Centralised exchange getting better than Decentralised exchange?

[Best-mary]

I hope you all are having a wonderful weekend!

So I recently came across a post where people are engaged in a lengthy debate over whether CEX (Centralized Exchange) or DEX (Decentralized Exchange) is better. So I decided to wrote down this. Frankly, I believe it's a matter we shouldn't dwell on too much because both have their advantages and disadvantages.

For CEX:

Security is reliable if you choose the right exchange.

Transaction fees are reasonable.

It's user-friendly for trading.

You're less susceptible to phishing scams, especially when using a secure wallet.

Various earning opportunities are available.

Let's consider two exchanges I'm familiar with as examples:

For Binance: Despite suffering a massive $570 million hack, Binance remains one of the largest exchanges and not just that, they still keep their standards high.
You can find more details in this link: https://www.investopedia.com/binance-got-hacked-6748215

Now, Bitget: While Bitget hasn't experienced a direct exchange hack, although there was an incident that occurred with their wallet due to a link shared in a group that led to users' accounts being compromised, I won't really call this hack per se but a lesson to everyone. We all need to be careful of links sent suspiciously in any group you're in because you don't know what you will be clicking that will lead to total wipe pf your assets both in crypto and off crypto

 You can also read about it here: https://www.google.com/amp/s/ambcrypto.com/bitget-becomes-the-latest-victim-to-a-defi-exploit-as-bitkeep-loses-more-than/amp/

I use Bitget more often because I've delved into their security standards and believe they're doing well. However, I still use Binance, as it was the first CEX I encountered on my crypto journey.

Now, let's talk about DEX:

I won't say DEX is bad; it has its merits. Everything is decentralized, as the name suggests. I've used Uniswap and continue to do so. However, it's essential to note that DEX can also undergo KYC (Know Your Customer) processes, as evidenced by this tweet about Uniswap: https://twitter.com/WhaleChart/status/1713291249560535051?t=lyzx4IAlZNiG9Llt4g-Tqg&s=19

Furthermore, DEX can be vulnerable to hacking. Consider Mixin, for example.

What I'm trying to convey is that these debates about CEX vs. DEX should consider that both can coexist and work well if we find the right balance.

Even if I said ok, I want to go offline to be safer. The truth is, Im not sure I can be 100% safe offline either. I was researching offline wallets on Amazon and watching YouTube reviews for recommendations. At some point, I got discouraged because even some offline wallets can be hacked. But that won't stop me from using an offline wallet. Is just picking the best that I know that would be best for me. Just as picking the best exchanges among cex and Dex.

As I've said before, our security largely rests in our own hands. Before an exchange collapses, there are usually rumors. When those rumors start, it's essential to withdraw your funds promptly. Take FTX as an example; Sam Bankman Fried's actions had a significant impact on the exchange. If you've been following his legal case, you'll see that he meticulously planned it out with no remorse, unlike other exchanges that experienced hacks and returned stronger with enhanced security.

[1715469677]

1715469677

[1715469677]

1715469677

[1715469677]

1715469677

[1715469677]

1715469677

[decodx]

The whole centralized vs decentralized exchange thing is less about one being better than the other, and more about figuring out what works for you based on your priorities and how much risk you're cool with taking on.  You talked about some of the nice parts of centralized exchanges, but left out one of the biggest downsides in my opinion.  Since centralized exchanges hold all the coins, you gotta trust them fully with your crypto which opens up a can of worms when it comes to who's really got control.  In crypto world, it's all not your keys, not your coins, so going through a centralized exchange means youre handing over the keys and just hoping they keep your funds secure.  On the other hand with decentralized exchanges you keep the keys and control over your assets.  That's a big factor to think about when deciding between centralized vs decentralized and  at the end of the day, it depends on your personal risk tolerance and what you value most.

CEXs are secure and reliable until they're not. You gave a good example with the FTX exchange, which rapidly became one of the largest crypto exchanges in the US. And we all know what happened in the end. As for the rumors, are you suggesting that there are no current rumors about Binance?

[Best-mary]

The whole centralized vs decentralized exchange thing is less about one being better than the other, and more about figuring out what works for you based on your priorities and how much risk you're cool with taking on.  You talked about some of the nice parts of centralized exchanges, but left out one of the biggest downsides in my opinion.  Since centralized exchanges hold all the coins, you gotta trust them fully with your crypto which opens up a can of worms when it comes to who's really got control.  In crypto world, it's all not your keys, not your coins, so going through a centralized exchange means youre handing over the keys and just hoping they keep your funds secure.  On the other hand with decentralized exchanges you keep the keys and control over your assets.  That's a big factor to think about when deciding between centralized vs decentralized and  at the end of the day, it depends on your personal risk tolerance and what you value most.

CEXs are secure and reliable until they're not. You gave a good example with the FTX exchange, which rapidly became one of the largest crypto exchanges in the US. And we all know what happened in the end. As for the rumors, are you suggesting that there are no current rumors about Binance?

What I mean about looking at "rumours" you should understand that they should be from security ends. Binance rumours are mostly about them leaving a particular region due to regulations or the other. But you won't hear when someone comes up with, something phishing happening in that exchange. Same goes to the other. In fact, the latter exchange operates in most regions where Binance don't and they're really doing well with all they know. We all know how the FTX problem started. Some people brought it to the notice of many on twitter before the crash. So we can't compare Binance with FTX

If you say Dex gives you the key. That's true, but how much control can dex do for any incoming hack? Could it be traced? If so, why then is Uniswap trying to get KYCed

[Wiwo]

What I mean about looking at "rumours" you should understand that they should be from security ends. Binance rumours are mostly about them leaving a particular region due to regulations or the other. But you won't hear when someone comes up with, something phishing happening in that exchange. We all know how the FTX problem started. Some people brought it to the notice of many on twitter before the crash. So we can't compare Binance with FTX

If you say Dex gives you the key. That's true, but how much control can dex do for any incoming hack? Could it be traced? If so, why then is Uniswap trying to get KYCed

There have been a number of time that we have hard series of possible attacks on binance even though it minimal,  compared to others,  just for your information,  there is no exchange or platform that have not hard attempt of hack or what so ever but then also we have to give accolade to exchanges who have stood the test of time and survived all attempt to break it security at some point,  what made FTX own case to escalate to this point is because pf the internal fraud that happens and FTX did not have security attacks,  but was a pour exit scam by the CEO,  who spent investors money on personal pleasure.

But what has made Binance to be different in today's market is the fact that the series of possible attack on the exchange has its success in the hands of the COE because he keeps improving the security of the exchange and also keeps in mind that,  hackers and attackers will never seize to attempt to break the security protocol to gain access to the hot wallet.

[wheelz1200]

It's all preferences really.  There are good and bad dexs' and good and bad cexs'.  It's just what people are looking for.  The problem with centralized exchanges really is that people tend to use them as theor personal wallets which is where hacks impacts the ecosystem.  If people use exchanges like they should, meaning on board crypto trade then offload into a wallet where only you control the keys than centralized exchanges wouldn't be all that bad.

[dbshck]

What I'm trying to convey is that these debates about CEX vs. DEX should consider that both can coexist and work well if we find the right balance.

True. That said, right now I'm really trying to do as much as I can on-chain and trying to minimize having balance in a CEX as much as possible. For basics like swaps and margin spot trades, I often go on-chain. The user experience is good, and there's plenty of liquidity. Most times, I don't have any problems doing spot trading this way.

