Now let’s talk about CEX or DEX

[Z-tight]

If you need security and privacy in its highest order, then go for a decentralized means of storage, using a centralized exchange will intrude into your private informations, they can be hacked or turn a scam ad government can regulate them against your wish.

Neither centralized or decentralized exchanges should be used for storage, whether you care about privacy and use a decentralized exchange or you don't care about that and you use a centralized exchange, your funds should be moved into your self custody wallet after trading, wallets like Electrum, Sparrow or BlueWallet.

If DEX is superior to CEX, why do people still trust CEX more? Even if there are some big whales holding a large amount of bitcoin, they will choose centralized exchanges as the place to sell and not a decentralized exchange.

People don't trust centralized exchanges more, they know their funds are at risk of confiscation whenever they trade in centralized exchanges, but people use centralized exchanges because it was the only type of exchange they were introduced to when they started trading crypto, so they now find centralized exchanges more convenient. People will trade large amount of BTC on centralized exchanges just because of they have more liquidity.

[Owagee]

Which platform do we think is more reputable and have good track record of security? Does either of them have good liquidity?

You'd have to move the thread to altcoin discussion. Should be more appropriate given that it's about DEX.

For DEX, I recommend popular ones like Uniswap since their code has been fully audited (this doesn't mean it's hack-proof btw). CEX is not recommended except you need quick on/off ramps fiat services which most CEX offer out of the box. For DEX recommendations, Popular ones like Uniswap, 1inch, etc should do just fine.

I don’t ignore uniswap, just turned off by their limited liquidity. Unlike cex, DEX typing have lower liquidity due to the absent of market makers and order books yeah. Don’t you think this can result in wider spreads between buying and selling prices? And prolly a potentially slippage when executing larger trades ??

[Faisal2202]

Which platform do we think is more reputable and have good track record of security? Does either of them have good liquidity?

Which is old, has good reviews, and definitely has good liquidity. Whether it's CEXs or DEXS, such factors are necessary to keep in mind before depositing on them. Many scammers could easily copycat other exchanges as many source codes are open source, so they might trap you into many offers while they might not have enough funds or liquidity.

So, choose wisely before depositing, and DYOR too. Because relying on members or others answers will not just make you knowledgeable but could also lead you off track, backup your knowledge you get from members with facts and proofs too.

[famososMuertos]

I think it's a rhetorical question, since sometimes it's about understanding the Cex, Dex concept, if you know how it works, each one will find the answer.

That is, it is better perhaps to mention "I am using "x" ", because maybe you thinks; "yes, I understands that it is a Dex", and it turns out that it is not, many believe that the best exchange is the most popular or the that you have more trust in certain communities, like in this forum, but you determine that.

Greater liquidity, confidence, etc., are only a part of your decision, understanding that, you can use a CEX under the criteria that this implies, but the mistake is to fall for a CEX for offers, low fees or because it is popular and not you have no idea what CEX stands for.

[yhiaali3]

It is not possible to accurately judge which is better CEX or DEX, there is no perfect platform, each of them has a lot of disadvantages and features.

For example, with regard to security, it is certain that DEX is safer than CEX, but at the same time it lacks many other features such as speed, ease of use, large liquidity, daily trading volume, and low trading fees that CEX provides.

There are some DEXs that offer good liquidity but the fees are high, especially on networks like Ethereum.

[nelson4lov]

You'd have to move the thread to altcoin discussion. Should be more appropriate given that it's about DEX.

~Snipped

I don’t ignore uniswap, just turned off by their limited liquidity. Unlike cex, DEX typing have lower liquidity due to the absent of market makers and order books yeah. Don’t you think this can result in wider spreads between buying and selling prices? And prolly a potentially slippage when executing larger trades ??

Yes, Liquidity has been one of the major issues with DEX. Uniswap made some head way with its liquidity mining program + rewards LP some fees earned by the protocol but it didn't really solve the problem and the spreads are still not tight. Trading larger amount results in wider spreads. Imo, it's still an evolving narrative and I won't say it's a major success yet until liquidity is as seamless as CEX market making is. Still a long way to go but a step taking in the right direction.

[dansus021]

You might know the difference already CeX or centralized exchange is a platform owned and operated by a single entity acting as an intermediary between buyers and sellers according ledger.com while Dex is Decentralized Exchange usually community owned through DaO but you dont need deposit like Cex did or direct peer-to-peer cryptocurrency transactions to take place without the need for an intermediary

Whose the better liquidity in my opinion is Cex, Big CeX like Binance usually has a lot of liquidity and tight spread but in today Dex you can use dex aggregator like 1nch or DodoEx to route your transaction at best rate.

[Dr.Bitcoin_Strange]

Although, at present, some CEX can be said to have a good reputation because they have been able to prove themselves worthy to their thousands of customers, one cannot yet determine what can happen in the future with those exchanges. A reputable and trusted exchange can possibly go bankrupt, get hacked, or experience other bad incidents that can cause it to shot down in the future. With CEX, investors funds are never 100% safe, which is why it's usually advised for one to store their coins in a self-custodial wallet. In terms of security and privacy, it is advisable that one trade their coins mostly on Dex because you will not need to pass some KYC like on CEX. Just that CEX usually has more liquidity than DEX.

[BALIK]

Both DEX and CEX have their own advantages and disadvantages but in general CEX still prevails because of the services it provides more complete and convenient than DEX. DEX is just the right place for those who love privacy and value security, the rest are traders, simple, easy, like cheap fees… and don't value privacy, CEX is the one place for you. In terms of liquidity, CEX is obviously a lot bigger than DEX, so if judged fairly, CEX is dominating most of the market and 90% of investors are using CEX instead of DEX.

Both CEX and DEX has good and bad side you are right on that but CEX which centralized exchange has more disadvantages than the DEX decentralized exchange.

And in line with what the OP meant which was about how secured it is then it has to be Decentralized exchange, it's more secured than the centralized exchange because it does not require KYC (know your customer) a way centralized exchange usesntheir customers details for verification, this can lead to your identity being exposed.

Is CEX more disadvantageous than DEX? I don't think so, if CEX has more downsides, why is everyone rushing to use it? It can be said that almost any investor, trader has at least one account on centralized exchanges and most people will use it for their needs. If judged fairly, DEXs have more downsides and limitations, and that's why people are still not using DEXs widely.

People criticize CEX because it requires KYC, which makes them lose their privacy, other than that I don't see any other reason. The exchange should only be used for exchange and anyone using it to store assets is stupid because that is not its mission.