Centralized and Decentralized Exchanges

[cupruri]

I like decentralised exchanges, because they are much more safe. I do not like the idea that I am losing control of my funds, when I transfer my tokens into an exchange wallet. Thats why I prefer to use IDEX, Fork or Etherdelta.

[1715499025]

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[prasad87]

No insurance for the centralized exchange as well,so if your funds were stolen then you may not get it forever,there are lot of exchange hacks were happened and most time they will just close it without any compensation,only you can withdraw your funds from a closing exchange.

decentralized exchanges will not be able to work for a long time. I think that people are not ready to answer for their own funds and decentralized exchanges will be much slower than centralized. And centralized exchanges will be responsible for losing money

Yep, unless Binance actually move us to a Binance-owned DEX, I can't see liquidity moving to DEX-es.
Also it's questionable how decentralized DEX-es actually are. IdEx had no problem blocking New York residents from participating...

[BULVRDapp]

We really need more of the community to embrace decentralized exchanges!

[cryptomaster420]

We really need more of the community to embrace decentralized exchanges!

But why would the community embrace decentralised exchanges? They're illiquid, their user experience is still meh... We're years from massive use of decentralised exchanges.

[Alohadanc3]

Yup there is some differences between decentralised and centralised exchange. And the best part of decentralised exchange is the fees and the security. The crypto market is going to free from centralised institution. So always prefer decentralised exchange. But there is some problem and one of the main problem is liquidity.  For most of the coin there is no liquidation and that is bad for a trader. And fiat is also not an option in decentralised exchange. So we have to use centralised exchange sometimes. But I hope that decentralised exchange will be the future.

[Reid]

Okay that is one good table and better to understand. Perhaps you shouldve just stickied something for a better image of it.

I just dont get it. Looking at the table I would still prefer to use decentralized exchange. Why is it that it had a low volume suddenly when this centralized came in.

Aint it better to have a privacy for safety and also low transaction fees. I mean it is almost free rather than paying a lot for a pool transaction which takes forever before it could go back to your wallet.
I just cannot believe how could all of this happen.

[temilade200]

We really need more of the community to embrace decentralized exchanges!

It is going to be a gradual process. Centralized exchanges did not start big. As a matter of fact, so many of them started with no or very negligible volume, yet today, they look big, because they have got liquidity.
I feel we should just ask ourselves, what was the attractive force or the strategy that was used to attract traders, who were able to bring in fund to increase the volume.

[tippytoes]

11. Most centralized exchanges are insured.It is possible to get money back if something goes wrong.

I am very surprised with this paragraph. It's totally messed up, where the heck do you get that? Tell me what exchange is insured, what amount of deposit is insured, what is the procedure of getting insurance payments? So many questions without answers.

Haven't heard such thing also. Maybe, he can provide reference links stating that centralized exchanges are insured. I doubt this statement is really true.

[CryptoKush]

Centralized exchanges are now much more popular than decentralized. Centralized exchanges are faster than decentralized. Also, centralized exchanges have a greater volume of trades. Perhaps in the future the situation will change, but at the moment, decentralized exchanges cannot compete with centralized exchanges.

[TastyChillySauce00]

Centralized exchanges are now much more popular than decentralized. Centralized exchanges are faster than decentralized. Also, centralized exchanges have a greater volume of trades. Perhaps in the future the situation will change, but at the moment, decentralized exchanges cannot compete with centralized exchanges.

The advantages that you just mentioned are already been there since ages. Decentralized exchange prioritize the security and safety of user by letting no one in charge of storing the money. That also why decentralized exchange kinda slow.

[mirakal]

If you are trading with a huge amount of money, I don't think it's wise to choose a decentralized exchange.
With big money, traders are looking for insurance and I believe centralized exchange now are already considering their exchange to be insured
since they are vulnerable on hacking, hence, centralized exchange is still better compared to decentralized.

However, we cannot deny that there are still traders who patronize decentralized exchange because new tokens that are listed are cheap but the volume will tell that only few are trusting their money.

So far, IDEX is my favorite for decentralized and Binance for Centralized.

[karagun125]

Thank you for this beneficial post. I only know two decentralized exchange, i hope that my knowledge about crypto would increase as i would read more here in this bitcointalk forum thread. I also hope for safeness of our wallet in a decentralized exchanged.

[Thanasis]

No insurance for the centralized exchange as well,so if your funds were stolen then you may not get it forever,there are lot of exchange hacks were happened and most time they will just close it without any compensation,only you can withdraw your funds from a closing exchange.

decentralized exchanges will not be able to work for a long time. I think that people are not ready to answer for their own funds and decentralized exchanges will be much slower than centralized. And centralized exchanges will be responsible for losing money

Maybe it is not best in the features but decentralized are more secured because you still control your funds and there is no centralized exchange is going to give your money back if there is hacker attack your wallet or the exchange itself,you will love everything.

[SRKNGL]

Decentralized exchanges do not have high volume except for idex. That's why people invest more in centralized exchanges. And they are more confident in these exchanges.

[Herbert2020]

the biggest problem with decentralized exchanges is their lack of adoption. if more people started using them then most of the rest of the problems that you mentioned here would be solved. for example their security would improve as bugs are found and fixed, the liquidity will increase and it becomes easier to trade larger amounts and also the features will start improving as people use them and report their requests and improve the open source projects (assuming we are talking about an open source decentralized exchange platform).

[Pffrt]

You have shared a lot of info but you didn't organize properly which is why your post is not looking good. Try using bbcode table and it will be fixed

[Denreal]

You have shared a lot of info but you didn't organize properly which is why your post is not looking good. Try using bbcode table and it will be fixed

I did not not know that someone else also noticed that. The information he has there are useful, but the organization is not so God, which is why the attractiveness is not there.
I am just looking forward to a time that decentralized exchanges will also have increased volume like some centralized.
It is a gradual process, because Rome was not built in a day.

[Greeenmtn]

No insurance for the centralized exchange as well,so if your funds were stolen then you may not get it forever,there are lot of exchange hacks were happened and most time they will just close it without any compensation,only you can withdraw your funds from a closing exchange.

decentralized exchanges will not be able to work for a long time. I think that people are not ready to answer for their own funds and decentralized exchanges will be much slower than centralized. And centralized exchanges will be responsible for losing money

DEX Leverj.io will be going to mainnet this month. Fast as centralized, easy asset management. As long as the UI is simple and straightforward, having custody of your own funds shouldn't be a hurdle for adoption.

[Greeenmtn]

Centralized exchanges are now much more popular than decentralized. Centralized exchanges are faster than decentralized. Also, centralized exchanges have a greater volume of trades. Perhaps in the future the situation will change, but at the moment, decentralized exchanges cannot compete with centralized exchanges.

The advantages that you just mentioned are already been there since ages. Decentralized exchange prioritize the security and safety of user by letting no one in charge of storing the money. That also why decentralized exchange kinda slow.

Leverj is doing plasma flavour for exchange model, so its decentralised but still high speed centralised feel.  Its achieved by doing all the high computation stuff like the matching and margining  on centralised servers and all the operations within are trustlessly secured by fraud proofs between parent chain and child chain (using basic market rules like time price priority and balance availability, solvency, liquidity). So that DEX won't be slow.

[Greeenmtn]

We really need more of the community to embrace decentralized exchanges!

But why would the community embrace decentralised exchanges? They're illiquid, their user experience is still meh... We're years from massive use of decentralised exchanges.

Not years, now using plasma, exchanges can be non custodial and fast.