DEX trading is fully adopted by native crypto users. There are more users on CEXs than on DEXs, but the latter is expected to eventually overtake the former when it reaches its full potential. DEXs are built on the main shortcoming of the CEXs, but there are still many issues that need to be resolved in order for DEXs to achieve their full potential. DEX traders face difficulties every day and yet there is little to no improvement, which even leads to people refraining from trading on it. These difficulties can be divided in the following categories:
One of the main issues that can prevent a trader from making a successful trade on the DEX is the lack of various order types. Mostly, the market order is the only type of order that can be used. Aside from this, the lack of effective tools for making multiple types of trades is also a major issue that needs to be resolved in order to improve the efficiency of the trading process. Offering advanced trading tools will be a critical solution in today's DEX trading.
Keeping a track of your activities is difficult without clear information. The trader has to hop to different websites to get all needed information. This leads to traders making unnecessary mistakes, which leads to bad trades. Many of these mistakes can be prevented if the trader had a proper overview of all the information that is important. In order to have succesful trades there are things that are important to know, like: price tracking, taxes, spent token amount, gas fee and most important of all is, time. One has to do his or her own estimates of their PnL still today's market, while this is something that could be done long ago on CEXs.
Developers can easily launch their token on a DEX. That’s why there are countless of tokens available to buy on a DEX, way more than a centralized exchange. This eliminates the need for them to follow certain requirements and allows them to launch their token without restrictions. With the increasing tokens that are being launched daily, there have been a lot of fraudulent tokens with it. One should always be careful when investing in projects, as there are potential risks involved. Having an extra safety net would help minimize the amount of people getting scammed or rug-pulled or buying a token that is a honeypot.