Bitcoin Forum

Hello guys, hope you are doing well  :)

With the rise of ICOs and new projects working on Decentralized exchanges (DEX) and raising millions, I'm wondered how people in the crypto community perceive it and why a lot prefers DEX rather than centralized exchanges. Indeed we have seen many interesting projects with hype, such as IDEX, Waves or Stellar, and some looks really promising like NEONEX.

Decentralized Vs Centralized exchanges: Where do you stand? And why?

Decentralised exchanges are the only logical way of protecting peoples decentralized assets.
There is not much more too it besides the creation, testing and assurances that they work before everything that is traded are run over a DEX for all the reasons we know why.

I guess this topic should be moved to Trading Discussion . .

Decentralised exchanges are like free tickets to scams and you may loose your money over these tiny volume gainers. They raise millions because people are a lot and they put their money over there but what about the benefits of investors?

These mostly end up with dead volumes, no trading order gets filled fast as long as it is unique project or overhyped one.

May be centralised are best in terms of your security and safety too. You dont have to share the private keys here where decentralised one may ask for it.

Choose wisely.

Decentralized exchanges are certainly a future of cryptocurrency trading (along with atomic swaps), but they are not perfect. Recently, one of the most popular decentralized exchanges was hacked (https://www.ccn.com/decentralized-crypto-exchange-bancor-hacked-12m-in-ether-stolen/). However, it doesn't discourage me from trying them out. Bisq (https://bisq.network/) seems to be the most reasonable choice right now. Users prefer to use exchanges which are easy to use and support a huge variety of altcoins and tokens. Decentralized exchanges are still not completely noob friendly thus they won't gain a lot of attention in the coming months.

I prefer for centralized where the government have direct participation on the new projects that would come in. Exchanges should be under the regulation of the government to protect the interest of the investors. The government should give approval to the exchanges prior they operate in their business.

Centralized because you have advanced features and tools, it is easier to use and liquidity.

From my experience of using both, I still prefer centralized exchange because it's easier. Furthermore, I got butthurt robbed because of fees when I cancel my buy/sell order on DEX.

I cannot see decentralized exchanges will ever replace centralized exchanges without a big improvement in user experience and cost.

Not sure what you're on, mate but last I checked centralised anything doesn't give you any control of your private keys. How could they? You need to keep your funds with them.

Show me one centralised exchange where you own yout private keys. And while you're at it, show me a dex that asks for your private keys. I'd really like to know yout sources!

The best thing about decentralized exchanges is that they are a weed. One that cant be stopped lol. So its best off that every coin, token, commodity, asset, title are all at least covered by one DEX. The only exchanges that the people run and not the governments imho.

If you check recent history Centralized exchanges are prone to hacking, see case of Bancor which claims to be decentralized but its centralized in many ways, Coinrail, Bithumb double hack, binance security and API breaches. Also the listing fees of the centralized exchange are higher than the stock market listing fees  :D :D. On the hand decentralized exchange are safest exchange and cannot be hacked as user holds the private keys. Its the right time to give more preferences to the decentralized exchanges now, this will help moto of cryptocurrencies decentralized nature. Decentralized exchanges have liquidity problems, if more people will use Decentralized exchange liquidity problem will be solved. 

Most of have some doubt Decentralized Vs Centralized Exchanges, They used both exchanges but they don't know is it DEX or Centralized one,  Most of are now DEX because no need any personal details and It is worked for any country some country have restriction most of the centralized exchanges therefor most of are prefer DEX , Some other reason is minimum trading cost, Now IDEX is most popular DEX,  Disadvantages is sometimes law volume and security issues

the centralized exchange is a huge monster . it holds our money . this is too scary . this is not in line with the spirit of bitcoin . if it has security holes , this is affecting many people .

I believe that decentralized exchanges are a new stage in the development of the digital economy. The funds remain under the control of the owner, the level of his security is increasing, and confidence in the process of digital assets trading and the industry as a whole is growing.

