Altcoins Talks - Cryptocurrency Forum
Crypto Discussion Forum => Cryptocurrency discussions => Topic started by: Jaephoenix on October 13, 2022, 08:44:46 PM
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Despite the rise of decentralized finance (DeFi), cryptocurrency investors appear to be sticking to centralized exchanges (CEXs) over DeFi tools, according to a new report.
Crypto investors are more comfortable holding their assets on CEXs because decentralized exchanges are still more vulnerable to the threat of hacks. This is according to a joint report by the blockchain data firm Chainalysis and Bitfinex exchange, issued on Oct. 13.
According to the study, the risks of hacks associated with CEXs have dropped significantly over the past few years, while various DeFi platforms have become increasingly hacked.
So that means many prefer cexes
Source
https://cointelegraph.com/news/hodlers-prefer-centralized-exchanges-over-defi-for-security-chainalysis
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Decentralization is good, but at the same time, it introduces elements of uncertainty into the operation of the new financial mechanism in the safe operation of cryptocurrency due to the almost impunity of hackers and the intervention of various scammers. Many have already noticed that the establishment of certain rules and procedures increases the security of working with cryptocurrency. The social structure of society has been formed over many millennia, and so far there is no alternative to establishing general rules of conduct in any society and in any area. Therefore, centralized exchanges are now enjoying some success.
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DeFi protocol is actually safe to use, but some hackers make many ways to get free tokens from the theft they do, just like what happened to Uniswap, hackers carried out a series of phishing attacks by targeting LP providers and they created fake LP tokens, details:
https://cointelegraph.com/news/more-than-4-7m-stolen-in-uniswap-fake-token-phishing-attack/amp
For now the DeFi platform still has a lot of trust, but the level of vulnerability or hacking will always be there, therefore we must be careful when connecting wallets to Dex exchanges, to avoid phishing sites that can take user funds.
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here too it is a question of making a choice a high degree of security offered by the cex but no anonymity or taking risks / less security and a high degree of privacy with defi/dex, personal choices and motivations however the dex are growing a lot in recent times
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It's true since people are more comfortable holding their coins on the exchange like Binance, Coinbase, etc., aside from the quicker cash-out, and more liquidity, it is also marketed with #SAFU and the like, meaning that in the event of a hack, we can expect our fund to be safe. There's no reason to hold funds on DEX since people are already happy with CEX.
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Decentralization is good, but at the same time, it introduces elements of uncertainty into the operation of the new financial mechanism in the safe operation of cryptocurrency due to the almost impunity of hackers and the intervention of various scammers. Many have already noticed that the establishment of certain rules and procedures increases the security of working with cryptocurrency. The social structure of society has been formed over many millennia, and so far there is no alternative to establishing general rules of conduct in any society and in any area. Therefore, centralized exchanges are now enjoying some success.
I totally agree with you.Before I also loved the concept of decentralisation. I still am can say but security and the intervention of hackers, lot of problems.
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DeFi protocol is actually safe to use, but some hackers make many ways to get free tokens from the theft they do, just like what happened to Uniswap, hackers carried out a series of phishing attacks by targeting LP providers and they created fake LP tokens, details:
https://cointelegraph.com/news/more-than-4-7m-stolen-in-uniswap-fake-token-phishing-attack/amp
For now the DeFi platform still has a lot of trust, but the level of vulnerability or hacking will always be there, therefore we must be careful when connecting wallets to Dex exchanges, to avoid phishing sites that can take user funds.
Obviously dexes are easier to use but easily hacked. My wallets that I connected to dexes like Crystl on cronos chain were hacked and all my tokens drained. That is why I am off decentralized finance for now. So I do centralized exchanges for now. Safety first
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I myself prefer to keep my assets on centralized exchanges. I hold some of my assets in binance. Here I can store if I want, trade if I want, I can do p2p trade and we know that the security of Binance is high enough. On the other hand, trading on decentralized exchange is risky. Many people visit phishing sites, many mistakenly disclose the private key while connecting the wallet. As a result, they easily become victims of hacking.
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I myself prefer to keep my assets on centralized exchanges. I hold some of my assets in binance. Here I can store if I want, trade if I want, I can do p2p trade and we know that the security of Binance is high enough. On the other hand, trading on decentralized exchange is risky. Many people visit phishing sites, many mistakenly disclose the private key while connecting the wallet. As a result, they easily become victims of hacking.
You need to store on a centralized exchange what you are not afraid of losing and what you are trading. Trading on Dex is safer, provided that you are on the right site.
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As attacks on DeFi platforms become commonplace in the market, storing and trading on CEXs takes precedence as CEXs will compensate users in case they have problems. Trading fees on CEXs are also cheaper than on DEXs. I also usually store and trade crypto on Binance and GateIO rather than using a personal wallet.
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Despite the rise of decentralized finance (DeFi), cryptocurrency investors appear to be sticking to centralized exchanges (CEXs) over DeFi tools, according to a new report.
Crypto investors are more comfortable holding their assets on CEXs because decentralized exchanges are still more vulnerable to the threat of hacks. This is according to a joint report by the blockchain data firm Chainalysis and Bitfinex exchange, issued on Oct. 13.
According to the study, the risks of hacks associated with CEXs have dropped significantly over the past few years, while various DeFi platforms have become increasingly hacked.
So that means many prefer cexes
Source
https://cointelegraph.com/news/hodlers-prefer-centralized-exchanges-over-defi-for-security-chainalysis
I'm one of those people who don't like the centralized exchange dude, but that was before. I mistakenly thought that cex was more dangerous compared to dex. I realized that it is safer to use the CEX platform, although they require KYC requirements for the safety of their users' assets on the platform.
Just like Binance, despite the number of times it was hacked by hackers, they were able to fix it immediately to block the hackers' plans, so their users or traders on their platform continue to trust them. But, I'm not saying that all DEXs are unsafe and dangerous because there are still safe dexes like Pancakeswap, Quickswap, Uniswap, and Biswap.
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I can't say about the source of the news but the report infers that investors or traders believe in Centralized exchanges as compared to decentralize exchanges due to security reasons. Centralized exchanges are much more secure than Decentralize exchanges so users believe in the trust factor. I also give priority to Centralized exchanges over decentralized exchanges.
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This is human nature. Most people will gravitate towards something where they feel safer and that is why CEXs are still doing good business despite the rise of many DEXs for the past many years. As long as security risks remain higher with CEXs users will always be afraid to bring their business to them by avalanche. I think this is true with me though it does not mean am not also using some DEXs.
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There is much more liquidity on cex and they are more familiar, faster and they have lower commissions.
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DeFi field need more development , have to increase their security the problem is there are a lot of projects appearing at this time and they need proper security management , At the time its true that centralize platform is more safe in term of defi but crypto develops a lot, and decentralization is the future .