But there's one big thing missing: orderbook trading. I don't think any blockchain has gotten it just right for an on-chain orderbook. I'm not even sure if it's possible to make a system where everything—from placing orders to matching and settling—is done on-chain. Even on fast chains like Solana, things can get tricky when there's a lot going on. For example, trying to buy during a big price move can be tough if you're not using a bot.

I hope there's a way to fix this in the future. I'm curious to see how a dedicated chain, built specifically for orderbook trading, would fare. The upcoming DYDX v4 with its own chain might give us a good indication. If that doesn't pan out, it seems we might lean more towards methods like GMX's AMM/pool or the hybrid on-chain/off-chain approach that DYDX currently employs.

[Best-mary]

What I mean about looking at "rumours" you should understand that they should be from security ends. Binance rumours are mostly about them leaving a particular region due to regulations or the other. But you won't hear when someone comes up with, something phishing happening in that exchange. We all know how the FTX problem started. Some people brought it to the notice of many on twitter before the crash. So we can't compare Binance with FTX

If you say Dex gives you the key. That's true, but how much control can dex do for any incoming hack? Could it be traced? If so, why then is Uniswap trying to get KYCed

There have been a number of time that we have hard series of possible attacks on binance even though it minimal,  compared to others,  just for your information,  there is no exchange or platform that have not hard attempt of hack or what so ever but then also we have to give accolade to exchanges who have stood the test of time and survived all attempt to break it security at some point,  what made FTX own case to escalate to this point is because pf the internal fraud that happens and FTX did not have security attacks,  but was a pour exit scam by the CEO,  who spent investors money on personal pleasure.

But what has made Binance to be different in today's market is the fact that the series of possible attack on the exchange has its success in the hands of the COE because he keeps improving the security of the exchange and also keeps in mind that,  hackers and attackers will never seize to attempt to break the security protocol to gain access to the hot wallet.

Absolutely, and I don't know why people don't want to get it. You see, this is the reason I choose both cex has my preferences especially this bitget that I have been using for quite sometime and I see how crucial they get when it comes to securing users' assets.

[DapanasFruit]

From time to time, as per my cryptocurrency experience, I am using both CEX and DEX platforms in trading and/or converting my digital assets to USDT which am using for P2P in Binance. I would say, however, that am more into CEX than DEX and this is all because of my full trust in Binance. As of now, both CEX and DEX are doing good business so this is just a matter of choice and convenience. Now, am expecting that years from now, DEX can be able to improve more on security as no one would love to be dealing with risks of hacking anytime.

[hyudien]

Personally, I don't really care which is better when it comes to exchange. Since I may not be an active trader, I only use centralized exchanges (CEXs) for a while and nothing more, to meet my needs when it comes time to buy Bitcoin and then immediately withdraw it to a cold wallet. Then what I often do is make sure like assessing low fees and not charging KYC fees.
The ongoing dispute about CEX and DEX usually arises from insiders themselves to ensure users have a choice. But we just need to make wise decisions according to our needs.

[el kaka22]

For me centralized was better than decentralized at all times and never got below and if you look at the numbers that would support the idea as well. I think it should be noted that we are doing something that would be a lot better for the long term without a doubt.

The difference between the volume is staggering and has always been like that and never changed, it was like that during the bull run and it is like that during bear, it is always centralized that is used more. That alone should provide enough proof that people prefer that but if that's not enough then we could look at the hacked stuff, sure centralized places got hacked before there is no doubt about that but they are owned by people so you either get your money or they go to jail, so there is a response to it, whereas if it is a decentralized place with a malfunctioning code, they are going to get hacked too and there is nothing to be done. In both cases your money is gone, but at least in one of them people go to jail for it.

[Xal0lex]

Centralized exchanges are needed for trading, decentralized exchanges are needed for swap, where you use your wallet. It's safe and fast, but expensive. Centralized services are prone to scam and hot wallet attacks, decentralized exchanges are prone to vulnerabilities in smart contracts and rug pull scams in liquidity pools. I can't say any platform is better than the other as they both have their advantages and disadvantages. There is no perfect solution.

[AakZaki]

Both have advantages and disadvantages, you just need to choose which one is best in your opinion and which one can be used to make a profit.
I trade on CEX all the time like on Binance with the many features provided. I only use DEX when there are coins that are only listed on DEX, I use all of them neatly. I tend to use CEX for trading every day.

[cheezcarls]

Both the centralized and decentralized exchanges are having their own strengths and weaknesses.

Centralized exchanges (CEXs):

Strengths: Low fees, fast transactions and multiple built-in security layers (e.g., OTP, Google Authenticator, biometric fingerprint, trading password, etc.)
Weaknesses: User has no full custody of the assets, KYC-required for regulation purposes, etc.

Decentralized exchanges (DEXs):

Strengths: 100% custody of your tokens, KYC-free and no third-party control
Weaknesses: Slow transactions and high fees (depending on the network) including approval fees before swapping, needs to install 3rd party apps and extensions to secure transactions (e.g., Rabby Wallet, Pocket Universe, Wallet Guard, etc.)

In regards to your question, we cannot say if CEXs are better than DEXs. Both are giving us various benefits, but storing crypto for the purpose of saving is not ideal in CEXs as it should be always in your cold storage wallets like Ledger Nano S, Trezor, SecuX, etc.

[Wexnident]

In terms of being hacked, I'm pretty sure both types of exchanges have an equal chance of experiencing it. The difference would be how the exchanges tackle said attack so as to avoid losing their users. CEX probably has a lot more choices and actions available since they have more users, leading to more initial profit which lets them have ample funds to tackle said problem. Well in the end said problem isn't really a problem if you stop using hot wallets from exchanges.

In the end, it boils down to your preference as others have said. I like to simplify it with CEX being comfortable and easy to use without having to understand much, while DEX allows you to secure your tokens personally but is harder to begin with due to having to learn and understand a bunch of other stuff(if you're new).

[JeffBrad12]

many people are choosing centralised exchange for convenience, you would never try to spot trading with dex otherwise you will be wasting massive fee, thats the thing with dexes, they are good for swapping just one time swapping and you're done more than that you will need to pay high gas fee each which isn't really great.
moreover each swapping also requires quite long process, meanwhile with cex its almost instant process.
each cex and dex indeed has their own advantage but clearly when it comes to spot trading cex get the upperhand here, even though as we know, there has been many problem incurring about cex getting hacked and the customer are funnily enough got their fund frozen.

[tvplus006]

For those who care about their anonymity, the advantages of centralized exchanges do not matter. For those for whom anonymity does not matter, centralized exchanges and occasionally DEX are used, if the desired coin is traded only there.

[yazher]

It's all preferences really.  There are good and bad dexs' and good and bad cexs'.  It's just what people are looking for.  The problem with centralized exchanges really is that people tend to use them as theor personal wallets which is where hacks impacts the ecosystem.  If people use exchanges like they should, meaning on board crypto trade then offload into a wallet where only you control the keys than centralized exchanges wouldn't be all that bad.

In other words, centralized exchanges are easy to use and convenient even for new users whereas decentralized are hard and you need some knowledge on how to trade there. back in the past, lots of people didn't know how to use it and they just simply asked others to trade their bounty rewards from those exchanges because if you didn't learn and watch on Youtube, you would just confuse yourself every time you want to trade on dexes but the good thing is, when you finally have a successful trade like in Forkdelta back then, the rest will be easy for you.

