Re: Why are decentralized exchanges better than centralized exchanges for crypto?
Cryptocurrencies are getting high popularity since the witness of rise in bitcoin, altcoins values. The number of crypto traders is increasing along with growth of cryptocurrencies. Mostly, crypto traders' choice was decentralized exchange platforms rather than centralized exchange, since they offer tremendous advantages by cutting down the drawbacks in centralized exchanges.
Traditional centralized exchanges have downfalls as they hold single central server control. It has many loopholes for security and privacy risks. It makes the decentralized exchanges come into action.
Advantages of decentralized Exchanges are,
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Traditional centralized exchanges have downfalls as they hold single central server control. It has many loopholes for security and privacy risks. It makes the decentralized exchanges come into action.
Advantages of decentralized Exchanges are,
- Peer to peer crypto transfers
High Speed transactions
No middlemen intervention
Reduced Transaction fees
Enhanced Security protocols
High Efficiency
For More Info: https://blockchainfirm.io/blockchain-exchange-development-company
You forgot to mention that a key advantage of decentralized exchanges is privacy & anonymity. While centralized exchanges force KYC, you can easily get into crypto via the use of a decentralized exchange. There are no credit checks, ID verification, or any personally identifiable information of any kind through DEXs. All you need is access to your private key or seed and you're all set. While decentralized exchanges have some advantages over centralized ones, their lack of liquidity and trading volume makes people look elsewhere. Not to mention, using a decentralized exchange (DEX) requires a certain level of technical knowledge. If it wasn't by that, DEXs would've taken over CEXs already.
Ultimately, it's all about decentralization and censorship-resistance. Despite the fact that centralized exchanges dominate the crypto market, crypto has remained decentralized over the years. In the event CEXs disappear, crypto will carry on with decentralized exchanges. Which type of exchange you'll use, will greatly depend on your needs. As long as you don't keep your crypto in an exchange, you'll have nothing to worry about. Just my opinion
