Why not decentralized exchange..?

[LbtalkL]

Yeah, I notice that also, majority of the people I know including myself wants decentralization but most of us used centralized exchanges, Maybe because centralized exchanges have more coins listed on it with more volume and easy to trade and gain profit at a fast pace, orders are executed immediately unlike on DEX sometimes your orders are stock in there for hours. The only thing which I think is good about DEX is, it is safer because the funds are just stored on our wallet.

[RealMalatesta]

The owners of decentralized exchanges don’t put much effort in promoting their songs, I don’t know if it’s because they are not benefiting much or what, but centralized exchanges are always hell serious with promoting their sites and lots of people, especially newbies, are likely to come across their sites and make use of it.

Another thing that I think is causing Centralized exchanges to be gaining popularity is their ease of use; Coinbase is one of the easiest any one can use in trading cryptocurrency of their choice. It’s not as difficult as when you’re using a decentralized exchange.

[Yatsan]

Yeah, I notice that also, majority of the people I know including myself wants decentralization but most of us used centralized exchanges, Maybe because centralized exchanges have more coins listed on it with more volume and easy to trade and gain profit at a fast pace, orders are executed immediately unlike on DEX sometimes your orders are stock in there for hours. The only thing which I think is good about DEX is, it is safer because the funds are just stored on our wallet.

As for me that is using centralized exchanges more often, I notice how quick the transaction is, the higher liquidity of assets and the volume trade is so much more compare to decentralized ones, perhaps that's the edge of having centralized ones. But one thing is bothering me, centralized exchanges are being handle by the CEO of the exchange and his groups so if it happens that they are screwed then the consequences will be faced by us, the clients. So guys like me better to read the policy and agreements. However I've never encounter any failures yet so I'mma stick with using it.

[CHENIEN]

many trading companies are satisfying to use to a certain kind of centralize and decentralize exchange especially on authorize market. Centralize is commonly using fiat-to-crypto currency as cash in and cash out, this trading platform is more on a challenge and need a large number of traders with potential to attract buyer and seller and decentralize is commonly use peer to peer challenge to exchange as digital cash payment.

[Oilacris]

Yeah, I notice that also, majority of the people I know including myself wants decentralization but most of us used centralized exchanges, Maybe because centralized exchanges have more coins listed on it with more volume and easy to trade and gain profit at a fast pace, orders are executed immediately unlike on DEX sometimes your orders are stock in there for hours. The only thing which I think is good about DEX is, it is safer because the funds are just stored on our wallet.

Everything is very simple.
Centralized exchanges provide significantly more options than their decentralized counterparts.
That is why most are prepared to put up with security issues in exchange for expanded trading opportunities.

Right! Decentralization is what most preferred but not all features are available thats why people do end up on using centralized one in spite of
the risk attached with it and thats why we do see a few decentralized platforms and this market had been dominated by custodial platforms.
Im not saying they arent good but people do able to see the features which would really be useful into their trading thats why
they do neglect out the difference or simply the risk.

[Mrengage]

I think as we advanced in the crypto world today we get to know more and more definitely I believe a change will come someday in that aspect of the decentralized exchange. And secondly, A decentralized exchange (DEX) is a cryptocurrency exchange that operates in a decentralized way, i.e., without a central authority. Decentralized exchanges allow peer-to-peer trading of cryptocurrencies. Because users do not need to transfer their assets to the exchange, decentralized exchanges reduce the risk of theft from the hacking of exchanges. But with all of this, things change over time and fade away.

[Kelvinid]

Because users do not need to transfer their assets to the exchange, decentralized exchanges reduce the risk of theft from the hacking of exchanges. But with all of this, things change over time and fade away.

Who makes the transfer? Isn't magic or anything...
Its either DEX or CEX exchanges never give such assurance. The risk of losing our account is not also because of them but of course, ourselves who manage it. A reason why a lot of traders are using CEX than having DEX is not only about the security reason but it is all about the price and market volume which CEX has it more than DEX. And this thing is a big consideration that being a trader must have to look by.

[hulla]

Because users do not need to transfer their assets to the exchange, decentralized exchanges reduce the risk of theft from the hacking of exchanges. But with all of this, things change over time and fade away.

Who makes the transfer? Isn't magic or anything...

DEX exchange sites have no access to users funds, private keys and the trading activities are done on the Ethereum blockchain while the exchange site works just like Escrow services between the buyer/seller.

Its either DEX or CEX exchanges never give such assurance. The risk of losing our account is not also because of them but of course, ourselves who manage it.

As you said, the whole secure level of wallet of wallet depend on the wallet owner.

A reason why a lot of traders are using CEX than having DEX is not only about the security reason but it is all about the price and market volume which CEX has it more than DEX. And this thing is a big consideration that being a trader must have to look by.

