CEX or DEX - which one is better

[Mr Shade]

Centralised Exchange control your funds for you while in  Decentralized Exchange you control your funds by yourself...

So Which on is better??




Mr Shade

[Lida93]

Do you prefer someone else controlling your money for you or you have control of your money yourself? It's simple, you will want to be in control.

That's what makes decentralised exchange and every other things with decentralised features better than centralised things. Take bitcoin for example.

[Coyster]

Your choice of exchange go depend on wetin you dey find, if you dey find liquidity and you no really care about submitting KYC, then centralized exchanges is for you. That said, if you no wan give any third party your information, and you no wan make any third party dey in custody of your money, then na decentralized exchanges you go use.

Remember say dem no dey keep crypto for any exchange, whether na centralized abi na decentralized, keep you coins in your non-custodial wallet, and use exchanges to trade only.

[SmartGold01]

Centralised Exchange control your funds for you while in  Decentralized Exchange you control your funds by yourself...

So Which on is better??




Mr Shade

They both have their different functions as we may have noticed it, in centralized exchange there are varieties of coins that is being listed there that are not always listed on Decentralized, while In decentralized exchange some of the coin are also being listed there as well but depending on the coin owners on which is more suitable and affordable for them to get listed so quickly.
But on a normal circumstance Bitcoin are mostly traded on a centralized exchange and it makes it very easier to trade than decentralized exchange.

[Ishicryptic]

Your choice of exchange go depend on wetin you dey find, if you dey find liquidity and you no really care about submitting KYC, then centralized exchanges is for you. That said, if you no wan give any third party your information, and you no wan make any third party dey in custody of your money, then na decentralized exchanges you go use.

Remember say dem no dey keep crypto for any exchange, whether na centralized abi na decentralized, keep you coins in your non-custodial wallet, and use exchanges to trade only.

Using a DEX or CEX is a choice but from my observation many crypto users prefers CEX, despite the requirement of submitting KYC, it is still used by most crypto users. So if I'm to judge by my observation I will say that CEX should be better than DEX but I might be wrong. My focus is that no matter which one you choose between the two forms of exchanges it is important not to leave your coins in any exchange, except the one that you want to use for p2p transactions and trading. If it is not your keys it is not your coins, hold your coins in a none custodial wallet.

[Coyster]

Using a DEX or CEX is a choice but from my observation many crypto users prefers CEX, despite the requirement of submitting KYC, it is still used by most crypto users.

Na true say most cryptocurrency users/traders dey use centralized exchanges over decentralized ones, the reason be say people find centralized exchanges more convenient to use and also because na centralized exchanges wey many of dem begin use as dem join the crypto network. That said, you no go fit decide which one dey better based on the number of people wey dey use am, as i don already talk, na individual decision and remember say KYC dey dangerous in many situations.

[EluguHcman]

Centralised Exchange control your funds for you while in  Decentralized Exchange you control your funds by yourself...

So Which on is better??

Bitcoin as a decentralized digital currency was invented on the format of decentralization in that it would not be controlled by any authority.

This was feasibly created and gained widely adoption due to the decentralized potential that is to say the decentralization is one main uniqueness that factorize what the Bitcoin community users seem to enjoy at using Bitcoin.

So to keep extreme safe and enjoying this decentralized notation of Bitcoin, it is better to store your coins in the decentralized exchange which is also where you will be in total control of your funds while the centralized exchanges is a platform that upholds your privacy which means you are not in total control of your fund.

And this differences makes the Centralized exchange threats for it community users funds while the decentralized exchange is highily safer in privatizing your funds upon yourself.

[promise444c5]

It actually depends on what are your intentions, if its to hold then holdings on a cent  xchange  possess a risk of losing it anytime either your account get suspended or the cex close up(mostlybecauseof an hack , unless a scam exchange).
Besides, exchange aren't meant for holding, they are meant for trading in form exchange between various cryptos.. if you want to hold instead get a ngood noncustodial wallet .
But if you're in for exchange and you want some privacy over your trades then you can use a DEX[some support p2p system as well] else if you don't care about privacy then use a CEX

[Gozie51]

Dex and cex are different but performing same functions at a particular point in time. I believe that Dex is the original purpose for cryptocurrency which is privacy but with cex, such privacy is not available. Then Dex is best for old crypto hodlers who are not keen at trading while cex is good for new people in crypto which drive is to trade because cex is usually exchange that allows for trading of crypto.

