CEX Vs DEX ?

[mersal]

Recently I have seen many people whining about exchange fraud and some of them stopped working and took away all investor money. So in my head, I now have the thought that will 2020 be the trend of DEX?
I will give a brief summary of CEX and DEX. CEX stands for centralized exchange where all your money is managed by exchange, it has its own wallet system and money is transferred there.
DEX stands for a decentralized exchange, and there, you trade the number of coins in your wallet with someone else's wallet and there are absolutely no middlemen in between.
So with many incidents happening at CEX, will there be more people trading in DEX in 2020? Although trading at DEX costs more, it is safer for us and we do not need to make any KYC.

Some exchanges also got hacked who claimed them as decentralized exchange so security and trust on decentralized exchanges are yet to convince the traders.Even binance DEX got very low trading volume compared to other centralized exchanges which is still unpopular.So it may take time for people to adopt DEX platforms maybe it will take two or more years to happen.

[electronicash]

Are there are any truly decentralised exchanges out there?

Perhaps Bisq but I can't think of anything else. Binance can ban you and roll back your transactions so that's a definite no. Most of the others rely on a domain and hosting and that can be hijacked so you'll never be fully certain.

Until they're in wallet and on chain they'll always be questionable and so far the people who run them have not come across as premier league characters. There shouldn't be anyone running them beyond those who issue software for you to run.

I cant think of on another exchange when we do talk about Dex which my primary choice is Bisq and the rest are just masking out to be Dex
but have the tendency to become CEX just like on what IDEX did suddenly as king out kyc. 

The thing here about trends comparing Cex and Dex is that it isnt really get too much volume yet people would still always prefer on using up Cex
due to fiat and crypto options.

some user actually reasoned that asking KYC doesn't make them centralize, the features are still there nothings changed for everything is as is.  but you really can't say nothing's change when mandatory submission of documents is there. until there is nothing yet that is truly decentralize which can't be taken down nor forced to ask kyc, then there is no reason for you to trade ion dex. the fact that there is no BTC market in there since most of them are base on ETH.

[Ucy]

I think decentralized exchanges will keep improving till they are able to compete with centralized exchanges in the areas of performance and ease of use. I'm not sure if they will ever be better than top centralized exchanges but I am pretty confident we will have DEXes that are indistinguishable from simple Centralized exchange soon.
 I'm impressed by what I have so far seen in DEX development. There are number of very promising DEXes available today.

[dothebeats]

If the state of DEXs are somewhat better than where it stands right now, perhaps people would consider switching over or at least get the feel of how to trade in one. DEXs provide only a platform with no element of trust which makes users' funds safe in their hands and no single point of massive failure can be seen which, in CEXs case are its wallets and of course, its own system.

Right now, CEXs are winning though DEXs are improving and are gaining some supporters not only on this forum but on other hubs as well, which is nice.

[johnwest]

DEX are definitely better than CEX but the design and their running is very poor so people have always preferred CEX as they give proper support as well as great User interface. There are only few DEXs are there which are genuine and at least can be used properly.

[DoublerHunter]

DEX are definitely better than CEX but the design and their running is very poor so people have always preferred CEX as they give proper support as well as great User interface. There are only few DEXs are there which are genuine and at least can be used properly.

^ Definitely right, widely used now are CEX exchanges because there is proper customer support when you are in trouble, there someone could assist you quickly. DEX is good to those newbies that don't know how to manage their security but when it comes in volume traders CEX was always having great advantages. Try to look at the comparison among them that I grab on Cointelegraph.

SOURCE

[Slow death]

Recently I have seen many people whining about exchange fraud and some of them stopped working and took away all investor money.

What are the requirements that people use to choose a good centralized exchange?

we are more likely to hear: big volume, many trading pairs and security. but they ignore the question of who owns the exchange and where the exchange is located. Many people accept use shady exchange, may be because they have some new altcoin only listed in obscure exchanges

As the the crypto market grow the regulations will increase and there will come a time that using centralized exchanges will be very safe because these centralized exchanges will be regulated and the market will be very competitive so that they will be required to provide high quality services if they want to survive in this Marketplace

[exstasie]

So with many incidents happening at CEX, will there be more people trading in DEX in 2020? Although trading at DEX costs more, it is safer for us and we do not need to make any KYC.

It doesn't necessarily cost more. Gas fees are flat and market-based. Centralized exchanges charge high percentage commissions so the larger your position, the larger the fees.

Not all DEX are the same. Some do demand KYC because their infrastructure is so centralized that they have the SEC knocking on their door (IDEX).

I really only trust Ethereum-based DEX platforms. The others are mostly working with custodial/tokenized arrangements and permissioned blockchains. Trading between ETH and ERC20 tokens can be done completely trustlessly and without custody. Trading ETHDAI on a DEX is the only trustless way to hedge ETHUSD value I am aware of. This can't be done with BTC at all.