[FinneysTrueVision]

DEXs can't match the convenience and low fees of centralized exchanges. Their appeal is in being open to anyone and having better liquidity for obscure and newly launched tokens. Not having to worry about KYC and getting arbitrarily blacklisted is a huge benefit.

Previously, Uniswap had delisted certain tokens from their website for compliance reasons. Although you could still access them through other means it set a bad precedent. Now we are hearing about KYC only liquidity pools which is an even worse idea. If DeFi becomes permissioned, on top of all the other drawbacks like high fees and scams being rampant, then it becomes a worse alternative to the traditional services it was intended to replace.

[KingsDen]

For CEX:

Security is reliable if you choose the right exchange.

Yes, this is true because centralised exchanges are owned privately and the owner will release enough fund for security unlike DEX which might not be anyone's private business. But it is worthy of note that any DEX that has extended interest of the public would be secured, as everyone will have a stake on the security.

It's user-friendly for trading.

This is very true. I couldn't imagine that I was lost the first time I visited a DEX UI. Why is it always not user friendly?

Various earning opportunities are available.

The main reason so many people dwell so much on CEX. Binance is a good example.

[milewilda]

For CEX:

Security is reliable if you choose the right exchange.

Yes, this is true because centralised exchanges are owned privately and the owner will release enough fund for security unlike DEX which might not be anyone's private business. But it is worthy of note that any DEX that has extended interest of the public would be secured, as everyone will have a stake on the security.

It's user-friendly for trading.

This is very true. I couldn't imagine that I was lost the first time I visited a DEX UI. Why is it always not user friendly?

Various earning opportunities are available.

The main reason so many people dwell so much on CEX. Binance is a good example.

Not that much if we do speak on demand and recognition.Yes, we do value security and anonymity but we cant really just resist on how these centralized platforms been offering which it does really give out that
great convenience and accessibility on which it do make things lot more easier on which its no brainer on why people would be choosing this over DEX and the prove itself would really be the volume or liquidity that has been generated in between DEX and CEX. Numbers dont lie and its pretty obvious on where the majority or community is really that focusing on. Having DEX isnt that means that its irrelevant too in together with existence of those centralized platforms. It is really just that great that we could really be having both that we could choose upon basing up into our needs and interest.

It is really just for us traders or users would really be the ones to make use if ever we are really that needing it.It would always falls down on someones preference on which at least we do have options.
For me then most of thetime i do make use of CEX but of course my long term holds are already that transferred to cold wallets which it is really just that sensible on doing so.

[devil-soul]

Obviously the CEXs offer more guarantees and more security, peace of mind but they have only one major flaw they require KYC so they are not anonymous which is why wr must always opt for the DEXs

[Best-mary]

Centralized exchanges are needed for trading, decentralized exchanges are needed for swap, where you use your wallet. It's safe and fast, but expensive. Centralized services are prone to scam and hot wallet attacks, decentralized exchanges are prone to vulnerabilities in smart contracts and rug pull scams in liquidity pools. I can't say any platform is better than the other as they both have their advantages and disadvantages. There is no perfect solution.

Actually, I think exchanges are venturing into swapping. Like the one I use Bitget has a swap for different tokens and also has a cold wallet. I don't really know much about other centralised exchange because I haven't researched deeply to know if other exchange supports it as well.

[Best-mary]

For me centralized was better than decentralized at all times and never got below and if you look at the numbers that would support the idea as well. I think it should be noted that we are doing something that would be a lot better for the long term without a doubt.

The difference between the volume is staggering and has always been like that and never changed, it was like that during the bull run and it is like that during bear, it is always centralized that is used more. That alone should provide enough proof that people prefer that but if that's not enough then we could look at the hacked stuff, sure centralized places got hacked before there is no doubt about that but they are owned by people so you either get your money or they go to jail, so there is a response to it, whereas if it is a decentralized place with a malfunctioning code, they are going to get hacked too and there is nothing to be done. In both cases your money is gone, but at least in one of them people go to jail for it.

You've said it all. This is just the truth and is because is decentralised, any slightest hack couldn't be traced compared to centralised

[JeffBrad12]

Centralized exchanges are needed for trading, decentralized exchanges are needed for swap, where you use your wallet. It's safe and fast, but expensive. Centralized services are prone to scam and hot wallet attacks, decentralized exchanges are prone to vulnerabilities in smart contracts and rug pull scams in liquidity pools. I can't say any platform is better than the other as they both have their advantages and disadvantages. There is no perfect solution.

Actually, I think exchanges are venturing into swapping. Like the one I use Bitget has a swap for different tokens and also has a cold wallet. I don't really know much about other centralised exchange because I haven't researched deeply to know if other exchange supports it as well.

most of the exchange also offer swapping like you said like mexc and kucoin literally has a way to convert instantly without the need to make orders.
but of course they will take fee and even sending money to the exchange itself is already charging you fee so basically its the same thing.
the different as mentioned is that using cex, if one is trading their assets frequently, they could save a ton, if only ethereum blockchain or any blockchain thats popular like bitcoin are cheaper i think dex could become popular
but right now, people prefer to save money from fee, since its not some small amounts either.
i guess both would still thrive though for upcoming decades.

[AmoreJaz]

Obviously the CEXs offer more guarantees and more security, peace of mind but they have only one major flaw they require KYC so they are not anonymous which is why wr must always opt for the DEXs

this now depends on the need of the trader. some coins can't be found in DEX. so it is not always that you need to choose DEX. also, a lot of traders are going to CEXs because of the p2p trading feature and other financial services. i believe the demand is high on this aspect as users need their fiat currency when it comes to everyday living. and they are offering wide range of local currencies, just look at binance. and you are pretty sure that you won't get rekt by p2p scammers.

[Best-mary]

Centralized exchanges are needed for trading, decentralized exchanges are needed for swap, where you use your wallet. It's safe and fast, but expensive. Centralized services are prone to scam and hot wallet attacks, decentralized exchanges are prone to vulnerabilities in smart contracts and rug pull scams in liquidity pools. I can't say any platform is better than the other as they both have their advantages and disadvantages. There is no perfect solution.

Actually, I think exchanges are venturing into swapping. Like the one I use Bitget has a swap for different tokens and also has a cold wallet. I don't really know much about other centralised exchange because I haven't researched deeply to know if other exchange supports it as well.

most of the exchange also offer swapping like you said like mexc and kucoin literally has a way to convert instantly without the need to make orders.
but of course they will take fee and even sending money to the exchange itself is already charging you fee so basically its the same thing.
the different as mentioned is that using cex, if one is trading their assets frequently, they could save a ton, if only ethereum blockchain or any blockchain thats popular like bitcoin are cheaper i think dex could become popular
but right now, people prefer to save money from fee, since its not some small amounts either.
I guess both would still thrive though for upcoming decades.

Yes, I think every cex differs in how they charge their fee. I haven't used the swapping yet but those who have said is quite easy to navigate especially when a token is about getting listed. Most times, it gets to be there first before the listing. I don't know if Kucoin does that too

[Blitzboy]

The argument between CEX and DEX is more complicated than many people make it out to be after reading your in-depth explanation. For example, Binance has been able to keep its image even though it has had some problems. Why? Strong security steps and trust from users. On the other hand, what happened with Bitget should be taken as a warning. Ripples arent always caused by the system; sometimes they're caused by people.

