Why DEX (Decentralized Exchange) still unpopular?

[ikicha]

Hi all traders!
Why you always using Centralized Exchange to trade Decentralized Asset?
Too many 'hacked' news or maybe "hacked by internal" at 2019, Cryptopia, Binance, Huobi, Etc.

Why traders still using Centralized Exchange?


Centralized Exchange

+ Huge Volume
+ Fast CS Response

- Less security
- Not your keys, not your coins
- Paid to list


Binance has launch Binance DEX but still have low volume and pair only for BNB (not BTC)

[Red-Apple]

Binance has launch Binance DEX but still have low volume and pair only for BNB (not BTC)

nothing about what Binance has launched under the false name of DEX is decentralized. in fact it is 100% centralized in everything except the name of it.
that is why people are reluctant to go near it since if anybody is seeking decentralization they would go for actual decentralized exchanges not a fake one that a centralized company creates.

[kurcalas]

Hi all traders!
Why you always using Centralized Exchange to trade Decentralized Asset?
Too many 'hacked' news or maybe "hacked by internal" at 2019, Cryptopia, Binance, Huobi, Etc.

Why traders still using Centralized Exchange?


Centralized Exchange

+ Huge Volume
+ Fast CS Response

- Less security
- Not your keys, not your coins
- Paid to list


Binance has launch Binance DEX but still have low volume and pair only for BNB (not BTC)

It's all about people's habits. People still do not fully understand the logic of crypto beings. We didn't see how important decentralization was. But I think the time will come.

BTW, the DEXs we're talking about are not semi-DEXs like Bancor. I'm talking exchanges that are completely decentralized.

[chichidori]

Because most of them caters only to erc20 tokens and most of the token that are being sold on dex are worth close to nothing.

[mu_enrico]

Because there is no such thing as a decentralized exchange (at least to date), for example, Etherdelta/Forkdelta/IDEX has smart contract issuers (centralized party). Binance chain also has Binance corp as the token issuer.

I think it is better to solve this problem using a non-custodial wallet exchange mechanism, where users' fund are really #SAFU, doesn't matter whether the exchange is centralized or not.

[VanDeinsberg12]

Hi all traders!
Why you always using Centralized Exchange to trade Decentralized Asset?
Too many 'hacked' news or maybe "hacked by internal" at 2019, Cryptopia, Binance, Huobi, Etc.

Why traders still using Centralized Exchange?


Centralized Exchange

+ Huge Volume
+ Fast CS Response

- Less security
- Not your keys, not your coins
- Paid to list


Binance has launch Binance DEX but still have low volume and pair only for BNB (not BTC)

The fact that the centralized exchange will always be more preferable. When you wanna create an order and that will be a little bit difficult compared with centralized exchange site. People are still using centralized exchange site caused by it's so easy to use it. that's why dex still unpopular among the traders.

[bitkanu]

People just want something simple and convenient. DEX usually tend to looks complicated in the eyes of normal people, I mean you need to insert it and that while in centralied exchange you are guided although that's not true, DEX is as simple as centralized exchange, even better usually DEX that's not under big exchanges doesn't require you to submit your KYC so more security for that.

[Dafeman]

Because there is no such thing as a decentralized exchange (at least to date), for example, Etherdelta/Forkdelta/IDEX has smart contract issuers (centralized party). Binance chain also has Binance corp as the token issuer.

I think it is better to solve this problem using a non-custodial wallet exchange mechanism, where users' fund are really #SAFU, doesn't matter whether the exchange is centralized or not.

I agree with the sentiment that DEXs are currently cumbersome and not at all true DEXs when you dig down into it.

But there is such a thing as a truly decentralized exchange, it is called Block DX (https://blocknet.co/block-dx/). Its just not widely pushed at the moment as you need to have full wallets of the assets you want to trade (soon to change with release of a decentralized lite-multi wallet powered by the Blocknet Protocol). Good liquidity on some LTC pairs as the chain is quick and easy to sync. Check out the "DEX" comparisons at the bottom of this article. https://blocknet.co/the-evolution-of-the-decentralized-exchange-a-brief-history/

[DmitFomin]

DEX like EtherDelta, ForkDelta, etc.  more often used as a sale or purchase of coins, but not for trading.  Centralized exchanges are better suited for professional trading, because they have several advantages: high trading volumes, the ability to trade not only ERC20 tokens, leverage, stop loss and other advantages.

