Crypto Traders Flee Centralized Exchanges for DeFi Perpetual Trading

High-profile events have exposed the risks of centralized custody in the cryptocurrency trading industry. The collapse of FTX, exchange hacks, and withdrawal restrictions or delays have forced traders to reevaluate their platforms.

Regulatory changes, particularly in Europe, have led some exchanges to exit certain markets or alter services offered to residents. This has prompted four key questions: who controls assets, will the platform remain accessible, can orders be executed reliably under stress, and can markets outside traditional hours be reached?

Decentralized perpetual exchanges (Perp DEXs) are gaining attention for offering self-custodial perpetual trading with greater flexibility. edgeX is an example of a Perp DEX that addresses concerns about centralized venues.