When it comes to DEX, you're fully right. Decentralisation is good, but it doesnt make problems go away. This is about getting these details right and not letting big ideas cloud your judgement. When private wallets are brought up, they add another layer to the conversation. Can we ever make security that cant be broken? Most likely not. But the chase? Thats what matters. What we do, what we decide, and how aware we are are what you've called the fulcrum. Whether its CEX, DEX, or private wallets, the board is very big, and we need to be careful with our moves. There are no black or whites in the crypto world; instead, there is a range of greys that needs to be carefully navigated.

[asriloni]

Obviously the CEXs offer more guarantees and more security, peace of mind but they have only one major flaw they require KYC so they are not anonymous which is why wr must always opt for the DEXs

KYC was not a serious problem these days, cex needs you to comply with it to make sure you were not being involved into the criminal activities. In fact, cex is giving more guarantee to the its users rather than dex.
Look at so much money gone caused by dex got hacked easily. There's no true decentralized dex. All of these self proclaimed themselves as decentralized exchaneg site totally bullshit.

There's no real dex here. These dex are still being controlled and monitored by the developers. Cex is performing better since some cex was able reimbursing their users even though this cex got hacked.
Dex is obviously bullshit.

[livingfree]

For CEX:

Security is reliable if you choose the right exchange.

If there's one thing that I've learned from all of the exchanges, it is that none of them are safe. What I mean by that? It's always that all of them are being targeted by attackers and that means to say that even if they've got a reliable security but once they lack update and the attackers see a backdoor, that reliability is gone. We've seen it many times in the past from these known centralized exchanges.

You're less susceptible to phishing scams, especially when using a secure wallet.

Centralized exchanges have the same type of wallets and that's their own wallets. And in fact, they're one of the most targeted websites when it's about phishing links.

Because many users aren't securing themselves and don't know how to do that.

[justdimin]

From time to time, as per my cryptocurrency experience, I am using both CEX and DEX platforms in trading and/or converting my digital assets to USDT which am using for P2P in Binance. I would say, however, that am more into CEX than DEX and this is all because of my full trust in Binance. As of now, both CEX and DEX are doing good business so this is just a matter of choice and convenience. Now, am expecting that years from now, DEX can be able to improve more on security as no one would love to be dealing with risks of hacking anytime.

You are carrying a signature which seems to be an exchange review site. Are you an owner of it? Maybe yes, because you said you are using both CEX and DEX from time to time. It's important so that you can review an exchange better and give an idea if what are their advantages and disadvantages.

DEX are not new so maybe a lot of them have now improved their security especially after we heard in the past that there are lots of hackings that occurred on them. It won't stop there obviously because hackers are also not stopping anytime soon. I don't own a platform like yours but I already tried both types of exchanges, and my remarks are also the same as yours.

[danherbias07]

But still, you cannot keep your assets under their control for a long time. I think I have said this many times, use the exchange as it is defined. An exchange. Centralized or decentralized it doesn't matter. That is not your wallet so you better not keep it there. I think decentralized is better though since you are still under control with your own assets but in centralized, take it as not your coin anymore because you sent it to them which means you lose the rights on it.
I think the forum members here had explained it too much already in different threads and I think the fall of different popular exchanges is already a big proof that we should not keep our coins in their services. There's no assurance and insurance when we make them our wallet, if they declare bankruptcy, expect you will not be paid back or it will take a year or more before you can get all your funds back. But that also means you need to prove it's yours which is not an easy part of the deal.

[Webetcoins]

Centralized exchanges are needed for trading, decentralized exchanges are needed for swap, where you use your wallet. It's safe and fast, but expensive. Centralized services are prone to scam and hot wallet attacks, decentralized exchanges are prone to vulnerabilities in smart contracts and rug pull scams in liquidity pools. I can't say any platform is better than the other as they both have their advantages and disadvantages. There is no perfect solution.

Actually, I think exchanges are venturing into swapping. Like the one I use Bitget has a swap for different tokens and also has a cold wallet. I don't really know much about other centralised exchange because I haven't researched deeply to know if other exchange supports it as well.

Existing centralized exchanges are trying their best to provide all the cryptocurrency-related services in one place, they offer trading opportunities, all sorts of trading including spot, futures, options, copy-trading, P2P, and every other type that one might look for. Now they even offer NFT marketplaces, binance does, but I'm not sure about others, and as you said, they also offer swap or convert options so that their users don't go somewhere else for that service.

They're basically trying to cover everything they can, and they're already preferred by day traders for their trading activities because of the options and advantages they provide such as paying no trading fee for using certain stablecoins or making trades as a maker, and many other things that decentralized exchanges don't offer.

[so98nn]

I am not sure if you have seen the strict regulations going up for the centralized exchanges or not but that is one of the biggest issues in using them. Let us keep the KYC thing aside for a minute. If you still think CEX is full proof running and has more security features then start reading what happened to one of the biggest exchanges in the world. You can start with the example of the same exchange that you wrote to explain how they are better. Binance already winded up their business from the USA long ago due to strict regulations that were employed on them and they failed to fulfill it OR they just did not think they needed to do it. If such a huge exchanger can fail to survive in one of the developed countries then anything can happen. Such an exchange would be the last destination I wanna be with when I have my funds locked up there. Now on the other hand if it is DEX then obviously government has the least control over them and one easily has access from any region thus giving more security to fund access. This is a tricky discussion, the more you learn about one and the other, its gonna pile up with doubts. Just use the one that best fits you.

[Mate2237]

Any exchange platform that asks KYC is no longer decentralized exchange again but Centralized exchange. It is decentralized because you don't have to provide your identity again. Then coming to which is better while and you said. All have their strong and weak point. As for me I will like to use decentralized exchange because it gives user the autonomy and anonymity.  And only things that is make me to run from them is because of the transaction fees and their price. Their price are not encouraging me to patronizing them.

While Centralized exchange are also good and you said. Binance has been my favorite and Remitano. All the exchanges I have used in the cryptocurrency ecosystem worldwide Binance is the best. Their price is attractive, and they also have free transaction fee. Then Remitano is the second to the list. And for the DEX I have not used any because they not attractive.

[Makus]

My answer won't be any different from the others, the centralized and decentralized exchanges has both their merit and demerits, and the choice of using them is based on what you intend to do. For short term holding a decentralized exchange is always recommended so as to keep security and watch over your coins and asset's private keys. While centralized exchange on the other hand is know for its lighting transactions features but, it shouldn't be used for long term holding due to trust issues. I find it more easy to make deposits into a centralized exchange than that of a decentralized exchange, and with all my observations I see the both of them very useful with their different features.

[Mate2237]

For long term holding a decentralized exchange is always recommended so as to keep security and watch over your coins and asset's private keys. While centralized exchange on the other hand is know for its lighting transactions features but, it shouldn't be used for long term holding due to trust issues. I find it more easy to make deposits into a centralized exchange than that of a decentralized exchange, and with all my observations I see the both of them very useful with their different features.

Anything hodling is not good for exchange but for wallet. Using non custodial wallet to hodle and invest in bitcoin is the best. But if you want to invest in short term then you can use decentralized exchange to do that and withdraw the coins once the set date expired. But if it for a long term but brother it is better you us real wallet. Anything exchange is for buying and selling of coins and you move them to your real wall but you want to sell within a short period of time then you are free to keep there  but as for the CEX, you don't have to keep it and you buy, you send it out and as you send it to it, you sell it.