I think decentralized exchanges will become the mainstream of the future, which will enable people to have more control over their coins. If you put your coins in Centralized Exchanges, it is very unsafe.

For me personally, both are the same, but I prefer to trade in a decentralized exchange because it is not complicated and can do multiple accounts

The average Joe doesn't find decentralized exchanges really user-friendly and find it difficult to use. With the regulations increasing people should take a look on DEX more closely because in some years they may be more used that centralized exchanges


Most of the popular exchanges have been hacked once and surely more than the DEXs so I am not sure if it's right to say centralized are the best in terms of security...

I stand on a decentralized exchange because DEX usually has a cheap fee and its usage is very easy. other than that decentralized exchanges also have no authority in it

it is all about the control. using a decentralized exchange you are mostly in control of your funds and the risks of losing them are minimal. also you do not have to trust a third party with your money since you give up that control using centralized exchanges.

the reason for the hype is that there has been many centralized exchange hacks in the past that has made people uneasy to work with any of them.

there is another hype that should be confused with the one i mentioned and that is the hype of the tokens like Wave,... that is for trading purposes and making profit from their pump and dumps.

Same as my thread before.
Main point is : We use cryptocurrency because we hate Centralized, but why we use Centralized Exchanger to save money? Why we use centralized to store decentralized money?

But, decentralized exchanger have bad issue, like etherdelta

Thanks for your answer guys, really enriching!


I totally agree with you!

I also think that we will see appears in the upcoming years (months?) the launch of a huge DEX, which will completely solve this matter of security. But it's clear that for now, DEX are not newbie friendly at all! And it's true, who can boast today that it was easy to understand how to trade on EtherDelta.  :D

The Etherdelta exchange recently updated the web interface. I did not test it, but I think that the update should help solve some of the existing problems with this exchange.

there is a big flaw in this argument in my opinion and that is the fact that you claim that you want to use cryptocurrency to benefit from that decentralization but then the only thing you care about is trading them... i find it contradictory with the main idea.

for example if you believe in decentralization of money through bitcoin for example, you don't even need to have an exchange account! exchanges are for traders who want to make profit (usually on their *surprise surprise* fiat). if you want bitcoin you don't even have to buy it, you can earn it like asking your boss to pay you in bitcoin, if you have a shop then sell your goods for bitcoin,... then you will be using bitcoin without even needing exchanges whether centralized or decentralized.

Cryptocurrency is a symbol of independence. Independence from no one, including the leadership of the cryptoexchange. If the cryptoexchange is centralized, it is subject to government influence through influence on the leadership.

Since cryptocurrency is design with a sole motive of being decentralized in nature I think decentralized exchange will be the best option because exchanging a decentralized commodity on a centralized exchange is like putting it or subjecting it to what is originally not design for it which will lead to it to be conditioned to adopt centralized processing which is outside it domain.

I prefer centralised exchanges, they offer a nicer user interference, better security features and have a lot of coins available for trading. Until Decentralised exchanges implement better features and a nicer interface I don't see them competing with he centralised exchanges.

in my opinion decentralized exchanges are far more better than the centralized ones becuase recently we have seen more than 7 hacks in only 1,5 months whereas no centralized exchange have taken the responsibility on the other hand no dex was hacked.

everyone would prefer decentralized exchanges but only if they were good enough to satisfy their trading needs. one of the biggest problems that i see with decentralized exchanges is that they are not easy to use and not as user friendly as they should be. this means people still go to centralized exchanges instead.

I personally like decentralized exchanges, generally they don't have hefty fees like centralized exchanges.

Btw recent bancor hack busted the myth of decentralized exchanged are full proof against hacks.

Both are prone to hacking. You can never really trust be sure of an exchange's security wether it's centralized or decentralized.

There's just not much volume in decentralized exchanges that only small traders use it. It's also not easy to use for average users.

yes but the hack scenarios are very different from each other.
the centralized exchange hack happens one time and in that time they steal everything. like hacking $20 million in one go.
but in case of a decentralized exchange since there is no one entity holding all the funds they have to hack every person so it is harder and the resulting loss is smaller.