So it depends on the need that you want to fulfill.

[She shining]

A non custodial wallet. But if am going to pick among CEX and DEX, i will pick CEX. Why? Because it's easier and faster. Buying from CEX doesn't Mean I plan on leaving my funds there. Buy there and store in my wallet.

As for better? They both have their strength and weakness. The Question na wich one go beta for wetin u want.

[AVE5]

Centralised Exchange control your funds for you while in  Decentralized Exchange you control your funds by yourself...

So Which on is better??




Mr Shade

To my own reason on how best the Dex and the CEX  offers convenience services is based on users crypto plans that's if you're holding for short or long term.
Quite noted that bitcoin investment is better if Investors are on the troll of long term and also noting the limited private keys in the CEX while the Dex gives you all private access keys, it's better for investors to store their bitcoin in the Dex so to take self responsibilities of the asset securities and hodl since you aren't selling your bitcoin in a close time.
While crypto traders could better to store their funds in the Cex reasons being that it helps to facilitate on quick transactions using the p2p for trades and also economical to minimizing transaction fees as much as trading could be of everyday transactions.

[promise444c5]

Buying from CEX doesn't Mean I plan on leaving my funds there. Buy there and store in my wallet.

Yeah u fit no leave am for there and e no be bad idea but for privacy na bad idea  unless you make use of DEX in future probably when you try to withdraw and you convert it to some an untraceable alt coin or sell it directly to someone, eliminating a third party like CEX , but it’s normally bad for privacy as the CEX can trace it  anytime they want.

[Odusko]

Centralised Exchange control your funds for you while in  Decentralized Exchange you control your funds by yourself...

So Which on is better??




Mr Shade

Cryptocurrency is freedom and so you have to be in full control of your crypto coins we have always been warning forks over here not to trust an exchange with their investments, and don't leave assets on an exchange is very dangerous if freed and privacy is your goal for using cryptocurrency, you have to take charge of everything regarding your assets, control your wallet and only those that you give those wallets to can know how much coins you hold in that wallet and only you have to control of any transactions that go on in the wallets. Unlike centralized platforms where your freedom is highly limited and controlled by the exchange.

[nelson4lov]

~Snipped

So Which on is better??

I have used both and I'll give my 2 cents.

Why CEX?
It has the initiative user experience that we're already familiar with coming from web2 applications like Facebook, traditional banking apps etc. The main goal of a CEX is to provide ease of use and a seamless trading experience so you don't have to worry about all the blockchain and crypto native stuffs. You can just on-ramp via a number of payment methods like credit card or direct bank deposit.

Another bonus is that, you don't have to worry about security as security is only as strong as the CEX security itself.

So 2 key takeaways for CEXs => Easy to use and relatively secure with a caveat: you've to submit your KYC data with most exchanges to enjoy those benefits.



Why DEX?

It simple — most of the responsibilities like security and experience is dependent on your blockchain/crypto knowledge or technical know-how. You don't immediately see the benefit of using DEXes but you start to enjoy them after you get the hang of it. For instance, you can become an LP on DEXes and make money with your capital as opposed to CEX where you are limited to fixed fees and you can't become a market maker unless you have some requirements that affords such privileges but that's a story for another day.

DEXes are open and permissionless for everyone but security risks are still available because there are still smart contract risks as well. But overall, it's going to be DEX for me.

Yesterday, I made around $70 providing liquidity to the fake-ish argentine meme coin. I didn't buy the memecoin but only provided 1-sided solana liquidity with it on meteora and earned over $70+ in fees in around hours from $100 deposit. It's only possible on a DEX.

[Smartvirus]

Centralised Exchange control your funds for you while in  Decentralized Exchange you control your funds by yourself...

So Which on is better??

Mr Shade

If na in terms of storage you Dey talk because, na the idea your OP carry be that. I go like make you know say, exchange no be wallet. Na for wallet we Dey store, keep or hodl coins, no be for exchange. CEX and DEX, both na exchanges them be and them get their use cases and advantages based on individual interactions with the exchanges.

CEX Dey stay in control of how business is run on their platform and also resolve wahala way fit arise due to default on contracts by players in a p2p deal,
DEX, nothing like that. You control everything but still have to play your card wella make matter no cast and e no Dey that user friendly.