We have to remember this general slogan, "not you key, not you coins". And this statement is referring to exchange and mostly to CEX.

[abel1337]

Both centralized and decentralized exchange has it's pros and cons, up to this date, even the top tier centralized and decentralized exchange haven't managed to merge the features that both type of exchange has. It has to be a thing or features that separates them from each other. Maybe in the future, the debate on what is a better type of exchange will end by having a product that caters both. At the end of the day it will still be our choice on what type of advantage and disadvantage should we take.

[oktana]

For CEX:

Security is reliable if you choose the right exchange.

Transaction fees are reasonable.

It's user-friendly for trading.

You're less susceptible to phishing scams, especially when using a secure wallet.

Various earning opportunities are available.

Let's consider two exchanges I'm familiar with as examples:

For Binance: Despite suffering a massive $570 million hack, Binance remains one of the largest exchanges and not just that, they still keep their standards high.
You can find more details in this link: https://www.investopedia.com/binance-got-hacked-6748215

I’ll cut you here. First, Idk why you mentioned security under CEX especially considering the fact that you’re comparing with DEX. I also don’t know what these centralized exchanges have done to earn people trust so much that someone (well, a newbie) once told me that Binance is safer than Trust wallet. Lol. Let’s not forget what CEX means. No matter how tight their security is, it’s still centralized, and that is no different or safer than the bank.

Also, we’re talking about finance, a hack is a hack and for centralized exchanges, it can happen even if you played your part well. Experienced traders will always warn to not leave your funds in an exchange but only the amount you need to trade at that specific moment.

Unlike CEX, with DEX, you can always disconnect your wallet and be the only owner once again.

Summarily, I’m not saying that CEX is terrible but I see CEX like the local market where you should only go there with your money when you just want to buy or sell.

[Bushdark]

Both centralized and decentralized exchange has it's pros and cons, up to this date, even the top tier centralized and decentralized exchange haven't managed to merge the features that both type of exchange has. It has to be a thing or features that separates them from each other. Maybe in the future, the debate on what is a better type of exchange will end by having a product that caters both. At the end of the day it will still be our choice on what type of advantage and disadvantage should we take.

The both are prone to hack or to be compromised but one thing we have ti understand between the two is because decentralized is actually safe and prevent breach of data because it does not require KYC. KYC is one thing that makes many persons to see a centralized exchange to be a government influenced exchange because the government have full control of user data and can ask for data from the company just to carry out user tracking. We can't find such in a decentralized exchanges because they don't care who we are or what we are got.

[kentrolla]

It completely depends on our preferences as some of us especially newbies don't bother much about the account security as they only focus on aspects like user interface, trading volume and some advanced features like bot trading, grid trading, and margin/futures trading and only centralized exchange can provide these features but t the same time there are tenured and more sensible users who prefer decentralized exchange but this comes at the cost of limited liquidity (volume), not great user interface and minimal support compared to centralized exchange but with DEX one don't have to worry about the risk of the account being frozen, also it can be used at any part of the world as CEX has its own geo-restriction and they have total control over your funds as they have access to private keys and we have seen so many exchanges going bankrupt or owner running away with funds but DEX eliminates all these risks.

I prefer a hybrid model wherein I need the security and anonymity of DEX with user interface, advanced features, and liquidity but there isn't any such exchange available in the market so I prefer CEX only for daily trades and not hodl.

[Best-mary]

It completely depends on our preferences as some of us especially newbies don't bother much about the account security as they only focus on aspects like user interface, trading volume and some advanced features like bot trading, grid trading, and margin/futures trading and only centralized exchange can provide these features but t the same time there are tenured and more sensible users who prefer decentralized exchange but this comes at the cost of limited liquidity (volume), not great user interface and minimal support compared to centralized exchange but with DEX one don't have to worry about the risk of the account being frozen, also it can be used at any part of the world as CEX has its own geo-restriction and they have total control over your funds as they have access to private keys and we have seen so many exchanges going bankrupt or owner running away with funds but DEX eliminates all these risks.

I prefer a hybrid model wherein I need the security and anonymity of DEX with user interface, advanced features, and liquidity but there isn't any such exchange available in the market so I prefer CEX only for daily trades and not hold.

Yeah, Dex could eliminate this but we should also know the risk that comes afterwards. I'm not against using dex thigh because I use one. I am at the look at on those that will save my assets. Like the exchange I mentioned above are my sure bet then uniswap

[gabbie2010]

Obviously the CEXs offer more guarantees and more security, peace of mind but they have only one major flaw they require KYC so they are not anonymous which is why wr must always opt for the DEXs

I would prefer to do KYC to ensure that all my coins are safe in a decentralized exchange irrespective of it flaw than hodling my coins in a DEXs exchange whose security of fund is not guaranteed, recall the disappearance of FYX exchange collapsed a year ago with investors funds that is one of the major flaw of CEXs exchange, a lot of investors lost huge amount of crypto, I can't imagine myself hodling some huge fund in such exchange and have a rest of mind, I would rather use them for trading thereafter withdraw every profit earn to DEXs thus saving me from any unforseen future circumstances such as the event that lead to the collapse of FTX exchange.

[oktana]

Obviously the CEXs offer more guarantees and more security, peace of mind but they have only one major flaw they require KYC so they are not anonymous which is why wr must always opt for the DEXs

Do you think that's the only major flaw? To me, the first major flaw is security. This is because CEXs are attractive targets for hackers due to the large volumes of cryptocurrencies they hold, and them being completely in charge of your funds means you can't help it if anything were to go wrong.. the second major flaw is centralized custodianship in which you don't have full control over your assets. If the exchange experiences issues such as insolvency or let's even say regulatory actions, you may not be able to access your funds. There's more but I'll leave it here.

[libert19]

However, it's essential to note that DEX can also undergo KYC (Know Your Customer) processes, as evidenced by this tweet about Uniswap...

If Uniswap does implements kyc, i'm sure people will come up with other interfaces to use uniswap's smart contracts that does not require kyc, this is one of perks of being a dex.

[Blitzboy]

Obviously the CEXs offer more guarantees and more security, peace of mind but they have only one major flaw they require KYC so they are not anonymous which is why wr must always opt for the DEXs

I would prefer to do KYC to ensure that all my coins are safe in a decentralized exchange irrespective of it flaw than hodling my coins in a DEXs exchange whose security of fund is not guaranteed, recall the disappearance of FYX exchange collapsed a year ago with investors funds that is one of the major flaw of CEXs exchange, a lot of investors lost huge amount of crypto, I can't imagine myself hodling some huge fund in such exchange and have a rest of mind, I would rather use them for trading thereafter withdraw every profit earn to DEXs thus saving me from any unforseen future circumstances such as the event that lead to the collapse of FTX exchange.

The FTX exchange failure struck a chord, making many question CEXs' implicit confidence. Indeed, protecting finances is crucial, and losing investments can be terrifying. Though flawed, KYC processes provide assurance in DEXs' anonymous universe.

However, even with KYC, safety can vary. DEXs, despite their decentralization, can give users a sense of asset control, but all systems have hazards. Diversifying by trading and withdrawing gains to a DEX can be smart. Due to crypto's intricacies and problems, the search for a flawless technique continues.