It is important that the bitcoins and cryptos are decentralized, but we have seen that the decentralized stock exchanges to date have not been sufficient in terms of volume. For this reason, centralized stock markets are more useful.

Centralize exchange offers the services that decentralize exchange don't , when you are in need of support, the haste which you get replied by a customer service of a centralized exchange can't be be compared to decentralized exchange.

Dex is a very safe exchange place compared to the exchange of Centralized Exchanges. For non-socialized and centralized exchanges are exchanges that do not allow users to control the private key of their crypto funds, and vice versa, they store the key on a centralized server or database. this exchange of Centralized Exchanges creates a gap for hackers to hack, so it's more dangerous and risky.

I will prefer decentralized exchange because a decentralized exchange is an exchange market that does not rely on a third party service to hold the customer's funds. Instead, trades occur directly between users (peer to peer) through an automated process. This system can be achieved by creating proxy tokens (crypto assets that represent a certain fiat or crypto currency) or assets (that can represent shares in a company for example) or through a decentralized multi-signature escrow system, among other solutions that are currently being developed

Decentralised so it gets more difficult for governments and hackers to take them down

By the way, NeoNEX will be hugeee guysss

Decentralised:   - cant handle high load, low liquidity, risk of poor implemented systems locking or losing tokens with no one taking responsibility. No fiat gateway likely. Bypass KYC/AML so regulators may see as threat.  + bypass KYC, no limits on withdraw amounts, lower risk of direct hack
Centralised: - higher risk of hack, also can have low liquidity and struggle with load, rubbish support not taking responsibility.  + can support high load and liquidity, regulatory compliance offers mainstream adoption.  offer some support.
 
Really it doesnt matter the model used, unless they are well designed amd implemented in terms of code, infrastructure and support, they will be poor.  centralised exchanges have the opportunity to be better as there is more interest (profit) in producing a stable, quality platform.  decentralised is nice for the purists and potential to be better *if* someone puts in the effort without reward to build it properly.

For me, i will prefer to choose decentralized system than centralized system. This is because the decentralized system can give us more access and freedom to our own assets than centralized system.

Even me, I would also prefer a centralised exchange because what ever discrepancies happen you have the rights to complaint to whom it may concern but in decentralised exchange you get what you do, you get what you may not supposed to get and you can't complaint with respecting action from the implementor.

I appreciate decentralised exchanges like IDEX because it's the simplest solution for you to make instant exchanges without worrying about having to perform multiple procedures or be restricted Money in the 24 hours as the focus floor.

I bet on centralized exchanges because it has third party service to extra protect our funds even with more fees to pay.  Decentralized exchanges are prone to hacker attacks since it has only a main system to hold their customer's funds. Centralized exchanges limits our move because they want their customer to be secure and no conflicts between the buyer and seller.

That is true. The friendliest one I've experienced is WAVES Dex, although I have seen some other DEX demonstration on a beta app that looked really attractive, with simple cross-chain swap functions, but yeah, easy to speculate on how great your product is but it means little until it's a working product. Whatever else I've tried is clunky and inspires no confidence for the regular person afraid to make mistakes and lose funds.

Bancor recently got hacked, and if I'm not mistaken, aren't they supposed to be a sort of decentralised exchange? Or liquidity platform or something?

I prefer decentralized exchanges as it is less prone to hacks and are truly p2p. Centralized exchanges on the other hand are target of hackers, has high trading and withdrawal fees, doesn't guarantee a solid security and cost high to list other coins. CEX are the very entity that cryptocurrencies are trying to defeat but sadly, it is more used by the people.

