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Recently I have seen many people whining about exchange fraud and some of them stopped working and took away all investor money. So in my head, I now have the thought that will 2020 be the trend of DEX?
I will give a brief summary of CEX and DEX. CEX stands for centralized exchange where all your money is managed by exchange, it has its own wallet system and money is transferred there.
DEX stands for a decentralized exchange, and there, you trade the number of coins in your wallet with someone else's wallet and there are absolutely no middlemen in between.
So with many incidents happening at CEX, will there be more people trading in DEX in 2020? Although trading at DEX costs more, it is safer for us and we do not need to make any KYC.

safe, but not too comfortable, people will think twice about using dex as a priority. Progress in 2020 depends on which market is more popular and pleases its users.

The reputation that comes from the problematic CEX will always be covered with better CEX and gives the best volume, users will only move their account to another CEX. I also monitor what happens with cryptobridge and idex. In the end, DEX will also lose their identity in decentralization because of 2 fundamental problems: 1. not being able to survive in exchange competition, 2. not being able to do much with strong regulatory pressure.

The problem is that centralized exchanges are under attack from hackers and many are fraudulent exchange exchanges. such as IDAX, it has stolen tens of thousands of BTC from customers and now IDAX's CEO has not been arrested yet. This shows that the legal loophole in the crypto market is too big, and scammers can easily spread. If you continue to have scams like this come to larger exchanges, you will move to DEXs? I know that volume is not as big as CEXs but it is safer, do you agree with me?

It is still questionable for me. The 'safer' side of dexes might comes from a lack of sophisticated attack from the crackers. There's also different dexes here, but if we're talking about those with smart contract as the backbone, then if a bug is found they can theoritically attack every single possible token on the platform.

IMO centralized exchange is probably still going to be dominant, especially if players like Binance still exist and keep on-going. It will be the users own responsibility to choose which one is the best from them. And that's true with dex. Doesn't matter if it's a dex or cex, if you use a bad one then you might lose your money in one way or another.

I appreciate, absolutely not saying disagree. However, even though it always happens, it still makes the same/other CEX successfully attract more participants by strengthening a higher security system, for example, binance that is quickly recovering from a large hacking case that occurred in May.

many previous exchanges have not been spared from larger hacking cases, despite having a very fatal impact on reputation, the reaction to migrating to dex still remains insignificant.
https://i.imgur.com/hwkl84U.png
reference: https://coinsutra.com/biggest-bitcoin-hacks/

Both have their advantages but these days, the pros of using a DEX surpasses it cons. DEXs now sport an easy to use interface and are becoming quite fast.

CEX provides security, DEX provides anonymity. Problem is, No matter how bad CEX is, or no matter how many exchanges get hacked, there would be some other company going to the stand. They would replace the said CEX which is bad, and be the good one. Rinse and repeat. CEX has the backing of a company so they could produce more and more and moreee and honestly, CEX provides a lot more chance that the business is going to do well. DEX on the other hand, is of the minority after all, and is used only at certain times, which makes it kinda like the 2nd option only, which defeats the purpose of most companies, to earn money.

There really aint any kind of safe service out there, It's just a matter of time when hackers hack exchanges, and its the exchanges job to prevent that and to improve their system for both the security and for the user.

Nah, I don't think that DEX will have success in 2020. Traders still prefer CEX in my opinion, even if we have so many hacks and many problems with some scam exchanges, specially mid-tier. Remember that most reputable exchanges run IEO, which will continue as the trend next year. Remember that we still have the block halving coming, and I think newbies will still favor to put their funds in CEX no matter what.

Are there are any truly decentralised exchanges out there?

Perhaps Bisq but I can't think of anything else. Binance can ban you and roll back your transactions so that's a definite no. Most of the others rely on a domain and hosting and that can be hijacked so you'll never be fully certain.

Until they're in wallet and on chain they'll always be questionable and so far the people who run them have not come across as premier league characters. There shouldn't be anyone running them beyond those who issue software for you to run.

in fact, a safe exchange is dex, because without intermediaries and personal managed wallet. but without cex, I think it is still difficult. especially about use of crypto. I think 2020 hasn't become trending for dex. except we all don't need government regulations. and crypto can be used in real world (for buying / selling items). as long as the government / country has not received crypto, cex will remain the first choice. because from cex, we can convert crypto into useful money in real life. other than that. DEX currently only runs on 1 platform. For Example, forkdelta only trades coins / tokens that run on ethereum network. so do BNB, TRX, WAVES, STR, etc. maybe we need dex which supports all platforms. making trading easier.

