Hello steemians
I'm very happy for this rewarding academy #crypto-academy with great professors including @gbenga, who lectured us on market capitalization and cryptocurrency exchange. Read it here if you have not! and gave us this home work which I want to do justice to.

INTRODUCTION

A cryptocurrency exchange is an online business market that allows customers to trade cryptocurrencies or digital currencies for other assets, such as conventional fiat money or other digital currencies electronically. In simple terms, it refers to places usually online where you can buy or sell crypto or digital coins. Every crypto exchange has its unique rules and regulations, but they all provide you access to the most prevalent cryptocurrencies.

These exchanges comes of two kinds:

*Centralized
*Decentralized

WHAT IS CENTRALIZED CRYPTOCURRENCY EXCHANGE?

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For most digital currency investors, the centralized cryptocurrency exchange is one of the most important vehicles for transacting. Centralized cryptocurrency exchanges are online platforms used to buy and sell cryptocurrencies. They are the most common means that investors use to buy and sell cryptocurrency holdings.sources

A centralized cryptocurrency exchange is a online market where you can buy or sell digital coins electronically stored in centralized digital wallet . Some examples of centralized cryptocurrency exchanges include Binance, Coinbase, Luno, Poloniex and others.

CHARACTERISTIC OF CENTRALIZED CRYPTOCURRENCIES EXCHANGE?

PRESENCE OF MIDDLEMAN
There is a third person or middleman based on trusted medium, who monitors all the transactions and secures all the digital cryptos on behalf of the buyer and the seller. Just like banks being a traditional centralized financial institution which offer security and monitors the assets of their clients.

Financial Deals Are Not Tracked On The Blockchain
Here, there is no token needed for transaction to be conducted rather than all their assets are stored on the market on the care of middleman where the trading occurs.

Cryptocurrencies stored on the digital wallet
Every person needs a verified account with a wallet. To create this account, the person requires to submit his personal information for verification and a given key to protect the wallet. All the cryptos are stored in digital wallets. An trading will not occur, as the stored assets are safe for the investors. To handle more trading volumes involving the deposit and withdrawal quota, more personal details of the investor, will be needed. In case of forgetting keys or theft of personal details used to verify the account, one can lose his digital currency in that wallet. But will have to contact the support team of the exchange via several means provided for assistance.

WHAT IS A DECENTRALIZED CRYPTOCURRENCY EXCHANGE?

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A DEx or a decentralized cryptocurrency exchange is similar to a centralized one, except it doesn’t have a third party on which you can rely. All of the funds in this exchange remain stored on the blockchain.

These platforms allow peer-to-peer (P2P) trading for which it uses assets, proxy tokens, or an escrow system, unlike the IOU-based system a centralized crypto exchange uses.source.

However, A decentralized cryptocurrency exchange is an electronically medium where you can buy or sell digital assets electronically in which cryptos are stored on blockchain.

CHARACTERISTIC OF DECENTRALIZED CRYPTOCURRENCIES EXCHANGE?

ABSENCE OF MIDDLEMAN
Absence of third person or middleman, who monitors all the transactions and secures all the digital cryptos on behalf of the buyer and the seller. It is more reliable because of dishonesty of the middleman where human factor can affect transactions.

Transaction Deals can be Tracked On The Blockchain
There is token needed for transaction to be conducted and all their assets are monitored on the blockchains.

PEER-TO-PEER TRADING
The DEx allow peer-to-peer (P2P) trading for which it uses assets, proxy tokens, or an escrow system.

DIFFERENCES BETWEEN BETWEEN CENTRALIZED AND DECENTRALIZED CRYPTOCURRENCY EXCHANGE?

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There are lot of differences between centralized and decentralized cryptocurrency exchange but To me, I prefer decentralized cryptocurrency exchange due to ;

TOTAL CONTROL
In a decentralized crypto exchange, all the control of the account is in the hand and care of the investor without the third party or middlemen that monitor the transactions. This makes DEx more reliable and transparent exchange.

Financial Security

Many investors have lose hope on centralized exchange because it is highly unreliable and porosity which criminals or hackers utilized to fraud the centralized financial institutions.
Another issue with centralized exchange is the use of keys and personal details to protect accounts which can be lost or steal leading to the loss of digital coins which can not happens with Decentralized exchanges which the details or keys is not centralized thereby offering more protection than centralized exchanges. Now, many traditional centralized exchanges have started offering decentralized accounts to their customers like offering unique passwords to counter the security problem on the individually basis.

TRANSACTION FEES
Many decentralized exchanges either have zero charges or very minimal charges for matching orders on the blockchain while Centralized platforms requires several charges on their investors for their services. These fees vary from provider to provider according to the features one provides or what the investors engaged.

CONCLUSION

Decentralized exchange is the future and modern method where transactions take place without more hindrance and more advantages. I prefer it than my assets to be in hands of a middleman or stored in a wallets with all intending demerits.

Thanks to crypto-professor @gbenga and worth to be mention:
@steemcurator01, @steemcurator02 and @steemitblog.

All pictures are copyright-free and their sources stated appropriately. Unless otherwise comes from my screenshots of infinix 4 pro