Is trading on CEX still worth it?

[Faisal2202]

Do you guys think CEXs are still worth it? Let me hear your thoughts

I am quite amazed to hear this question, as to why you think it is not worth it. I mean a lot of users almost every single member of this forum might be using CEXs even if they are saying they are not. I mean, people who prefer to use DEXs and somehow have to use CEXs. Might come up with an alternative solution like maybe preferring CEXs with no KYC or a lesser level of KYC solutions.

I get the idea that you are more concerned about the fee not about the privacy, I don't think fee are that high on these centralized exchanges. I still uses a lot of the CEXs and all of them have different withdrawals rates, speaking of BTC especially, I think OKX is much better.

[sunsilk]

I am quite amazed to hear this question, as to why you think it is not worth it. I mean a lot of users almost every single member of this forum might be using CEXs even if they are saying they are not. I mean, people who prefer to use DEXs and somehow have to use CEXs. Might come up with an alternative solution like maybe preferring CEXs with no KYC or a lesser level of KYC solutions.

A lot of us for sure are using CEXs, while we should be supporting more with DEXs. The liquidity of the two are different and far behind each other.

There are more traders and volume with the CEXs and they have got more incentives compared to the DEXs.

I get the idea that you are more concerned about the fee not about the privacy, I don't think fee are that high on these centralized exchanges. I still uses a lot of the CEXs and all of them have different withdrawals rates, speaking of BTC especially, I think OKX is much better.

The fees on CEXs aren't that much and even I, still uses a CEX into this day but not as active as the others. I only trade when I have to or when I have seen some opportunity to buy/sell.

[Learn Bitcoin]

Do you guys think CEXs are still worth it? Let me hear your thoughts

Most people use Centralized exchanges because either that exchange offers something good that no other exchange offers, or they do not have other options. Take me, for example. Cryptocurrency is banned in my country. I don't want to deal face to face because of privacy reasons, and a couple of exchange websites can scam users anytime. I have seen a lot of people get scammed on those websites.

Currently, these centralized exchanges are the only options for selling my USDT for my local currency. I have started hunting airdrops lately, and some centralized exchanges offer zero-fee trading, bonuses on deposits, and many other things. I wouldn't use them if I had not been KYC'ed before. But, I am already KYC'ed on a couple of exchanges which is the reason I am still using them.

[Z-tight]

I mean, people who prefer to use DEXs and somehow have to use CEXs. Might come up with an alternative solution like maybe preferring CEXs with no KYC or a lesser level of KYC solutions.

Most of the no-kyc centralized exchanges have made kyc mandatory, and if there are a few that still allow customers to trade without kyc, they'll make it mandatory very soon and they can also confiscate your funds anytime and request for kyc. People who don't want to lose their privacy will go for decentralized exchanges, there is no in-between in it, they don't have to use any kind of centralized exchange if they don't want to.

[Faisal2202]

The fees on CEXs aren't that much and even I, still uses a CEX into this day but not as active as the others. I only trade when I have to or when I have seen some opportunity to buy/sell.

You are right, liquidity is the big difference among others, cexs have no deficiency of liquidity. Recently a centralized exchange in Japan got hacked and they had enough liquidity that they told there customers to not panic as they said they have enough funds to give all of the customers there funds back. I mean they don't have a problem of liquidity trades can happen in a matter of time. While on DEXs we see some problems but with the most famous ones we not face any.

Besides CEXs provide a lot of campaign in which we can participate like OKX and BYBIT etc. Binance is not coming up with good campaigns to reward there users. Overall,  fee is not an issue, I use CEXs for trading purposes or for p2p trading. So considering yours and my POVs I can say they still worth it.

[Saint-loup]

Most of the no-kyc centralized exchanges have made kyc mandatory, and if there are a few that still allow customers to trade without kyc, they'll make it mandatory very soon and they can also confiscate your funds anytime and request for kyc. People who don't want to lose their privacy will go for decentralized exchanges, there is no in-between in it, they don't have to use any kind of centralized exchange if they don't want to.

Exchanges are not casinos thankfully, all honest and professional ones will never confiscate your funds while requering KYC like scammy casinos, it doesn't align with good practices and common guidelines from the industry. They will let you withdraw your asset before closing your account if you don't want or if you are unable to complete their KYC procedure.

