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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 bounce, trigger we did not must.
Full Story
There is a sure degree of hypocrisy within the crypto house…
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 needs to purchase a token/coin, they should be paired up with another person promoting that very same asset, within the desired quantity, on the proper value.
That is a number of plates to spin.
Each centralized and decentralized exchanges do that matchmaking for us customers, in a course of referred to as “order matching”.
Okay, so each kinds 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 alternate is a speedy expertise (which is v necessary if you happen to’re a excessive frequency dealer).
Plus, they’re approach simpler to make use of. E-mail, password, and proof of ID is all it is advisable get began.
Weak spot: It is one entity, holding a whooooole bunch of different peoples cash. If the alternate 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 while you hand over your ID.
Decentralized Exchanges (DEXs)
Power: No enroll wanted, so long as you’ve a crypto pockets, you should utilize a DEX.
Plus, you’ve custody of your crypto always, so if the DEX had been to go down, or expertise an outage – your cash is secure and accessible.
Weak spot: From a brand new consumer standpoint, DEXs are complicated as hell! (“What the hell is a ‘self custody pockets,’ why cannot I simply use my electronic mail?”)
And from an expert 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 approach 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 approach to purchase crypto with a bank card.
Since then, we have all been too lazy to make the bounce from CEX to DEX.
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