A mix of both is nice, but only if the CEX is reputable. I really appreciate a DEX that uses an intermediary wallet like a MEW or Scatter. This prevents the exchange from holding anyones money or from owning anyone's private keys. This also disables hackers from having a big- exchange cold wallet to hack from.

I've been more comprtable using DEX since etherdelta from 2017 and i think it's better than CEX from the terms of the usability, it could connect to our wallet directly and it's much more safer but we have to careful and not recommended login in DEX using private key. But will it hype in 2020 ? i don't have any idea for that since most of biggest exchanges right now is CEX

When it comes to security DEX is much better than CEX but when it comes to liquidity and volume I prefer on CEX like Binance. So which you prefer? Both are having pros and cons and I think I am favor with reputable CEX exchange to make more profit than DEX. I may advise if you are using exchange any of them don't leave money on the exchange, pull out once you did not on trade. Most traders now are on CEX but those reputable.

I think as long no serious problem witth big exchanges, people will still use it. I mean, i am type of people like that. If there are no problem with big exchanges that i use, maybe i still use it. And DEX, not try much DEX beside IDEX. And i think CEX with their popularity since they are open, will still used by some traders so it wouldn't easily  replaced by DEX.

A lot of people have a more positive opinion on DEX, since they basically remain anonymous with it. But in terms of being able to trade freely and securely, CEX beats DEX. The only issue with CEX is that they are unable to cope with hackers that attack their system, but once they do, it's pretty much impossible for funds to get stolen by then. Sadly, CEX requires KYC, which is to be honest, abhorred by most of us traders. Which is why DEX still stands as a good exchange compared to CEX, though CEX is much more widely used.

The main benefits using decentralized cryptocurrency exchanges over centralized ones are, there are no hidden middle man fee in decentralized system, you may have to pay miner fee but no hidden ones. also In decentralized cryptocurrency there is strict trading of cryptocurrency only, no involvement of credit card and other things. further less prone to hacking because namely it is decentralized and so no one is in control of it and there in no risk of point failure. these are some of the merit point I found decentralized cryptocurrency has over centralized ones.

CEX Exchanges are now much in the interest of traders compared to IDEX in my opinion, DEX and CEX exchanges will always be there they have different benefits so this exchange is inevitable, many now prefer CEX because many tokens enter there actively in terms of large volumes and there is always an advantage over DEX which often mass discharges of coins.

I don't have a very good experience with DEX. Most of the DEX don't have much volume and most of the trading is done using bots especially in tokens. Moreover I feel it's a quite cumbersome process to trade on DEX if you are a day trader you will have a hard time on such exchanges. If you are buying coins for investment then these exchanges are good otherwise DEX make no sense to me.

I cant think of on another exchange when we do talk about Dex which my primary choice is Bisq and the rest are just masking out to be Dex
but have the tendency to become CEX just like on what IDEX did suddenly as king out kyc.  ;D

The thing here about trends comparing Cex and Dex is that it isnt really get too much volume yet people would still always prefer on using up Cex
due to fiat and crypto options.

But the fund still on DEX Exchange went we put an order.

You should make a deposit to the exchange if you put an order and need to wait until someone takes the order. Went the dex exchange got a breach from the hacker, all people who put an order to the dex exchange still get effected.

Some exchanges also got hacked who claimed them as decentralized exchange so security and trust on decentralized exchanges are yet to convince the traders.Even binance DEX got very low trading volume compared to other centralized exchanges which is still unpopular.So it may take time for people to adopt DEX platforms maybe it will take two or more years to happen.

some user actually reasoned that asking KYC doesn't make them centralize, the features are still there nothings changed for everything is as is.  but you really can't say nothing's change when mandatory submission of documents is there. until there is nothing yet that is truly decentralize which can't be taken down nor forced to ask kyc, then there is no reason for you to trade ion dex. the fact that there is no BTC market in there since most of them are base on ETH.

I think decentralized exchanges will keep improving till they are able to compete with centralized exchanges in the areas of performance and ease of use. I'm not sure if they will ever be better than top centralized exchanges but I am pretty confident we will have DEXes that are indistinguishable from simple Centralized exchange soon.
 I'm impressed by what I have so far seen in DEX development. There are number of very promising DEXes available today.

If the state of DEXs are somewhat better than where it stands right now, perhaps people would consider switching over or at least get the feel of how to trade in one. DEXs provide only a platform with no element of trust which makes users' funds safe in their hands and no single point of massive failure can be seen which, in CEXs case are its wallets and of course, its own system.

Right now, CEXs are winning though DEXs are improving and are gaining some supporters not only on this forum but on other hubs as well, which is nice.

