Centralized cryptocurrency exchanges are trading platforms that functioning like traditional stock markets. It is owned and operated by an individual or company that maintains total control over all trader’s transactions.
Users on centralized exchange platform do not have permission for accessing the private keys of their exchange account’s wallets. This puts all traders trust in the hands of the exchange operators, as transactions can only be made through the mechanisms provided and approved by a central authority.
Some of popular centralized cryptocurrency exchange:
Binance, Kraken, Bittrex
Decentralized Cryptocurrency Exchanges (DEX)
Here, no intermediatary operator will participate in DEX as they are utilizing blockchain (distributed ledger) technology. In this way, a DEX does not hold anyone’s funds and transactional information, and only serves as a matching and routing layer for trade orders.
Some of popular DEX platform :
WavesDEX , EtherDelta, AirSwap
Comparative Features CCE & DEX platform :
Choosing between a centralized cryptocurrency exchange and decentralized cryptocurrency exchange is not exactly cut and dry, as they both have their own advantages and disadvantages.
While, these days centralized currency exchanges provide more functionality to their users. But if hacking happens, centralized person will take of all other’s money in that platform. Since governments do not centrally control cryptocurrencies, one of the most significant results of the blockchain craze has been the decentralization of money issuance.
That’s why DEX concept revealing into crypto world. Every user’s money will be their hand alone in decentralized cryptocurrency exchange.
While blockchain technology does wonder in terms of transparent record-keeping, it is still up to exchanges and their users to protect valuable data and funds. WeAlwin Technologies - Leading blockchain development company offers wide range of blockchain solutions. At WeAlwintechnologies, we take security extremely seriously protocol, and all the checks are performed according to the highest standards.
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