¿Decentralized or centralized exchange for cryptocurrencies? ¡Which one do you prefer!.
author: @dimarmaca, through the Power Point 2010 tool, and using the public domain image m.facebook.com
First of all a big greeting to all the friends of hive and especially to the friends of this prestigious community of LeoFinance, in this opportunity I want to share with you all this publication related to the Exchanges, which are the most important and attractive for blockchain users.
The privacy of our capital is paramount today and there is no doubt that the decentralized exchanges (DEX), offer us the privacy of investment of our cryptocurrencies and in a very safe way.
It is very important to know when we want to make an investment the different elements that we must take into account such as: to know with which currency we are going to invest, which is the means to make the investment, to be able to have knowledge of the previous levels of volatility of the currency and that can reach the investment.
It is important to mention that there are two types of Exchanges, centralized and decentralized. Each one has its own characteristics and it is important to be able to analyze in order to use the most convenient one.
author: @dimarmaca, through the Power Point 2010 tool, and using the public domain image es.cointelegraph.com
Centralized Exchanges:
These exchanges have served for many of the digital currency investors being very important and very common its use, we can say that they are platforms that are online to be able to trade cryptocurrencies, ie for buying and selling.
One of the main features is that there is an intermediary to help the transaction and / or operation, where the buyer and seller must trust him to operate their assets. In such a way that the intermediary will manage your assets and will also search the network to trade them with.
author: @dimarmaca, through the Power Point 2010 tool, and using the public domain image bitcoin.com.mx
Decentralized Exchanges:
Unlike centralized exchanges, decentralized exchanges trade cryptocurrencies through a peer-to-peer market, i.e. there are no intermediaries, the purchase or sale of cryptos is done by the user himself.
In the decentralized exchanges there is no custody of assets, therefore the only one who has control of their assets and keys to perform exchange is the interested party, managing to enter the decentralized platform platforms when required.
In the decentralized exchanges, smart contracts are used to execute automatically, under the established orders and conditions, the records and all the operations chronologically in the block chain for auditing when needed.
Undoubtedly, being able to count on the realization of transactions safely and without intermediaries represents confidence and is a giant step in the markets of digital assets, being pioneers in the new forms of financial products.
Some Differences:
In the centralized exchanges we must create an account providing personal data that will be registered in the company's database. As well as to start trading you must make a deposit.
In the decentralized exchanges it is not required to create any account other than connecting the wallet that is compatible, nor is it required to make a deposit beforehand, i.e. the operations are anonymous.
In the centralized exchanges the investor who wishes to make a purchase or sale must generate an order and wait for a match to be generated.
On the other hand, decentralized exchanges are open to any investor who wishes to do so and do not have any type of regulation, besides being part of the great ecosystem of DeFi or Decentralized Finance.
