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whats the difference b/w normal exch trading & defi exch   trading ??

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Learn where to post your questions. Move this to Trading Discussion (https://bitcointalk.org/index.php?board=8.0)

try reading a little about the defi ecosystem yourself.
I see great promise for decentralized exchanges in the future. Real decentralized exchanges always have a code above the law.
No one can block or confiscate your funds, but read this:
https://bitcointalk.org/index.php?topic=5247581

In summary:

With custodial or "normal" exchange trading, you send over your funds to wallets these exchanges control. Making trades instantaneous, but leaving your funds more susceptible to hacks.

On the other hand, with non-custodial or "defi" exchange trading, you're going to use and connect your non-custodial wallet(e.g. Metamask, MEW, etc) to these non-custodial exchanges for you to be able to exchange your coins/tokens. Downside being you're going to make an on-chain transaction after every trade(which can be slow and costly, because fees), but with an advantage of putting your funds at less risk of hackings.

The truth is.. I would have DeFi exchange if its supports margin trading and if the Transaction fees are not high. But for now, I prefer the normal exchange because its a little bit faster. I only know that with time, DeFi will lead although the DeFi exchange trading volume is currently higher than most Centralized exchange. But it's still new.

DeFi exchange is not a really new term. Most of the times it refers to a dex with its own governance token, or none at all.

That won't come if atomic swap is not widely supported. Most DeFi/decentralized exchanges lacks volume due to its limited usage. Uniswap is just rising in action due to the DeFi hype. Before, the volume is not that great compared to other dexes.

Decentralized exchange allows traders to trade any token available which is the reason why number of project on defi platform was increased and made the trading volume to reach the new high on decentralized exchanges.Anyway now people started to realize a bit about the defi hype but still people were in the dream of getting another airdrop like UNI by continuous usage of DExs.

defi hypes a lot for now, so as for me, huge volumes helps to earn more. But still defi platfroms are too young and unstable, so i prefer to use traditional trading. besides, just cex.io just announced Defi platform and there will be a possibility to purchase defi tokens with fiat money

You can already purchase these "defi" tokens through a lot of centralized exchanges though. Wrapped Bitcoin(wBTC) and Uniswap(UNI) are some of these so called "defi" coins, and they already have fiat pairs on Bitfinex.

yeah i also heard about that, just read somewhere that has cex.io 0% deposit fee for instant card buying crypto as a promo for defi platform running

Good point here to say is that many people forget that these so called Defi exchanges are actually DEXs,,, no different. And many Defi are actually centralized companies whose smart contracts are not even truly open source. Many people are investing without not knowing what is going on and trusting companies.

No different from exchange trading except the promise of self custody.

Well, actually there is a difference between how trading happens on centralized exchanges and DeFi Exchanges.

Centralized Exchanges are always order-book based. There is no other mechanism for those to work except buyers placing buy orders and sellers placing sell orders and market getting matched somewhere between the two.

However, DEX (currently popularly called DeFi Exchanges) can be of two types. One order-book based, like IDEX. But it's second type of exchanges i.e. Liquidity based which are getting high traction lately. In liquidity-based exchanges, liquidity providers deposit two different Ethereum tokens at specified price which creates market pair of the two and now buyers can buy any of the two by sending the other to the Smart Contract. The exchange rate of the market pair depends upon which of the two getting more buyers. Liquidity Providers in return share the fees on every purchase.

The difference is that with DEFI, its owned by the community that if you provide liquidity to any pair, you get to profit every time swapping occurs while on the normal exchanges relies on the number of traders willing to buy and sell in the platform and they are the only that will profit thru the trading fees.

In DEFI, the bigger the amount you are going to buy or sell, you will be on the priority order. Just some of the things I noticed there.

The explanation above is clear and simple to understand. If you wish to read further about DeFi and the related exchange platforms and how they differ from the rest you could do so here (https://blog.coinbase.com/a-beginners-guide-to-decentralized-finance-defi-574c68ff43c4).

This is a well written article that I think rounds up several points new people need to be aware and understand about DeFi and how it fits to the rest of the crypto market.

This post by @mk4 pretty much sums everything up about trading on decentralized (or DeFi) exchanges and the centralized ones. It's worth noting that trading on DeFi exchanges (aka token swaps) offers more control to the user and puts the power back in the hands of the community. Most DeFi DEXs have governance to maje sure of that.


True that. DeFi is currently being hyped the same way ICOs were hyped back in 2017 and early 2018. So if it's a bubble, It'll eventually gets burst. I've seen some ridiculous APYs which I think won't be sustainable in the long run.

Few months back when I was actively keeping tabs on the DeFi ecosystem, I came across this project named bzx protocol (https://bzx.network/) it does have the margin trading feature but back then it was still in development phase so probably by now it must have been launched since news are the platform has fully relaunch although experiencing some bugs at the moment due to some flaw in the code resulting to hacking taking getting their hands on some funds although the insurance policy is keeping everyone finds safe.

In regards to the defi exchange questions, although their isn't much differences between the so called DeFi exchanges like Uniswap and DEXs (that's decentralized exchanges) since both are decentralized in nature but that if DeFi have others features that makes it very interested to trade with like the farming feature, providing of liquidity for the exchange and in return get some compensation etc. In general DeFi exchanges are an upgrade to the average dex we had existing.

