Can DEX Replace CEX as the Future of Crypto Trading?

[AmoreJaz]

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.

do take note that some of these traders are converting their crypto to fiat, so they still need CEXs on this process. the truth is, we still need to convert our crypto to fiat to actually use it in our everyday life. not many merchants are directly accepting crypto. also, there are some bottlenecks why crypto is still not widely use as payment method. not only the availability but the fees involve.

[hd49728]

do take note that some of these traders are converting their crypto to fiat, so they still need CEXs on this process. the truth is, we still need to convert our crypto to fiat to actually use it in our everyday life. not many merchants are directly accepting crypto. also, there are some bottlenecks why crypto is still not widely use as payment method. not only the availability but the fees involve.

Most of them use CEXs because it is most convenient for them, cheapest trading fee and they don't care about privacy.

They can use non KYC DEXs but they see those exchanges are less convenient, risk to be scammed by trade partners.
They can use Bitcoin or cryptocurrency ATMs but they don't want to be charged very high fee such as 15% or even ridiculously higher.

Non KYC exchanges to trade with cash.
https://kycnot.me/?cash=on

[milewilda]

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.

do take note that some of these traders are converting their crypto to fiat, so they still need CEXs on this process. the truth is, we still need to convert our crypto to fiat to actually use it in our everyday life. not many merchants are directly accepting crypto. also, there are some bottlenecks why crypto is still not widely use as payment method. not only the availability but the fees involve.

One of the main reasons on why people cant really just leave out on CEX because of having the ability in speaking about fiat conversions on which it is true that we do really need nor want for us to have that fiat conversion
with our crypto because not all would really be tending to hold of their coins for long term and there would really be time that we do need money on which it is really just that possible or would really be that convenient
on processing on making use of CEX and which is something that cant really be done via DEX.This might really be that able to get that anonymity to be that contradictory but we do really have no choice
specially if we are really that minding about the convenience and accessibility on which DEX couldnt really be able to give out. We dont have any choice as of now unless if you are willing to make that
literal P2P transactions on which i would say that it is really that truly that risky as we do know.

[Captain Corporate]

Not for my taste, I do not think that it could for a while and that's literally why it can't because I think it won't. What do I mean? Well simply put, because I do not put my money in there, either  for staking or liquidity providing, that means it has low liquidity and high chance of being manipulated, and all that jazz. This is why I believe that the high risk makes me not want to put my money in there, and when I do that the risk continues. If we all just put our money in there, maybe some would drop but at the end of the day it would not be a big problem for long term and we could use it, but because there are a lot of people like me who refrain due to fear, it can't really get high enough.

[Jawhead999]

There's no DEX offer futures, scalping, liquidity, and low fee, how it's possible DEX can replace CEX in terms of crypto trading?

Maybe there's someone use DEX for trading for short term trade like a week or a month, but it's not enough to replace CEX. DEX isn't used for trading, it's only for buy and sell Bitcoin not in hurry. Maybe less decentralized exchange can replace CEX in the future.

[jeraldskie11]

There's no DEX offer futures, scalping, liquidity, and low fee, how it's possible DEX can replace CEX in terms of crypto trading?

Maybe there's someone use DEX for trading for short term trade like a week or a month, but it's not enough to replace CEX. DEX isn't used for trading, it's only for buy and sell Bitcoin not in hurry. Maybe less decentralized exchange can replace CEX in the future.

I completely agree with you. In terms of trade, CEX is better to DEX. DEX is a good solution for better safety if you only want to trade because you want to hold other assets. However, if you want to be a serious trader, CEX is a good option. Trading futures is possible, and the fees are small; it is also more efficient than DEX. If you look at their trading volume, you can see that many people use CEX. DEX has limited possibility of replacing CEX in the future until the government shuts down CEX.

[hd49728]

There's no DEX offer futures, scalping, liquidity, and low fee, how it's possible DEX can replace CEX in terms of crypto trading?

Maybe there's someone use DEX for trading for short term trade like a week or a month, but it's not enough to replace CEX. DEX isn't used for trading, it's only for buy and sell Bitcoin not in hurry. Maybe less decentralized exchange can replace CEX in the future.

