Can DEX Replace CEX as the Future of Crypto Trading?

[Dr.Osh]

if you look at the current situation, then people are more likely to choose to use their assets on CEX than DEX. So far, DEX still has many shortcomings, especially if we use the ERC20 network, the fees that can be used to make transactions are sometimes very large. However, in the future, DEX might be much better because it has a decentralized system.
However, if you try to advertise MUFEX here, it seems that people prefer to trade on CEX than new DEX advertised like this.

[1714293291]

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[justdimin]

Why would anyone ever think Centralized exchange would replace decentralized exchange in the future. The only way I see that happening is if government takes over crypto-currency which I think would be impossible.

The advantages Decentralized exchange has over centralized exchange is much and I think the only reason anyone is using centralized exchange is due to the way they understand crypto-currency. An experienced person in the ecosystem would readily for decentralized exchange because of the privacy protection they can get from it over centralized exchanges

Not only the OP but there lots of them who actually think that a centralized exchange are going to replace decentralized exchange because it's obvious that centralized exchanges are more popular. They get more volume because many people are using them and many people thinks that decentralized exchange are dying because of that fact. This isn't only limited to decentralized exchange but this is also happening in decentralized casinos, decentralized games, and others.

There must be something with being centralized on why people likes them even though being decentralized do also have its own benefits like privacy or anonymity.

[savetheFORUM]

In conclusion, DEX is in a phase of rapid evolution. With the advent of new technologies and innovative practices, DEX has a plethora of possibilities ahead. MUFEX, being an industry leader, is expected to offer valuable insights into the development of DEX. Whether DEX can ultimately replace CEX depends on several variables including regulatory policies, technological advancements, and market acceptance. However, under the guidance of exchanges like MUFEX, DEX will continue to mature and challenge the dominance of CEX.

The biggest difference between a centralized exchange and a decentralized exchange is that a centralized exchange requires users to complete KYC verification and comply with rules and regulations imposed by the authorities, while a decentralized exchange operates without a license and requires nothing of that sort, now to come to the point, authorities are starting to notice decentralized exchanges and might be planning to impose regulations on them as well, once that is done, people wouldn't prefer decentralized exchanges at all.

A CEX provides way more features and offers than a DEX and users like that, that is the reason why there is more than enough liquidity on CEXs and DEXs suffer from lack of liquidity most of the time even for the tiniest tokens that have been released recently, the reason is that people prefer using centralized exchanges more often.

[adaseb]

One thing to keep in mind about a DEX. Is that it’s extremely difficult for a new user to interact. It’s good for us who already are comfortable with Metamask and such but for a beginner it’s very difficult.

Also add in the fact that you got so many phishing scams and address poisioning that makes it very easy for some new comer to get his funds stolen.

So for beginners it’s best to stay on a CEX for their security. DEX is for intermediate type of computer and crypto users. Not very user friendly.

[wxa7115]

One thing to keep in mind about a DEX. Is that it’s extremely difficult for a new user to interact. It’s good for us who already are comfortable with Metamask and such but for a beginner it’s very difficult.

Also add in the fact that you got so many phishing scams and address poisioning that makes it very easy for some new comer to get his funds stolen.

So for beginners it’s best to stay on a CEX for their security. DEX is for intermediate type of computer and crypto users. Not very user friendly.

I agree, I mean even today I do not feel completely sure about what I am doing and I double or even triple check everything I do just to make sure I am not going to lose my coins due to a dumb mistake, then I can only imagine the kind of pressure a newbie may be feeling when doing something in which they do not have any experience and which may cause them to lose their coins.

So newbies using centralized exchanges is fine, at least for a time, and only once they feel more confident on their ability to secure their coins then they could try to use a decentralized exchange.

[rat03gopoh]

These two will forever be the favorites of different types of traders, they won't outdo each other as long as they're on the right track. I mean, lately the emergence of shady business models outside of the main orientation has been implemented in several cex and dex behind the scenes which is a threat to the exchange as a whole, both in terms of user trust and government policy.

[irhact]

if you look at the current situation, then people are more likely to choose to use their assets on CEX than DEX. So far, DEX still has many shortcomings, especially if we use the ERC20 network, the fees that can be used to make transactions are sometimes very large. However, in the future, DEX might be much better because it has a decentralized system.
However, if you try to advertise MUFEX here, it seems that people prefer to trade on CEX than new DEX advertised like this.

Centralized exchange are popular now because they're very easy to trade on, they make their platforms so easy that any individual who's a newbie can make use of their platform without mentorship. Decentralized exchange aren't perfect yet but they're safer than decentralized exchange. Centralized exchange are what many individual are used to and they're just getting to know about decentralized exchange and with time they'll understand how to use them.

Decentralized exchange has all the potential to replace centralized exchanges, with the crackdown on centralized exchange and accusations of listing securities, attention might shift back to decentralized exchange as project move to list there to avoid SEC lawsuits.

