Which do you prefer, CEXs or DEXs?

[Sophokles]

CEX has more liquidity and i don't need to check about gas fees as well. Smart contact risk is also off the list. On dex i can see real market demands and trader price action and the funds will remain in my wallet which is important for many people. Also some CEX have a mandatory KYC process, which can be overcome by using dex. Also if you are a defi application user you have to be a dex user. To be honest they both have their benefits and limitations, so i would like to use them both based on my needs.

[tygeade]

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.

I prefer CEX as well and I wouldn't be able to put it into words as well as you did. There are so many reasons, but I can just use one word to explain everything basically, which is "comfort" because it feels a lot more comfortable to use CEX and the rival is DEX so it is not like I hate it, and I have used it as well and I do not think that it is a horrible thing neither, I do understand why people do prefer it and I do understand why that would be a good thing as well.

I am just saying that it is not a simple idea and it will take some time as well. I believe that we should be focusing on how to make some money, and that would probably not be all that simple, so we should probably consider that as the most important part of it as well.

[MFahad]

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 CEX, the reason is because CEXs offer way more features and options when compared to decentralized exchanges. All you can do is swap coins and tokens between each other in a decentralized exchange, while you have a bunch of other tools and services available in centralized exchanges. Bonuses and discounts are one of the main attractions centralized exchanges offer to their customers.

2. No, if you are using a popular and reputable exchanges, KYC doesn't concern you because you know your information wouldn't be misused.

3. I don't think DEXs have the potential to replace centralized exchanges in the future. Decentralized exchanges will most probably be closed down in the future when regulatory pressure increases.

[devil-soul]

I prefer the DEX because they don't need registration and are faster, i don't like the CEX especially because they ask for the KYC procedure which i'm not willing to do, the DEX won't replace the CEX anyway because they don't have the fiat part

[Moreno233]

Both CEX and DEX serve their various purposes depending on individual activities and preference. Many people prefer DEX for the sake of privacy especially those that do not want to perform KYC. This is necessary because of the activities of some centralized platforms that sell personal information of their users and are ever ready to release information of their users to the authorities. On the other hand CEX is preferable for most day traders who trade Bitcoin and other altcoins for short terms. It is also good for cryptocurrency to fiat conversion through the p2p and other ways that are in CEX. Personally, I use both depending on what I want to do.

[o48o]

People see them as comparable because you can swap tokens in them. But they really are not.

It's like asking if you like cash or owning a bank account. Both are about money, and both have their use cases, but other one clearly offers more (CEX). With DEX, it's more pseudonymous and you have control over your money. Except since you are using dexes you are moving that money around and you can compare it to holding large amounts of money in a sketchy neighbourhood.
In cex, or in bank in my comparison, your cash is secured by a multi million dollar company.

With CEX you can legitimately trade fast between different chains, and cash out big amounts to your bank account. Which you can immediately use for buying a house for example.
With DEX, if you want to buy a house without CEX involved, you would have to be sure that seller would accept big amounts crypto money (or physical cash like in my analogy) for that house. And these days, if you don't have any transaction histories saved, explaining huge amounts of cash is even harder then huge amounts of crypto. And because of AML laws, you will need to keep your trading history and account addresses close, if some official comes knocking about where this money is from.

I understand why DEXes have been developed, and they need to exist, And even though i have seen several exit scams of CEXes in my time here, and "not your keys not your coins" has been one of the first things i've learned. I have seen way more problems with dexes. And i am not seeing those problems ending any time soon.

[Ben Barubal]

     For me, I prefer CEX, and if I use Dex, it's if I see a potential crypto that can only be found in Dex and not in Cex. It's just that with a centralized platform, it seems that when it comes to security and transactions to our fiat, it's really better to use CEX, just like Binance, and others that have p2p, which is actually a big thing.

     But I'm not saying that DEX is bad; of course, it's okay; it's just that most of the crypto coins that I see are in CEX; it's even done that there is p2p unlike Dex; there are no p2p features in DEX; it goes to our fiat.

