In simple terms, they both act as intermediaries.
In centralized exchanges, funds being transferred pass through the exchange. You send to them and they send to the receiver, this involves confirmation of transactions, which is sometimes done manually.
But in decentralized exchanges, there is a direct link frim sender to receiver. No confirmation of transactions required, nor do you need to open an account. You can always log in with metamask.
Topic: Decentralized and centralized Exchanges - page 2. (Read 353 times)
As the name implies the centralized exchange has a centralized authority who manage and operate the account on your behalf. They make payout and receive investment while decentralized (DEX) is under the control of nobody but through the blockchain technology and it is author mode.
In short, If speaking about security and privacy, decentralized exchanges are the way to go. If you just want convenience and speed, then centralized exchange are better. I suggest reading these articles[1][2] for better understandings of the pro's and con's of both.
[1] https://coinsutra.com/decentralized-vs-centralized-crypto-exchange/
[2] https://medium.com/herdius/decentralized-vs-centralized-exchanges-bdcda191f767
[1] https://coinsutra.com/decentralized-vs-centralized-crypto-exchange/
[2] https://medium.com/herdius/decentralized-vs-centralized-exchanges-bdcda191f767
you could use google to search for these basic things to find better answers and faster.
in short the difference is in how they operate.
a centralized exchange has a centralized authority that you give your money to and they offer you a platform that you can trade on while only having an account with IOUs and when you want to withdraw they have to allow you to convert those IOUs into real money (real bitcoin for example).
a decentralized exchange however doesn't have that centralized authority, you remain in control of your private keys and your money and participate in a peer to peer platform where you directly trade with other people like yourself. the befit of this is that since there is no "accounts" then there is nothing to hack or basically no centralized point of failure.
in short the difference is in how they operate.
a centralized exchange has a centralized authority that you give your money to and they offer you a platform that you can trade on while only having an account with IOUs and when you want to withdraw they have to allow you to convert those IOUs into real money (real bitcoin for example).
a decentralized exchange however doesn't have that centralized authority, you remain in control of your private keys and your money and participate in a peer to peer platform where you directly trade with other people like yourself. the befit of this is that since there is no "accounts" then there is nothing to hack or basically no centralized point of failure.
Although I have been in this Cryptocurrency space for quite sometime now but I cannot tell without mincing words the difference between decentralized and centralized Exchanges.
Can anyone help out please.
What's the difference between the Decentralized and centralized Exchanges ?
Thanks
Can anyone help out please.
What's the difference between the Decentralized and centralized Exchanges ?
Thanks
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