[mardaed]

I think because of centralized exchange there will be a liquidity unlike dexexchanges. But dont say its not popular because if you know IDEX, this dex exchange is better than other centralized exchange.

[khiholangkang]

Binance has launch Binance DEX but still have low volume and pair only for BNB (not BTC)

It is only natural that Binance Dex is still a small number of users because every coin / token that you want to register there must use the Binance Chain, and also the pair there will only be a BNB there will be no BTC pair

[Batalo]

Binance has launch Binance DEX but still have low volume and pair only for BNB (not BTC)

It is only natural that Binance Dex is still a small number of users because every coin / token that you want to register there must use the Binance Chain, and also the pair there will only be a BNB there will be no BTC pair

That could just be starting point for binance, after some time, they would have to attract more traders and just dont depend on loyal traders. A lot of DEX sites everywhere and most uses BTC or ETH. They atleast accept these after some time.

[mindrust]

 DEX's has no shillers. On paper everything about DEX is superb to C-Ex's but people like to join the promotion campaigns which Cex's make. (like bringing people as their referrals)

There is another problem, I've tried 2 dex's till now. 1-Cryptobridge, 2-Bisq.

Both of them are on the bit slower side compared to the centralized exchanges.

[rjp55]

Dex can't carry a big volume of transactions. Even if you check idex which is hybrid not fully decentralized is getting stuck when big volume happens. I wonder how will binance dex will perform.

[jagaban]

Binance has launch Binance DEX but still have low volume and pair only for BNB (not BTC)

nothing about what Binance has launched under the false name of DEX is decentralized. in fact it is 100% centralized in everything except the name of it.
that is why people are reluctant to go near it since if anybody is seeking decentralization they would go for actual decentralized exchanges not a fake one that a centralized company creates.

I tend to agree with you. Despite the fact that Binance is the biggest crypto exchange, there are skepticism surrounding its newly launched decentralized exchange because many believe it is actually centralized. Does this mean there is a lack of trust in Binance?

[CLywaTeLb]

[cut out]
The fact that the centralized exchange will always be more preferable. When you wanna create an order and that will be a little bit difficult compared with centralized exchange site. People are still using centralized exchange site caused by it's so easy to use it. that's why dex still unpopular among the traders.

Below your post was already mentioned IDEX. This exchange combines the qualities of decentralized and ordinary exchange. If the problem of cross-blockchain transactions is solved ergonomically, then exchanges such as IDEX will be the best crypto exchanges.

[motienvolam]

By now, decentralized exchanges contain more potential risks than centralized exchanges. Users of decentralized exchanges have to secure their private keys of their accounts very carefully. They need to have enough knowledge and skills to do this, and when they lose their private keys, there is no way to get them back with decentralized exchanges. That is contrasting with centralized exchanges, where users can send support tickets with bunches of proofs, like emails, past trading history, current balance of their account, and so on to get their accounts back. Maybe in the future, when decentralized exchanges become more matured, people might use them more and such DEX might dominate centralized exchanges.

[magicrypto]

Hi all traders!
Why you always using Centralized Exchange to trade Decentralized Asset?
Too many 'hacked' news or maybe "hacked by internal" at 2019, Cryptopia, Binance, Huobi, Etc.

Why traders still using Centralized Exchange?


Centralized Exchange

+ Huge Volume
+ Fast CS Response

- Less security
- Not your keys, not your coins
- Paid to list


Binance has launch Binance DEX but still have low volume and pair only for BNB (not BTC)

I think most of people dont use them because there are actually no good dex, just look at delta or Idex, they are slow and non-userfriendly at all, people are scary of those things. DEX idea is cool actually, we need a good sponsored DEX, with good investitions to make really good and comfortable for using product. Binance has a great experience of making centralized exchange, maybe CZ create a good DEX, will see!

[mu_enrico]

But there is such a thing as a truly decentralized exchange, it is called Block DX (https://blocknet.co/block-dx/).

So I just went on that page, as far as I understand, this is a quite old project that has many codebases from other projects. https://docs.blocknet.co/project/introduction/#codebase-history

At a glance, it looks like BitShares. It would be difficult for Blocknet to compete in this DEX "industry," considering so many similar blockchain projects currently being developed to tackle this problem.

By the way, just like others have mentioned, DEX currently cannot be used as high-frequency trading (HFT) platform.

[Grishanya1234]

The fact is that the first main reason for not popularity of decentralized exchanges is their safety, that many traders simply do not trust such exchanges, there are also problems with trading volumes and this is also an important issue.