Are centralised exchange still necessary?

[casey15]

We all know that Centralized Exchanges have played a very big role in the growth and adoption of crypto currency, they have acted as the bridge for buying selling sbrbeven trading. Even when decentralized exchange LS have been made available, majority of users still rely so much on CEXs.
But looking at the current growth of crypto today, are CEXs still necessary or are they simply a convenience that is difficult to neglect.

Centralized Exchanges are very convenient as they have features that just make it easy to use. They have made it easy to buy  and sell crypto,  you can even convert easily to your local fiat currency, they have customer care support and they have large liquidity which has made it easy for people to trade with them.  Even with this conveniences, we know that you do not control your private keys and your funds are held by a third party. Sometimes their Rrukes and restrictions can be very control and all these contradicts the core principle of decentralization that crypto is all about. Not to forget that these CEXs have undergone multiple hacks and security breaches, they sometimes restrict withdrawals and government bodies does not even make it any better as it has caused lot of account freezes due to regulatory pressure.

On the other part we have DEXs where we are in control of our funds and no central authority or third party holding them. But they are not as convenient as CEXs. They have limited fiat options, and their user experience tend to be more complex than when using a CEX. Correct me if I'm wrong but I don't think they hold as much liquidity as CEX especially in some markets.
For years a lot of users have to to trust CEX as they are very accessable and tend to bridge the gap between traditional finance and crypto. But as we all know and as we sometimes fight towards decentralization, do you think that CEX will still be necessary, or can the ecosystem evolve to a point where users no longer need to rely on them. Your thoughts on this ...

[promise444c5]

Most Nigerians don’t know what DEX is all about.. All they know are the popular exchanges which are being advertised to them [as a target]. They don’t know the difference between open and closed source wallet either, that’s why we have a lot of people still using Trust wallet.

That apart, P2P plays a big role in this aspect for Nigerians.. Take bisq as example, there’re little to no merchant on it and definitely going to make it hard for Nigerians who know about it to start doing the trade there. If we can storm there  I think it will really change the game for good.

The only problem is government learning about it but giving it another term:P.

[Akaenyi]

In cryptocurrency exchanges are necessities for smooth and convenient transactions and trading, you can choose to use DEX or CEX depending on your preferences. Despite KYC requirements most of us still prefer CEX over DEX which gives users privacy which is how cryptocurrency transactions should be

Centralized exchanges are more popular than decentralized exchanges because of conveniences like their interface, speed, password recovery and customer support. With these features crypto traders don't mind submitting their KYC so I will say that centralized exchanges are still necessary and relevant.

[ColdLava40]

We had a good number of decentralized exchanges before. But most of them have been forced to shift to being centralized.now, people are more focused on centralized platforms because of how flexible they can be, but the risk still remains same.

Not once, not twice. We have seen alot them get hacked with people funds stolen. While some do try to send out users funds, some never got to pay back what was stolen.

It's as simple as you making a choice.

[Charles-Tim]

For years a lot of users have to to trust CEX as they are very accessable and tend to bridge the gap between traditional finance and crypto.

The most reason people trust decentralized exchanges is because they are centralized. People like what is centralized. They are now working with the government and people also trust that. People are the problem because they are afraid of decentralization by nature, only people that want privacy prefer decentralized exchanges but most people do not even know what that privacy is.

[Dareo]

Honestly CEX and DEX are not really alternatives to each other, but rather serve two different purposes. CEX is still very useful for new users, because it is the first easy way to get from fiat to crypto this bridge has not yet been completely replaced. And CEX is best for trading.

However, once someone gets used to it, the importance of DEX is understood especially for control over one's own funds. So in my opinion, the future will not be such that CEX will completely disappear, but rather people will use both according to the situation.

[casey15]

The most reason people trust decentralized exchanges is because they are centralized. People like what is centralized. They are now working with the government and people also trust that. People are the problem because they are afraid of decentralization by nature, only people that want privacy prefer decentralized exchanges but most people do not even know what that privacy is.

I agree. People are the problem, they tend to choose convenience over security and then they complain when the security doesn't holds up. I think if people really tend to prioritize decentralization as they claim, then CEX  wouldn't used as much as it is now. Let's just say that people are still confused as to where they stand

[Agbamoni]

The most reason people trust decentralized exchanges is because they are centralized. People like what is centralized. They are now working with the government and people also trust that. People are the problem because they are afraid of decentralization by nature, only people that want privacy prefer decentralized exchanges but most people do not even know what that privacy is.