Na you go con decide say, see where I go like Dey use for this kind matters be this.

[Donneski]

Centralised Exchange control your funds for you while in  Decentralized Exchange you control your funds by yourself...

So Which on is better??




Mr Shade

The answer to this question I think is as simple as it appears. You didn't just ask about exchanges but also explained what CEX and DEX is all about and considering your explanation, one should easily understand that DEX gives you full control of your money while with CEX your money is at the mercy of a third party. That said, I think it's very easy to say that DEX is simply better and safer.

[Princess Leah]

Centralised Exchange control your funds for you while in  Decentralized Exchange you control your funds by yourself...

So Which on is better??




Mr Shade

The answer to this question I think is as simple as it appears. You didn't just ask about exchanges but also explained what CEX and DEX is all about and considering your explanation, one should easily understand that DEX gives you full control of your money while with CEX your money is at the mercy of a third party. That said, I think it's very easy to say that DEX is simply better and safer.

Everyone who loves privacy and don't like a situation whereby there digital money would be at the mercies of a third party would simply go for DEX cause it more safer than CEX, moreover I don't think most people would prefer an exchange where safety is not fully guaranteed over one that better when it comes to security.

 Anyways that doesn't mean CEX is useless, it has it's own advantage which is that risk takers who invest in short-term coins can buy the coins that are not listed on DEX from the CEX, cause not all coins are listed on DEX but most of the new projects are often listed om CEX.

[Barikui1]

Do you prefer someone else controlling your money for you or you have control of your money yourself? It's simple, you will want to be in control.

That's what makes decentralised exchange and every other things with decentralised features better than centralised things. Take bitcoin for example.

Normally decentralized exchange dy more preferably than centralized exchange because na you dy in control of anything wey they shele there, but one major thing wey they discouraged me for decentralized exchange is their customers support, bro na that aspect wey centralized exchange use better pass them, before them go respond to any of ur complain eh, you fit cry if na something wey them need to address fast, because them no go ever respond fast, sometimes e fit take days or weeks before you get response, and another thing about decentralized exchange is that you need to be a veteran in the business for you to be able to navigate your way easily without falling into the hands of scams because when it comes to security of ur asset, everything dy ur hand, but aside this the first thing I talk of which is lack of fast response, decentralized exchange dy way much better than centralized exchange in my own opinion, because them give you that freedom to be in control of so many things.

[Lida93]

Do you prefer someone else controlling your money for you or you have control of your money yourself? It's simple, you will want to be in control.

That's what makes decentralised exchange and every other things with decentralised features better than centralised things. Take bitcoin for example.

Normally decentralized exchange dy more preferably than centralized exchange because na you dy in control of anything wey they shele there, but one major thing wey they discouraged me for decentralized exchange is their customers support, bro na that aspect wey centralized exchange use better pass them, before them go respond to any of ur complain eh, you fit cry if na something wey them need to address fast, because them no go ever respond fast, sometimes e fit take days or weeks before you get response, and another thing about decentralized exchange is that you need to be a veteran in the business for you to be able to navigate your way easily without falling into the hands of scams because when it comes to security of ur asset, everything dy ur hand, but aside this the first thing I talk of which is lack of fast response, decentralized exchange dy way much better than centralized exchange in my own opinion, because them give you that freedom to be in control of so many things.

Much true about whetin you talk concerning the time efficiency of customer service attending to customers plight, na im make if you check the people wey the use decentralised exchange nah people wey don dey sophisticated with the environment because unlike CEX all these Dex no dey user friendly for newbies to just venture in for use. Na our laziness to take responsibility of our funds with anything wey happen to our wallet nah the make some of us the use CEX even with the risk involved.

[Proty]

Centralised Exchange control your funds for you while in  Decentralized Exchange you control your funds by yourself...

So Which on is better??




Mr Shade

It depends on waiting u like most for de features of the two, now CEX dey more easy to use, de transactions speed dey very fast and also e dey more easy to buy and sell bitcoin with CEX exchange. In fact e dey less stressful to use CEX. Now if we talk of Dex nobody they control de exchange, your bitcoin dey 100% secure and u fit dey control ur investment. So among de features wey I don mention if na security wey u value them u go for Dex however if na de one wey go dey easy for u go for CEX. So de one wey better depends on waiting u as a person like most for those features wey I don mention.