Decentralized Exchange Vs Centralized Exchange - Are They Future Of Exchanges ?
Hello Friends,
This blog is all about comparison between decentralized exchanges and centralized exchanges so that you can understand the basic difference between both of them .
So let's Understand first About Centralized Exchange and its pros and Cons
What Is Centralized Exchanges
Centralized exchanges are those where one exchange works as an intermediator which allow us to trade BTC or crypto against fiat currency such as binance , kucoin , bittrex , poliniex and many others .
Pros Of Centralized Exchange :
1- Easy To Use even for amatures and beginners .
2- Advance features available like ( Margin Trading & Stop loss)
3- High Volume So no problelm with liqudity
4- Trades are much faster as high number of transactions per second (Binance has 1.4 Million transactions per second)
Cons Of Centralized Exchange :
1- Exchange acts as intermediator so Trading fees is very high
2- Very high chance of exchange getting hacked and loosing all funds
3- Personal documents required for verification and to start trade (KYC Needed )
Whereas now let's talk about Decentralized Excahnge :
What Is Decentralized Exchange?
An exchange which doesn't require third party or intermediator to hold the investors fund ,here trade occurs between 2 users of the platform which you can even call as P2P (Peer to peer) .
For example if Mark want to buy 5 Bitcoin and Alia want to sell 5 Bitcoin then both will trade amoung themself on platform so there is no need of third party interference in such exchange .
Example of Decentralized exchange are Etherdelta , IDex , switcheo & Nex .
Pros Of Decentralized Exchange :
1- Very Low or nearly no trading fee .
2- Users controls there private keys so no fear of exchange hack and loss of funds .
3- No Kyc Required for verification you can directly start to trade by opening a wallet .
Cons Of Decentralized Exchange :
1- Difficult to use for beginners .
2- Low volume of exchange so liquidation is big problem until full adoption of these exchanges come .
3- For trade need to wait long to match with specific trade value because of low volume .
4- No margin or stop loss available till now .
So for now this is it about both the exchanges but now the main question arrises are the Decentralized exchange Future of crypto exchanges ? Can they replace centralized exchange ?
For me what i feel is Decentralized exchange like switcheo - https://switcheo.exchange/ can be similar like Binance and the early adopters of this exchange and coin can have the max advantage to buy it at lowest price .
Right now if i talk about the coin price is just about $0.0168 and once it is adopted by masses its value can rise just like binance coin as well .
So for me Decentralized exchange can be the future and for me i am in for switcheo coin as well as you never know when we will see this to be mass adopted and hence earn big profits over it as well .
Here Is The Video For My Friends who understand Hindi Language :
Whats your thought about them pls comment down below so i can know what you feel about it ?
Thanks
Sumit kapoor
@moneyguruu
welldone @moneyguruu
again good post its help my work
good luck
@powerupme Thanks my friend !
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I will also follow sumit sir video he have a lot of technical & crypto experience . hats off sir
me new here .only inspire by summit sir.and i think he is working much better .summit bro there is a big problum for traders in decentralized as very slowtrading.what u think in future is it faster or not? thanks
sumit bhai aap mining machine liya tha , so I want to know whether it is profitable or not ? if you suggest me i can buy it
Even i was Into mining but i feel it's quite difficult with Few Rigs only , especially in india but if you can devote time and stick it to it for couple of years and be a part of mining genuinely you can fetch profit on longer run .
Cheers ;)
Ashish
Pls do check my post of top 3 alt coin which pays passive dividend
https://steemit.com/mgsc/@shoheb.shah/top-3-coins-for-massive-dividend
i like this
do follow back help each other post
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definitely decentrlized exchange will definitely help everyone , because our bitcoin is decentralized hence we need exchange also decentralized, this will remove control of exchange also over unwanted coins and we will have better coins and better projects listed on the exchanges
@online87700 indeed as blockchain is decentralized as well bitcoin exchanges should be as well .
Hello @moneyguruu - I have seen your video on you tube about the difference between centralized and decentralized exchanges. I am going to buy some switcheo coins before its price gone to the moon. In my opinion early buyers have the more chances of getting profited.
Thank you for sharing and giving information of this unknown coin.
100% we should as it can be good for future but there is no guarantee over it but still crypto is all about predicting future and investing over it .
Ripple always
goes down why.
it don't have future
I always say Ripple is not coin that i love its just simply coin which pumps occassionaly badly like bitcoin nd you should simply take advantage of those movements !
Sumit sir,,, i will also be success on steemit please suggest me
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Hello sumit bhai. My self Hardev Singh Rathore me rajsthan jodhpur se hu aap ko thanks karna chahta hu ki aap ne muje or me kae friends ko crypto currency market me bohat help ki . Aap ka sath rahta he to me kud ko hamesa motivat mahshus karta hu .
Thanks
Hi @moneyguruu, which is the best exchanger between fiat and crypto currency? I tried to buy 50 euro of bitcoin by credit card and Changelly asked me a fee of 12,5 euro, 25% is too much, do you think so?
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This is not always true. If you hold Open.EOS for example on Bitshares, then OpenLedger has your keys. You are trusting OpenLedger not to get hacked. The rule is if you have your keys, then they are your coins. Go and find them to make absolutely sure because it is not always the case that decentralization = you have your keys.
@moneyguruu you explain everything in a simple way. and the future of decentralized exchange is great.
https://steemit.com/mgsc/@arjung216/friends-with-benifits
yes looks very great ahead .
Sir please check out my work and suggest me how will grow ?
@moneyguruu i assured you that you make a good plat form for every one.
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Thanks @moneyguruu for sharing a good article with us....
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@azhar1
My Pleasure