Why not decentralized exchange..? - page 6.

Findingnemo

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Quote from: btcholder on February 19, 2020, 11:48:33 AM

In my opinion decentralized is one of the great reason that people love or apriciate bitcoin. I know there is many things too but its not about that or bitcoin. I am not too much experience able person in crypto world but with all my little experience i understand that people want a good project which is decentralized. But my question is then why we don't accept properly decentralized exchange..?

There is many point that people should trade in decentralized exchange. But what is the problem that every time decentralized exchange failed to stand up..? Was it us who don't show much interest about it or it's the outhority who didn't provide to us properly..? Is there any chance that decentralized exchange will stand up..?

Please share your thoughts.

But many of the decentralized exchanges are not really decentralized exchanges they were just pseudo DEX that is why in the past we had experienced hacks on DEX which made the trustability to be lowered by the traders so new DEX are not getting enough trading volume to get increased liquidity rate.

enhu

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Quote from: btcholder on February 23, 2020, 11:31:57 AM

I read most of your post and here some points that maximum person think those are the main reasons for decentralized exchange failed to stand up every time.

- Don't have enough volume for active traders.
- Not mobile friendly.
- Speed of transactions.
- Problem with liquidity.
- Not too much popular than centralized exchange.
- Trust issue.
- Take time to load.
- UI Design.
- Difficult to understand for newbie traders.
- Control of their asset maybe a bit lazy.

I guess developers should working on those point if they want to improve decentralized exchange platform for the future. For me specially top five points (marked by red color) are too much important to create an advance decentralized exchange for traders.

Low Volume is more is probably the biggest. I'm willing to use different DEX as I do from TRXmarket to NEWdex to etherdelta, its just that even if you combined all the volme is not enough to match one centralize exchange. There seem to have more users today with blocknet which I think this might just be the first that many will be using. Been using waves DEX since 2017 but gradually stopped too but will probably do with blocknet serious volume will be accumulated.

btcholder

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I read most of your post and here some points that maximum person think those are the main reasons for decentralized exchange failed to stand up every time.

- Don't have enough volume for active traders.
- Not mobile friendly.
- Speed of transactions.
- Problem with liquidity.
- Not too much popular than centralized exchange.
- Trust issue.
- Take time to load.
- UI Design.
- Difficult to understand for newbie traders.
- Control of their asset maybe a bit lazy.

I guess developers should working on those point if they want to improve decentralized exchange platform for the future. For me specially top five points (marked by red color) are too much important to create an advance decentralized exchange for traders.

XCANA

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Quote from: Saisher on February 23, 2020, 10:16:09 AM

I support decentralized exchange because all coins are on equal terms here, it does not exorbitant fees and it's an even playing fields for all the coins in the market those are already in the market and those that are just coming up, I guess we need education because so many newbies do not know how to trade on Decentralized exchange.

The only problem i found to be reason why many have choose to go centralized instead decentralized is; their user interface are more likely to be odd or not attractive to traders while stay on the exchange. They are slow in loads during accessibility but not found in centralized. They are not user friendly as newbies found difficulties in accessing these exchange.

Saisher

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I support decentralized exchange because all coins are on equal terms here, it does not exorbitant fees and it's an even playing fields for all the coins in the market those are already in the market and those that are just coming up, I guess we need education because so many newbies do not know how to trade on Decentralized exchange.

Dart18

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The fall of it happened when the features became better from a centralized exchange.
Also, the offer of security and so much more.
When people begun to switch from it, a lot had followed leaving DEX without volume.

So, I guess we should be asking ourselves. Will they even come back from using DEX or they feel like they are at peace now with the new ones?

Kelvinid

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The reason might be like this;
1. Being a professional trader, it is most important to look for a secured exchanger and huge market volume but sadly, DEX couldn't make it really satisfied them. That is why they have to shift into a Centralized one.

2. Casual traders or bounty participants will absolutely sell their coins to any exchanges that their tokens are listed and most of them are listed in Centralize market. And having no option but to use this either rather than to wait that their token will be listed into the other exchanges.

