Which do you prefer, CEXs or DEXs?

[Vincom]

In the crypto market, buying and selling digital assets is crucial for any investor's journey. When it comes to trading, there are two main avenues: CEXs and DEXs. CEXs are operated by companies that act as intermediaries, while DEXs leverage smart contracts on a blockchain to facilitate peer-to-peer transactions without a central authority^[1].

• CEXs offer a user-friendly experience for buying and selling crypto.  I don't need to manage private keys, connect to specific blockchain apps, or hold native coins for fees. Simply create an account, complete KYC verification, deposit funds, and start trading a wide variety of tokens with excellent liquidity. Trading fees are typically low, around 0.1%-0.2%, so my 1000 USD trade would only incur 1-2 USD in fees.  Earning and staking features on CEXs are also very convenient to me.
  However, CEXs come with inherent risks. Their legality can be uncertain, and their security heavily relies on the company itself.  The Mt. Gox hack in 2014^[2] and FTX's collapse in 2022^[3] are stark reminders of this vulnerability.
• Using DEXs can feel complicated at first. I need to set up a blockchain account, manage my private keys, understand which blockchain a token is on, and have native coin to pay transaction fees. I also need to find the right DEX and connect my wallet to it.
  DEXs often have a limited selection of tokens and not as much liquidity as CEXs. Transaction fees can also be a pain point. For example, I wanted to buy 50 USD worth of SHIB tokens in 2021, but Uniswap fees were around 100 USD, it wouldn't make much sense to use the DEX in that situation. I waited to buy SHIB on Binance after its listing.
  New tokens come with their own set of risks, one being the potential for users to forget to revoke spending permissions after a swap. The fear of losing assets due to a DEX protocol attack is a real one, especially considering the numerous hacks that occurred in 2021^[4].

I believe that the crypto market thrives on the coexistence of CEXs and DEXs. Each caters to different needs: CEXs offer user-friendly interfaces and fiat gateways, attracting new participants, while DEXs provide greater control and transparency, appealing to experienced users. Together, they create an inclusive environment, removing barriers to entry and fostering wider adoption compared to traditional financial systems.

I would like to know your opinion on CEXs and DEXs:

• Which do you prefer, CEXs or DEXs, and why?
• For CEX users: Does KYC concerns impact your choice of CEXs?
• For DEX users: Do you believe DEXs have the potential to completely replace CEXs in the future?

References:
[1] Centralized Exchange (CEX) vs. Decentralized Exchange (DEX): What’s the Difference?
[2] Mt Gox Hack Explained
[3] FTX collapse: The crypto industry’s Lehman Brothers moment
[4] The 10 Biggest DeFi Hacks of 2021: A Recap

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[cryptoaddictchie]

For major trading I prefer cex and I have option to set order on price that I know and also good for trading futurea and margin. Id like dwx only for my shitcoins or meme trading. But I dont know if Im gonna weigh both Id prefer fboth of them like on cex theres option to withdraw via p2p while on dex theres a chance to buy tokens at low price vefore it explode on cex. So for me Id say 50/50.

But for storing crypto no doubt I will pick dex ovwr cex.

[Mate2237]

Many use CEX platforms because of the price. If CEX is offering 0.05 bitcoin which is equivalent to $3177k  and for the market price will be $5+k and that will be very much less in the DEX platforms so with that people like to use centralized exchanges more than the Decentralized Exchanges. Personally I have not used dex before and the last time when I wanted to used it. The price presented to me was not motivating so I left it and start using CEX.

But the best one among the two is the decentralized exchanges because nobody can block and freeze your coins. There is no KYC and everything is smoothly done.

[leonair]

I use both CEX and DEX for different reasons. use Dex when I want to exchange a large amount of crypto. But when I do trading or cash out money, I use CEX because cex is much better for that. Both CEX and DEX have different advantages. By using DEX we have no risk be it fund management or own privacy because DEX does not require kyc verification. But cex has fund management or privacy risk.  Because at CEX, our funds are completely controlled by others so here the risk here is also high then DEX

[bakasabo]

Is it possible to add «use both» in voting poll ? I personally use both and cant decide which one is preferable, as I use them for different tasks. CEX is for trading or more correct to say major trading. DEX is for small or quick trading. Each has its own benefits. In DEX you pay only transaction fees, no withdrawal fee. In DEX you can trade almost everything. CEX - they give me feeling of more being more secure. CEX - you can operate with fiat.

[Wiwo]

It depends on the level of trade you Wana do but most active traders will prefer centralised exchanges Vs decentralised exchanges.

One of the major reasons why CEX is more popular than DEX is due to the fact that centralised exchanges have higher trading volumes that decentralised exchanges, but not that when you chooses to use centralised exchanges you are giving up on your privacy since their demands for verifications and government regulators third party involvement is high.