[tbct_mt2]

Centralized exchange are popular now because they're very easy to trade on, they make their platforms so easy that any individual who's a newbie can make use of their platform without mentorship. Decentralized exchange aren't perfect yet but they're safer than decentralized exchange. Centralized exchange are what many individual are used to and they're just getting to know about decentralized exchange and with time they'll understand how to use them.

Decentralized exchange has all the potential to replace centralized exchanges, with the crackdown on centralized exchange and accusations of listing securities, attention might shift back to decentralized exchange as project move to list there to avoid SEC lawsuits.

Talking about this chance for decentralized exchanges is like talking about opportunities of ebooks to replace paper books, e-newspaper to replace paper newspaper, digital currencies like CBDCs to paper or polymer currencies. It will not have any ending for discussions because we all see how paper books, audio books, ebooks coexist and none of them die. I believe the same for CBDCs and paper/ polymer currencies, Bitcoin and altcoins will all co-exist together.

Decentralized exchanges and centralized exchanges serve different users so they will co-exist if customers continue to have different types and each exchange type has its pros and cons.

[tvplus006]

Since the creation of DEX, we see their constant improvement and the main goal in the near future will be to fully provide all the functionality that exists on CEX to its users. Already, no one is surprised by the presence of limit orders on DEX, which traders dreamed of a few years ago. But at the same time, CEX will also not stand still, but introduce new useful functions on the exchange, and DEX will still be in the role of catching up.

[jaberwock]

Since the creation of DEX, we see their constant improvement and the main goal in the near future will be to fully provide all the functionality that exists on CEX to its users. Already, no one is surprised by the presence of limit orders on DEX, which traders dreamed of a few years ago. But at the same time, CEX will also not stand still, but introduce new useful functions on the exchange, and DEX will still be in the role of catching up.

To be fair no matter how great it becomes it is not going to be just fully DEX, it is going to still have some people at CEX without a doubt. But during bull run we have seen DEX grew a lot and now it is much smaller, and even though exchanges dropped too, they didn't drop this much and kept their marketshare and DEX lost marketshare, that's the warning sign for it.

I hope that it gets better and people would see that DEX is a far superior situation if you want to protect your funds and just keep it on your wallet, but it will certainly not be an easy decision. I know that it is going to be a tough one, and it is going to hurt a lot but we could still end up doing something that could make sense slowly, and should be fine eventually.

[tvplus006]

To be fair no matter how great it becomes it is not going to be just fully DEX, it is going to still have some people at CEX without a doubt. But during bull run we have seen DEX grew a lot and now it is much smaller, and even though exchanges dropped too, they didn't drop this much and kept their marketshare and DEX lost marketshare, that's the warning sign for it...

Nevertheless, we know that there are a lot of people who care about their privacy and it is due to such traders that the number of DEX users will increase. This will happen every time the next CEX introduces a mandatory KYC in exchange for the right to trade on a centralized exchange.

[Vivageneviv]

I sincerely don't see that happening. While DEX has its own perks and promotes decentralisation more which is the very essence of cryptocurrency, CEX is still ahead and offers a lot more in terms of liquidity, stability, user experience and so on. With CEX you also feel more secured especially on platforms that take extra measures to secure users funds with some like Binance and Bitget announcing their protection funds with the later announcing a whooping $300m protection funds. When you look at this edges, you'd think that DEX will keep playing second fiddle to CEX for a long time

[Fatunad]

Since the creation of DEX, we see their constant improvement and the main goal in the near future will be to fully provide all the functionality that exists on CEX to its users. Already, no one is surprised by the presence of limit orders on DEX, which traders dreamed of a few years ago. But at the same time, CEX will also not stand still, but introduce new useful functions on the exchange, and DEX will still be in the role of catching up.

To be fair no matter how great it becomes it is not going to be just fully DEX, it is going to still have some people at CEX without a doubt. But during bull run we have seen DEX grew a lot and now it is much smaller, and even though exchanges dropped too, they didn't drop this much and kept their marketshare and DEX lost marketshare, that's the warning sign for it.

I hope that it gets better and people would see that DEX is a far superior situation if you want to protect your funds and just keep it on your wallet, but it will certainly not be an easy decision. I know that it is going to be a tough one, and it is going to hurt a lot but we could still end up doing something that could make sense slowly, and should be fine eventually.

Would really remain just like that and i dont really believe that DEX would be able to overtake CEX when it comes to volume and popularity which it might really be totally
opposing on the general idea and utility of crypto but we cant really deny that the accessibility and function of CEX is much more preferred and convenient on which its not something
that could be questioned out by most users of CEX. When it comes to security then there's no doubt on DEX but we arent that dumb not to make those significant differences.
Trading volume does signify on which one is most preferred.