You're right because almost all DEX lack liquidity, volume and a good price but it the best place to buy token/coin at best bottom price in the market.

[pankaj1234]

In my opinion decentralized exchanges are much more popular amongst trader then centralized exchange because no one can control over them. Deposit and withdrawal are instant. Main thing is using this platforms traders fund are safe. people hold their private key or memonic to use these exchanges. DEX exchange sites have no access to users funds, private keys and the trading activities are done on the Ethereum blockchain while the exchange site works just like Escrow services between the buyer/seller.
So in my point of view decentralized exchanges are best improvement in Cryptocurrencies world

[FanEagle]

In my opinion decentralized exchanges are much more popular amongst trader then centralized exchange because no one can control over them. Deposit and withdrawal are instant. Main thing is using this platforms traders fund are safe. people hold their private key or memonic to use these exchanges.

No. I still prefer trading on centralized exchanges. Unlike you have mentioned, the decentralized exchanges are not fully operating in decentralized manner and operators still have control over our funds. I agree that deposit and withdraw are instant but there is no proven facts to assume about the security of our funds to be safer because we have seen lots of hacking happen in decentralized exchanges as well.

DEX exchange sites have no access to users funds, private keys and the trading activities are done on the Ethereum blockchain while the exchange site works just like Escrow services between the buyer/seller.

You're sounding like P2P kind of transactions are happening in decentralized exchanges but actually the seller/buyer needs to transfer the funds to exchange's addy before the happening of execution of orders. It means the decentralized exchanges will take over the control of our funds before the actual business to be happening. I agree this is kind of escrow services but this is how centralized exchanges are working for years.

in my point of view decentralized exchanges are best improvement in Cryptocurrencies world

Decentralized exchanges are invention after dapps. If there is no such platform like ethereum for providing smart contract things, then we cannot think about having decentralized exchanges.

[sheenshane]

In my opinion decentralized exchanges are much more popular amongst trader then centralized exchange because no one can control over them. Deposit and withdrawal are instant. Main thing is using this platforms traders fund are safe. people hold their private key or memonic to use these exchanges.

No. I still prefer trading on centralized exchanges...

We are the same taste!
I also prefer the centralized crypto exchange because you can easily trade in any pair of coins. Yes, that is greater higher liquidity. An exchange that a high volume of trade per coins can also make fast trades to have quick transactions and fast of making a profit.

A decentralized exchange is good but I won't recommend this to all newbies. There are many crucial steps in the decentralized exchange that should newbies know first.

I've stated before to another thread about my insight of DEX and CEX.

Here is my short insight between them.
Decentralize:

• Not recommendable to newbies
• Low liquidity
• Anonymous/Anonymity
• You have a full control of your fund

Centralized:

• Easy to use by newbies and has advance feature
• Good in terms of Liquidity
• They are the third party between traders and they are controlling your fund, not you
• Collecting your personal identities and should pass KYC

Now, you think which better for you.

[Natalim]

@sheenshane, I think  I like the feature of the decentralized exchange as we are in control of our funds, the only problem is that it has less liquidity and traders cant enjoy trading the assets with high volume. I believe if there are popular DEX in the future they will prefer using it as they can enjoy the what crypto is all bout, anonymity and you own the coins you trade, that's better for me.

[desticy]

In my opinion, many posts have already been written on the topic of decentralized exchanges, most of which are devoted to the problems that are currently present in this environment.
As you know, the biggest of the problems with this type of exchange is the problem with liquidity, as well as speed.

Of course, I understand that such exchanges are the safest, but the difficulty lies in the fact that the user must not be mistaken when choosing a site so as not to get to the phishing link of the clone site.

Due to the fact that detailed exchanges can ask for private keys or a wallet connection separately, all this increases the complexity of interacting with the DEX exchange for ordinary users who do not want additional and time-consuming to understand all the intricacies of the system.

[enhu]

In my opinion, many posts have already been written on the topic of decentralized exchanges, most of which are devoted to the problems that are currently present in this environment.
As you know, the biggest of the problems with this type of exchange is the problem with liquidity, as well as speed.

Of course, I understand that such exchanges are the safest, but the difficulty lies in the fact that the user must not be mistaken when choosing a site so as not to get to the phishing link of the clone site.

Due to the fact that detailed exchanges can ask for private keys or a wallet connection separately, all this increases the complexity of interacting with the DEX exchange for ordinary users who do not want additional and time-consuming to understand all the intricacies of the system.

Hard to learn when you are used to centralized. P2P just isn't the kind of market for some especially if you have to buy CPU and RAM.
I'm starting to like some decentralized exchanges after finding some tokens that have potentials, its just the liquidity that makes it less attractive.

The expectation that collateralized stablecoins will improve that liquidity in decentralized exchanges is high but there is just more controversy going on in Defi.