But if you don't have anything to hide, and your trade volume is high, you may decide to risk privacy so long you operate within the stipulated laws.

[Mpamaegbu]

I would like to know your opinion on CEXs and DEXs:

• Which do you prefer, CEXs or DEXs, and why?
• For CEX users: Does KYC concerns impact your choice of CEXs?
• For DEX users: Do you believe DEXs have the potential to completely replace CEXs in the future?

My candid opinion:

1. I prefer Cexs to Dexs. The simple reason being that Cexs afford us a wide range of trading pairs which Dexs don't have; at least, for now.

2. What decides my pick of Cexs isn't whether there's KYC on them or not but the strength of their daily trading volume and trust score. I don't do any Cex that's below 7 on trust rating.

3. Dexs replacing Cexs is a tall order. For me, it's a near impossibility. We can only begin to think of Dexs measuring up to Cexs first when Dexs show that ability of allowing traders place pending orders on them. That pending buy or sell order is very crucial to traders. Sadly, Dex's lack that.

[batang_bitcoin]

Which do you prefer, CEXs or DEXs, and why?

Both.

For CEX users: Does KYC concerns impact your choice of CEXs?

Nope. It's acceptable to me that majority of them are asking for kyc and that's why even if I don't like to get kyced, we have no choice as most of the cexes even if they started with no kyc, soon, they'll ask for it.

For DEX users: Do you believe DEXs have the potential to completely replace CEXs in the future?

Nope but I still use some of them as long as the liquidity for that token I trade is fine.

[dimonstration]

CEX is still the best in terms of over all performance and liquidity since you can a huge volume of tokens without having a huge price impact to the market. Besides the fee on CEX is very minimal and there’s a lot of trading tools that you can use compared to DEX right now.

The only advantage of DEX was its decentralized but the experience is poor compared to what CEX can offer. Also you can purchase a coin/token and withdraw to any blockchain that you preferred without the need to pay for the bridge fee and other hassle cost on DEX. If a user is less cautious with privacy, CEX is still the best overall.

[pakhitheboss]

I still prefer using a DEX over a CEX only for trade and not for storing my coins. I don't have any issues with using a DEX but my personal experience forced myself to use a CEX. I have till now only used Pancakeswap as I couldn't afford the fees on Uniswap. I used Trust wallet as it was highly recommended as the best bridge on that DEX. I encountered so many issues while doing trades at that time and after that disaster I felt it is better to use a CEX. As I don't trade as much as other do I think CEX are good unless anyone is using it as a wallet to store crypto.

[btc78]

I would like to know your opinion on CEXs and DEXs:

• Which do you prefer, CEXs or DEXs, and why?

DEX

dex are more resistant against hacks compared to cex it can also be worrying that they have my information

• For CEX users: Does KYC concerns impact your choice of CEXs?

Yes because as much as possible I try to keep my privacy as safe as possible

• For DEX users: Do you believe DEXs have the potential to completely replace CEXs in the future?

Of course. Cryptocurrency are almost decentralized and most investors are looking for ways to buy coins without sacrificing their privacy so the answer somehow is Yes

[OrangeII]

I use both, but I use CEX more often. Even though sometimes KYC is one of the things I most avoid, doing it on a popular CEX doesn't seem to be a problem, because like it or not, we have to do verification. For now I think CEX is still superior to DEX, but we don't know what will happen in the future, maybe DEX can be better than CEX.

[Text]

Both have their merits. For me, I'm choosing CEXs because they provide a more user-friendly experience and often better liquidity. KYC concerns can be a valid consideration, especially for those prioritizing privacy. It seems like it's a trade-off for the convenience they offer. However, I cannot overlook security concerns associated with them because we are aware of the issues when it comes to hacking.

I know DEXs offer increased control and transparency but can be more challenging. However, I see that the potential for the complete replacement of CEXs depends on factors like scalability, liquidity, and user-friendly interfaces improving over time.

[husencoe]

I would like to know your opinion on CEXs and DEXs:

• Which do you prefer, CEXs or DEXs, and why?
• For CEX users: Does KYC concerns impact your choice of CEXs?
• For DEX users: Do you believe DEXs have the potential to completely replace CEXs in the future?

1. I prefer love CEX, because it has many coin options that can be traded. I also need CEX for deposits and withdraw my assets to fiat. Of course I choose the good and safe one.

2. I don't care about KYC. I think if we want to use their services, so we have to comply with the rules they make. And of course there is a privacy policy and disclaimer that we can read. If we don't like their terms, of course we can look at other CEXs.

3. I don't think this will happen. not impossible but hard. I think CEX is still better than DEX. But I also use it for convert my token to coins. I used to believe in Forkdelta, which is an Ethereum DEX exchange but now it doesn't exist anymore. I really miss the times when I do trading there.

