What to Know about Decentralized Exchanges

[TonyMillsCryto]

 Starting late last year, I’ve been taking a closer look at the cryptocurrency (aka crypto) landscape. Given the nine years I’ve spent running an algorithmic hedge fund, I’m naturally drawn to the dynamics of crypto trading. Since I’m not a crypto true believer, I expect to have a fresh perspective on any new trading technologies. ICO scams aside, there are some interesting innovations occurring in the space. Particularly new is the concept of a decentralized exchangeThe core value proposition of a decentralized exchange (DEX), and what makes them interesting, is allowing for counterparties to find each other and trade directly on-chain, thereby not being dependent on a centralized trading exchange and taking on the associated custody risks.
 Because cryptocurrencies are bearer instruments, exchanges holding large sums effectively become honeypots. At current exchange rates, over USD $15 billion has been stolen from over a dozen different exchanges.

WHAT ARE THOUGHT REGARDS DECENTRALIZED EXCHANGES.

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[leowonderful]

Volume is extremely low on most DEXes and I hardly use them except for some lesser-known tokens that I want to sell that are only listed on them. I don't use them because of low volume and also the fact that most DEXes have UIs that look like they were made by children (EtherDelta)- I'd much rather just use a traditional exchange for the 99% of times that I'm not trading an obscure token that's only listed on a DEX.

Besides that, most decentralized exchanges usually don't offer any major new features besides being decentralized over traditional exchanges, and coupled with everything I've mentioned earlier I can't be bothered to try them.

[Tytanowy Janusz]

1- low volume - high spread (up to 1000%) - inpossible to trade
2- high transaction cost and time- all transactions has to go through blockchain - it consumes time for confirmation and money (10 cents to few dolars for each transaction) - inpossible to trade
3- needs knowledge to use - wrongly set GWEI and your transaction can stuck for weeks waiting for confirmation.
4- weak interface

This examples explains why all crypto users trade on centralized exchanges and use decentralized only for coins not listed on centralized or listed on shady, untrasted exchanges.

[mk4]

WHAT ARE THOUGHT REGARDS DECENTRALIZED EXCHANGES.

Decentralized exchanges are very very good especially for countries that has banned exchanges. As obviously, you wouldn't need KYC on decentralized exchanges. Like what the previous replies said, the downside is definitely the UI/UX. They're so bad that you'd actually have to do research on how to use the exchange's functions. That's why people use centralized exchanges like Binance instead. Simply because exchanges like Binance are miles easier to use than DEXs we have currently. Binance announced that they're currently building their own DEX though, so let's just see if they could pull it off.

[Mahanton]

Volume is extremely low on most DEXes and I hardly use them except for some lesser-known tokens that I want to sell that are only listed on them. I don't use them because of low volume and also the fact that most DEXes have UIs that look like they were made by children (EtherDelta)- I'd much rather just use a traditional exchange for the 99% of times that I'm not trading an obscure token that's only listed on a DEX.

Besides that, most decentralized exchanges usually don't offer any major new features besides being decentralized over traditional exchanges, and coupled with everything I've mentioned earlier I can't be bothered to try them.

Not only that where DEX do only supports mostly on Erc20 tokens which do flood up on the market.I agree that DEX do have lesser volumes compared to those centralized exchangers.Most tokens would be mostly listed up here when they dont end up on being listed into better exchange or users do tend to trade it first thats why we cant really expect for volumes to be big similar into other exchange not dex.
The thing i do like with these exchange because it isnt centralized, no kyc or any other related stuffs.

[darkangel11]

Apart from what you've said there's also a form of partially decentralized exchanges, that intelligently skip KYC and anti money laundering laws by decentralizing the fiat part of their trading. You still have to deposit cryptocurrency on an address given to you by an exchange to confirm that you have the given amount, but the fiat transfer doesn't go through the exchange. It only lists your cryptocurrency offer and allow people to send you fiat money. Once this is done and you confirm that fiat was wired to your bank account, the exchange releases cryptocurrency to the buyer. This system isn't as good as DEX, but still better than what exchanges like Coinbase are offering.

[XinXan]

1- low volume - high spread (up to 1000%) - inpossible to trade
2- high transaction cost and time- all transactions has to go through blockchain - it consumes time for confirmation and money (10 cents to few dolars for each transaction) - inpossible to trade
3- needs knowledge to use - wrongly set GWEI and your transaction can stuck for weeks waiting for confirmation.
4- weak interface

This examples explains why all crypto users trade on centralized exchanges and use decentralized only for coins not listed on centralized or listed on shady, untrasted exchanges.

Actually IDEX works pretty well, interface is great and it's quite easy to use. Of course it's going to take more time than a normal exchange, trading is definitely not an option but for a community that keeps yelling ''DECENTRALIZE EVERYTHING'' it doesn't seem to me like they want things decentralized at all.

[richshopgh]

Decentralize exchanges are mostly used when a coin I am trading is not listed on an bigger exchanges. The speed of filling orders at the prices on the market makes me prefer it than most centralize exchanges. One pros for choosing DEX is no bureaucratic process in kyc issues.