[Z-tight]

Exchanges are not casinos thankfully, all honest and professional ones will never confiscate your funds while requering KYC like scammy casinos, it doesn't align with good practices and common guidelines from the industry. They will let you withdraw your asset before closing your account if you don't want or if you are unable to complete their KYC procedure.

Centralized exchanges can and would confiscate your funds and require you complete kyc or provide source of funds, there have been so many cases of this, and in so many of them, the customers were not able to withdraw their funds from the exchange. Don't trust centralized exchanges to allow you just withdraw your funds because you could not provide source of funds or kyc details, they have stolen funds from many people in this way.

[Darker45]

As much as I don't like centralized exchanges, I won't go as far as declaring they're not worth it. CEXes aren't for everybody. If you buy coins and trade every once in a while, you may not need a CEX, but if you are a day trader looking for the best deals, centralized exchanges might be your best option.

Of course, CEXes have their advantages and disadvantages. Many of us might think these advantages are far from outweighing the disadvantages, but to a certain group of crypto supporters, the disadvantages are worth risking.

Actually the bigger problem is when people who are not traders are keeping their coins on CEXes.

[Faisal2202]

Most of the no-kyc centralized exchanges have made kyc mandatory, and if there are a few that still allow customers to trade without kyc, they'll make it mandatory very soon and they can also confiscate your funds anytime and request for kyc. People who don't want to lose their privacy will go for decentralized exchanges, there is no in-between in it, they don't have to use any kind of centralized exchange if they don't want to.

You are right crypto is being regulated now as due to wide adoption it needed to be regulated so there will be fewer scams. In the past Kucoin and some other exchanges allowed us to trade without KYC but with time complying with regulatory authorities becomes necessary so they have to change the policy as well.

But I don't think they will confiscate your funds. If the exchange is a good one like having a good reputation then they might give you the chance to withdraw your funds by giving you some deadline and after that if you won't complete the KYC they will confiscate your funds. I recently received an email from Bybit while I have done the KYC, still they ask for more documents or my funds will be confiscated (can't be withdrawn) they gave me time, before that time I withdrew all of my funds from Bybit and never gave the additional documents.

[EarnOnVictor]

Most of the no-kyc centralized exchanges have made kyc mandatory, and if there are a few that still allow customers to trade without kyc, they'll make it mandatory very soon and they can also confiscate your funds anytime and request for kyc. People who don't want to lose their privacy will go for decentralized exchanges, there is no in-between in it, they don't have to use any kind of centralized exchange if they don't want to.

Exchanges are not casinos thankfully, all honest and professional ones will never confiscate your funds while requering KYC like scammy casinos, it doesn't align with good practices and common guidelines from the industry. They will let you withdraw your asset before closing your account if you don't want or if you are unable to complete their KYC procedure.

Both of you have good points but there is much emphasis on some things that are not particularly true. This is at least based on my experience and what I have read on many reviewing websites, especially those that are alleging exchanges. First, it is a misconception that exchanges will ordinarily confiscate your money, no, they will never do so, and even in some cases where they delay some withdraws due to a huge amount to be withdrawn, they will still cite reasons and tell you to wait while they update you. Although this delay, and since it is unexpected, it can be so annoying.

Notwithstanding, confiscating your money because you can't complete the KYC can be possible but can't be as directly alleged as it was stated. It can be possible if you did not own the money through a legitimate means or you just did not want to cooperate, and this is not confiscation per se but to hold it until you do the needful. If you do, they will not confiscate it and will continue to tell you what they will do and their later stances as time goes on. I know this because it happened to me, they do not just behave anyhow.

In all, it is good to prepare for the KYC completion when you are dealing with any centralised system and also know that in any custodial approach, no one should be trusted entirely. They merely owe you the money with them and no matter how you think you trust them, they may not give you the money due to a reason or another whether genuine or not.

[Pmalek]

What do you mean with worth it?

It depends on what you are giving away and what you expect to get in return. Don't expect privacy if you are using a CEX. Your name is connected to the addresses you use there and that information is surely passed to blockchain analysis and government agencies in your country (if they are interested in it). If your coins are "clean" according to their standards and interpretations, you should be fine. If they notice connections to mixers, privacy services, scams, and activities they consider illegal, you might get your crypto frozen and have to answer questions about how you got them.

On the other hand, you have more trading volume, more liquidity, lower trading fees, and perhaps cheaper withdrawal fees compared to DEXs.