Janation

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Quote from: pragna on February 21, 2020, 11:04:44 PM

Quote from: xvids on February 20, 2020, 04:54:48 AM

Both decentralized and centralized exchange have their own advantages.
But I really like the decentralized platform since it doesn't need any personal informations to completely use their platform and it doesn't have any limits.

Yes, this is very important that i think always. In decentralized platform i need not personal information that maximum centralized platform use now a days. Many centralized exchanges that has limits of transaction for personal information and this is very problematic. Problem is there are less decentralized exchanges in market so that we can not exchange as like we do.

I think there are also a lot of them but the problem is that the common exchanges are still used.

With a lot users always visiting to trade, that will be the usual go-to of other traders as well. The one that already raised their name in the community. As decentralized exchanges is also popular, the volume there is not that much unlike popular and common exchanges.

pooya87

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in my opinion the main reason is that we still haven't seen a truly decentralized exchange that is designed with a very strong backend and is free of bugs.
a truly decentralized exchange is where there is absolutely no middle man and traders trade in a peer to peer manner hence there is no trading fees and as a result the developer won't make any money. this means a truly decentralized exchange would be an open source project without any profit that needs lots of efforts.
so in the end we either see half ass decentralized exchanges where there is still some sort of centralization and you have to pay them fees or poorly designed ones that are not yet mature.
that means DEXes get lower volume so less people go there since it has low volume and that means CEXes remain dominance and have higher volume so more people go there because of the higher volume. it is like a chain of events that won't change unless something in this chain breaks. like when one of these big CEXes scams people.

Hypnosis00

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The most common issues that people usually put claims into DEX is because of its safety and security assurance. They are quite low in terms of market volume, price, and traders but we can't deny that these exchanges still become valuable in crypto. But obviously people become more aggressive to adopt and use centralized that may a reason why DEX become obsolete in the future.

Twentyonepaylots

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Quote from: RealMalatesta on February 22, 2020, 12:01:23 PM

Binance gets less than 10 million dollars of volume is a great way of saying binance is making over 2-3 thousand dollars profit PER DAY, and we all know they are making much more than with all other stuff that goes on with that website, they are probably making above 10 even 20 thousand dollars in profit every single day and that is why they are more popular than any other decentralized exchange out there.

Plus, binance literally made their own DEX which I still think it is not fully DEX and combination of centralized and decentralized, but even with that out of question, decentralized exchange they created didn't get all that much volume. Why? Because people do not really want to use it, as long as there is no community behind any DEX, we will not see any successful one.

So at this point it's basically the people's preference that stops DEXs from being massively adopted. And it's no fault of the people. Personally, I don't see any point of using DEXs as of now when compared to CEXs, they fall short on many things. They're slow, Low volumes, higher chances of bugs and issues and if someone from their development team decides to mess things up and get away with all of our money, we wouldn't know who did it and so we are just going to lose our hard-earned monies. So using CEXs for now is great as it does the job and more. Unless they up their game, I won't change from CEXs to DEXs

dunfida

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Quote from: RealMalatesta on February 22, 2020, 12:01:23 PM

Binance gets less than 10 million dollars of volume is a great way of saying binance is making over 2-3 thousand dollars profit PER DAY, and we all know they are making much more than with all other stuff that goes on with that website, they are probably making above 10 even 20 thousand dollars in profit every single day and that is why they are more popular than any other decentralized exchange out there.

Plus, binance literally made their own DEX which I still think it is not fully DEX and combination of centralized and decentralized, but even with that out of question, decentralized exchange they created didn't get all that much volume. Why? Because people do not really want to use it, as long as there is no community behind any DEX, we will not see any successful one.

It all matters with peoples choice and we have seen on how decentralized exchanges do perform in terms of user counts.
I agree on what other said about the reason why people doesnt like to use these platforms because of the lacking of fiat features.
Dex cant offer such thing thats why we can see the difference when it comes to demand.