[Bushdark]

CEX has more liquidity and i don't need to check about gas fees as well. Smart contact risk is also off the list. On dex i can see real market demands and trader price action and the funds will remain in my wallet which is important for many people. Also some CEX have a mandatory KYC process, which can be overcome by using dex. Also if you are a defi application user you have to be a dex user. To be honest they both have their benefits and limitations, so i would like to use them both based on my needs.

It all depends on what we are looking for. Either cex or dex has good features but it all depends on what we are looking for and what we intend to do. Like cex has more liquidity than dex and we can always use cex if we are ready to do KYC except some new exchanges that have not commenced the authorization of the KYC. In dex, there is no need to any KYC, all you have to do is to swap your coin and go your separate ways but dex can be easily compromised.

[el kaka22]

The only viable reason why DEX seems so much overpowered is that when you leave the market to itself, there are no rules, so it's whoever can hurt others to make more money. Like for example there were so many bots that traded all the small differences to make thousands of dollars, even if it meant that the token they are trading would die because of them. Nobody cares about anyone except their own pocket, which is reasonable and I can understand it, not ethical but reasonable and logical.

However, that doesn't exists in CEX, or even if it does, in a small amount and we can just hold coins there and make money. This is why it makes sense that when you try to do something against their rule, they will just block your account.

[shawonngp]

I prefer the DEX because they don't need registration and are faster, i don't like the CEX especially because they ask for the KYC procedure which i'm not willing to do, the DEX won't replace the CEX anyway because they don't have the fiat part

You can use CEX without KYC some exchanges given this opportunities for who don't like to KYC procedure but you can trade and withdrawal for limited amount.
CEX's have more advantages which you never getting in DEX's, Top many altcoins you can't trade in DEX's and you can not withdraw in USDT.

[JayTrain]

My opinion is that both CEX and DEX have their pros and cons. CEX offer higher liquidity and a wider selection but can be vulnerable to attacks and manipulation. DEX provide greater anonymity and security but may have lower liquidity and a complex interface. I lean towards DEX because my funds are in my wallet and I have direct access to it, unlike CEX where any reason from the exchange can freeze the balance.

[evichi]

Centralized Exchanges (CEX), which are the first crop of exchanges in the crypto space play an important role in the crypto space. A typical CEX will list many coins/tokens backed by different blockchains/networks, thereby, crating opportunities for trader to trade their choice tokens /coins. However, CEX have limitations - such as - owners of accounts on the platform have no control of their tokens because they are not in control of their keys. They are susceptible to losing their assets,; account owners have limited privacy since most CEX require registering and doing KYC. As a result, a third party have access to the profile of account owners. Some CEX platforms charge exorbitant price when you are to withdraw, making it difficult for users.

On the other hand, Decentralized Exchanges (DEX), have limited tokens with limited blockchains/networks listed on the platform. As a result, quite a number of coins and tokens are not listed in  DEX. However, those trading on CEX, have full control of their wallets since they have the keys to their wallets. They determine what happens to their tokens. No activity can take place on a DEX platform without the permission of the token owner.

From the afore-mentioned discussions, we can see that both CEX and DEX have pros and cons in the current crypto ecosystem. However, If I am to make a choice, I will prefer DEX exchange, so long as I can trade my token on the DEX platform.

[Vincom]

People see them as comparable because you can swap tokens in them. But they really are not.

It's like asking if you like cash or owning a bank account. Both are about money, and both have their use cases, but other one clearly offers more (CEX). With DEX, it's more pseudonymous and you have control over your money. Except since you are using dexes you are moving that money around and you can compare it to holding large amounts of money in a sketchy neighbourhood.
In cex, or in bank in my comparison, your cash is secured by a multi million dollar company.

With CEX you can legitimately trade fast between different chains, and cash out big amounts to your bank account. Which you can immediately use for buying a house for example.
With DEX, if you want to buy a house without CEX involved, you would have to be sure that seller would accept big amounts crypto money (or physical cash like in my analogy) for that house. And these days, if you don't have any transaction histories saved, explaining huge amounts of cash is even harder then huge amounts of crypto. And because of AML laws, you will need to keep your trading history and account addresses close, if some official comes knocking about where this money is from.