DEX are definitely better than CEX but the design and their running is very poor so people have always preferred CEX as they give proper support as well as great User interface. There are only few DEXs are there which are genuine and at least can be used properly.

^ Definitely right, widely used now are CEX exchanges because there is proper customer support when you are in trouble, there someone could assist you quickly. DEX is good to those newbies that don't know how to manage their security but when it comes in volume traders CEX was always having great advantages. Try to look at the comparison among them that I grab on Cointelegraph.
https://i.imgur.com/wPJWpVB.jpg
SOURCE (https://cointelegraph.com/news/centralized-exchanges-still-overwhelmingly-dominate-market-new-report-shows)

What are the requirements that people use to choose a good centralized exchange?

we are more likely to hear: big volume, many trading pairs and security. but they ignore the question of who owns the exchange and where the exchange is located. Many people accept use shady exchange, may be because they have some new altcoin only listed in obscure exchanges

As the the crypto market grow the regulations will increase and there will come a time that using centralized exchanges will be very safe because these centralized exchanges will be regulated and the market will be very competitive so that they will be required to provide high quality services if they want to survive in this Marketplace

It doesn't necessarily cost more. Gas fees are flat and market-based. Centralized exchanges charge high percentage commissions so the larger your position, the larger the fees.

Not all DEX are the same. Some do demand KYC because their infrastructure is so centralized that they have the SEC knocking on their door (IDEX).

I really only trust Ethereum-based DEX platforms. The others are mostly working with custodial/tokenized arrangements and permissioned blockchains. Trading between ETH and ERC20 tokens can be done completely trustlessly and without custody. Trading ETHDAI on a DEX is the only trustless way to hedge ETHUSD value I am aware of. This can't be done with BTC at all.

I agree with you and i think DEX is more safer than CEX too. But still people choose CEX for couple of reason. And market depth is one of them. Because of Dex is not popular than CEX, people comfort to trade their coin in CEX. That's why DEX is too much un-comfort zone for big trader whom trade with big volume.

This year couple of big exchange (Binance is one of them) start their DEX service but i don't think they achieve their goal. But the positive thing is in this year many exchange working to start their won DEX platform. Hope nearest future people will be appreciate DEX for more secure trade.

I see only correct way out in this difficult situation, it is trading on a centralized licensed exchange. Fraud in this case is reduced to zero, but all the advantages of a centralized exchange remain. Everyone appreciates the liquidity and fast operation of the site, this is what DEX lacks.

we know that every time many CEX exchanges always have problems that never change, it's usually easy to hack, even though those who keep their users' money in a cold wallet can still be hacked (I just think it's the work of people inside to make FUD), I rarely hearing the DEX exchange on hacks might be just a few if there really is, why I say DEX is far safer because it's far from drama and news hacked, trust people are worried about putting funds on the CEX exchange, maybe next year DEX will be more trusted for everyone to trade without identity or KYC, it's easier to make people trade freely without worrying about their money being hacked

I don't think that things are going to change dramatically in 2020

The incidents you mention (like scams, frauds, thefts, closures, etc) have been happening time and again since cryptocurrency exchanges ever came about (Bter, Cryptsy, Bitfinex, WEX, QuadrigaCX, to name but just a few). You would actually expect decentralized exchanges to get traction and momentum by now, right? I had written (https://bitcointalk.org/index.php?topic=1575066) about this over 3 years ago, and not a lot has changed since then. So why should things turn out different in 2020? I'm very skeptical, to say the least. Sorry if this is not what you wanted to hear


I'm not sure how it is going to help you in case of a successful theft or hack attempt. And let's be honest here, it is not a panacea from outright scams and frauds, either

hmm .. I don't think so. Because many sharks don't even think about IDAX going to scam in the future when this is an exchange with hundreds of millions of volumes every day. Even if the sharks are full of experience, they will be able to escape this trap? I don't believe in any other team now, they can all become a dust when they no longer care about the project or the business they run. I still hold the view about taking DEXs future of many.

but things can change immediately if the crowd thinks so. Like the ICO-raising projects, they are all labeled as frauds and so potential projects face difficulties in this. That is also the reason why IEO was born and Binance has made the speculation community more confident, when capitalization into the crypto market was more than 100 billion in less than 1 month. and the IDAX event is a scam and Binance, Upbit have been hacked a lot of money this year, which means that CEXs are increasingly unstable and the crowd is psychologically looking for a safer place. Do you agree ?