[electronicash]

the prices in dex though are not consistent with what see on cex. for this more traders are drawn to cex for the prices are higher than what is offered in dex.

i have invested in some cex tokens in the past too. some of these dex died in thebear market and some of them just scam.

what i can conclude is that if you are for money, cex is way to go. if you give importance to crypto ethos despite th scam teams do so at your own risk.

[wallet4bitcoin]

DEX exchanges have shown their flexibility over the years since the birth of the technology but it seems most of what is supposed to be advantage of its flexibility is now been exploited by nit-wits in the space. On the other hand, CEX has been putting the dots to the i(s) and ensuring the projects and investor's funds are safe, this has garnered more confidence in CEX than in DEX.

The fact that SEC looks into the operations of CEXs has also kept them on check at every point in time and then they have to always audit their accounts and financial records unlike DEXs with no particular entity in place regulating the operations rather than codes.

[Biznesmen]

Personally, I don't really care which is better when it comes to exchange. Since I may not be an active trader, I only use centralized exchanges (CEXs) for a while and nothing more, to meet my needs when it comes time to buy Bitcoin and then immediately withdraw it to a cold wallet. Then what I often do is make sure like assessing low fees and not charging KYC fees.
The ongoing dispute about CEX and DEX usually arises from insiders themselves to ensure users have a choice. But we just need to make wise decisions according to our needs.

Security of funds, making sure there are no hidden charges in the fees, asset diversification, good customer service, etc. are the main concerns when we invest in a centralized or decentralized exchange. Both exchanges have pros and cons, but ultimately, it's people's choice and their needs. Many people are exploring both. Even if they lean towards Dex rather than CEX because in DEX everything is executed on a block chain using smart contracts with no middlemen, more privacy as you do not have to go through KYC verification, unlike CEX, where just a wallet address is needed, and more security as you remain in control of your private keys. And Dex governance is decided by token holders. You're a CEX or DEX user, but make sure to consider the safety of your money and, at the same time, explore the trading world.

[jrrsparkles]

Nope, centralized exchanges is becoming more regulated year by year and that is not a good sign for a trader. centralized exchanges has their own advantages too like high trading volume, more trading pairs, support system and etc but the term better is used to denote the security of funds in my opinion where centralized exchanges can't be trusted no matter what.

[bluebit25]

I don't want to compare which one is better, really for users it depends on their usage skills and choosing the platform that suits their needs. It is more important that you know how to protect yourself against the risks that appear on different platforms, and remember that there is no absolute perfect tool, it depends on your own usage behavior.

The cryptocurrency space is widely popular today, and there are many different attack problems that appear, so don't be too confident that any platform will ensure your assets are always safe, but lessons from The past happened a lot from CEX, or DEX, both of which have useful and challenging points for us.

[vv181]

However, it's essential to note that DEX can also undergo KYC (Know Your Customer) processes, as evidenced by this tweet about Uniswap...

If Uniswap does implements kyc, i'm sure people will come up with other interfaces to use uniswap's smart contracts that does not require kyc, this is one of perks of being a dex.

It seems the KYC implementation does not inherently implemented on the Uniswap smart contract but rather using a feature called Uniswap Hook, kind of plugin or extension. Also, it can be applied to a specific liquidity providers instead of system wide. We can see those idea does not favour its user since we see many controversies and rejection regarding this initiative.

Though, I can see that the potency of KYC/AML implemented on such platforms is crystal clear and this will make regulator would like to enforce this kind of system.

[fullhdpixel]

Obviously the CEXs offer more guarantees and more security, peace of mind but they have only one major flaw they require KYC so they are not anonymous which is why wr must always opt for the DEXs

I would prefer to do KYC to ensure that all my coins are safe in a decentralized exchange irrespective of it flaw than hodling my coins in a DEXs exchange whose security of fund is not guaranteed, recall the disappearance of FYX exchange collapsed a year ago with investors funds that is one of the major flaw of CEXs exchange, a lot of investors lost huge amount of crypto, I can't imagine myself hodling some huge fund in such exchange and have a rest of mind, I would rather use them for trading thereafter withdraw every profit earn to DEXs thus saving me from any unforseen future circumstances such as the event that lead to the collapse of FTX exchange.

There are a lot of things that are off in your post. First of all, a decentralized exchange wouldn't require you to do KYC verification since it's decentralized and there are no central authorities involved. Secondly, an investor or a trader doesn't necessarily have to keep their funds in an exchange and they should know that an exchange is a platform that provides them the opportunity to make trades and use trading-related services and they don't offer a personal and safe wallet for users to be used.

So, people who keep large funds in exchanges or other platforms are doing the wrong thing themselves and they shouldn't blame the exchanges for that. There are exchanges for trading services and there are wallets for keeping your funds safe, so we should know what should be used for what.

[Best-mary]

Nope, centralized exchanges is becoming more regulated year by year and that is not a good sign for a trader. centralized exchanges have their advantages too like high trading volume, more trading pairs, support system etc but the term better is used to denote the security of funds in my opinion where centralized exchanges can't be trusted no matter what.

Yeah, there are different factors we need to be looking into before choosing an exchange. We can think about that POR, their transparency and the level in which they operate

[Best-mary]

I don't want to compare which one is better, really for users it depends on their usage skills and choosing the platform that suits their needs. It is more important that you know how to protect yourself against the risks that appear on different platforms, and remember that there is no absolute perfect tool, it depends on your own usage behavior.

The cryptocurrency space is widely popular today, and there are many different attack problems that appear, so don't be too confident that any platform will ensure your assets are always safe, lessons from The past happened a lot from CEX, or DEX, both of which have useful and challenging points for us.

Indeed and to mention with, the exchanges one chooses at this period also matter. At least the ones I have posted have shown a level of security.

[johnsaributua]

Let's unify the functions first, I use dex to buy new tokens which means smart contracts are not available on cex if they are not centralized, that's what I usually do instead of missing a project.

The security factor between the 2 different wallet options, cex like binance is a shared wallet and has a legal umbrella with regulations available in each country that has recognized crypto, as evidenced by the ftx ceo and teraform funders who are guilty and punished meaning there is an identity that is published as from the exchager team, while non-custodial like bitget wallet is very vague, creepy and security is in full control by yourself. You can choose to trade publicly or trade anonymously with your favorite coins as usual.

Non-custodial exchanges and wallets have many options, you say that with the facts you have encountered it is good and security can be maximized, vulnerability can be minimized, anticipation is a must.

[Best-mary]

Let's unify the functions first, I use dex to buy new tokens which means smart contracts are not available on cex if they are not centralized, that's what I usually do instead of missing a project.

The security factor between the 2 different wallet options, cex like binance is a shared wallet and has a legal umbrella with regulations available in each country that has recognized crypto, as evidenced by the ftx ceo and terraform funders who are guilty and punished meaning their is an identity that is published as from the exchanger team, while non-custodial like bitget wallet is very vague, creepy and security is in full control by yourself. You can choose to trade publicly or trade anonymously with your favourite coins as usual.

Non-custodial exchanges and wallets have many options, you say that with the facts you have encountered, it is good and security can be maximized, vulnerability can be minimized, anticipation is a must.

