Trading

Centralized Vs Decentralized Cryptocurrency Exchanges

Centralized Vs Decentralized Cryptocurrency Exchanges

This article discussed the difference between centralized(CEX) and decentralized(DEX) Cryptocurrency Exchanges.  A centralized exchange is a platform governed by a third party to regulate and secure transactions made by a user. CEX strictly requires users to verify their identity before using any tools offered by them. Corporate companies have to verify themselves by providing their trade licenses. CEX’s have to safeguard themselves by providing a lot of security as it is easily prone to hackers. Further, in case of any technical errors faced, CEX provides users with a high return and refund along with customer service support. CEX also offers several features such as margin trading, spot trading, and portfolio management. The only con about CEX is paying transaction fees; a small price to pay to save oneself against hackers. Examples of renowned CEX’s are Binance, Coinbase, etc.

 

Decentralized Exchanges on the other hand have no third-party interventions. The funds in such exchanges are stored on the blockchain. Liquidity is lower than CEX. Also, transactions are slower compared to CEX. There are no transaction fees and users do not have to be verified in order to use the platform. DEX’s have zero to very less chances of getting hacked. There are not a lot of features offered by DEX. Examples are Airswap and Bartedex. In conclusion, having known the pros and cons of both the platforms, it’s up to the user to choose their desired platforms knowing the risk that each one entails. Join Elm Now’s crypto workshops today to receive hands-on experience in crypto trading!

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