[princerepon]

Recently I have seen many people whining about exchange fraud and some of them stopped working and took away all investor money. So in my head, I now have the thought that will 2020 be the trend of DEX?
I will give a brief summary of CEX and DEX. CEX stands for centralized exchange where all your money is managed by exchange, it has its own wallet system and money is transferred there.
DEX stands for a decentralized exchange, and there, you trade the number of coins in your wallet with someone else's wallet and there are absolutely no middlemen in between.
So with many incidents happening at CEX, will there be more people trading in DEX in 2020? Although trading at DEX costs more, it is safer for us and we do not need to make any KYC.

I agree with you and i think DEX is more safer than CEX too. But still people choose CEX for couple of reason. And market depth is one of them. Because of Dex is not popular than CEX, people comfort to trade their coin in CEX. That's why DEX is too much un-comfort zone for big trader whom trade with big volume.

This year couple of big exchange (Binance is one of them) start their DEX service but i don't think they achieve their goal. But the positive thing is in this year many exchange working to start their won DEX platform. Hope nearest future people will be appreciate DEX for more secure trade.

[EdvinZ]

I see only correct way out in this difficult situation, it is trading on a centralized licensed exchange. Fraud in this case is reduced to zero, but all the advantages of a centralized exchange remain. Everyone appreciates the liquidity and fast operation of the site, this is what DEX lacks.

[piebeyb]

Recently I have seen many people whining about exchange fraud and some of them stopped working and took away all investor money. So in my head, I now have the thought that will 2020 be the trend of DEX?
I will give a brief summary of CEX and DEX. CEX stands for centralized exchange where all your money is managed by exchange, it has its own wallet system and money is transferred there.
DEX stands for a decentralized exchange, and there, you trade the number of coins in your wallet with someone else's wallet and there are absolutely no middlemen in between.
So with many incidents happening at CEX, will there be more people trading in DEX in 2020? Although trading at DEX costs more, it is safer for us and we do not need to make any KYC.

we know that every time many CEX exchanges always have problems that never change, it's usually easy to hack, even though those who keep their users' money in a cold wallet can still be hacked (I just think it's the work of people inside to make FUD), I rarely hearing the DEX exchange on hacks might be just a few if there really is, why I say DEX is far safer because it's far from drama and news hacked, trust people are worried about putting funds on the CEX exchange, maybe next year DEX will be more trusted for everyone to trade without identity or KYC, it's easier to make people trade freely without worrying about their money being hacked

[deisik]

So with many incidents happening at CEX, will there be more people trading in DEX in 2020? Although trading at DEX costs more, it is safer for us and we do not need to make any KYC

I don't think that things are going to change dramatically in 2020

The incidents you mention (like scams, frauds, thefts, closures, etc) have been happening time and again since cryptocurrency exchanges ever came about (Bter, Cryptsy, Bitfinex, WEX, QuadrigaCX, to name but just a few). You would actually expect decentralized exchanges to get traction and momentum by now, right? I had written about this over 3 years ago, and not a lot has changed since then. So why should things turn out different in 2020? I'm very skeptical, to say the least. Sorry if this is not what you wanted to hear

I see only correct way out in this difficult situation, it is trading on a centralized licensed exchange. Fraud in this case is reduced to zero, but all the advantages of a centralized exchange remain. Everyone appreciates the liquidity and fast operation of the site, this is what DEX lacks

I'm not sure how it is going to help you in case of a successful theft or hack attempt. And let's be honest here, it is not a panacea from outright scams and frauds, either

[drlukacs]

I know that volume is not as big as CEXs but it is safer, do you agree with me?

It is still questionable for me. The 'safer' side of dexes might comes from a lack of sophisticated attack from the crackers. There's also different dexes here, but if we're talking about those with smart contract as the backbone, then if a bug is found they can theoritically attack every single possible token on the platform.

IMO centralized exchange is probably still going to be dominant, especially if players like Binance still exist and keep on-going. It will be the users own responsibility to choose which one is the best from them. And that's true with dex. Doesn't matter if it's a dex or cex, if you use a bad one then you might lose your money in one way or another.

hmm .. I don't think so. Because many sharks don't even think about IDAX going to scam in the future when this is an exchange with hundreds of millions of volumes every day. Even if the sharks are full of experience, they will be able to escape this trap? I don't believe in any other team now, they can all become a dust when they no longer care about the project or the business they run. I still hold the view about taking DEXs future of many.

