How would crypto fare without centralized exchanges?

[DapanasFruit]

Certainly, centralized exchanges could not do the business without the approval of the government where they are operating. Now, in case the government will make centralized exchanges as illegal then certainly confidence of the people with cryptocurrency can be affected greatly...as only a small percentage of those who are into crypto will persist when they know there can be some big risks involved and we are witnessing this right now in China that though there are those who are doing business in crypto they are gone underground. However, it does not mean the end of cryptocurrency and the good news is that many governments are getting to be open-minded to cryptocurrency though they are into highly regulating everything on the industry.

[barbara44]

I don’t think so. I think that the government are starting to know that without centralised exchanges that their  power on cryptocurrency community is useless. If the government decides to ban cryptocurrency, and stop centralized exchanges it might affect the market for a short time because mostly people who are newbies in the market will be confused as to how to go about it.

Some people don’t know how to make use of decentralized exchanges, so they tend to go for centralized exchanges like coinbase.com which offers them simplicity. But, as time goes on they will get to learn how decentralized exchanges and wallets works and then they will all get back and the cryptocurrency community will start blooming again while the government is left in the dark.

And the government wouldn’t like to experience such so they will still want centralized exchanges to continue and would want everybody to make use of centralized exchanges so that they will be able to control the crypto-currency market.

[robattfield]

Personally, I always appreciate the important role of CEXs in this area. It seems to be the tools that lead users to the market more. After many years of operation, I still see this as unchanged. The diversity in this space leaves us with more options, but the influence of CEX is a very obvious one. I believe that some of the investment behaviors of many people are based on information navigation from CEX. Those of us who came to this market before had only a few options to be able to buy crypto, so the influence The effect is huge here.

[fzkto]

Personally, I always appreciate the important role of CEXs in this area. It seems to be the tools that lead users to the market more. After many years of operation, I still see this as unchanged. The diversity in this space leaves us with more options, but the influence of CEX is a very obvious one. I believe that some of the investment behaviors of many people are based on information navigation from CEX. Those of us who came to this market before had only a few options to be able to buy crypto, so the influence The effect is huge here.

If you are talking about simply buying cryptocurrency to then store it in your personal wallet, there is not much difference between buying on a centralised or decentralised exchange. And if you're talking about additional trading tools like leveraged margin trading or futures, DEX is still very much behind CEX. But I think that will be corrected with time. There used to be no DEX at all, but now there is a huge range of them.

[tvplus006]

Decentralized exchanges act as an alternative to centralized exchanges and allow you to remain anonymous when trading. Given the fact that DEX has already implemented almost all the services that are available on CEX, if centralized exchanges are banned, almost nothing will change for the trader, but the state will lose control over them.

[kidbounty]

expensive because it will be difficult to trade coins that are on different blockchains. unlike during CEX, which only requires a deposit and trades. if using DEX there are several stages to sell the coins that we have. and plus without CEX we will find it difficult to exchange it with FIAT. so if crypto is banned and the entire CEX is suspended, maybe crypto will have a hard time.

[robattfield]

~snip~

If you are talking about simply buying cryptocurrency to then store it in your personal wallet, there is not much difference between buying on a centralised or decentralised exchange. And if you're talking about additional trading tools like leveraged margin trading or futures, DEX is still very much behind CEX. But I think that will be corrected with time. There used to be no DEX at all, but now there is a huge range of them.

Are you really saying what I have shared? We are talking about the impact it is having on the crypto industry, as today many people are boycotting the denial of contributions from CEX.
You know, in the past, the DEXs we used were illiquid and it was never a preferred option, but times have changed and so have the variety of ways to approach it. So do not say the problem is not related to the main.

[asyakashi]

I think without a centralized exchange cryptocurrency is just a code of money to be used for evil.
Actually this has been happening for a long time, before centralized exchanges were not well known, they would transact with bitcoin on black markets such as the deep web or dark web.
They would probably exchange money manually without a central exchange, of course it would only cost a transfer transaction, but it was quite cumbersome compared to using a centralized exchange.
Moreover, if all governments ban the circulation of cryptocurrencies so that there are no more centralized exchanges, it is likely that bitcoin will soon disappear from society.

[kaseygriffin]

if this happens then it's really a big risk for users on that CEX.

I find that the security or guarantee of freedom for users has always been clearly stated on the regulations,

so the easy tie between each other will sometimes take time to solve the CEX and users.

[Coin BTC]

I think, this possibility is rather impossible, even if it happens that the exchange is banned, then the owner of the central exchange will definitely create such a thing as a decentralized exchange that can work as effectively and efficiently as possible, and it can also be said that the centralized exchange is one of the important tools for the world community, and the government cannot stop people from continuously using crypto.

according to what I see from its development, in the future, it seems that many countries will allow these coins or what is called crypto, and maybe in the future if problems occur none other than the following problems, the first problem with decentralized exchanges will be problems in volume and fees, and the other problems in decentralized exchanges will lie in trust.

[kojektea]

Without centralized exchange cryptocurrency can still run because of decentralized exchange,
now we are in DeFi era, many dex swaps like Uniswap, Sushiswap, Justswap, Pancakeswap, we can use it to do exchange.
But there is a weakness that I see, because it is a dex swap, we can't determine the price we want, and we always depend on liquidity,
even if the transactions are usually quite expensive, such as slippage + approve fees.