[TheUltraElite]

Rather, it all comes down to the issue of risks.

Risks are there in both. Both can get hacked. CEX is more prone to extort your KYC at one time. DEX is more prone to shutting down and exit scamming. Which path do you want to take? Rather a local CEX of your country which follow legal bindings - give them your KYC and use it at ease with local currency than getting your money in limbo with no authorities to report it to?
 

If it is likely that deposits will be equal to 50% for each, many of them must pay a deposit even a small amount.

There is no discrepancy of deposits on either of CEX or DEX, individual sites may vary but I dont think any of the exchanges have any deposit fee as caution money or so. Did I miss out on your point?

However, now everyone believes that the probability of breaking into large exchanges is less than 1%.

You mean getting hacked? This probability is always there and the only way to prevent it is to stop using the exchanges which is practically not possible. What is practically possible to not store coins on exchanges for long duration.

[enhu]

Rather, it all comes down to the issue of risks.

Risks are there in both. Both can get hacked. CEX is more prone to extort your KYC at one time. DEX is more prone to shutting down and exit scamming. Which path do you want to take? Rather a local CEX of your country which follow legal bindings - give them your KYC and use it at ease with local currency than getting your money in limbo with no authorities to report it to?
 

If it is likely that deposits will be equal to 50% for each, many of them must pay a deposit even a small amount.

There is no discrepancy of deposits on either of CEX or DEX, individual sites may vary but I dont think any of the exchanges have any deposit fee as caution money or so. Did I miss out on your point?

However, now everyone believes that the probability of breaking into large exchanges is less than 1%.

You mean getting hacked? This probability is always there and the only way to prevent it is to stop using the exchanges which is practically not possible. What is practically possible to not store coins on exchanges for long duration.

DEX shutting down isn't much of a risk if traders will b using the noncustodial wallets, all the tokens stay in the wallet, the problem with DEX is the liquidity pool. But they are up to fast-forward the development of stablecoins and pool, the working DEX in TRX and EOS are almost competing already like what we had in the early days of BTC.

Some risks are in the 3rd party wallets for example the browser extensions like the metamasks or the EOS and tron browser wallets, they could be compromised upon downloading.

[Shallow]

In my opinion decentralized is one of the great reason that people love or apriciate bitcoin. I know there is many things too but its not about that or bitcoin. I am not too much experience able person in crypto world but with all my little experience i understand that people want a good project which is decentralized. But my question is then why we don't accept properly decentralized exchange..?

There is many point that people should trade in decentralized exchange. But what is the problem that every time decentralized exchange failed to stand up..? Was it us who don't show much interest about it or it's the outhority who didn't provide to us properly..? Is there any chance that decentralized exchange will stand up..?  

Please share your thoughts.  

First and foremost the major reason why most people don't trade or use Decentralized Exchanges (DEX) frequently is because of volume and nothing more, and this is where centralized exchanges have upper hand. That is to say, if decentralized exchanges can solve this issue of volume and maybe make it more user friendly, more people will be attracted. Also it is not us but the authorities (creators of the Dex) because if the right thing is being done there is no reason why most people won't use it. Lastly, I believe as the crypto space is still growing, there will come a time when decentralized exchanges will be enhanced and be highly used since there is little to no funds security challenges associated with them.

[Piston]

The real market of decentralized exchange is an exchange market that does not rely on a third-party service to hold the customer's funds. Instead, trades occur directly between users through is automated process of the exchange. Decentralized exchanges allow peer to peer trading of cryptocurrencies.

[Lorence.xD]

First and foremost the major reason why most people don't trade or use Decentralized Exchanges (DEX) frequently is because of volume and nothing more, and this is where centralized exchanges have upper hand. That is to say, if decentralized exchanges can solve this issue of volume and maybe make it more user friendly, more people will be attracted. Also it is not us but the authorities (creators of the Dex) because if the right thing is being done there is no reason why most people won't use it. Lastly, I believe as the crypto space is still growing, there will come a time when decentralized exchanges will be enhanced and be highly used since there is little to no funds security challenges associated with them.

If decentralized exchange solved their problem with volumes, wouldn't it mean that they become centralized? I am curious because I want to know more and I am still learning more about something, in my opinion, having a decentralized exchange wouldn't make things any better, there is security on centralized and they are monitored by an authority. I agree that the crypto space is growing but there is something imminent threat that is affecting technology as a whole, and that is that the current computing power is slowly going on a plateau which means that an advancements in anything related to computing and technology is in peril, good thing about it though is people are aware of this and are making progress with quantum computing.

[Lizzylove1]

People need to be taught how decentralized exchange works, it's not the conventional system an average person is use to. Some friends who entered Crypto before me are scared of using Dex and hence I help them to buy and sell when the perticular token is not available on Cex. Another shortfall of Dex is the low liquidity issue.