I understand why DEXes have been developed, and they need to exist, And even though i have seen several exit scams of CEXes in my time here, and "not your keys not your coins" has been one of the first things i've learned. I have seen way more problems with dexes. And i am not seeing those problems ending any time soon.

Both CEXs and DEXs have their own advantages and disadvantages, perhaps depending on the situation of each investor, CEXs or DEXs will be preferred: legality of crypto in the country, trading needs, holding demand, trust in crypto companies or wallet applications... DEXs ensure the right to self-custody of crypto, while CEXs ensure market liquidity.

I myself am using both CEXs and DEXs: in which CEXs are the place to trade, and DEXs are used to store the majority of assets. As CEXs become more secure and DEXs gain new features, I believe the differences between them will blur. If I have to choose one of the two, I hope DEXs will soon develop and be able to provide similar services as CEXs are doing.

[Belarge]

My opinion is that both CEX and DEX have their pros and cons. CEX offer higher liquidity and a wider selection but can be vulnerable to attacks and manipulation. DEX provide greater anonymity and security but may have lower liquidity and a complex interface. I lean towards DEX because my funds are in my wallet and I have direct access to it, unlike CEX where any reason from the exchange can freeze the balance.

The balance of the system in our position because the top whales we never hold to stop buying, they will continue to bagged as much as they feel and they don't know how the coin operates. CEX or DEXs doesn't matter, it will becomes productive when we starts enabling the good process involved.  These are choices for be picked depending on the person in question. In all, ensure the terms and conditions are reached from your ends. None of these exchanges are 100% better, rather we just have to stick to earning profits simple.

[shinratensei_]

DEX comes out as really convenient way to swap coin in my opinion but then only thing that holding me back from using it is sometime the fee even though many said that CEX custodial wallet is a major turn off for most because not your key not your money thing but so far its where the liquidity lies, so many people are using it solely because of that and also probably because they think the regulation already means that these CEX are somewhat safe and insured. even though I don't really know the truth whether thats true or not.

but overall liquidity is among the most important thing here to note, some people couldn't swap using DEX without getting affected by the slippage if the DEX is lacking therefore it could cause lost.
this is just one of many reasons why people would prefer CEX though also the fee processing if you are in ethereum swapping gonna took $100 off your wallet at good days nowaday and even worse when gas price reaching 100 gwei.
but I've seen many trend where DEX are increasing in amounts of user base anyway i think both serves their own purpose at the end of the day.
its not like DEX will suddenly go vanish into thin air if CEX is having good amount of customer base, both can complement each other.

[Vincom]

DEX comes out as really convenient way to swap coin in my opinion but then only thing that holding me back from using it is sometime the fee even though many said that CEX custodial wallet is a major turn off for most because not your key not your money thing but so far its where the liquidity lies, so many people are using it solely because of that and also probably because they think the regulation already means that these CEX are somewhat safe and insured. even though I don't really know the truth whether thats true or not.

but overall liquidity is among the most important thing here to note, some people couldn't swap using DEX without getting affected by the slippage if the DEX is lacking therefore it could cause lost.
this is just one of many reasons why people would prefer CEX though also the fee processing if you are in ethereum swapping gonna took $100 off your wallet at good days nowaday and even worse when gas price reaching 100 gwei.
but I've seen many trend where DEX are increasing in amounts of user base anyway i think both serves their own purpose at the end of the day.
its not like DEX will suddenly go vanish into thin air if CEX is having good amount of customer base, both can complement each other.

Currently, CEXs play a much better role in maintaining liquidity than DEXs. CEXs have more users due to their user-friendly advantages. I think the existence of CEXs is a necessary condition for the crypto market to develop.

DEXs are gradually maturing, if they are really successful and gain the trust of users, they will have good liquidity, enough to meet the needs of users. The transaction fee problem on Ethereum DEXs can be solved by Layer-2s. DenCun has helped to reduce transaction fees significantly and users can enjoy this right now.

Like you, I believe that both CEXs and DEXs are necessary for the market. There is competition between them and this competition will help them both become more perfect! Users will benefit from this development.