Understanding The Different Types Of Cryptocurrency Exchanges

[elda34b]

Can someone please give me examples of centralized and decentralized exchange platforms? Did I get it right, that centralized platforms have your private key?? I think I never used a centralized platform. As far as I know, no one has my private key...I hope. 

Centralised = Binance, Bittrex, Poloniex, etc.
Decentralised = Forkdelta, IDEX, Binance DEX (not yet live), WavesDEX, etc.

For your second question, yes. Centralised 'hold' your private key. In fact you never have an actual wallet as your deposit address is owned by them.

[coinplus]

Like a newbie, I am also having few concerns/doubts on decentralized of exchanges.

1. I do see decentralized exchanges are getting popular after ethereum based smart contract / tokens. Does it mean a decentralized exchange will not be possible for bitcoin or other actual coins (not for the category of token nor smart contract based). Is these any exchange available for trading bitcoin into litecoin, in those prescribed decentralized way ?

2. I have traded etherdelta, forkdelta and idex exchanges. I needed to have a new eth wallet for exchange purposes hence I need to move my tokens multiple times whereas I remember for a centralized exchanges moving only once is more than enough.

3. I need to share my private-key with exchange, still how we do call they are they are all decentralized ? I mean I need to compromise my security whereas with decentralized exchange I need to trust them completely. No big differences.

[Mux@]

Ideally, I would choose a decentralized exchange with a user-friendly interface and many different features that centralized exchanges have. Unfortunately I have not found such an exchange yet. Can someone share a link to such an exchange?

[Alice Nuttal]

I don’t know any hybrid exchange that is currently operating. If someone knows any, I would be grateful for naming them. So, considering building a cryptocurrency exchange, focus on a hybrid one. There are many centralized exchanges, which gained a reputation in the course of time, as they were the pioneers in the crypto market. I think it’s unlikely a newly launched centralized platform would be able to compete with such established giants as Coinbase, Binance, Bitstamp or CEX (https://cex.io/bch-usd). I believe the mentioned exchanges are the examples of good platforms everyone who is wishing to build the own centralized exchange should focus on. The decentralized exchanges fell short to deliver easy-to-use platform though they are highly secure, unlike centralized exchanges. The users don’t want to bother with the complex site, they need simplicity. This obstacle reduced the demand for decentralized exchanges. Therefore, in the vast majority, they have low trading volumes that additionally make them less attractive for trading. Thus, the niche for hybrid exchanges is open. IMO it would be easier to reach the audience, as you would be the pioneer.