Ok, but I have not seen anyone using the bitget wallet complain of it being vague or creepy. Come to think of it, if you think of it like that, then It's like calling all Dex wallets creepy because the wallet also works like a Dex. And it's true, security is in the owner's hands. That's why everyone needs to be careful about how they share their information with a third party

[Huppercase]

I would prefer to do KYC to ensure that all my coins are safe in a decentralized exchange irrespective of it flaw than hodling my coins in a DEXs exchange whose security of fund is not guaranteed, recall the disappearance of FYX exchange collapsed a year ago with investors funds that is one of the major flaw of CEXs exchange, a lot of investors lost huge amount of crypto, I can't imagine myself hodling some huge fund in such exchange and have a rest of mind, I would rather use them for trading thereafter withdraw every profit earn to DEXs thus saving me from any unforseen future circumstances such as the event that lead to the collapse of FTX exchange.

Decentralized exchange doesn't hold coins, when you interact with dex it's more likely you have the private key to that coin, they don't hold and will never hold a coin for you. The responsibility and what you do it with are in the owners hand. For the decentralized ones that works on protocol, your coins will stay right in your wallet, they only need your permission to connect the wallet with the exchange to interact with it.

Centralized exchanges doesn't give you custody of your coins, they have everything right under their palm and they can do whatever they want to do. But I understand OP reason for giving some credits to centralized exchanges. Centralized exchanges have more listed coins than decentralized ones because it's easy to implement tokens and coins on them than dex. To do that on dex, you will have to bridge multiple blockchains before you can trade which is a tedious work to do. However, the risk in involved in bridging is highly risky as well also.

However, it's essential to note that DEX can also undergo KYC (Know Your Customer) processes, as evidenced by this tweet about Uniswap...

If Uniswap does implements kyc, i'm sure people will come up with other interfaces to use uniswap's smart contracts that does not require kyc, this is one of perks of being a dex.

If they try that, they will not only be losing customers, their token will crash heavily because even when a team do have a say in a protocol, the community is the biggest contributors to the exchange. The highest they can do is to flag some IP address that will be coming to the exchange but they will not try to implement kyc.

[tvplus006]

...So, people who keep large funds in exchanges or other platforms are doing the wrong thing themselves and they shouldn't blame the exchanges for that. There are exchanges for trading services and there are wallets for keeping your funds safe, so we should know what should be used for what.

There are such options when a trader is forced to keep large amounts in the exchange's wallet, since he uses them for trading. In addition, some of the money can be locked up for staking. With the exception of such cases, it is necessary to keep as much money on the exchange account as is necessary for trading.

[libert19]

However, it's essential to note that DEX can also undergo KYC (Know Your Customer) processes, as evidenced by this tweet about Uniswap...

If Uniswap does implements kyc, i'm sure people will come up with other interfaces to use uniswap's smart contracts that does not require kyc, this is one of perks of being a dex.

If they try that, they will not only be losing customers, their token will crash heavily because even when a team do have a say in a protocol, the community is the biggest contributors to the exchange. The highest they can do is to flag some IP address that will be coming to the exchange but they will not try to implement kyc.

What does ip flagging help with anyway? There are plenty ways to circumvent that like vpn, proxies. Such restrictions are namesake, especially when most crypto people are tech savvy compared to an average person.

[FinneysTrueVision]

Nope, centralized exchanges is becoming more regulated year by year and that is not a good sign for a trader. centralized exchanges has their own advantages too like high trading volume, more trading pairs, support system and etc but the term better is used to denote the security of funds in my opinion where centralized exchanges can't be trusted no matter what.

More regulation will lead to more people being excluded from traditional finance. We already see large swathes of the population being denied from the most popular exchanges due to the country they reside in.

We have seen some cases like FTX where users collectively lost millions or perhaps even billions of dollars. Centralized exchanges aren't necessarily the most secure but at the very least there is some legal recourse if you get scammed or there is a hack. With DEXs it is almost impossible to recover your funds once they are lost although I have seen some exchanges like PancakeBunny try to compensate users in various ways. Neither approach to security makes much difference in my opinion because DEXs will always be preferred by those wishing to circumvent financial censorship that is common in CEXs.

[Samlucky O]

I think there is no need for debate on CEX and DEX. Each exchange interface are different entity. The cex has it's inportant while the DEx also has it's own inportant. What really matters is how save your wallet is. According to people's paspctive on CEX, I think they worry of not being trust worthy of Cex, because all coin held is in total control of exchange which is tantamount to big loss if exchanges shutdown. And morover the private key is in total control of the exchange tactically telling you that you don't have total accept to you potfolio unlike Dex which is more secure with private key and can not be controlled by a third party. Huge amount of coin can be stored in a Dex but can not be stored in CEX due to fear of the unknown.

[jerryskies]

One major issue with CEX is State's interference with domestic (and maybe later international) legislation of where it is based. For example, this coin is banned, or this individual is banned, etc. DEX seems more immune by design... for example hydranet dex (https://bitcointalk.org/index.php?topic=5467022.msg62992576#msg62992576) with BTC/LTC lightning and Aeth really allows a high speed CEXlike experience. Then it's all about the users and devs, for example in adding new chains and tokens (not like bisq closeness) or finding a positive reinforcing fee structure, for users, devs and shareholders. Easier said than done.

But being able to "buy and sell" outside of the edicts of the state orders (what you eat beef: criminal offender ) is quite a worthy path to reach truly uncensorable txs, imho.

[jrrsparkles]

Nope, centralized exchanges is becoming more regulated year by year and that is not a good sign for a trader. centralized exchanges has their own advantages too like high trading volume, more trading pairs, support system and etc but the term better is used to denote the security of funds in my opinion where centralized exchanges can't be trusted no matter what.

More regulation will lead to more people being excluded from traditional finance. We already see large swathes of the population being denied from the most popular exchanges due to the country they reside in.

We have seen some cases like FTX where users collectively lost millions or perhaps even billions of dollars. Centralized exchanges aren't necessarily the most secure but at the very least there is some legal recourse if you get scammed or there is a hack. With DEXs it is almost impossible to recover your funds once they are lost although I have seen some exchanges like PancakeBunny try to compensate users in various ways. Neither approach to security makes much difference in my opinion because DEXs will always be preferred by those wishing to circumvent financial censorship that is common in CEXs.

First of all, let me be clear, either its a centralized or decentralized exchange once the funds are hacked its close to impossible to recover anything at all that is why we keep suggesting to every crypto user "not your keys, not your coins".

What happened with FTX is different they filed for bankruptcy and it's the abuse of users' funds and the company lost them which maybe recovered if the reason is not what they said and pooled their money with their companies and diverted in the name of loss but as I said it may never happen at all.

[Adbitco]

...So, people who keep large funds in exchanges or other platforms are doing the wrong thing themselves and they shouldn't blame the exchanges for that. There are exchanges for trading services and there are wallets for keeping your funds safe, so we should know what should be used for what.

There are such options when a trader is forced to keep large amounts in the exchange's wallet, since he uses them for trading. In addition, some of the money can be locked up for staking. With the exception of such cases, it is necessary to keep as much money on the exchange account as is necessary for trading.

I can't find it deem necessary for user to leave their fund in exchange just because they are keeping it for trading sake, to me what is obtainable is to move your profits from the exchange or move out the capital after which the trader succeeded accumulating enough volumes of profit as it may be. Taking out some percentage of funds always keeps you at the safer side because of numerous rumour concerning hack and security breaching that often happened on centralized exchange. To me if not of gas fee for moving in and out of our exchange account the best is to always withdraw them out when we have exited the trade.