The attractive value of cryptocurrency is the fact that its decentralized, Its free to roam, earn profits, and the control of its value is based on the market forces, when it comes to exchanges however, its better for the exchanges to be centralized as this is the only way to ensure that only credible coins are listed, if not then there will be a disadvantage as even the scam projects will be enlisted, regulation ensures only high quality coins are included in the exchange platforms

Some persons prefer decentralized exchanges because there are no KYC requirements before you can make a trade, it helps preserve anonymity of traders.I think it is nice too.I however prefer vcentralized exchanges pure because the currently have more volume of trade and careless about anonymity

My thought actually,someone actually implied the contrary(above) that decentralized exchanges are prone to hacks, much of the hacks we have had in the past are on centralized exchanges.

To be honest some decentralized exchanges like fork delta A.K.A etherdelta are abused by those pump and dump groups because you can manipulate and control your buy and sell order, for example you can manipulate to pump the price by buying your own sell orders with high price and this system are really abused by those greedy people(But I'm not telling all DEX are not good to use). I agree with you about Centralized exchangers, they are better than those decentralized exchangers in terms of security issues and gives you more assurance that your coins or tokens are safe in their platform.  8)

I prefer decentralized exchange because it has more security and privacy compare to centralized exchanges it every difficult to used more to hacker on decentralized exchange because all the coin are in our personal wallet or exchange wallent.

As for me, I totally prefer the centralized exchanges. They are somewhat easier to maneuver and I also have this feeling that my funds are better secured with the centralized exchanges. I really don't trust the decentralized exchanges. One of the reason why I don't ever import my private keys to their platforms.

I can see a couple of issues with decentralized exchanges. One of which there is a higher chance of loss if the platform is hacked. This have been shown numerous of times already, and such platforms would either have to come out of pocket or call it a bust if they were hacked. With centralized exchanges, they are usually backed by higher funds as well as insurance in the event of anything happening. Decentralized exchanges may be the way to go but it has a very long way to go before it is even recommended. Privacy and true p2p would be seen with a decentralized exchange but I also see hackers attempting to funneling funds through these exchanges very easily as well in attempts to high their footprints, and also see a higher restriction on cryptocurrency in most countries if problems increase with a decentralized exchange.

 
You mean Why alot of people prefer Centralized exchange rather than Decentralized exchanges?
It would be wonderful  if more people are really beginning to use Decentralized exchanges than Centralized ones but I doubt this is the case.


I think it is possible though with the number of Ethereum based DEXs available today.

Decentrilized exchanges are good to protect identities but users maybe prone to scams. Andthe recent hacking are in decentralized exchanges.

The biggest benefit to decentralized exchanges, Decentralized ex are the same as with all decentralized applications:

no central governance (individual nodes can go down but the rest of the network will keep the work with no pause)
no central point of control and failure (no censorship)
no single point of regulation which is important for possible shut downs of exchanges by regulators which could lead to loss of funds
and most importantly DEX empowers users to control their keys, preserves privacy, and introduces far less risk that centralized exchanges.
Having said all that, the DEX technology still has a long way to go, technology-wise.

Centralized exchanges are currently the necessary evil, they are the gateway and on/off ramp for the time being.

It is true today to prefer a decentralized exchange because it may be safer than a centralized exchange that is sometimes attacked by hackers.

Safety is the major concern these day. every moth there is a news about exchange hacked and lost funds. In india same happened with coinsecure.

A decentralized exchange is an exchange market that does not rely on a third party service to hold the customer's funds. Instead, trades occur directly between users (peer to peer) through an automated process. This system can be achieved by creating proxy tokens (crypto assets that represent a certain fiat or crypto currency) or assets (that can represent shares in a company for example) or through a decentralized multi-signature escrow system, among other solutions that are currently being developed.

This system contrasts with the current centralized model in which users deposit their funds and the exchange issues an IOU that can be freely traded on the platform. When a user asks to withdraw his funds, these are converted back into the cryptocurrency they represent and sent to their owner.

Centralized exchanges are easy to use, easy to access and they provide advanced trading functionalities like margin trading and others. However, they also represent a security risk for your funds. While some exchanges are better guarded than others, hacks are not an uncommon event in the cryptocurrency scene, and some like the recent Bitfinex hack have led thousands of users losing their savings.

