX. although it requires submitting their data for KYC verification.
and for trading, perhaps DEX users will experience higher fees than those trading on CEX.

everyone has their own choice. I think nowadays users also have both. especially for some assets that have just been listed on DEX. while perhaps for CEX users, there are several other reasons such as convenience that make them not use DEX.

This is true, word of mouth has been effective way of advertisement from the centralized exchanges. Like if someone has received some airdrop from a particular exchange, he'd spread that out to his friends and will say that it was a better compared to the decentralized exchanges.

I've known a lot of people that are like that. They don't have an idea about the actual movement of crypto and they're stuck to what they've been doing like that with P2E games and just by simply doing airdrops. It's a repetitive cycle that they've been doing and known for it and staying only to centralized exchanges where they're focused with for those rewards that they might receive because that is where the money is going for most of them.

While this may be true, I'm afraid the real reason why the huge majority, the masses, are using CEx rather than DEx is that CEx brands are popular. They're the ones that are noticed everywhere, recommended, talked about, and so on.

I have a number of friends and acquaintances who are using Binance because it is the only exchange they know. As a matter of fact I talked to somebody who is playing a pay-to-earn blockchain game who is so ignorant about Bitcoin that he hasn't heard about SegWit and Lightning and DEx but has an account in Binance. The power of word of mouth.

I'm not sure but I could imagine so? transacting significantly huge amounts could be a problem though. While it is geared for people wanting more security and privacy during trades there are a couple of drawbacks like lower liquidity, not so competitive prices and not so beginner friendly interface.

I wouldn't call robosats a dex though since it's not decentralized and they never claim this too afaik. However it is a def a privacy/security oriented platform.

Aside from liquidity, there are various reasons like comfortability and that's why people prefer the cexes instead the dexes.

It is a good option if you don't like to pass on KYC which is mostly being asked by the cexes and if there are still some cexes that don't ask for KYC, they are very few nowadays. As for the dark web and stuff, how did you conclude with that matter? It doesn't makes sense because DEXes are for everyone too.

To my understanding why people dont use Dex is because of liquidity problem. Most times when you want to swap your coin it will require a higher fee to swap it especially shitcoin somtimes you will set the tolerance at higher number yet it wouldn't still swap. And also in trust wallet if You don't have bnb coin as a transaction fee you won't be able to send or swap your coin. but in Cex you can sell your coin in an instant without hesitation or send to another wallet. In Cex you can sell for Fiat while on Dex you will need to send from Dex to cex for Fiat exchange. So Cex is far better than Dex but due to kyc on cex and the total coin held on cex is controed by Cex and makes it more risky for the participants. Due to high level of insecurity because it can shutdown at anytime anyday, that made people not to put their mind on it. If not Cex is far better than DEX.

   DEX does not have alot of personal information which makes it difficult to constantly watching over transactions ,they don't accept KYC's verification and its not easily used because of its little problems unlike CEX.
 
  In terms of DEX working ability of fund its smaller than a mainstream exchange bringing about lower cash across it and its focused at rounding up transaction very cheaper and faster than CEX, their crypto exchange is never equal to individual seller,rather they get potential market makers or AMMS to get coin for you. 

It's funny how you can make such conclusion, so any person who want to protect his privacy is a criminal?

DEX is good to escape from dictatorship where the government always ask every people to report all of their earnings, but there are a lot people take advantage over someone wealth e.g. criminal who want to rob your money, government who want to tax your wealth, etc.

So, people among dark web use this? Is it a good option?

Well, I would say, the advantages are obvious. DEX stands for decentralized exchange, it means that there is no central entity that controls the funds. DEXs are hard to shut down or hack. You can use them anonymously without kyc verifications and other legal hassles. No one will block or freeze your funds. And very often, people use them to trade coins and tokens that are otherwise not available on centralized exchanges

Decentralized exchanges usually do have higher fees and are not quite as easy to use as centralized exchanges. The freedom and independence comes at a cost, both in terms of fees and effort. Many do not want to accept this and their lower sensitivity for privacy are the causes they prefer to go to Binance and others.

The most important advantage of DEX over CEX is anonymity. Those who do not want to undergo KYC and want to maintain confidentiality usually use DEX. But this is not such an advantage, as there are CEXs that do not require KYC. And DEX is usually more expensive than CEX. You have to pay for anonymity.

I got it. CEX is way easier to use and other things as said above by the respectable members. but Is there any reason to use DEX then, Would be considering they should be shut now? any advantage over it which can out perform most of the advantages given by CEX?

• DEXs are not as popular as CEXs. Just like you mentioned only 2 DEX but you can mention upto 10 CEXs  
• DEXs are not user friendly. I mean the interface  
• You can easily be scammed on DEXs
• CEX may help you recover your hacked or stolen coins

These and other reasons are why people patronizes CEXs more than DEXs. But then, people who are overly private will do anything to remain private.

most people are getting acquianted first with CEX trading platforms before learning DEX. because that is true, most newcomers are using their credit/debit cards to purchase their first crypto, thus, submitting their kyc in the process. and most actually are not very cautious with their privacy when they are just starting in this market. they will understand more how to take care of their privacy later on.


liquidity is indeed important, especially if you are trading with other top alts. though there are some tokens that you can easily swap via DEX but in most cases, there are many traders in CEXs. giving a better room for executing your order in a fast manner, incurring small trading fees. the credibility is important when using trading platforms. this is why not many p2p platforms are known to traders.