Yes, if I were to choose, I would still choose large CEXs to ensure the safety of my money. But the problem here is that DEXs all charge fees that are too high for CEXs, from transaction fees and transfers from normal wallets to trading wallets, which takes quite a bit of time and money. If in the future, someone recognizes the needs of traders and speculators, we will see a very good quality DEXs and will attract more people to it. I hope IDEX will do it in the future to change the bad situation of the market.

but wait until when? We had hoped to get some legal organization to sponsor ICO projects but until now, it seems to be dead but no one cares yet. After 2 years of joining this market, I realized it was a market of self-awareness. meaning when we see something wrong and bad we should voluntarily leave it and look for a better place instead of suing them and screaming at them. That doesn't work, that's why I think people will choose DEXs in the future.

As much as I would love to, I simply can't

In my post I gave a link to my thread which is about essentially the same thing you are writing here (i.e. decentralized exchanges). It was created three and a half years ago, and if anything, it was that (in)famous Bitfinex hack (while some still think it was actually an inside job) with over 120k bitcoins stolen that could have changed the minds of the crowd. Put shortly, it didn't. So why should things be different now, all of a sudden? We should deal with the facts and not get entrapped in fantasies, pipe dreams and wishful thinking

Also, DEX's don't have much liquidity, which means you can sometimes wait weeks for your orders to get filled.

You really need a critical mass of users to make Dex's work, but because no one ever markets them, they never ever reach the amount of users you need to have a liquid exchange.

In dexes the trading happens between wallets using blockchain. This might be too slow for many, why there isnt too much liquidity on the dexes.

On a positive note, when exitscams or thefts happen on Dex we keep our tokens.

Their only difference is their name. I would like to remind you that even DEXs can freeze your funds these days. If so, I would rather use CEX instead. At least in short-term trade, the centralized ones are more useful. I do not know, maybe some of the rules are obstacles to creating complete free and useful DEXs. But I think we have such freedom or I misunderstood everything.

Sharks? What do you mean? Why not dolphin?

What does IDAX have to do with this? There is no mention of IDAX on the post you replied. I'll make it simpler then. DEX security needs to be tested more and more, to make sure they can be called 'safer' than CEX. That's because CEX, in general, have a lot more attacks compared to DEX.

Anyway, doesn't matter which one is safer if you can't trade here. The best choice is to use a platform that's suitable for you and never rely your asset safety on third-party.

This would be an ugly and very misleading use of the term

Up to a point where we can say it is deliberately being used to deceive traders who are not familiar with the idea behind a decentralized exchange. With DEX there is no "exchange" in the way we usually think of it, and that's why people get fooled. Technically, your desktop wallet is that exchange, while trades occur on the blockchain itself. In this way, it is impossible to freeze your funds unless the whole blockchain gets frozen (and hell turns to ice)

To make things better and trades faster, it can be beneficial to use a third-party service as a proxy to that blockchain exchange, and which would still count as a decentralized exchange proper. But if it can freeze or outright steal your money, it is not a decentralized exchange, and there is no viable reason to think or believe you are dealing with one, no matter what they claim to the contrary. Simply put, they are lying to you, they are not decentralized

The DEX that you know is actually CEX which implies a decentralized exchange.
Such model exchanges have mushroomed in this world by bringing the name of DEX to attract the interest of many people.
What I see, the "pure" DEX is lack of trading volume, it's due to lack of promotion and advertising, but the ecosystem is better than CEX.

The debate between between CEX and DEX has been going on from so long. It's quite obvious that people have have different point of views on the both.
It's just a matter of priority now. Some people choose liquidity over security and privacy and so they choose CEX over DEX and vice versa.

Let's always see to it that the both sides will be fair in terms of profit and safety of everyone's asset. DEX over CEX is a very serious rivalry of exchanges, so we must respect the decisions of everybody who prefers which of the two would they thought safe enough and trusted. Both of them has commendable feedback from many people, so it really depends on everybody's opinion.

The main problem with DEX is the complexity in the way they operate. First you have to import wallet through private keys which is not common among all crypto investors. Some investors have never used HD wallets so using DEX is wholly new concept for them.
Second the way orders are executed on DEX is not comfortable for all traders and all coins. I haven't used DEX in last 1 year or so but when I used to sell my coins on DEX, the orders only get executed when someone buy the entire order. Whereas in case of CEX, buyer can clear the partial order. So your order can be cleared by more than one buyer but in case of DEX, only one buyer have to clear your entire order. I don't know if any decentralized exchange has solved this problem but this is the major reason why I prefer CEX over Dex.

Talking about that main problem youve say, then im partly agree with that one where its too hassle on making up a trade yet you would need to import your wallet before you would able to proceed.

Next, on the order you have been talking then it just really the same on CEX, they've been automatically filled out once buyers or seller do tend to made an order.
CEX had much more volume than DEX even though majority does like anonymity and decentralized but they do end up on using cex ones.