The most obvious benefit to using a decentralized exchange over a centralized one is their "trustless" nature. You are not required to trust the security or honesty of the exchange since the funds are held by you in your personal wallet and not by a third party.

Another advantage to the decentralized model is the privacy it provides. Users are not required to disclose their personal details to anyone, except if the exchange method involves bank transfers, in which case your identity is revealed only to the person that is selling or buying from you.

Furthermore, the hosting of decentralized exchanges is distributed through nodes meaning that there is no risk of server downtime.

CCurrently, I'm working only with centralized and well-known exchanges, my favorite one is CEX (https://cex.io/).  Actually, never dealt with decentralized exchange, coz for me convenience of interface remains on being very important criteria. So, I think I’m gonna use only centralized exchanges. At least until I’ll get more experience in crypto.

A decentralized exchange would be the logical choice in the crypto world, but today they still have much to improve. The attack of hackers and the inclusion of Scams are two critical points, not counting the liquidity and possible manipulations of market. But over time and improvements I believe that they can take the place of traditional exchanges, with implementation of voting mechanisms, where the community chooses the projects that will be listed and does exchange management.

I do not see any particular difference. On the contrary, it is more convenient to trade on centralized exchanges.

I think the decentralized form of currency is the best way to make any transactions because we all know since it involves a widespread of an organization and different countries have participated. Due to the rise of competition where quick decision making is required and therefore many organizations opted for decentralized.

I will always choose decentralized exchanges over centralized ones because I'm always confident I wont loss my money and my personal details wont be compromised.
Happy to see many blockchain infrastructure building their own DExs even big exchanges like binance, bitfinix, etc. One of the problems that is hindering the adoption of DEXs is the slow proccesing on trade orders on the blockchain and also low liquidity. I believe in the future DEXs will be used massively

Decentralized Exchanges like bisq are superior, given the fact you can trade without any KYC/AML espionage and without beeing molested by sudden freezing of funds.
The only downside is liquidity and this will be solved with more users.

yes, it's like the bank's financial system. centralized exchange is regulated by market owners. and it's very vulnerable to hacking. we hear a lot of centralized exchanges have been hacked and lots of funds are lost. different from DEX. all exchanges, transactions via blocks, and security guarantees are higher than centralized exchanges. so I prefer DEX.

I agree when many crypto observers point out that DEX is the future of crypro exchange, where pure market control for users without the presence of another party in exchange, has met crypto decentralization rules. Hopefully in the future DEX will be able to provide speed, activity efficiency and also increase trading volume

Indeed, because in decentralized exchange we are always holding our money and taking full responsibility to secure it, but decentralized exchange is not having so many active traders compared to centralized exchange. Trading will be better and more effective if more traders, therefore people use more centralized exchange places than it, surely that has been trusted not that new one.

Both decentralized and centralized exchange have their own advantages and disadvantages.
One of advantages of decentralized exchange is, the volume most of them are real, not fake. The advantage of centralized exchange is they are very fast updating the order books. For example if you look binance, their order book is changing very fast and they can handle many transcactions.

Bitcoin is an electronic currency that brings high profit value to investors, so I'm keeping a bitcoin and hoping its value will increase in the future.

I use both for trading because it all depends on the token or coin I wish to purchase, so both are good in my opinion. I do though tend to trade more on centralized ones though but I have to say I am not a big day trader. I do not day trade a lot, just now and then when I have time or the token or coin I am buying has some volatility and volume in which I can trade for that day. It all depends I think on what you are doing, both are needed and both are good in my opinion. I like idex best and binance, both each a decentralized and centralized exchange in their own right.

With what blockchain technology stands for, I will always go for Decentralization as it gives users all power to do as they wish on the platform. Centralised platforms calls the short and controls everything within the platform especially with high transaction charges.