[Tigerheart3026]

i will prefer both of because both different advantages, personally i need to use dex's and cex's both of exchanges but cex's is my favorite in terms of high liquidity and i am using cex's mostly for convert crypto my local money, it think cex's is popular for some extra advantages from dex's.

[EarnOnVictor]

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I would like to know your opinion on CEXs and DEXs:

• Which do you prefer, CEXs or DEXs, and why?

You have said it all in your write-up which is as elaborate as it could possibly be. I've always worked with CEX, this is even before I joined Bitcointalk and I continued still despite the fear that Bitcointalk users instil in people if they are using CEX. I don't go by that, I do my thing my way after carefully studying the system and situation to know the risk involved and how to manoeuvre myself around it.

However, without mincing words, CEX has built enough business around itself, so DEX can't just compete with it. If not for the decentralization in DEX to keep privacy and avoid cheating by the company, nothing else can be compared to CEX by using DEX in my opinion. This is why people often patronise CEX more than DEX, and hence the reason for the huge liquidity in CEX compared to DEX. Is it the low fees, the ability to access your account back if you lost your login details, the ease of swapping your assets, more options for asset availability and many more, CEX has it all better than DEX. I have never regretted using CEX even as I deal with it cautiously and avoid having too much money in it.

• For CEX users: Does KYC concerns impact your choice of CEXs?

Since I am not a criminal, I do not heighten the risk of knowing me as many do. KYC is a standard procedure, and once I can do my KYC with my banks, brokers and other companies I deal with, why not do it with exchanges? I see no big deal here, it's people who are making it scary to do KYC. But in an ugly manner, they will do the KYC to enjoy the service of CEX but will come here to still speak ill of it to cause fear.

• For DEX users: Do you believe DEXs have the potential to completely replace CEXs in the future?

My simple answer to this is Never! The issue with DEX will never disappear because it is decentralised and its mode of operation can't suddenly change. Cryptocurrency is now becoming more centralised than ever if you would agree with me and this is the only way the world's government can accept it into the financial system. With the ETF, CEX and others, you can see the centralisation advancing even as the government continue to regulate cryptocurrency indirectly through it, which includes Bitcoin which people believe is decentralised.

This can only mean that CEX will win more in the future, and with time, people may not bother much about DEX, not to talk about whether the government will not clamp down on it later in the future.

[LogitechMouse]

I would like to know your opinion on CEXs and DEXs:

• Which do you prefer, CEXs or DEXs, and why?
• For CEX users: Does KYC concerns impact your choice of CEXs?
• For DEX users: Do you believe DEXs have the potential to completely replace CEXs in the future?

1. I would love to use DEX, but the current problem is that most of the DEX'es only support the tokens in their blockchain. For example, Uniswap was built under Ethereum therefore, coins under Ethereum are the only ones supported by it. Yes some DEXes are been created, and there is already a DEX for Bitcoin, but I'm comfortable with using CEX as they have a wide variety of tokens and coins that they are supporting. CEX it is.

2. Nowadays, it has been a "You want to use our platform? We need your personal information." Yes, there are some here who value privacy more than they don't want to use CEX, but let's face it. Most investors don't care about sharing their personal information if that means more comfort and more access to a wide variety of tokens. Correct me, but most of the CEXs require their customers to share their personal information first before using their platform.

3. It's hard to think that this scenario will happen in the future, but I'm not removing the fact that it can happen. The thing is that Centralized Exchanges will not let this happen, and even though there have been many hacks happening with different CEXs, many investors are still choosing to use them maybe because of comfortability.

[mindrust]

I use CEX (binance) right now even though I am aware of the risks. DEX's are not as lively as CEX's I think that's why people are still using CEX. When I open binance app, it is like a festival. There are announcements and new investment options everywhere. I know that it shouldn't matter but it does somehow. It is like entering a real life casino. DEX ain't anything like that. I think people are interested in that atmosphere which CEX provide. I know it is stupid but that's how I can describe this absurdity. I guess we will never learn...

[electronicash]

its still very unsure whether the DEX can truly replace the CEX where users will prefer the DEX. in fact DEX may even be forced to apply KYC because the government forcing them to do so.

as much as i want to trade in DEX, the prices are just so different and because crypto seems to be regulated already despite no clear law, the people will still be going for CEX. and institutions' ETFs will be preferred also by the big traders.

[kentrolla]

1. I prefer both CEXs and DEXs as it depends on the requirement, most of the time I prefer CEX due to the liquidity and price but when it comes to experimenting with coins available only of DEX I will prefer DEX.

2. Till recent it was not a concern but now since the government has started cracking down on crypto traders who are using foreign exchange it has become a concern and I am planning to gradually shift to DEX but it will take time not just now.

3. Looking the rate which CEXs has been adopted I don't think DEXs stands any chance of replacing CEXs anytime soon, rather they should first think of competing with CEXs in terms of liquidity and UI.