Why Use Centralized Exchanges for Crypto if Decentralized Options Are Safer?

[Houdini]

After finding out through a thread here that it's much safer to exchange cryptocurrencies via decentralized exchanges like this one https://thorswap.finance/ , I don't really see the point of using Kraken, Binance, or similar platforms unless you need to cash out to fiat.

Is there any good reason not to use a decentralized exchange if you're keeping your assets in crypto?

 

[avalanche]

Houdini said:
After finding out through a thread here that it's much safer to exchange cryptocurrencies via decentralized exchanges like this one https://thorswap.finance/ , I don't really see the point of using Kraken, Binance, or similar platforms unless you need to cash out to fiat.

Is there any good reason not to use a decentralized exchange if you're keeping your assets in crypto?
Click to expand...

centralized exchanges for now are better for frequent trading because:
- instant settlement of trades.
- don't have to pay x10 higher fee just because some CUMCLOWNALLIGATOR token is clogging the network.
- limit orders so you can set a price and wait for the order to be filled instead of swapping here and now.
- some decentralized exchanges can also hold your funds if their algo detects anything "suspicious".
- much more convenient API for algorithmic trading compared to DEX where your transaction may fail and never execute.

but if you buy and sell here and there without caring too much about timing and plugging your bot then decentralized exchange will do just fine

 

[Houdini]

Those were really good arguments for and against both options. That's exactly what I wanted to know so I can set up the best possible solution for my crypto trading.

 

[diatessaron]

If the DEX gets hacked while your funds are in it you won't get anything back.

 

[zaybxc]

Houdini said:
Is there any good reason not to use a decentralized exchange if you're keeping your assets in crypto?
Click to expand...

Certain cryptos have low liquidity on DEXes.

avalanche said:
centralized exchanges for now are better for frequent trading because:
- instant settlement of trades.
- don't have to pay x10 higher fee just because some CUMCLOWNALLIGATOR token is clogging the network.
Click to expand...

I tried a couple of swaps on Arbitrum and it was fast (1 second) and cheap (less than 1 $cent).

 

[Freetrade]

I don't really see the point of using Kraken, Binance, or similar platforms unless you need to cash out to fiat.
Click to expand...

You are paying way more on Thorswap.
Lets do an example of swapping 1 BTC for eth:

You are getting 0.25 more ETH on Kraken for 1 BTC. At $2472 per ETH that is $618.
Quite a difference!

 

[Houdini]

diatessaron said:
If the DEX gets hacked while your funds are in it you won't get anything back.
Click to expand...

How often does this happen? I mean, what's the risk of it getting hacked during the 10 minutes the funds are in rotation?

If you're swapping on a well-established, decentralized exchange (DEX) or a secure centralized exchange (CEX), these platforms have robust security measures to protect transactions.

 

[Houdini]

Freetrade said:
You are getting 0.25 more ETH on Kraken for 1 BTC. At $2472 per ETH that is $618.
Quite a difference!
Click to expand...

but then you have the risk they require KYC and DD if you do the swap say with 150K - 200K euro which you transfer to them.

 

[diatessaron]

Houdini said:
How often does this happen? I mean, what's the risk of it getting hacked during the 10 minutes the funds are in rotation?

If you're swapping on a well-established, decentralized exchange (DEX) or a secure centralized exchange (CEX), these platforms have robust security measures to protect transactions.
Click to expand...

More often than we would like. It happened to me, but that was an exit scam which was labeled as a hack. Once you're into using decentralized exchanges you will use less known DEXs and the chances increase.

 

[Houdini]

diatessaron said:
Once you're into using decentralized exchanges you will use less known DEXs and the chances increase.
Click to expand...

Why would I do that?

By nature, I'm a creature of habit. Once I find something that works and I trust it, I don't just try something new especially when there's a chance my cryptos could disappear!

 

[diatessaron]

Houdini said:
Why would I do that?

By nature, I'm a creature of habit. Once I find something that works and I trust it, I don't just try something new especially when there's a chance my cryptos could disappear!
Click to expand...

You put 1k in today and come back to 100k tomorrow, or after a couple of hours. It's what shitcoins do.

 

[Houdini]

What do you want to say with your answer?

 

[avalanche]

Houdini said:
What do you want to say with your answer?
Click to expand...

That you'll go on lesser known DEXes to buy shitcoins

 

[JackAlabama]

diatessaron said:
You put 1k in today and come back to 100k tomorrow, or after a couple of hours. It's what shitcoins do.
Click to expand...

mostly its the other way around

 

[dirtyharry]

avalanche said:
That you'll go on lesser known DEXes to buy shitcoins
Click to expand...

why would he do that ? any reasonable answer to it?

He already said

Houdini said:
By nature, I'm a creature of habit. Once I find something that works and I trust it, I don't just try something new especially when there's a chance my cryptos could disappear!
Click to expand...

I'm researching the same thing for my next swap of 425K euro

 

[diatessaron]

JackAlabama said:
mostly its the other way around
Click to expand...

I don't know of anyone who puts 100k in a dry shitcoin and gets 1k in return. When you can throw 100k at a shitcoin without making an impact on the price, that is exit market, not enter market.

 

[Revoltec]

I heard the DEX DyDx got quite good liquidity

 

[Houdini]

I can see there's really no way around using services like Kraken and Binance if you want to invest larger amounts (100K+) in crypto and have access to features like “stop loss” and automated sell functions. Meanwhile, these decentralized providers can't handle such large amounts.

It's frustrating when we're trying to promote crypto as the champion of a free world economy, only to end up tied down by heavy documentation and other formalities on these highly regulated exchanges.

 

[void]

Houdini said:
I can see there's really no way around using services like Kraken and Binance if you want to invest larger amounts (100K+)
Click to expand...

I agree on that, alternatives are complicated, clumsy and even dangerous

 

[JohnnyDoe]

Houdini said:
I can see there's really no way around using services like Kraken and Binance if you want to invest larger amounts (100K+) in crypto and have access to features like “stop loss” and automated sell functions. Meanwhile, these decentralized providers can't handle such large amounts.

It's frustrating when we're trying to promote crypto as the champion of a free world economy, only to end up tied down by heavy documentation and other formalities on these highly regulated exchanges.
Click to expand...

For larger amounts OTC remains the best option

Toggle signature

@JohnnyDoe ”“ Your #1 Source for Guidance in Different Offshore Fields​