Basic Knowledge about Centralized And Decentralized Exchange - CEX vs DEX - Tron Fan Club.
Hello my dear Friends of Tron Fan Club.
In the crypto word, we face the two types of exchanges. One is Centralized and second is Decentralized exchanges. Both exchanges have their own features and rules. For become a good trader, it is very important to know about these two types of exchanges.
The biggest difference between the Decentralized and Centralized exchanges is Fund Control. In the Decentralized exchanges, investors or traders have full access and control on their own assets. In the Centralized exchanges the third parties are involved and all the assets are controlled by them.
First disscuss on the Centralized exchanges by taking the real example. Binance is the Centralized exchange, it mean that we just create an account on their server through Gmail or Phone Number but we have not a private key of our assets. In the Centralized exchanges, investors are bound to follow the rules and regulations that are set by the exchanges, if these exchanges look our assets then we can not do any thing because we have not full access on the assets. It has the high risk of hacking, our data can easy stolen. personal data of user are also stored on Centralized exchanges because every exchange must say to complete the KYC verification. It provides the facility of margin trading, futures trading and spot trading etc.
Centralized exchanges are
Binance.
Huobi Global.
KuCoin.
Coinbase
Now discuss the Decentralized exchanges. In the Decentralized exchanges, we have the private key of our account to get full access of our crypto assets. Decentralized exchanges have the high security and not easy to hack. So now the people are preferring the decentralized exchanges for trading and investing. In the Decentralized exchanges, there is no need to complete the KYC. It just base on the private key. In these exchanges, we just do the spot trading.
Decentralized exchanges are
- SunSwap
- Uniswap
- Maiar Exchange
- PancakeSwap
- HoneySwap
Thank You Guys For giving your precious time on my Post.
Private key is the base of decentralized exchanges which you have smartly presented in your post and this is really nice to compare this two popular terms.
Thanks for your wonderful post.
Both exchanges have something special to offer so I prefer using the two. For example when I want to add liquidity into a liquidity pool I use PancakeSwap. But in a normal daily bases I use Binance. Thank you for sharing