[cosmoblissd]

It all depends on what you want to achieve. Sure CEX is easy to get started and buy crypto with fiat. But qua security.. forget about it

Keep in mind that each time you provide KYC data to a centralized exchange, that data is shared with  potentially hundreds of other companies, governments.
Each point in the system can have leaks be it employees, hackers or just sleazy security (secops), which can result in phishing attacks, swim swaps and many other problems

Stories on the darknet show how easy it is to obtain certain info about users from CEX..

DEX is mostly for swaps, getting into coins which are not listed and building a wallet which isn't connected to anything.

At CosmoBliss we're actually  analyzing most DEX/CEX  and have a plan to build a DEX without KYC. A proof of concept is already under development. But planned to launch in 2025 (other things need to be built before that to support a true DEX)
it;s a though task but it needs to be done to avoid centralization. Most DEX are centralized because they have just a few servers as point of failures.

[tvplus006]

I can't find it deem necessary for user to leave their fund in exchange just because they are keeping it for trading sake...

You have written a generalized answer that does not reflect the difference between day trading and long-term trading. If a trader is engaged in day trading and he needs 10 thousand dollars to carry it out, then he cannot constantly withdraw this amount and enter it on the exchange. But if he makes a profit from such trading, he will withdraw the profit from the exchange, since he does not need them for trading.

[AakZaki]

I can't find it deem necessary for user to leave their fund in exchange just because they are keeping it for trading sake, to me what is obtainable is to move your profits from the exchange or move out the capital after which the trader succeeded accumulating enough volumes of profit as it may be. Taking out some percentage of funds always keeps you at the safer side because of numerous rumour concerning hack and security breaching that often happened on centralized exchange. To me if not of gas fee for moving in and out of our exchange account the best is to always withdraw them out when we have exited the trade.

it takes discipline to do it. This includes trading discipline, paying attention to where to place money to trade because CEX cannot be trusted even though they say the funds will be safe and will be guaranteed if lost. Making gradual withdrawals from any profits made will save capital funds entering CEX.
But this does require a fee and maybe it can be scheduled every time the percentage of profit will be made with a withdrawal or some other customized scheduler.

[Adbitco]

I can't find it deem necessary for user to leave their fund in exchange just because they are keeping it for trading sake...

You have written a generalized answer that does not reflect the difference between day trading and long-term trading. If a trader is engaged in day trading and he needs 10 thousand dollars to carry it out, then he cannot constantly withdraw this amount and enter it on the exchange. But if he makes a profit from such trading, he will withdraw the profit from the exchange, since he does not need them for trading.

I am against anyone leaving their funds inside exchange, but for the essence of those who trade daily it would be very hard for them to be regularly withdrawing it out and deposit it again but, if such trade has traded for long time and has accumulated enough profits such person can be able to make it up to withdraw at least some percentage of his profits leaving s/he's capital able him continue trading next morning or till the required time for him to enter market.

I can't find it deem necessary for user to leave their fund in exchange just because they are keeping it for trading sake, to me what is obtainable is to move your profits from the exchange or move out the capital after which the trader succeeded accumulating enough volumes of profit as it may be. Taking out some percentage of funds always keeps you at the safer side because of numerous rumour concerning hack and security breaching that often happened on centralized exchange. To me if not of gas fee for moving in and out of our exchange account the best is to always withdraw them out when we have exited the trade.

it takes discipline to do it. This includes trading discipline, paying attention to where to place money to trade because CEX cannot be trusted even though they say the funds will be safe and will be guaranteed if lost. Making gradual withdrawals from any profits made will save capital funds entering CEX.
But this does require a fee and maybe it can be scheduled every time the percentage of profit will be made with a withdrawal or some other customized scheduler.

Before a trader could moved their money to exchange I believe they have studied about the exchange security and reliability before leaving a very large funds in that exchange otherwise I can say that there is no experience trader that will possibly want to leave their funds in an exchange they knows nothing about.

[AakZaki]

Before a trader could moved their money to exchange I believe they have studied about the exchange security and reliability before leaving a very large funds in that exchange otherwise I can say that there is no experience trader that will possibly want to leave their funds in an exchange they knows nothing about.

Big exchanges like Binance may still be safe, because I also use Binance and store my trading funds there. grow money with the trading and investments that I do. But also often withdraw my funds just in case even though there is a guarantee on SAFU provided by binance. Very large amounts of money left on the exchange will be more at risk because you will not have full access when an attack occurs and it will be lost.

[MarvieJ]

I hope you all are having a wonderful weekend!

So I recently came across a post where people are engaged in a lengthy debate over whether CEX (Centralized Exchange) or DEX (Decentralized Exchange) is better. So I decided to wrote down this. Frankly, I believe it's a matter we shouldn't dwell on too much because both have their advantages and disadvantages.

For CEX:

Security is reliable if you choose the right exchange.

Transaction fees are reasonable.

It's user-friendly for trading.

You're less susceptible to phishing scams, especially when using a secure wallet.

Various earning opportunities are available.

Let's consider two exchanges I'm familiar with as examples:

For Binance: Despite suffering a massive $570 million hack, Binance remains one of the largest exchanges and not just that, they still keep their standards high.
You can find more details in this link: https://www.investopedia.com/binance-got-hacked-6748215

Now, Bitget: While Bitget hasn't experienced a direct exchange hack, although there was an incident that occurred with their wallet due to a link shared in a group that led to users' accounts being compromised, I won't really call this hack per se but a lesson to everyone. We all need to be careful of links sent suspiciously in any group you're in because you don't know what you will be clicking that will lead to total wipe pf your assets both in crypto and off crypto

 You can also read about it here: https://www.[Suspicious link removed]

I use Bitget more often because I've delved into their security standards and believe they're doing well. However, I still use Binance, as it was the first CEX I encountered on my crypto journey.

Now, let's talk about DEX:

I won't say DEX is bad; it has its merits. Everything is decentralized, as the name suggests. I've used Uniswap and continue to do so. However, it's essential to note that DEX can also undergo KYC (Know Your Customer) processes, as evidenced by this tweet about Uniswap: https://twitter.com/WhaleChart/status/1713291249560535051?t=lyzx4IAlZNiG9Llt4g-Tqg&s=19

Furthermore, DEX can be vulnerable to hacking. Consider Mixin, for example.

What I'm trying to convey is that these debates about CEX vs. DEX should consider that both can coexist and work well if we find the right balance.

Even if I said ok, I want to go offline to be safer. The truth is, Im not sure I can be 100% safe offline either. I was researching offline wallets on Amazon and watching YouTube reviews for recommendations. At some point, I got discouraged because even some offline wallets can be hacked. But that won't stop me from using an offline wallet. Is just picking the best that I know that would be best for me. Just as picking the best exchanges among cex and Dex.

As I've said before, our security largely rests in our own hands. Before an exchange collapses, there are usually rumors. When those rumors start, it's essential to withdraw your funds promptly. Take FTX as an example; Sam Bankman Fried's actions had a significant impact on the exchange. If you've been following his legal case, you'll see that he meticulously planned it out with no remorse, unlike other exchanges that experienced hacks and returned stronger with enhanced security.

Truth is most of these exchanges has had their fair share to either hackers or lost of funds, never knew likes of Hotbit will ever take a bow in the crypto space, they were the first ever exchange I used before finding Bitget and Binance much more easier etc