CEX vs DEX: Understanding The Differences
This article is a good read up for those people who are really that interested in between CEX vs DEX thing.
Well its not that forcing out people to stick into one place which we could always have the option which one we would really be taking on.

[Mr.right85]

Not one of your best ways to introduce your project to users on the forum and on the Web I must say. Seeing you the OP having to cret a thread title that centers on the future of centralized and decentralized exchanges with you at OP having to promote or project something else, MUFX which happens to be your username as well is something not expected.
If that be the case, you might he just announced yourself on the service board and be done with it.

On course, the crypto space calls for more decentralisation as it prioritises on privacy and financial freedom, both of which decentralisation offers and as such, its just normal to expect that it would be the order of a time.

[wxa7115]

To be fair no matter how great it becomes it is not going to be just fully DEX, it is going to still have some people at CEX without a doubt. But during bull run we have seen DEX grew a lot and now it is much smaller, and even though exchanges dropped too, they didn't drop this much and kept their marketshare and DEX lost marketshare, that's the warning sign for it...

Nevertheless, we know that there are a lot of people who care about their privacy and it is due to such traders that the number of DEX users will increase. This will happen every time the next CEX introduces a mandatory KYC in exchange for the right to trade on a centralized exchange.

We also know that the pressure coming from governments against centralized exchanges is increasing, and they are not going to relent on their idea of forcing every single user of those platforms to identify themselves and even explain the exact source of those funds in order to monitor this market.

And the more centralized exchanges give up to their demands the lesser options those that care about their privacy will have, and as such they may decide one day to finally use a DEX and never use a CEX ever again.

[TheSpiral]

if you look at the current situation, then people are more likely to choose to use their assets on CEX than DEX. So far, DEX still has many shortcomings, especially if we use the ERC20 network, the fees that can be used to make transactions are sometimes very large. However, in the future, DEX might be much better because it has a decentralized system.
However, if you try to advertise MUFEX here, it seems that people prefer to trade on CEX than new DEX advertised like this.

Another limitations in the dex is that you cannot buy token with fiat and dez give you options for buying crypto through credit card. P2P is also best for safe deal without involving your credit card with crypto which is best option in country where crypto is banned. Dex speed is also not fast like Cex. In future if these limitations overcome then maybe DEX replace CEX but at current situation its not possible

[el kaka22]

I agree that it is going to be a bit more shift, but not pass it. Like I believe there will be more DEX used than what is used right now, and there will be less CEX used than what is used right now, but I also believe that we are not going to end up with DEX being used more than CEX neither, that's not something I expect happening anytime soon. This is why I believe that it is going to be a different situation, it is not going to be what we expect it to be.

Hopefully that can happen a bit differently, so that we can make more money but that doesn't mean that it is going to be simple. Hope that it is going to be an easy decision one way or another, that doesn't mean that it will be too simple though, there will be some differences for sure.

[Dunamisx]

Decentralized exchanges may not eliminate centralized exchanges but the crypto users will get to a stage where a number of them would have gotten the main idea and logic in using a decentralized exchange and many would stop the use of centralized or reduced the rate at which it's been used by the people, this may be coming on a gradual and steady way before the full explosion when everyone would have fully understand the importance of being decentralized, maybe only traders will be found using centralized exchanges in near future while holders will use a decentralized exchange.

[Hamza2424]

In short MUFEX is scam.

haha, you've nailed it, buddy. From the title, it seems like click betting haha but I was not expecting this, like really I thought in the written content why a person will use this Youber's technique hehe, But Op did it.

Anway my honest view on the CEX vs DEX I am standing with the DEX but not really still there is a need for huge developments on the protocols security better liquidity and marketing as well. But I respect all the services provided by the CEXs as well because they've played an important role in worldwide crypto adoption.

[Hamphser]

Decentralized exchanges may not eliminate centralized exchanges but the crypto users will get to a stage where a number of them would have gotten the main idea and logic in using a decentralized exchange and many would stop the use of centralized or reduced the rate at which it's been used by the people, this may be coming on a gradual and steady way before the full explosion when everyone would have fully understand the importance of being decentralized, maybe only traders will be found using centralized exchanges in near future while holders will use a decentralized exchange.

On the time that regulation and government involvement would really go into that certain extreme extent on which they do really regulate everything then this is the time that they would really be considering on making

use of these decentralized exchange.For now, the regulation isnt really that too strict or really that trying out to constrict crypto space but i wont really be shocked that one day they would really be and this would leave no choice into those people who are really get used to CEX functions and would really be making out that transfer or would really be just simply dealing with those KYC despite on risking out their own personal details or simply their identity. It is really that hard to believe that DEX would be able to overtake these centralized exchanges when it comes to functions and other accessibility on which it do brings out great convenience.

On the time that we do see that things getting worst then i wont really be shocked if people would be starting on recognizing DEX once again but not really that much.
We cant really tell on when it would happen though.