If you guys were to build a CEX exchange, what kind of features would you add?

[aioc]

I'll go for security, transparency , customer support, fairness, and guaranteed safety of the funds. I want my users to be as comfortable as possible because if they feel the platform is secure and fair, the users will be its own promoters and marketers.
The exchange industry is one of the most competitive business and probably one of the most profitable if you have all of those I've mentioned they will likely to be on the top of the competition.

[BenCodie]

I think a better question is if we were to build a DEX, what kind of features we would add.

Though I suppose to indulge with two ideas that have always been in the back of my mind
- Instant swap interface that is as competitive on fees as the exchange (usually swap interfaces have higher fees)
- Dynamic fees that favor smaller trades (smaller traders get free trades though larger trades get higher fees, rather than fixed trading fees across the board).
- Better "trade to earn" features than just a contest that favor whales.

[KingsDen]

I think a better question is if we were to build a DEX, what kind of features we would add.

Exactly what I thought. Although I have seen and contributed to this exact question. But OP seems to want something different. He acknowledged the lack of liquidity in DEX and decided to stick with CEX, maybe an improved CEX.

To me, I don't think there are many good features which centralized exchanges haven't incorporated yet. I just need an exchange that I am sure will still be there when I wake tomorrow, that is trustworthiness. But it's not something that will be built into the exchange, rather it is what the project owners will possess.

[Z-tight]

and guaranteed safety of the funds.

Can you guarantee that? Depending on how big the exchange is, you will be handling customer funds to the tune of millions and billions of dollars, it is hard to guarantee that everyones money will be safe with you. If people want guarantee that their funds are safe, they should store it in their own self custody and be responsible for their own security, because there is no exchange that can do it for them.

Yeah, you can invest heavily in security, but you'll still be holding a huge amount of funds in hot wallets, so you cannot guarantee complete safety of funds.

[khaled0111]

...

It seems you didn’t get my point, maybe, because I didn’t express it well. Sorry about that!
I didn’t mean to say that I don’t like 2FA or that I don’t use it. I’m well aware of its benefits, and that’s why I make sure to activate it on any platform where it’s available, even if it’s not mandatory.

I just used 2FA as an example as it’s one of the features that already exist and, I believe, still need more improvement and can be improved to make it more convenient.. don’t know, maybe like what some apps do when they log you in automatically as soon as you receive the verification sms or call on your mobile without having to copy-paste the verification code.

[Pmalek]

I think most centralized crypto exchanges manually review withdrawals before approving them, mainly due to hacking and social engineering risks.

This depends on several factors and varies from exchange to exchange. A smaller CEX with big enough team can afford the luxury of checking more transactions manually. Bigger ones, not so much.

Generally, if each withdrawal was manually reviewed by a member of staff, it would take too long to go through a while day's of withdrawal requests and the user experience would be dissatisfactory. Withdrawals below a certain threshold are surely automated to speed things up. Manual verification takes place for bigger amounts or when certain alarms get triggered. For example if the system notices a connection to unwanted funds (tainted coins according to their interpretation), access from unrelated IPs and territories compared to earlier log-ins, etc. 

[Alpha Marine]

I think hugeblack has mentioned everything I would want more of from CEX if I had the power.
There's just one thing I would like to add to that. I would like the exchange to make it in a way that merchants can't negotiate the price in a P2P after putting up an ad.
There's no point in putting up a specific price when the seller clicks on the ad, the buyer and seller start negotiating the price. It shouldn't be like that. They should put the price they want to buy or sell. 

I see some that put it up that they will be charging a fee. It's ridiculous to charge a fee in a P2P trading of an exchange. Just my opinion, though.

[Potato Chips]

There's just one thing I would like to add to that. I would like the exchange to make it in a way that merchants can't negotiate the price in a P2P after putting up an ad.
There's no point in putting up a specific price when the seller clicks on the ad, the buyer and seller start negotiating the price. It shouldn't be like that. They should put the price they want to buy or sell.  

I see some that put it up that they will be charging a fee. It's ridiculous to charge a fee in a P2P trading of an exchange. Just my opinion, though.

What the heck, I wasn't aware that's a thing. Do trade arbitrators give this a pass if folks reported, as well? I mean, folks should always follow the order deets IMO.

My prices has always been locked in to what the order detail enatails. Though, there was a time one dude wanted me to cancel the order for "updated pricing"-- haven't sent funds to escrow that time so it's not the typical straight up scamming.

[Alpha Marine]

What the heck, I wasn't aware that's a thing. Do trade arbitrators give this a pass if folks reported, as well? I mean, folks should always follow the order deets IMO.

I kid you not. It's so crazy. I think merchants in my country do it more, I've not heard people from other countries complain about it. What's even crazier is that this is not happening at a local or small exchange; it's happening on bybit. I've never thought about reporting because it seems too harsh if they lose their account because of that, but I've complained to the bybit team. I don't expect them to do anything about it, though.

