Centralized Vs Decentralized Exchanges

Published by

Alice Jenifferze activities: Digital Marketer

Jun 11, 2021

Classifications of Cryptocurrency Exchanges

 

 

1.Centralized Exchange

2.Decentralized exchanges

3.Hybrid cryptocurrency exchanges

 

Centralized cryptocurrency Exchanges

 

Any cryptocurrency exchange website which has a central authority (i.e) admin to control the trading activity is know as centralized exchanges.

 

In technical terms, This kind of cryptocurrency exchanges will store the traders private key in centralized cloud storage, and the customer will not be able to proceed trading without sending the amounts to the admins control.

 

Pros:

 

1. Easy to use

2. Secured

 

Cons:

 

As the exchanges stores private keys in cloud storage, it will become a honey pot for hackers to steal all the funds.

 

 

Decentralized Cryptocurrency exchanges

 

This kind of cryptocurrency exchanges will not mediate the trading with the governance of the website admin. Which means the admin has no control over the funds, and the private keys will not be stored in any third party cloud storage.

 

so the trader have to trade cryptos directly from their own hardware wallet.

 

Pros :

 

1. Fast

2. Peer to Peer

 

Cons :

 

* Maximum support to crypto to crypto trading alone, Especially with ethereum.

 

The above are the major cryptocurrency exchanges types which currently rules the entire network.

 

The decentralized exchange is an innovative exchange model in cryptocurrency industry which results in high security and instant trading of your digital assets. Exchange websites which perform decentralized exchanges are called as decentralized exchange websites. There is a solid reason for decentralized exchanges to emerge online, Yes. In the past three years (2015–2018), there were around $100bln were stolen from unsecured centralized exchange websites.

 

Now in this Digital era, Cryptocurrency business becomes the hot trend. Many business people are willing to start their own business in the domain. By making use of Cryptocurrency Exchange Script, any business person can kick start their own Cryptocurrency Exchange.


Articles authored by Alice Jenifferze

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