Centralised exchange getting better than Decentralised exchange?

[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