TL;DR
There are professionals and cons to each CEX’s and DEX’s.
We expect the explanation most of us nonetheless use CEXs is: we’re all lazy as hell – we began on CEXs and by no means made the soar, trigger we did not need to.
Full Story
There is a sure stage of hypocrisy within the crypto area…
Everybody champions decentralization, however the majority of crypto trades happen on centralized exchanges.
(We’re responsible of it).
So, why is that? Let’s begin right here…
When one individual desires to purchase a token/coin, they have to be paired up with another person promoting that very same asset, within the desired quantity, on the proper value.
That is a whole lot of plates to spin.
Each centralized and decentralized exchanges do that matchmaking for us customers, in a course of generally known as “order matching”.
Okay, so each sorts of exchanges do order matching…what is the precise distinction?
Centralized Exchanges (CEXs)
Power: They’re actual quick. Shopping for and promoting on a centralized change is a speedy expertise (which is v vital for those who’re a excessive frequency dealer).
Plus, they’re manner simpler to make use of. E mail, password, and proof of ID is all you must get began.
Weak spot: It is one entity, holding a whooooole bunch of different peoples cash. If the change goes underneath, your cash might be going with it (*cough* FTX).
Plus having everyones crypto in a single place attracts the eye of hackers. Oh and also you surrender a little bit of your monetary privateness once you hand over your ID.
Decentralized Exchanges (DEXs)
Power: No join wanted, so long as you have got a crypto pockets, you need to use a DEX.
Plus, you have got custody of your crypto always, so if the DEX had been to go down, or expertise an outage – your cash is protected and accessible.
Weak spot: From a brand new person standpoint, DEXs are complicated as hell! (“What the hell is a ‘self custody pockets,’ why cannot I simply use my e-mail?”)
And from knowledgeable dealer’s viewpoint, they are often gradual, placing their trades at an obstacle.
However all of these competing professionals/cons apart…
We expect the explanation most of us nonetheless use CEXs is manner less complicated than all of that:
We’re all lazy as hell!
We began accounts on centralized exchanges as a result of it was the one manner to purchase crypto with a bank card.
Since then, we have all been too lazy to make the soar from CEX to DEX.