The volumed of DeFi related exchanges can't be compared to that of your average dex. If there was any believe that the decentralized exchange can chase the centralized exchanges out of business, Uniswap and its like just strengthen that believe.

Buying and selling to trade DeFi coins has a very big risk for asset loss, but on the other hand, you are very fast to get profit in a short time, not many people try their luck with brani taking that risk.

This thread's a bit old, but I missed it before and I would have thought what you wrote but probably wouldn't have expended the energy criticizing OP.  Looks like he never came back to discuss any of the replies...typical.

I don't know much about DeFi exchanges, but I've tried learning a little bit about what DeFi is and it still kind of perplexes me.  The way I see it is that it all comes down to lending, and there are all of these little twists to that basic premise that apparently make some people a lot of profit.  What I also know is that it's the hot new thing--and that makes me even more skeptical than I would normally be.  Most of us know the route ICOs took through the course of crypto history, and I'm afraid DeFi appears to be following that path.

Right, just like ICOs.  Be one of the first ones to sell your tokens and you might do well.  It's a big gamble, and I question whether DeFi actually performs anything useful. 

Defi is mostly a Decentralized exchange while other exchange use centralised . The difference the dex is you need to import your wallet to that exchange so you can start trading while in normal exchange you have provided address that you can use to deposit in that address before you can start trading .

Other things is regulation therec are centralised  exchange that are following governmenr rules If they found that you have malicious trade you need to verified your self by sending identification that they asked while in Dex they will not ask it .

Learn about Impermanent Loss in context of DeFi, it is the underlying theory of how DeFi actually works.

Cex will always have better depth imho, as you can place orders in limit while Dex pools act as Market orders in liquidity pools, which depend on arbitrageurs to balance out any difference in price between Cex and Dex pools.

Hope this helps, if u r a noob who is happy complying to regulations and all, then go for Cexes.

There are many differences between bw normal exchange trading and defi x trading usually decentralized and in secrecy of currency transactions as traders started buying and selling all available financial instruments such as cfd currencies or indicators but benefited by bw normal exchanged rading centralized government alternative business requires you to develop all the skills you need. As a successful trader of options you have to spend hours reading and learning analyzing charts implementing various strategies it is also important to include adequate financial and emotional management.

DEX is not really tricking anyone by calling it something else, there are tons of places that is owned by basically one team but they do it in a way that everyone who holds that specific dex token is an owner in a sense but when the team owns like %70 of it, doesn't really matter, plus we do not know if they bought even more.

Basically it is exactly the same thing as CEX but for some reason they just make it look like it is not controlled. If an exchange can change even the design, that means it is controlled and I do not trust them. CEX is better because they say they own it and they do their best to make it work as well, binance for example is a great place and they tell you they own it but also they do their best to be the best exchange out in the world at the same time.

Actually DeFi exchanges are not much different from DEX, maybe there are slight differences in trading features. But when compared
to CEX, it is of course better to trade on DeFi exchanges. Since DeFi exchanges are not government controlled, has a and better security
system than CEX. So trading on DeFi exchanges is not easy to hack, unlike CEX which is often hacked. Unfortunately DeFi exchanges do
not have high liquidity and can only trade in crypto. Therefore many traders prefer trading on normal exchanges, because they offer
crypto-fiat trading.

With centralized exchange, users trust the people behind a business to manage funds and execute on services. With defi, users trust that the technology will function to execute on services being offered. defi exchanges are young, but volumes inspiring a lot! so truly to say, defi exchanges will lead the market in nearest future..

yes, agree with you, - strongly believe in defi exchanges. and besides, just read about xsigma dex, based on Curve - interesting concept, heard about it ?

This is yet to be seen, if indeed DeFi exchanges will dominate the market. There are pros and cons between using DeFi and Centralized exchanges, now it is up to the user's preference how he will use both. But I believe, the existence of both platforms is necessary to have healthy crypto trading market. And right now, a lot of traders are still in preference of centralized exchanges, for one, because of the liquidity of most alts.

not really, is it stablecoin exchange? not much info about them for now

Spot exchanges normally have exchanges that show bids and offers and have transactions on a p2p and we can determine the selling or buying price at our own.

DeFi exchange is usually an AMM exchange where all price trades are regulated by the system itself the purchase price as well as the selling price. You can only buy and sell instantly (can't put the price all you want).

DeFi exchanges are quite popular nowadays, because since DeFi trend this year, many people have become interested
in trading on DeFi exchanges. The advantage of DeFi exchanges that most people love is that there is no need for KYC
verification, so those who wanting anonymous trading can use DeFi exchanges. Then for normal exchanges or better
known as centralized exchanges, has a complete trading feature and can easily cashout to bank accounts. So actually
these two exchanges complement each other.

Honestly on the big ones there is not that much difference. I understand that some people may find some problems with it but in reality we are talking about something so small and tiny and I do not find it that bad when you are dealing with defi exchanges.

Like sure uniswap is not as big as binance or coinbase most of the time but if we are talking about big pairs like usdt to ether or whatever, we are surely talking about basically the same thing and that is awesome because you are using a decentralized, no company type of exchange and you are moving one to another directly from wallet to wallet which is nearly impossible and definitely worths a lot. The only part where centralized exchanges could win would be with small tiny pairs because it is not really easy to trade those in dex.

https://www.nasdaq.com/press-release/zk-internationals-subsidiary-xsigma-corporation-launches-its-blockchain-defi-protocol - here's a link on press release i read about them