Decentralized Exchange VS Centralized Exchange

Decentralized Exchange

What is decentralized exchange?
A decentralized exchange is an exchange market that does not rely on a third party service to hold the customer's funds. Instead, trades occur directly between users (peer to peer) through an automated process. This system can be achieved by creating proxy tokens (crypto assets that represent a certain fiat or crypto currency) or assets (that can represent shares in a company for example) or through a decentralized multi-signature escrow system, among other solutions that are currently being developed

five Best Decentralized Exchanges To Be Used Right Now
1 . Waves Dex
Waves Dex or Waves decentralized exchange is the product of Waves cryptocurrency and blockchain Waves will enable you to make custom tokens, which means you can launch your own cryptocurrencies. You can also decentralize trading and crowdfunding, as it will come with integrated fiat currency gateways like USD/EUR/CNY right in your wallet.

You will be able to launch ICOs to fund your projects from around the world in a matter of minutes, without going through intensive cryptocurrency coding. This will make life easier for startups and open up a new era of community-backed projects.

The Waves cryptocurrency (WAVES) has real world tradable value on various exchanges.

1. OpenLedger Dex

OpenLedger is a blockchain based company based out of Denmark that provides decentralized solutions for the crypto market.

They have a decentralized exchanged known as OpenLedger Dex which is leveraging BitShare’s graphene technology to cater its services.

Opening an account on OpenLedger is quite easy as it doesn’t require any registration or KYC to start with. The only thing that you need to take care is your login password and username because that is the only thing which can help you in case something goes wrong. Your password will look something like this –P5K1qu91RAGxbc2xnH9sKvhCz31ocokr1XEKLmVXfBQFP

1. CryptoBridge Dex
   CryptoBridge is a new entry in the decentralized crypto exchange markets. CryptoBridge is a decentralized exchange running on top of the BitShares Network. It supports decentralized trading on all popular altcoin pairs without a single point of failure. You always hold the private keys to your funds, only you have access to them.

But it certainly has some USPs that makes it different than other centralized exchanges such as:-

It has native BCO token called as BridgeCoin.
It allows BCO token staking and 50% revenue share with BCO HODlers.
It has no single point of failures because of its federated servers.

The login process is quite simple where you just need to select a unique username and a cryptographic password will be generated automatically which you need to note down and keep it safe.

1. Bisq (aka BitSquare)
   Bitsquare is a peer-to-peer marketplace for cryptocurrencies like Bitcoins. It is a fully decentralized exchange which requires no name, email ID or verification.

To be a truly anonymous peer-to-peer network, it uses Tor and doesn’t hold fiat or bitcoins on their servers or in their account. Every aspect of this exchange is decentralized from placing the order, to matching the order, to executing it.

Currently, it supports 126 cryptocurrencies (including BTC) and is available on Windows, Mac, and Linux platforms, but trade volumes are low.

How Bitsqaure work is beyond the scope of this article. But in the future, CoinSutra is going to cover all important aspects of Bitsquare…

1. Stellar Dex
   Stellar which we all know is a popular cryptocurrency and blockchain project has also come up with its native decentralized exchange.

To get started on using the Stellar network, you must first create a key pair. The key pair consists of two parts:

Public key: The public key is used to identify the account. It is also known as an account. This public key is used for receiving funds.

Secret key: The secret key is used to access your account and make transactions. Keep this code safe and secure. Anyone with this key will be able to access your funds on the Stellar Dex.

Pros of decentralized exchange
user control their own funds
anonymous
no hack for central server & downtime
no trading fees
no personal documents to apply

Cons of decentralized exchange
not easy to use ( not for beginner )
basic features
if you computer has been hacked, said bye bye

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Centralized Exchange ( traditional )

What is centralized exchange ?

A centralized exchange is a website that handles the trading of bitcoin to fiat or other cryptocurrencies. An exchange's purpose is to allow you to trade BTC for fiat currency and to other cryptocurrencies

List of Centralized Exchange
Poloniex ( http://www.poloniex.com )
Bittrex ( http://bittrex.com )
Simplefx ( http://simplefx.com )
CEX ( http://cex.io )
BTC-E ( http://btc-e.nz

Pros
Advanced features
Easy to use ( not for all )
advanced tools
liquidity

Cons
Exchange control funds
Personal documents require ( for some features )
may be face with downtime or hacking attempts
not anonymous