Direct Wallet Swaps vs. Centralized Exchanges: What Are the Real Trade-Offs?
I'm looking at alternatives to centralized exchanges for crypto swaps because I'd like to reduce custody risk and keep more control over my funds. While researching, I came across SimpleSwap and other direct swap services. Opinions seem pretty mixed. Some users say these platforms are convenient because they handle routing automatically, which saves time and effort. Others point out that swap speeds can slow down during periods of network congestion, and fees aren't always the most competitive depending on the asset pair. My biggest concern is avoiding situations where funds could be affected by exchange-related issues such as hacks, account restrictions, or frozen withdrawals. At the same time, I want a service that's reasonably reliable and cost-effective. For those who have experience with both centralized exchanges and direct swap platforms, what have been the biggest pros and cons in practice? Have direct swap services worked well for you, or are there drawbacks that aren't obvious at first?