Why are centralized exchanges still dominating the crypto space?

[CjMapope]

dex's are not generally licensed or insured, if they get hacked or loose coins your SOL
they also DEPEND highly on their mother chains, if BTS went down guess what? no more cryptobridge

ya im good thx haha ill stick with bigger ones, polo for example. self sustained, well established (and didnt have a cash grab ICO to do it)

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[CryptopreneurBrainboss]

The reason is simply, the cryptocurrency community haven't grown to the stage of accepting the fact, the blockchain (Bitcoin) technology was developed to strengthen privacy thereby enforcing transparency which will result to eliminating third parties but since trust is still an issue in the community, her investors instead to rely on this same third parties the technology was trying to avoid to solve the trust issue. You should also know the so called decentralized exchanges aren't helping matters as most of them aren't decentralized as they claim and still very vulnerable and unreliable.

[coinmaster241]

This happens a lot and is inversely proportional to the market. maybe because the user also needs a third party to facilitate the transaction so that it can help in selling crypto. but here the capacity is as a third party that provides services based on the initial agreement.

[libert19]

Centeralized exchanges have first mover advantage and many people don't care enough to secure their private keys added to that dexes have some steep learning curve involved, so cexes are thriving.

[jabrix]

This happens a lot and is inversely proportional to the market. maybe because the user also needs a third party to facilitate the transaction so that it can help in selling crypto. but here the capacity is as a third party that provides services based on the initial agreement.

In fact, the use of crypto money is more for trade or investment, so it requires crypto exchange which is a full 24-hour non-stop activity and is located throughout the world.
Existing inter-individual transactions or merchant payments do occur and are increasingly happening, but all will make withdrawals from crypto money into banknotes through government-licensed exchanges so that everything is safe.

[charlop24]

One of the major reasons why people prefer using the centralised exchange is because they are uncomfortable with the decentralised exchange asking for private keys or other sensitive information to gain access to the exchange. People are scared of loosing their digital assets to hackers. Centralised exchange only requires your wallet address to transfer the funds and some decentralized exchange fees are economical and affordable.

[Bitfling]

One of the major reasons why people prefer using the centralised exchange is because they are uncomfortable with the decentralised exchange asking for private keys or other sensitive information to gain access to the exchange. People are scared of loosing their digital assets to hackers. Centralised exchange only requires your wallet address to transfer the funds and some decentralized exchange fees are economical and affordable.

I am agree, its about people's wallet security and not everyone can trust instantly. I am more comfort using centralized exchanger because have liquidity and trading transaction fee very low. DEX i ever used is CryptoBridge and i think its really good but sometimes need faster internet connection

[fosco333]

Not really, there are quite many centralized exchanges has been hacked and of course it has leaving bad reputation to traders.
I think centralized exchanges still dominating because there are more centralized exchanges than decentralized exchanges in cryptocurrency.
We need to create more good decentralized exchanges to balance the numbers of centralized exchanges.

[martychubbs]

I guess that it’s a matter of our mindset. People still don’t recognize value of crypto because for centuries our brain has been learning quite opposite example of what value is.

[Perfect35]

The system we are in is already used to centralized exchanges.
There are lots of benefits that centralized exchanges now enjoy, part of which is volume.
The belief of crypto enthusiasts in CEX has increased its volume, which means it will have more traders than DEXes. Therefore liquidity will be met.

[GregH37]

This happens a lot and is inversely proportional to the market. maybe because the user also needs a third party to facilitate the transaction so that it can help in selling crypto. but here the capacity is as a third party that provides services based on the initial agreement.

As much as I understand, Bitcoin is the only decentralized system created that is trust worthy and reliable, others are just full of failed programs, any one would prefer a centralized exchange to a decentralized one, at least with centralized exchanges, I have someone to look up to when I have issues as regards my transaction.

I think people prefer a system where they can still be able to hold someone responsible for their dealings, in DEX exchange, if one have any issue or made a mistake, who do you talk to? A computer program that has already been coded and cannot interact with human interface directly. I understand we are now in the age of artificial intelligence, but until it becomes perfect, it is too risk depending completely in computer operation alone.

[Abiky]

dex's are not generally licensed or insured, if they get hacked or loose coins your SOL
they also DEPEND highly on their mother chains, if BTS went down guess what? no more cryptobridge

ya im good thx haha ill stick with bigger ones, polo for example. self sustained, well established (and didnt have a cash grab ICO to do it)

That's certainly true, mate. I believe that the lack of regulatory compliance is what has limited DEXs from obtaining a large share of dominance within the market. While they're still beneficial for those looking for an additional layer of privacy and security, centralized exchanges are still better in many ways. Ever since Bitcoin came into inception, centralized exchanges have been dominating the crypto space because of obvious reasons.

Still though, they present potential risks of hacks and fraud due to their single points of failure. As far as DEXs go, they could cease to exist anytime soon if their underlying blockchain network dies. But, knowing that Blockchain lives if there's at least 2 nodes on the network, it's highly unlikely that DEXs will die anytime soon.

Nonetheless, if you're looking for an easy way to exchange crypto to fiat, then centralized exchanges are the best ones suited for this purpose. On the other hand, crypto-to-crypto trades can be performed much safer and reliable in decentralized exchanges than in centralized ones. Just my thoughts