Centralised exchange getting better than Decentralised exchange?

[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.