Distributed or centralized: a great debate of cryptocurrency
In the world of cryptocurrencies, two types of changes are highlighted: decentralized changes (DEX) and centralized changes (CEx). Although both have benefits, they serve different needs and offer clear experiences for traders. In this article, we will deepen the benefits and disadvantages of each exchange that will help you make a conscious decision that is suitable for you.
What are decentralized changes (DEX)?
The distributed exchanges are the revision of colleagues that work in Blockchain technology, allowing users to buy, sell and trading directly without intermediaries, such as mediators or centralized exchange. DEXs are built on open source platforms, such as the Open Bazaar in Ethereum, which allows transparency, safety and decentralization.
Distributed Stock Exchange Professionals (DEX)
- Safety : Dexes provide high safety due to the use of intelligent contracts that automate trade and minimize the risk of human errors.
- Transparency : All DEX events are public, allowing users to monitor their property and real -time trading.
- Without a broker : Dexs eliminates the need for brokers or brokers, saves the time and effort of traders.
- Flexibility : Dex are in different types of cryptocurrency and trading protocol, which offer users more flexibility in entering stores.
Disadvantages of the distributed scholarship (DEX)
- Limited liquidity : Due to the decentralized nature, the liquidity can be limited to a certain DEX, which makes it difficult to quickly leave traders.
- Larger payments : Some dexs higher taxes compared to CEx due to their open source design and lack of centralized control.
What are centralized exchanges (CEx)?
Concentrated exchanges, in turn, work on a centralized platform with an administrator. They combine buyers and sellers through the intermediate network or brokers, who serve as intermediaries in the trading process.
Centralized exchange professionals (CEx)
- More liquidity : CEXs usually offer their larger liquidity due to their central nature, which quickly facilitates the removal of traders.
- smaller payments : Many CEXS perceive smaller payments compared to DEX, as they have more control over the trading process.
- Centralized safety : CEx can provide high safety due to the management of the centralized platform administrator.
Centralized Stock Exchange Disadvantages (CEx)
- Higher risk : CEXS has higher risks for traders because they are more susceptible to handling external parts.
- Restricted transparency : CEx often has a limited opening due to their central nature, which makes it difficult to track users and trade history.
- Broker fees : Traders can be charged for CEX use, who can eat their earnings.
Judgment
When you decide between DEX and CEX, consider the following factors:
* Safety : If you give priority, first, DEX is probably a better choice. However, if you are willing to take higher risks in exchange for lower taxes, CEx may be more appropriate.
* Liquidity : If liquidity is crucial to your stores, CEx can provide better options. However, if you find a reliable DEX to respond to your liquidity needs, you should consider it.
* Ease of use : Both DEX and CEx have their power in terms of ease of use. DEXs are often more intuitive in navigation, while CEx can be more suitable for experienced traders.
Conclusion
The debate between decentralized exchanges (DEX) and centralized exchange (CEx) is ultimately due to your individual needs and preferences. Although dexes provide greater safety and opening, they may lack liquidity and have higher taxes.