I agree. People are the problem, they tend to choose convenience over security and then they complain when the security doesn't holds up. I think if people really tend to prioritize decentralization as they claim, then CEX  wouldn't used as much as it is now. Let's just say that people are still confused as to where they stand

Whichever way we try to push DEX as an option for most enthusiasts, most individuals will end up using CEX to finalize P2P transactions because they prefer a platform where interaction between the buyer and seller is possible. The reason why DEX and CEX exist is for personal preference. I may see the advantage of a centralised exchange over a decentralised exchange, but the other person may not see it the same way. I dont think they are confused. What I think is that they want to see the candles, the chart, and transparency in transactions.

[Ambatman]

With the existence of ETF also
The appeal I believe CEX holds is for those that want to engage in quick trades.
They have more liquidity compared to DEX and some people are comfortable with the fact that
Another can serve as a mediator to prevent them from losing money through P2P
So in all it boils down again to convenience, speed and trust (until breach occur).

[IceLincoln]

Of course Centralised exchanges are still very much necessary today, Infact majority of users makes use of centralised exchanges because it’s easier, faster and have higher liquidity.

Just like you said Centralised exchanges has done a lot for the adoption of cryptocurrencies all over the world. The Convenience in using it and the availability of fiats.  Many holders and traders prefer using it to DEX, only those who are interested in privacy and anonymity prefer or seek to use DEX.
The thing with CEX is you have to be very careful and smart about using it, don’t store your funds there just buy and go… sharp sharp.

[Fivestar4everMVP]

On the other part we have DEXs where we are in control of our funds and no central authority or third party holding them. But they are not as convenient as CEXs. They have limited fiat options, and their user experience tend to be more complex than when using a CEX. Correct me if I'm wrong but I don't think they hold as much liquidity as CEX especially in some markets.
For years a lot of users have to to trust CEX as they are very accessable and tend to bridge the gap between traditional finance and crypto. But as we all know and as we sometimes fight towards decentralization, do you think that CEX will still be necessary, or can the ecosystem evolve to a point where users no longer need to rely on them. Your thoughts on this ...

Centralized exchanges are still very necessary in this our present crypto currency ecosystem, but maybe in the future when Dexes must have advanced very much to be able to introduce and run same features as Cex does, may be then we can start to discuss whether or not we still need centralized exchange platforms.

And this is because currently, aside the fact that all the DEXs put together may not have the liquidity that one cex like Binance have, there are also several features, like the p2p market, futures/derivatives market and so on.
So until very important features like the two mentioned be able to integrated in a way that it's also decentralized, cex will remain relevant.

[Mia Chloe]

~snip

The question is pretty tactical. First fact is both have always existed and both will always exist but gradually considering how much centralization is growing it may become more difficult to exert decentralization. Point is you can't totally deny centralization owing the government which obviously is a central body.

These days people are seemingly more relaxed using centralized services because they don't trust decentralization and some are of the opinion the government got their backs which is an illusion.

[IjawMan]

Whichever way we try to push DEX as an option for most enthusiasts, most individuals will end up using CEX to finalize P2P transactions because they prefer a platform where interaction between the buyer and seller is possible. The reason why DEX and CEX exist is for personal preference. I may see the advantage of a centralised exchange over a decentralised exchange, but the other person may not see it the same way. I dont think they are confused. What I think is that they want to see the candles, the chart, and transparency in transactions.

It is true dew to how most of the people strongly trust what thing the authority is involved in and are playing a mediation role. The presence of a central authority lightens their fears of being scammed and extorted. I see it that people like this have been too habituated with the government and they do not see the relevance of a decentralize platforms over centralized. I see it as a lack of sufficient information causing them to be conservative.

[EluguHcman]

We all know that Centralized Exchanges have played a very big role in the growth and adoption of crypto currency, they have acted as the bridge for buying selling sbrbeven trading. Even when decentralized exchange LS have been made available, majority of users still rely so much on CEXs.
But looking at the current growth of crypto today, are CEXs still necessary or are they simply a convenience that is difficult to neglect?

There are lot of reasons why the Decentralized exchanges is loosing massive attentions for Centralized exchanges with reasons being that most of the existing Decentralized exchanges only supports very few of fiats-to-crypto P2P trading exchange and also due to the fact that the trading involves Peer-to-peer, trust within both the seller and the buyer will not be tolerated which entails the risk of trading under non regulating platforms.

And as it has involved the fiats, the Centralized exchanges will be preferable and most massively adopted by crypto traders with the confidence that the authorities will always keep watch between the two parties through the escrows.
Also as the governments are showing up interests in the crypto industry, they're usually tied to operate under the Centralized exchanges for regulatory compliance.

Hence... The CEX would in the long term dominate the CEX.