[cryptoaddictchie]

Imagine if most countries unilaterally agree on banning centralized exchanges for good. Will that mean the end of crypto for good (even though it would still be possible to get some crypto through decentralized exchanges)? After all, most people will be afraid of using crypto if it's declared "illegal". The ban of centralized exchanges will surely topple crypto prices, signaling fear among investors and traders alike.

That will be the biggest conflict if ever that happened. Most users will likely complain but I doubt government will do this, as some of them are actually into crypto as well. Its gonna be a long fight whether crypto become illegal, a lot of personalities and even big names are trading it. They could arrange some regulations and rules for it. But totally removing it? Its so impossible to happen.

[Bitstar_coin]

If crypto becomes extremely popular in the future (widely adopted by a vast majority of people worldwide), it's probable governments will turn against it. They can pressure centralized exchanges to close up shop or face serious consequences in the long run. After all, these exchanges are the on and off ramps from the crypto world to the Fiat world. While not every country is against crypto, they might change their stance once they see Russia using it as a means to avoid sanctions.

Imagine if most countries unilaterally agree on banning centralized exchanges for good. Will that mean the end of crypto for good (even though it would still be possible to get some crypto through decentralized exchanges)? After all, most people will be afraid of using crypto if it's declared "illegal". The ban of centralized exchanges will surely topple crypto prices, signaling fear among investors and traders alike.

What are your thoughts?

If something like this where to happen in the future, I think it will give rise to more dex, like the attention will now be on how to create more dex suitable for all users, it is because of the existence of cex that dex are not given the much needed attention. Such situation will affect crypto for some time but once there are enough dex to provide services and take cex place everything will go back to normal and government will have little or no control then.

[SirLancelot]

I think Centralized exchange is the core of the community on the world side, however the government will not be able to curb people freedom to keep using crypto, maybe crypto will fall in price if the government imposes a ban to centralized exchanges. However, this situation may not be happen because the government is there for the people, not the people for the government. Although the future no one knows but as far as I know the government can't raise its his wish to make the people unhappy.

Are you trying to say that there is no possibility that the government will or can ban cryptocurrency? In a lot of countries we have already seen the government take such an action and banned cryptocurrency exchanges from their country and also the use or buying and selling of cryptocurrency.

So, the government in any country can do such a thing but there are still the ones who do understand what cryptocurrency is all about and they see that there is the need for it so they decide not to ban it and allow their citizens to make use of it. Some of them then go as far as having regulations for cryptocurrency trading and also expect their citizens to pay tax for cryptocurrency.

[BioFrog]

Crypto are already popular if governments were to ban them and close centralized exchanges in my opinion there would be no problem anyway there are always interpersonal changes, face to face, or sites where you can buy coupons for online services

[accounting 181293]

Imagine if most countries unilaterally agree on banning centralized exchanges for good. Will that mean the end of crypto for good (even though it would still be possible to get some crypto through decentralized exchanges)? After all, most people will be afraid of using crypto if it's declared "illegal". The ban of centralized exchanges will surely topple crypto prices, signaling fear among investors and traders alike.

What are your thoughts?

I agree it will drop the price and have a big impact. but will not make crypto die. if there is no CEX, we still have DEX and there is no way the whole country will ban it. although later the fee will be more expensive, but it will be a way for crypto not to depend on a centralized system like today. but back to the discussion, this is just a possibility that will not become real. due to the fact that today there are more countries that are more open and willing to accept crypto than reject it.

[mdzahed134]

Imagine if most countries unilaterally agree on banning centralized exchanges for good. Will that mean the end of crypto for good (even though it would still be possible to get some crypto through decentralized exchanges)? After all, most people will be afraid of using crypto if it's declared "illegal". The ban of centralized exchanges will surely topple crypto prices, signaling fear among investors and traders alike.

What are your thoughts?

Even if the governments of all the countries will announce crypto is illegal and if will ban all the centralized exchanges, i don’t see anything very scary here because we have another alternative option is Decentralized exchanges, So that i think it will not be big impact on the market. But it’s true that, we will face some difficulties without CEX, as like DEX (ERC-20) is very expensive in case of gas fees which will not be fair for the all users who's small traders.

[DOH!]

Relying on CEX is putting crypto users on a high-risk precedent from government regulation.  It may suffer from that but the DEX is completely independent.  From that point of view, I think DEX is the future of trading.  Currently, DEXs are quite diverse and also develop separate financial ecosystems such as staking, lending, borrowing, etc. or margin trading, but clearly, the market is not ready to do this yet.  there.  Cex is still an important thing to the development of the market today.

[Xal0lex]

What are your thoughts?

This is unlikely to happen. It makes more sense to ban cryptocurrencies themselves than centralized exchanges. Imagine a situation where the government saw a threat in food products and banned stores that sell those products. Why? Wouldn't it be easier to ban the food itself? With the level of legalization of cryptocurrencies and the acceptance of cryptocurrency in general, a move like a complete ban on exchanges would be extremely illogical. After all, if you ban exchanges, there will be other ways to sell cryptocurrencies, and decentralized exchanges can also be banned, because they also act under someone else's jurisdiction.

In simple words, banning centralized exchanges is slightly less stupid than banning bitcoin. There is already too much money involved in the industry and too much infrastructure built for governments to take such stupid steps.

[timerland]

It will function completely fine. And besides, most big exchanges already require KYC so most people don't bother using them.

The stablecoin ecosystem alongside the amount of DEX's have made it extremely accessible for people to start using crypto without ever having to sign up for a centralized exchange.

This is why you see a lot of hype around AMM projects whenever they come out. Certainly not too late to get in.