To be honest, that's a trick question because I already know the answer and we all know where majority of people stand on this topic. But why do an overwhelming number of people go for Centralised Exchanges (CEX) in spite of the fact that Decentralised Exchanges (DEX) are much more secure. In fact, between 2017 and now, over $9.8 billion in cryptocurrencies has been stolen by hackers and CEXs contributed over 90% to that figure. What many don't know is that these hacks may be preventing mass adoption, as Institutional investors ( a.k.a the real money bags) would not want to invest somewhere they know their money is not even secured from hacks. But whey exactly do we all still prefer CEXs to the more secure DEX?
.
.
.
.
One of the biggest reason why people would prefer the much unsafer CEX to to DEX is that many people are lazy (yes I said it, and I'm one of them). I said lazy because many find it hard to store their private keys themselves and would prefer to give their money to someone who will "protect" it for them without giving them the private keys. And so in the end they can fuck you in the ass if they decide to and you really can't do anything because you gave all your money to them and signed it off in your right mind (myself included).
.
.
.
.
Another big reason many would rather pick the less safer option is because these centralised exchanges always create an image of themselves of being very safe even when we all know that's not the case. With all the might and money at the disposal of Binance to make their security one of the tightest, they were still hacked just last year. So even the best of the CEXs can be hacked. Also many of the big names in Cryptocurrency are involved with CEX, so it gives the CEXs a look of expertise.
.
.
.
.
Lastly and probably the biggest reason why many (and even the most experienced traders) would still use CEX in spite of the fact that we all know they are not safe is because of their Liquidity. Liquidity is the life-wire of trading and it's how you earn as a trader. The Binance Academy defined Liquidity as, "The ability to sell or buy any given asset without causing significant fluctuations in the market price for that asset". Decentralised exchanges have low liquidities as compared to their CEX counterparts and so people would much rather flood to the place where they would make more money but are not safe, than where they are safe but won't make money. Also once a user opens a CEX account, they instantly have access to several hundreds of cryptocurrency wallet addresses and trading pairs. The traders don’t have to go through the stress of securing each and every private key of the wallets you want to use like you will do in DEX.
.
.
.
.
Sadly even though we all know that CEX are unsafer we will still much rather trade on them. So you see we're fucked and though a fuck can give you HIV we still love it (get the joke yourself).