[Callido]

I agree. People are the problem, they tend to choose convenience over security and then they complain when the security doesn't holds up. I think if people really tend to prioritize decentralization as they claim, then CEX  wouldn't used as much as it is now. Let's just say that people are still confused as to where they stand

You can start by using DEX if you think it is better than CEX.

I'm not seriously going to push the use of DEX over CEX, people will continue to use where they think is safe, using CEX for P2P purpose is actually okay, the problem is with those who are holding their coins with the exchanges for long. Me using CEX is because i want to sell my coin, holding goes through a different route.

[Shadiq]

CEX and DEX may have different advantages depending on the purpose. Our main purpose of using an exchange is to convert crypto to fiat, that is, P2P. I can't say for sure what the main purpose of others is in using an exchange, but my main purpose is to convert crypto to fiat. CEX still provides the most advantages for crypto to fiat P2P, although we have to sacrifice privacy, maybe that sacrifice is not a big deal compared to the advantages.

If someone wants to trade crypto only in their own wallet, then DEX may be the best choice for them. DEX offers more advantages than CEX for crypto to crypto trading. It even gives you more advantages in terms of privacy and security. The main difference between DEX and CEX is between freedom and convenience. DEX gives more priority to freedom or privacy but is complicated to use, on the other hand, CEX is convenient but your freedom and privacy are controlled by the exchange.

CEX is still necessary, since we can't use crypto directly. As long as we need fiat, we will need CEX, especially for people who are new to crypto.

[Cryptomultiplier]

I agree. People are the problem, they tend to choose convenience over security and then they complain when the security doesn't holds up. I think if people really tend to prioritize decentralization as they claim, then CEX  wouldn't used as much as it is now. Let's just say that people are still confused as to where they stand

You can start by using DEX if you think it is better than CEX.

I'm not seriously going to push the use of DEX over CEX, people will continue to use where they think is safe, using CEX for P2P purpose is actually okay, the problem is with those who are holding their coins with the exchanges for long. Me using CEX is because i want to sell my coin, holding goes through a different route.

I think both CEX and Dex are there for personal choices. Someone with a less knowledge about Dex can easily opt for CEX so as to be conversant with the crypto currency market and understand better before they jump into using DEX  which is more complicated in application and use case.

The main thing is to be security conscious and know how to apply risk management protocols, otherwise an investor can loss funds from using both CEX or DEX without the proper knowledge.

[Dr.Bitcoin_Strange]

Centralized exchange will remain very necessary until crypto fades away but that's if at all crypto will ever fade. Let's put aside the trading volume on the normal spot trading option in CEX, do you know billion and trillions of dollars that is being traded on the future contract every day on different CEX? CEX will remain necessary for different kinds of trading which is not done by everyone. Is not everyone that are future or perpetual traders but those that are partaking in such kinds of trading needs CEX. For just normal buying and selling of coins, if there's any well known and trusted DEX for trading Bitcoin, people will use it but there are already decentralized EX for swapping if ETH contract tokens, BSC contracts token and SOL  too.

[Salahmu]

We all know that Centralized Exchanges have played a very big role in the growth and adoption of crypto currency, they have acted as the bridge for buying selling sbrbeven trading. Even when decentralized exchange LS have been made available, majority of users still rely so much on CEXs.
But looking at the current growth of crypto today, are CEXs still necessary or are they simply a convenience that is difficult to neglect.

You can neglect Centralize exchange for holding but if you are someone who does conversion of cryptocurrency all the time you will definitely going to find it necessary because everything regarding the conversion is done on the exchange so actually it has remained as important as it has always been from the beginning, is important for both holders and traders but in terms of how they use it, traders are the people who make more use of it than holders because they are there at every giving time. Exchange is together with cryptocurrency because without it there would be an effect on cryptocurrency and without cryptocurrency there wouldn't also be an exchange because of the nature.

[Judith87403]

I think both CEX and Dex are there for personal choices. Someone with a less knowledge about Dex can easily opt for CEX so as to be conversant with the crypto currency market and understand better before they jump into using DEX  which is more complicated in application and use case.

The main thing is to be security conscious and know how to apply risk management protocols, otherwise an investor can loss funds from using both CEX or DEX without the proper knowledge.

I think CEXs are even more complex than DEXs. But asides the complexity aspect, there’s no way you can actually trade or even swap with DEXs, so even if the DEXs guarantees the safety of your funds, you’ll still need CEXs for your trades and conversions, except you wanna use direct P2P platforms which sometimes can be very risky.

It’s clear, for someone looking forwards to funds security, they should definitely go for DEXs, which is why it’s not advisable to leave a huge amount of money in a CEX because those funds are not really guaranteed.