We have seen some few good Decentralized exchanges though but still not really the same with exchanges that we do know today.

pixie85

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I can think of a number of points why not DEX:
-harder to use
-less popular
-smaller volume, bigger delay between trades
-you rarely know who really operates them so many people will chose a known operator that claims to have insurrance from some anonymouse person

RealMalatesta

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Binance gets less than 10 million dollars of volume is a great way of saying binance is making over 2-3 thousand dollars profit PER DAY, and we all know they are making much more than with all other stuff that goes on with that website, they are probably making above 10 even 20 thousand dollars in profit every single day and that is why they are more popular than any other decentralized exchange out there.

Plus, binance literally made their own DEX which I still think it is not fully DEX and combination of centralized and decentralized, but even with that out of question, decentralized exchange they created didn't get all that much volume. Why? Because people do not really want to use it, as long as there is no community behind any DEX, we will not see any successful one.

BlacksmithCorporation

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Quote from: bitgolden on February 22, 2020, 01:42:57 AM

Decentralized exchanges are good, but I think it’s meant for people that are well experienced in cryptocurrency trading. The interface and how it’s built is usually not easy for most of the newbies to understand, and that’s why they tend to make use of centralized exchanges. And something else that you should know is that they lack the level of protection one might have when making use of exchanges like Coinbase.

When it comes to Coinbase which is also a centralized exchanges, they carry out the process themselves and traders are always safe and there wouldn’t be anyone complaining they got scammed. If a newbie should start with DEX they are likely to make a mistakes.

The problem is not entirely the use because decentralized exchanges are getting better and easier to use, and I find myself not too difficult to use a decentralized exchange. I don't regularly use decentralized exchanges because they lack functionality and liquidity.

bitgolden

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Decentralized exchanges are good, but I think it’s meant for people that are well experienced in cryptocurrency trading. The interface and how it’s built is usually not easy for most of the newbies to understand, and that’s why they tend to make use of centralized exchanges. And something else that you should know is that they lack the level of protection one might have when making use of exchanges like Coinbase.

When it comes to Coinbase which is also a centralized exchanges, they carry out the process themselves and traders are always safe and there wouldn’t be anyone complaining they got scammed. If a newbie should start with DEX they are likely to make a mistakes.

pragna

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Quote from: xvids on February 20, 2020, 04:54:48 AM

Both decentralized and centralized exchange have their own advantages.
But I really like the decentralized platform since it doesn't need any personal informations to completely use their platform and it doesn't have any limits.

Yes, this is very important that i think always. In decentralized platform i need not personal information that maximum centralized platform use now a days. Many centralized exchanges that has limits of transaction for personal information and this is very problematic. Problem is there are less decentralized exchanges in market so that we can not exchange as like we do.

iv4n

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One day decentralized exchanges will be the first choice, but not now, and not anytime soon. Take a look around, many people invest in centralized exchanges and their centralized coins, this trend last for some time and will not end soon. When this trend ends we can expect decentralized exchanges to become popular, not before that. When will that happen? Well again we should take a look what's happening around, and here on crypto forum many people are still not familiar with what is decentralization, what is DEX, what is DAO and DeFi, when here on forum many people don't understand this terms how can we expect from people outside crypto community to know this stuff?

DoublerHunter

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Quote from: Meowth05 on February 21, 2020, 10:43:19 AM

~snip~
liquidity comes down to how easily you can enter and exit a trade.

^ Definitely right, this is the most important of crypto exchange when most traders looking more profit which is easiest and fastest gaining profit. Liquidity and also with a good high volume of exchanges that makes traders boost their profit and decentralized missed that opportunity. Eventually, DEX's are fewer pairs of coins to trade unlike, CEX's you can choose different coins that have the potential to gain profit.

Meowth05

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Honestly, decentralized exchanges have better security to store our funds compared to centralized exchanges as there's no centralized server that can be targeted by hackers. However, as I have read it is too early for decentralized exchanges to be implemented and needed a lot of development. The things that hinder decentralized to enter the mainstream because of liquidity: liquidity comes down to how easily you can enter and exit a trade. Next is leverage in which decentralized exchanges were at disadvantages. And lastly, is the user experience, trading in decentralized exchanges offers a fewer trading option which gives different experience especially on newcomers.

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