DEXs will grow more with more products and maybe they will have bigger liquidity but I agree with you that it is so hard and liekly impossible for DEXs to replace CEXs because they can not reach or surpass CEXs in all those criteria.

People as exchange users will find exchanges which provide as many products they like as possible. They also find convenience, good trading fees and big volume, liquidity to avoid losing more by price change as their trading impact.

Only when DEXs can do it, they will be able to replace and surpass CEXs. So far I don't think DEXs will get it in too near future and they have very long development and need more adoption to get there.

[Mahanton]

There's no DEX offer futures, scalping, liquidity, and low fee, how it's possible DEX can replace CEX in terms of crypto trading?

Maybe there's someone use DEX for trading for short term trade like a week or a month, but it's not enough to replace CEX. DEX isn't used for trading, it's only for buy and sell Bitcoin not in hurry. Maybe less decentralized exchange can replace CEX in the future.

DEXs will grow more with more products and maybe they will have bigger liquidity but I agree with you that it is so hard and liekly impossible for DEXs to replace CEXs because they can not reach or surpass CEXs in all those criteria.

People as exchange users will find exchanges which provide as many products they like as possible. They also find convenience, good trading fees and big volume, liquidity to avoid losing more by price change as their trading impact.

Only when DEXs can do it, they will be able to replace and surpass CEXs. So far I don't think DEXs will get it in too near future and they have very long development and need more adoption to get there.

Comparing up the liquidity then CEX does have more compared to other opposite side which we know that majority of traders would really be playing around on centralized platforms but theres still a significant volume
or liquidity on decentralized platforms or dex on which there are ones who are really  that giving out importance when it comes to decentralization. We know that we dont possess the keys on the time that we do make out deposits with those centralized platforms on which it totally opposes the idea on being decentralized.

[sana54210]

DEXs will grow more with more products and maybe they will have bigger liquidity but I agree with you that it is so hard and liekly impossible for DEXs to replace CEXs because they can not reach or surpass CEXs in all those criteria.

People as exchange users will find exchanges which provide as many products they like as possible. They also find convenience, good trading fees and big volume, liquidity to avoid losing more by price change as their trading impact.

Only when DEXs can do it, they will be able to replace and surpass CEXs. So far I don't think DEXs will get it in too near future and they have very long development and need more adoption to get there.

If they can do that then it could have a better future and I believe that it will have a good result one way or another. But that will take some time because right now they are not providing a lucrative deal to anyone and no product that would be different neither.

I believe that we are going to end up having some sort of situation where it is going to take some time before people realize that DEX is not that bad, but for that to happen first these DEX websites needs to provide something more, as we can see from the current situation it is not really that much of a big difference. I know that it is not going to be simple, but I believe that it could end up being a bit different and that's going to cause a lot of trouble for sure.

[wxa7115]

There's no DEX offer futures, scalping, liquidity, and low fee, how it's possible DEX can replace CEX in terms of crypto trading?

Maybe there's someone use DEX for trading for short term trade like a week or a month, but it's not enough to replace CEX. DEX isn't used for trading, it's only for buy and sell Bitcoin not in hurry. Maybe less decentralized exchange can replace CEX in the future.

I completely agree with you. In terms of trade, CEX is better to DEX. DEX is a good solution for better safety if you only want to trade because you want to hold other assets. However, if you want to be a serious trader, CEX is a good option. Trading futures is possible, and the fees are small; it is also more efficient than DEX. If you look at their trading volume, you can see that many people use CEX. DEX has limited possibility of replacing CEX in the future until the government shuts down CEX.

DEXs are trapped in a difficult situation, they do not have the volume to attract the large investors they need, but without those large investors then the volume cannot increase, so this is a difficult cycle to break and will probably not happen until CEXs encounter a great deal of difficulties to service their clients due to an increase in the number of regulations they have to follow.

But politicians are really smart, even if they are pushing for more regulations now, they will not push to the point of forcing the hand of CEXs and people feel they have to use DEXs, so I doubt the above scenario comes to happen.