[drlukacs]

So with many incidents happening at CEX, will there be more people trading in DEX in 2020? Although trading at DEX costs more, it is safer for us and we do not need to make any KYC

I don't think that things are going to change dramatically in 2020

The incidents you mention (like scams, frauds, thefts, closures, etc) have been happening time and again since cryptocurrency exchanges ever came about (Bter, Cryptsy, Bitfinex, WEX, QuadrigaCX, to name but just a few). You would actually expect decentralized exchanges to get traction and momentum by now, right? I had written about this over 3 years ago, and not a lot has changed since then. So why should things turn out different in 2020? I'm very skeptical, to say the least. Sorry if this is not what you wanted to hear


I'm not sure how it is going to help you in case of a successful theft or hack attempt. And let's be honest here, it is not a panacea from outright scams and frauds, either

but things can change immediately if the crowd thinks so. Like the ICO-raising projects, they are all labeled as frauds and so potential projects face difficulties in this. That is also the reason why IEO was born and Binance has made the speculation community more confident, when capitalization into the crypto market was more than 100 billion in less than 1 month. and the IDAX event is a scam and Binance, Upbit have been hacked a lot of money this year, which means that CEXs are increasingly unstable and the crowd is psychologically looking for a safer place. Do you agree ?

[drlukacs]

I see only correct way out in this difficult situation, it is trading on a centralized licensed exchange. Fraud in this case is reduced to zero, but all the advantages of a centralized exchange remain. Everyone appreciates the liquidity and fast operation of the site, this is what DEX lacks.

Yes, if I were to choose, I would still choose large CEXs to ensure the safety of my money. But the problem here is that DEXs all charge fees that are too high for CEXs, from transaction fees and transfers from normal wallets to trading wallets, which takes quite a bit of time and money. If in the future, someone recognizes the needs of traders and speculators, we will see a very good quality DEXs and will attract more people to it. I hope IDEX will do it in the future to change the bad situation of the market.

[drlukacs]

Recently I have seen many people whining about exchange fraud and some of them stopped working and took away all investor money.

What are the requirements that people use to choose a good centralized exchange?

we are more likely to hear: big volume, many trading pairs and security. but they ignore the question of who owns the exchange and where the exchange is located. Many people accept use shady exchange, may be because they have some new altcoin only listed in obscure exchanges

As the the crypto market grow the regulations will increase and there will come a time that using centralized exchanges will be very safe because these centralized exchanges will be regulated and the market will be very competitive so that they will be required to provide high quality services if they want to survive in this Marketplace

but wait until when? We had hoped to get some legal organization to sponsor ICO projects but until now, it seems to be dead but no one cares yet. After 2 years of joining this market, I realized it was a market of self-awareness. meaning when we see something wrong and bad we should voluntarily leave it and look for a better place instead of suing them and screaming at them. That doesn't work, that's why I think people will choose DEXs in the future.

[deisik]

The incidents you mention (like scams, frauds, thefts, closures, etc) have been happening time and again since cryptocurrency exchanges ever came about (Bter, Cryptsy, Bitfinex, WEX, QuadrigaCX, to name but just a few). You would actually expect decentralized exchanges to get traction and momentum by now, right? I had written about this over 3 years ago, and not a lot has changed since then. So why should things turn out different in 2020? I'm very skeptical, to say the least. Sorry if this is not what you wanted to hear

but things can change immediately if the crowd thinks so. Like the ICO-raising projects, they are all labeled as frauds and so potential projects face difficulties in this. That is also the reason why IEO was born and Binance has made the speculation community more confident, when capitalization into the crypto market was more than 100 billion in less than 1 month. and the IDAX event is a scam and Binance, Upbit have been hacked a lot of money this year, which means that CEXs are increasingly unstable and the crowd is psychologically looking for a safer place. Do you agree ?

As much as I would love to, I simply can't

In my post I gave a link to my thread which is about essentially the same thing you are writing here (i.e. decentralized exchanges). It was created three and a half years ago, and if anything, it was that (in)famous Bitfinex hack (while some still think it was actually an inside job) with over 120k bitcoins stolen that could have changed the minds of the crowd. Put shortly, it didn't. So why should things be different now, all of a sudden? We should deal with the facts and not get entrapped in fantasies, pipe dreams and wishful thinking

[alyssa85]

DEX are definitely better than CEX but the design and their running is very poor so people have always preferred CEX as they give proper support as well as great User interface. There are only few DEXs are there which are genuine and at least can be used properly.

Also, DEX's don't have much liquidity, which means you can sometimes wait weeks for your orders to get filled.

You really need a critical mass of users to make Dex's work, but because no one ever markets them, they never ever reach the amount of users you need to have a liquid exchange.

[Joseph Knight]

In dexes the trading happens between wallets using blockchain. This might be too slow for many, why there isnt too much liquidity on the dexes.

On a positive note, when exitscams or thefts happen on Dex we keep our tokens.

[mrdeposit]

So with many incidents happening at CEX, will there be more people trading in DEX in 2020? Although trading at DEX costs more, it is safer for us and we do not need to make any KYC.

Their only difference is their name. I would like to remind you that even DEXs can freeze your funds these days. If so, I would rather use CEX instead. At least in short-term trade, the centralized ones are more useful. I do not know, maybe some of the rules are obstacles to creating complete free and useful DEXs. But I think we have such freedom or I misunderstood everything.