Centralized and Decentralized Exchanges

[taratorly]

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)

In today's conditions, DEXs are not used much. Can be used in great trouble. If DEXs increase their transaction volumes, they always have potential. However, a number of DEX platforms are not sure that the platforms are really decentralized.

[jvper]

Decentralized exchanges are poised to be a big evolution, but at the moment they are lagging behind in terms of UX.

[Svelto]

Between centralised and decentralised exchanges, I feel that the trading fees is lower and the volumes are higher in centralised exchanges. I guess this is why more people are trading there.

[86B]

How's this for a true DX UI/UX (Blocknet's Block DX):

[hanniabu]

+1 for Block DX, built on Blocknet

- decentralized fund storage (trade out of your own wallets)
- decentralized order book
- decentralized order matching
- decentralized asset exchange (atomic swaps)
- 100% of fees are distributed to holders of BLOCK

Unlike other so-called DEXs, the Blocknet Protocol exchanges the actual assets rather than derivatives (colored coins or proxy coins). You can also exchange over 100 coins such as Bitcoin, Litecoin, Dash, Dogecoin, Qtum, DigiByte, PIVX, Zcoin, MonaCoin, Syscoin, Namecoin, Stakenet, LRBY Credits, Phore, etc.

You can see more here: https://blocknet.co/coins/

[Gab20]

Centralized exchanges are much better compared to me. Look, if exchange got hacked, they would compensate you. also there is a probability when CEX can send you extra amount by fault , in dex it is impossible

If you are referring to exchanges getting hacked. Centralized exchanges are more prone to hack, while decentralized exchanges are very hard to hack. So I am not afraid of a genuine decentralized exchange getting hacked.

[jacafbiz]

For me, Centralized exchanges are still miles apart from Decentralized exchanges, the absence of Fiat gateway is a minus to Decentralized exchanges and also their Interface is very poor and slow to use when compared to Centralized exchange. I see some exchanges trying to be creative by creating WBTC and Adding USDC to their exchange this is a  good move but need to do more IMO

[miropp]

I prefer decentralized exchanges. I love when I can control everything myself, including my funds and my transactions.

[qtronix]

Of course wn any of them has its advantages. I can't say I support one thing. I use both centralized and decentralized exchanges.

[gerjiss]

In theory, decentralized exchanges should be better, but so far it does not work and basically everyone chooses centralized exchanges.

[Osayo]

Decentralized exchanges are quite cool especially for those with great amount of Cryptos that do not want their identity reviewed. The Decentralized exchanges are also safer.

[Oceat]

11. Most centralized exchanges are insured.It is possible to get money back if something goes wrong.

I am very surprised with this paragraph. It's totally messed up, where the heck do you get that? Tell me what exchange is insured, what amount of deposit is insured, what is the procedure of getting insurance payments? So many questions without answers.

Haven't heard such thing also. Maybe, he can provide reference links stating that centralized exchanges are insured. I doubt this statement is really true.

I think OP doesn't know what he's talking a centralized exchange would be in total disaster once it is being compromised by the hackers. There is no returning of the funds that you already lost and the authority that OP's talking will not going to refund all of the stolen crypto. There is no returning full of your stolen belongings.

Cryptocurrency just like Bitcoin is designed to be your own money, meaning to have full control of your own money so never put all of your crypto in any exchanges because they don't take the responsibility once your crypto is stolen.

[Ultimist]

Decentralized exchanges are much more reliable and that's what I like most about them. But I also use centralized. Sometimes I miss the opportunities offered by a decentralized exchange.

[mirakal]

Decentralized exchanges are much more reliable and that's what I like most about them. But I also use centralized. Sometimes I miss the opportunities offered by a decentralized exchange.

Well decentralized exchange are good but not so reliable IMO.
Centralized exchange are more secured as users can undergo KYC and they will have an insurance if ever
they will loss their money in case there is a hack.

In decentralized exchange, you just enter your private or password and no KYC and they are not registered so operators could be anonymous.

[bountylayomi]

Well, my belief is that whatever has advantages will definitely also has disadvantages. Decentralized exchanges have advantages likewise disadvantages too. The same thing is applicable for Centralized exchanges.
But in all, I prefer decentralized exchange over centralized exchange because of its high security and one doesn't has to perform a KYC to withdraw.

[TrevorS]

I am confused by the fact that centralized exchanges are so often subject to hacking. Every year the same thing. Several large exchanges are losing money to their customers.

[jan.nicolas]

To be honest, in general, I don’t understand what the difference is. Many say that centralization is worse than decentralization and exchanges, respectively, but what's the difference? It seems to me that there is no difference at all.

[BitcoinTurk]

The differences, advantages and disadvantages of the centralized and decentralized exchanges are very well explained. It was an article I thought would be very useful especially for individuals at the beginning level. As a result, regardless of the level of information, users should be aware of the services they will use and should know who or where they will be in a possible situation. New investors should definitely look at these information articles and learn about them.

[Abosede]

We have got advantages and disadvantages for both decentralized centralized exchanges,to me the major problem of centralized exchange is the privacy problem,no privacy and that make it easy for hackers to hack,but when it comes to functions, i guess it is far better than decentralised exchange and most importantly, it is user friendly, for decentralised, you have some privacy which make your coin to be safe.

[Zalaster]

I do not use DEX, I am satisfied with Binance, as the most reliable place to trade, and ChangeNOW is also used as a place to exchange without registering.