I don't care about myself because I'm not falling into that trap. The moment I see anybody trying to negotiate the price with me, I tell them to pay up or cancel the trade, but it's becoming frustrating at this point.

[Strongkored]

I’ve always been curious about this, especially since so many people get scammed or hacked by exchanges. I know there are DEXs, but they’re usually built for certain protocols that support specific networks like ETH, SOL, AVAX, Base, BNB, and POL. Newer coins with unique mining algorithms often can’t prioritize building a DEX for their coin because they lack the resources and developers. CEX exchanges seem like the only way forward, but these days they lack transparency and authenticity. I’d like to know what kind of features would you add? Just curious.

I will not focus on developing features but more on cheap trading fees because sometimes the features are not the focus of the user but more on the trading fees because it is annoy if the profit is drained due to trading on an exchange with quite high fees, and also focus on the security of the exchange because this is to minimize hacking because features on the exchange can be added over time, especially if are able to employ people who are experts in their fields.

[shield132]

I’ve always been curious about this, especially since so many people get scammed or hacked by exchanges. I know there are DEXs, but they’re usually built for certain protocols that support specific networks like ETH, SOL, AVAX, Base, BNB, and POL. Newer coins with unique mining algorithms often can’t prioritize building a DEX for their coin because they lack the resources and developers. CEX exchanges seem like the only way forward, but these days they lack transparency and authenticity. I’d like to know what kind of features would you add? Just curious.

I think that they are getting more transparent these days than before because some exchanges have publicly proven their reserves and some do financial audit. This wasn't a thing years ago.
To be fair, I wish there was a feature that would allow a transparent futures market that isn't artificially manipulated. I don't know how technically possible it is but I'd really wish to see this feature because exchanges often manipulate future platform to liquidate users and it makes futures very unattractive. I'd also love to see a Web3 wallet integration because Web3 makes deposit/withdrawal experience very smooth and lighting fast.
I like the UI/UX design of Binance the most, it's very easy and intuitive. I find trading much easier on their mobile app compared to their website, so I think if they need improvement, it's on their website. At the moment, I don't have any other recommendations but I completely agree with transparency. The more services and options are transparent on exchanges, the better for all of us.

[EarnOnVictor]

I’ve always been curious about this, especially since so many people get scammed or hacked by exchanges. I know there are DEXs, but they’re usually built for certain protocols that support specific networks like ETH, SOL, AVAX, Base, BNB, and POL. Newer coins with unique mining algorithms often can’t prioritize building a DEX for their coin because they lack the resources and developers. CEX exchanges seem like the only way forward, but these days they lack transparency and authenticity. I’d like to know what kind of features would you add? Just curious.

I suspect more than curiosity here, so you're gonna pay for my advice..lol.

Frankly, you can do nothing better than the existing exchanges other than operating your CEX with optimum reputation and integrity. Otherwise, DEX is the option to serve your client at its best. Even CEX likes to save their heads due to regulations, thereby controlling and sanctioning their clients more than necessary.

[davis196]

I’ve always been curious about this, especially since so many people get scammed or hacked by exchanges. I know there are DEXs, but they’re usually built for certain protocols that support specific networks like ETH, SOL, AVAX, Base, BNB, and POL. Newer coins with unique mining algorithms often can’t prioritize building a DEX for their coin because they lack the resources and developers. CEX exchanges seem like the only way forward, but these days they lack transparency and authenticity. I’d like to know what kind of features would you add? Just curious.

The "centralized cryptocurrency exchange" business model has already been exhausted. There's nothing new, which can be added to make CEXs better. What exactly do you want to add? More shitcoins? NFTs? Memecoins(which are shitcoins, that don't even try to pretend to have any actual value and utility). Maybe you should add leverage trading and shorting, but this has already been added to the big centralized exchanges. What "transparency and authenticity" do you want from a centralized exchange? CEXs aren't supposed to be transparent.
I've never seen any centralized exchange being fully transparent about trading volume, transactions, user base, etc..

[Helena Yu]

What "transparency and authenticity" do you want from a centralized exchange? CEXs aren't supposed to be transparent.
I've never seen any centralized exchange being fully transparent about trading volume, transactions, user base, etc..

Centralized exchanges might not be fully transparent, but we can check some of their information using few sites, let's say we're talking about Binance.

You can see the 24 hours trading volume here https://www.coingecko.com/en/exchanges/binance

You can see all the inflows and outflows, also how much total assets they have here https://intel.arkm.com/explorer/entity/binance

They also have their own financial report https://public.bnbstatic.com/reports/2024_EOY_Report.pdf
Unfortunately can't be verified because it's off-chain.