Can Crypto Survive without CEX [Centralized Exchanges]? Do we need CEX for Crypto?
Hey All,
We all who are in crypto space and understand crypto markets are well familiar about what is the difference between a Centralized Exchange aka CEX and Decentralized Exchanges aka DEX? There are many difference associated to an CEX and DEX. But the one that stands out is the custody of users funds and its private keys. In case of a DEX users have custody of their funds and at the same time ownership of Private keys is with the users. And whereas in case of CEX the custody of funds is in the hands of CEX along with Private keys as well. If a CEX becomes or files an Bankruptcy then all users funds are at risk rather users looses their funds.
Now that we have some understanding to what a CEX and DEX is. Lets get to the main point of this post which is related to can::
Crypto Strive without a CEX? Crypto for Fiat
In my opinion this should be difficult at the moment, where crypto is able to survive without an Centralized Exchange. I am saying this because just imagine how are we going to exchange crypto for fiat, if there is no CEX. To be honest, I have not seen a DEX where we could exchange crypto for fiat in our local currency. Ok I get there could be a DEX that could get you $USD but then you need to trade that $USD for the local currency. Having CEX makes this tasks of exchanging the Crypto for Fiat possible.
Their tie up with bank and then again providing a Peer-to-Peer P2P solutions is a gateway for getting Crypto exchanged for Fiat. No doubt that there a quite many flaws in a CEX may it be associated:: how they provide custody of funds, charging expensive trading fees, are a single point of failure and many others. But at the same time we cannot deny the fact that CEX are helpful to Crypro as well in terms of providing high liquidity, crypto to fiat exchange, crypto orders executed in seconds, spreading crypto outreach to the world, simple and easy to use and much more. Therefore, I would end this post by saying Centralized Exchange do play a critical role in entire Crypto space and it would be difficult to strive/survive with an CEX existence and therefore would make it difficult for Crypto mass adoption.
Can Crypto Survive without CEX? Do we need CEX for Crypto at all?
Have Your SAY on Centralized Exchanges - CEX...
What are your thought around can crypto survive without a CEX?. Is DEX alone all good for crypto? Or do we need both CEX and DEX for crypto to survive? Let me know your thoughts in the comment box below... cheers :-)
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Best Regards