I choose an exchange that is decentralized rather than centralized because this feature can protect my personal data from something unknown

I think that now centralized exchanges win competition from decentralized ones. The technology of decentralized exchanges is poorly developed now. There is still a lot of development and testing to make real decentralized exchanges become a reality.

i am on the same site. I also like decentralized exchange, it has more advantages than centralized one.

Hi everyone! I found a new Decentralized Exchange yesterday : https://trex.org/  

Let's try it and share some experience here, so.. I like it so far.   :)

I am stand in centralized exchange but there are not easy way to added in centralized exchange because demand of value. Most of the exchange listing fee is too much. But decentralized exchange is free in majority of the exchange like as Idex,Etherdelta,Forkdelta and Bancor i think that's why people going to stand in DEX.

I have taken a deep look into projects who are listed on a decentralized exchange recently and found out that most of them due to non regulatory framework are easily manipulated on and tent to become pump and dump leading to it investor's losing they investment. But the centralized exchange on the other hand e.g binance and the rest only list coins who have gone through adequate regulations and are certified to protect at list if not up to 100% minimal of 70% investor's found, so I will always option in to a centralized exchange.

For the future and betterment for any token, I think it's best they're listed on any Decentralized exchanges. Why because this is going to prevent early and prematured dumping just any how by the airdrop or bounty hunters to those that bought through the ICO if such toke  went through ICO selling.

So we built one (https://trade.lakeproject.co), and here's my thoughts on decentralized vs centralized:

Pros:
- You trade from your own wallet so you don't need to entrust your tokens to a 3rd party and risk hacks
- You can't be censored as you can take your tokens anywhere, and you have full control over where you trade
- On our platform, there's no signups, so way easier to start trading right away by simply connecting your wallet
- We don't charge any trading fees, you only pay the Ethereum gas fees
- We also plan to add premium portfolio tracking and tax reporting features that are crucial for traders (this is our business model, we don't believe in nickle and diming users just because, we believe in building and charging only for features that add value to our users)

Cons:
- There are obviously not as much liquidity as centralized exchanges (we are looking into integrating them and becoming a Hybrid platform)
- Trade execution wont' be as fast (we're built on the 0x protocol, and the decentralized technology needs time to mature, it's getting quite good though!)
- Only ERC-20 tokens for now, others coming (margin trading, ERC-721, Bitcoin, etc)

Happy to share any thoughts since we're building this first hand and we're quite familiar with the challenges and potentials.

Decentralised exchanges is the way as it solely suppprts the blockchain technology. Centralised exchanges are not secured and loaded with high transaction charges, which users suffer more.

I am into DEX's but I'm curious how they will play out. Big fan of stablecoins and how they'll be used for them

Decentralized Exchanges is the main deal for me as it offers all what is needed to an investor or trader with full control of their assets, reduced transaction charges as well as relatively low charges compared to Centralisation exchanges.

McAfee himself prefers decentralized exchanges due to their nature. No one controls these exchanges unlike those which are centralized. You are correct that they are not perfect..nothing is really. DEX are not hack-free. But one incident doesn't generalize anything.

Objectively, I chose the centralized exchange even though it was very dangerous but so far I have not experienced problems with the local centralized exchange. For centralized foreign exchange, I never conducted an experiment, because it also considered the risks that I would experience. Although Vitalik doesn't agree, I don't like DEX because it might be inadequate service

https://cointelegraph.com/news/ethereum-s-vitalik-buterin-blasts-centralized-crypto-exchanges-i-hope-they-burn-in-hell

I think if people or traders, DEX and centralized is no matter for them. But from what i see, listed on DEX is easier because some Centralized market have rules and it is make it hard to listed on them.

Well, I think that each of these exchanges has its pros and cons. On a decentralized exchange, we have access to our funds directly, without third parties, unlike a centralized one. But it is more convenient to trade on a centralized exchange. I still believe that it is better to use decentralized exchanges, because people will quickly gain experience with cryptocurrency.