The Tech Quiz - Season 12 | Difference between Centralized and Decentralized Exchanges

Assalamualaikum

All the friends of Steem4bloggers have a nice day and Allah tuhada bhala kry. Today am very excited to make a post for steem4blogger community because I like the topic because I also have a great interest in the trading and also working on these exchanges platforms. Am ready to collecting the data and ready to make post so lets start.

Edited by Canva

What is the purpose of a cryptocurrency exchange?

A cryptocurrency exchange is like a digital marketplace where you can buy or sale and trade thousand of various cryptocurrencies. Its main thing is to convey a safe and easy place for users to change one type of digital currency for another or for regular money flow in their wallets.

These exchanges are crucial platforms in the big world of cryptocurrencies which provides liquidity in trades, figuring out prices of coins, and giving a space for investors and traders to do their trade on their own ways. Acting as broker they connect people who want to buy and who want to sell their assets.

Numerous exchanges also offer redundant features like wallets for cryptocurrencies,charts for analysis, and market information to understand money flow. In the end, these exchanges make it simple for everyone to get into the digital money scene, letting people easily handle their crypto investments.

Why is security important in the context of cryptocurrency exchanges?

Security is really very important in cryptocurrency exchanges to keep our money safe and your info private from others. Since cryptocurrencies are all digital form so these exchanges can be big targets for bad cyber stuff like hackers which spread all around the world. Good security system like strong passwords and defensive codes completion helps stop unauthorized people from getting in and doing harm to a crypto user.

Cryptocurrency transactions are decentralized and can not be undone as once it send we can't make possible to make it reverse, making it even more pivotal to stop any unauthorizedactivities.However the people could lose a lot of their money as crypto, and trust in the exchange would go down or ruins, If there is a security disaster occur.

So we have to insure security measurements before investing in any crypto exchange by following above information in our daily life routine.

What distinguishes decentralized exchanges from centralized ones?

The centralized exchanges and decentralized exchanges are very different with respect to the workings, which are following:

Decentralized Exchange	Centralized Exchange
In decentralized exchanges there is no one big boss or any big authority controls things. People trade directly using smart contracts like sell or buy own their own keeping control of their money themselves. This makes it more private and safer from hacking from hackeres then the centralized exchanges.	On the wise side the centralized exchanges have one main boss and authority handling everything and users have to trust the platform with their money. So there is a risk of scam in this situation no any person or company pay for your scam.
But decentralized ones focus on giving users control and keeping things secure.	Centralized exchanges generally do trades faster and have further options.
The big difference is who is in charge decentralized exchanges give power to users.	While centralized exchanges rely on one big authority.

These two pictures are also edited by canva.

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I would like to invite @steemdoctor1 , @ashkham and @casv to my post.