Why are centralized exchanges still dominating the crypto space?

[Findingnemo]

Ever since Bitcoin launched back in 2009, the rise of centralized exchanges has been inevitable. A few years later, and now the whole crypto market is dominated by centralized exchanges. While there have been many alternatives to the solution (such as decentralized exchanges), people are still performing trades at centralized entities.

Now the real question is why this is happening, since after all, Satoshi intended Bitcoin to be free from middleman or third parties? Depending on an exchange or custodian, greatly defeats the purpose of true decentralization. Knowing how oppressive some governments are, it'll be easier for them to stop usage of crypto whenever they want to by just targeting centralized exchanges.

Nonetheless, what are your thoughts about this?

Lot of coins are available on centralized exchange so which makes me force to trade on that exchange whenever I want.I never had experience with DEX because I found it is not best when compared to CEX.

[xOdiumNostrumx]

Well the DEX-es are still in their early stages of development so its to be expected that bigger players in crypto space will operate on already established centralized exchanges. That being said, the upcoming Nash and Binance DEX-es could mean a major paradigm shift, which would be more than welcomed.

[JeffBrad12]

Ever since Bitcoin launched back in 2009, the rise of centralized exchanges has been inevitable. A few years later, and now the whole crypto market is dominated by centralized exchanges. While there have been many alternatives to the solution (such as decentralized exchanges), people are still performing trades at centralized entities.

Now the real question is why this is happening, since after all, Satoshi intended Bitcoin to be free from middleman or third parties? Depending on an exchange or custodian, greatly defeats the purpose of true decentralization. Knowing how oppressive some governments are, it'll be easier for them to stop usage of crypto whenever they want to by just targeting centralized exchanges.

Nonetheless, what are your thoughts about this?

Lot of coins are available on centralized exchange so which makes me force to trade on that exchange whenever I want.I never had experience with DEX because I found it is not best when compared to CEX.

that's indeed but you should remember we can add the contract manually but that's only for ERC20 assets. the problem is when the dex can't create a good interface to compete with centralized exchange site. the dex can't get a lot of revenue from its platform and that's made them all can't run the next improvements.

[okala]

Santoshi design bitcoin which is decentralized and free from any individual involvement but bitcoin run on the blockchain which is not design by santoshi him self and the blockchain have several features where exchange is one of them and this exchanges are own by individuals or group who control the affairs and activities as it involves it operations. Decentralized exchanges are just coming up now and it will take time before they become popular and used by the members of the crypto communities.

[masterrex]

Ever since Bitcoin launched back in 2009, the rise of centralized exchanges has been inevitable. A few years later, and now the whole crypto market is dominated by centralized exchanges. While there have been many alternatives to the solution (such as decentralized exchanges), people are still performing trades at centralized entities.

Now the real question is why this is happening, since after all, Satoshi intended Bitcoin to be free from middleman or third parties? Depending on an exchange or custodian, greatly defeats the purpose of true decentralization. Knowing how oppressive some governments are, it'll be easier for them to stop usage of crypto whenever they want to by just targeting centralized exchanges.

Nonetheless, what are your thoughts about this?

In my case im often use a centralized exchange mostly because im after only with volume, But im also used Decentralized Exchange too while the big problem on DEX is not much volume to offer volume is very important if you are practicing day trading I think thats the primary reason too why cryptocurrency enthusiats are also using Centralized Exchange widely.

[KryptoKai]

People use CEXs because that is where the trade volumes take place. If BISQ becomes more popular then people will switch over but i will take time. Also, there are atomic swaps which is even better than DEX's

[matveyeff]

Current decentralized exchanges are unfriendly for newbies, have low trading volumes and work so slowly. We need a completely new dex that will change the community’s view of it. Probably it will be dex by Binance. Let's see.

[AUruHM]

Current decentralized exchanges are unfriendly for newbies, have low trading volumes and work so slowly. We need a completely new dex that will change the community’s view of it. Probably it will be dex by Binance. Let's see.

Bcz who will be responsible for DEX break? And today we have so poor productivity in the CEX but what will be in the DEX? I think we will see it lower. Who wants to trade with such lags as on the FD/ED for example? When every tick can make us richer? 

[Impaler]

Their is many thing behind the popularity of Centralised Exchange. The first thing is it's easy to use for all the people. Most of the new people find something which is easy to use and looks trusted. And when they are into it they never shift. The second thing is organised team and always up-to-date. The one one more main reason is marketing. This is a very good point for popularity of cex. There is almost no marketing for decentralised exchange
 Pust their is enough find which is help a bit to centralised exchange to win the race. Plus now decentralised exchange have very low volume in most of the tokens. So most of the people are not interested in this kind of experience.

[therhslv]

I think we need centralized exchanges . Funds and big institutions i guess can't use DEX'es , not sure if they can use centralized ones currently , but as there will be green light for them , watch out from price spikes in BTC =] Hopefully it will be huge

[Flezy]

In my own understanding, Centralized exchanges are still dominating owing to the fact they are usually user friendly with amazing UI, example is Binance. Also, centralized exchanges tends to have higher volume with larger users.

[Adriano2010]

I think people still use centralized exchanges because they are start using them and now they have some trust on them and keep continue using them, maybe decentralized exchanges need more exposure and maybe some promotion for people to start using them.

[axel2078]

One clear reason is the huge volume associated with them, this is one of the things that draw traders mostly into using centralized exchanges. Also, they are easy to navigate, have friendly environment and easily accessible.

[Bitmagister]

Personally, I would prefer to use decentralized exchanges, but until now I have not found any with enough volume to efficiently carry out my trading needs. I have no doubt that this will be the unpostponable fate of the market, but in the meantime everything seems to indicate that centralized exchanges will continue to dominate the market for quite some time as long as decentralized options that satisfy both users and financial authorities emerge, more and more involved and concerned about the issue.

[dimastegar]

The most obvious reason is the Centralized Exchange can deposit and withdraw FIAT. And this is the only way that traders can pass. Withdrawing money to a bank account is the main goal after getting profit from trading.

[Dewi Aries]

I think because it is already launched for long time. That is why people already comfort to use them and we know decentralized exchange make us use our private keys to login, centralized exchanger we only need to make account in there.

People are still not really into decentralized exchange simply because they are not used to all complicated and new things the decentralized exchanges currently have, it's like as you said, they are already in a comfortable zone and not seeking for any better option. However we can't force them to switch on decentralized exchange because it's just not our business.

Right, even a lot of people said crypto must be decentralized include markets, people like me will like to make account and then deposit in there. Deposit, withdrawal and trade is easier than decentralized exchange from my personal opinion.

[avonka]

Centralized exchanges are more used as their platforms are more user friendly and they have customer services. Let`s will it change with Binance DEX.

[LbtalkL]

I noticed centralized exchanges has more volume than decentralized exchanges, most of it are stagnant the trading movement is so slow. While on centralized the movements is fast your order will be filled sooner and many traders are getting used to it.

[jjbanks994]

ultimately it comes down to trust and user experience. If there are no issues when exchanging and people can easily receive fiat then they are more likely to use this system now. even more so now that binance partnered with CipherTrace to help with AML and  all other scams

[Cryptrx]

It has a lot of advantages over Dex especially it has a nice user interface unlike most dex that are terrible to navigate. Also, it's easier to track and make complaints in case there is an issue.