CENTRALIZED EXCHANGE: A Centralized exchange is an exchange which operates in a centralized way, that is, having a central authority.Users of centralized exchange do not have access to the private keys of their exchange account’s wallets, this makes users not to have total control over their asset.Transaction is based on central authority approval.
DECENTRALIZED EXCHANGE:Decentralized exchange is an exchange which operates in a decentralized way,that is,without a central authority. Decentralized exchange make use of distributed ledger and therefore does not hold customers’ funds and information
ADVANTAGES AND DISADVANTAGES CENTRALIZED EXCHANGE High trade volume
Higher liquidity
Some centralized exchange allow users to exchange fiat for Cryptocurrency
Accept direct bank wire transfer, Credit, Debit for fiat payment
Risk of hacking is very higher
No privacy at all, high level of identity theft
Open to government intervention which can lead to a ban.
It has gain so much popularity because it is user friendly
Ownership details are made known.
Many centralized exchanges offer large functionality like margin trading, discount for high volume trading, lending, large amount of financial data.
.
DECENTRALIZED EXCHANGE Low trade volume compare to centralized exchanges
Low liquidity
Dex allows exchange of Cryptocurrency only
Payments in Cryptocurrency only
Almost impossible to hack
High level of privacy
No government intervention
Just trying to gain popularity due to lack of simple user interface
Ownership details are not made known
Offers are limited compare to centralized exchanges.
LIST OF SOME DECENTRALIZED EXCHANGES• IDEX (
https://idex.market)
• RADAR RELAY DEX (
https://radarrelay.com)
• ETHERDELTA (
https://etherdelta.com)
• WAVES DECENTRALIZED EXCHA (
https://wavesplatform.com/product/dex)
• OPENLEDGER DEX (
https://openledger.io/market)
• AIRSWAP ((
https://www.airswap.io)
• CRYPTOBRIDGE DEX (
https://crypto-bridge.org)
• GDEX (
http://www.allcmc.com/exchange/gdex)