People gets to know about DEX, like bisq, later after they might have started using centralized exchanges to trade their crypto currency. A very significant number of newbies who join the crypto space don't usually know about the risk of passing KYCs, so they just give off their identity information and would only realize the risk after spending time to learn more about crypto currency security and privacy. Again, from their thoughts it is easier for them to use decentralized exchanges.

When I got into crypto, the first few exchanges that my mentor directed me to use to buy my coins were about three tier one exchanges. I only got to know the importance of using DEX a few years after joining the space.

In addition to everything others have already mentioned, I should point out that most new investors who buy crypto for the first time do not have a problem with their personal information for KYC because they are not doing anything illegal. Buying cryptocurrencies is not even taxable in most countries. Besides, there's no point in seeking anonymity if you're using a credit card to buy cryptocurrencies.

Definitely true and this is in fact the reality on which people wont really be minding on exposing up their identity just for the sake of convenience on where CEX is really that giving.
Even myself would really be that much prefer on using up CEX all the time, the only thing that what you should really be minding on is on how you would really be storing up your coins
on which its never been that recommended that you would really be doing such thing considering that we dont possess the keys of such wallet and this is the main risks when dealing
up with these platforms on which on the time that they would really be hacked then there's no way that you could be able to take or get those coins back.

This is the only cons that i do see when it comes to hacking incident, plus also those possible lock up when you do able to hit up or violate something on which they could easily
block you up but when it comes to overall utility and usage and convenience then i could say that CEX is best.

This is definitely my reason for why I still use CEX for when I'm dealing with my cryptocurrency or bitcoin in general, it's much faster as they've got the money to quickly do it and they've got more advertisements compared to DEX out there so you don't know which one's do a really good job not to mention that I feel like it's more easy to use CEX than DEX but that's just me, maybe I'm just too lazy to try out DEX.

Very simple: Centralized exchanges are far easier to use, better bang for buck, and the fact that the masses barely know that these "DEXs" exist. Far more money to be made with centralized exchanges hence why they have a far higher advertising budget.

Centralized exchanges are mostly government approved exchanges, they are mostly trusted when it comes to exchanging your crypto for fiat because of their reputation and some governments has approved some of them; while DEXs are not mostly recognized by government because of their decentralized nature which include lack of KYC.
And the trading volume and Liquidity is also one of the main reasons just as others have clearly stated.

But when it comes to saving of crypto, avoid both of them and save your crypto in your wallet you can control and protect your private key.

Most of the reputable decentralized exchanges like bisq don't advertise themselves like the way the centralized exchanges do, also, you can see another reason that they hardly enlist anyhow coin on their exchange unlike the way centralized exchanges do, so you can imagine a platform that has about 500 currency pairs for trading compared to where you could only discover 50 that alone is more convincing to them to use a centralized exchange because they can have varieties of choices to make with the kind of coins they wanted,  other reason have been stated above like having comparison on their liquidity, history and background check of the developers, some were actually afraid they don't know much about decentralized exchanges, they had rather prefer a centralized one at the expense of their privacy.

This is not one of the reasons. I do not even know the one that have been existing before another. Trading volume on centralized exchanges are far greater and people like to use something that government approved. Centralized exchanges looks more like brokers in Forex and people like such a thing as they abide to anti-money laundry and counter terrorism financing. People are ignorant and prefer what government move towards to.

Another thing aside what was mentioned in the first post is; most people always come across cex and before they get to know about cex they must have already done kyc and might see no reason to leave their cex account and move to a Dex.

This was what happened to me, I saw binance first and was already using it before I came to the forum and read about DEX and since I’ve already completed my kyc there’s no need for me to just abandon the account and migrate to a different exchange^{based on my experience, others might have a different reason.}

Lack of liquidity is one reason, not access to many shitcoins which people love to buy these days which exchanges can provide. Also, the fee on the DEX for Balance fill via Credit Card / Debit Card is way too much as compared to any CEX. I am sure CEX will stay strong if they keep adding features which makes life easier for a normie.

1. They are low on volume. Only a few people really utilize DEX since liquidity on such platforms are low.

2. People trust CEXs more because they've been around far more than DEXs. With CEXs, at least they can go after someone should worse comes to worst.

3. DEX platforms, while pretty straightforward, could confuse a lot of newbies who are used to CEXs.

Because people find DEXes, when dealing with fiat at least to be less convenient, slower, and have a lack of liquidity so they don't mind giving up their identity if that means being able to buy and sell within a couple of minutes.

I have read on the forum that people can still exchange their money for crypto currencies without kyc with bisq and robosats. then why many peoples don't buy their crypto's this way? Can't people withdraw them or what?